If they really want to implement what they are trying, the condition should be for trainers who have had fewer than x thoroughbred starters in races with a purse greater than $y in the past 6 or 12 months. That would allow the LA barns to enter in most cases while also stopping any larger out of operations shipping in.
Much like with their new MSWs, they would have been better served borrowing from NYRA and running a $150,000/$200,000 maiden claim with their auction restriction to stop well bred homebreds from entering.
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