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Most of the horses in Charles Treece's care are Quarter Horses. If the race in question is a Thoroughbred race, and Treece doesn't have more than 20 head in his barn of Thoroughbreds, then in my opinion, Treece did not violate "the spirit of the rules" here. When was the last time Santa Anita ran a Quarter Horse race?
Of course, you can argue that the wording of the condition was poor (it never specified any particular breed). However, if Treece was a Standardbred conditioner with over 20 head, and suddenly entered a Thoroughbred, could this trainer have had grounds for a protest, especially since Standardbreds don't compete against Thoroughbreds?
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