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[Jeff P]

At some point track management, the CHRB, and the TOC will have to face reality.

THEY created this.

It started in 2009 when the above named entities lobbied the CA Legislature and Governor for a bill that (as a trial balloon) brought 24.02% exacta takeout to Los Al and the Cal Fair circuit.

During the first six months of that (first) takeout increase ON TRACK handle at Los Al dropped 27% vs. the prior year.

And when I pointed that out to the above named entities:

They said the drop in on track handle didn't matter and that "We're doing just fine."

And based on the words that I quoted ("We're doing just fine.") which were spoken by Los Al track management to the Commissioners of the CHRB during a public CHRB meeting: The Commissioners of the CHRB voted 7 to 0 to make the takeout increase at Los Al and the Cal Fairs permanent.

The following year the above named entities (track management, the CHRB, and the TOC) doubled down on the idea that the customer doesn't matter.

They lobbied the CA Legislature and Governor for a bill (SB1072) that brought 22.68% exacta takeout to Santa Anita, now closed Hollywood Park, Golden Gate Fields, and Del Mar.

When the SB1072 takeout increase went into effect on Jan 01, 2011 the result was predictable:

Handle fell.

Purses went down (not up as promised.)

Total revenue for tracks fell. (To the point that hundreds of jobs were cut.)

Demand for Cal Breds has fallen.

At this point it's painfully obvious.

SB1072 has been a colossal failure.

You see THEY (track management, the CHRB, and the TOC) are still operating under the belief system that the customer doesn't matter and that it's ok to raise prices in the face of falling demand.

At some point track management, the CHRB, and the TOC will have to face reality.

You see the number of horses bred each year is a function of demand.

As in total customer spend and demand for your racing product.

Ignore that, and you get where Cal Racing finds itself today.


-jp

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