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Old 08-12-2017, 03:44 PM   #1
highnote
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how to start a racetrack business

This thread is about how to go about starting a horseplayer friendly racetrack.

We were discussing it in the keeneland thread and it was taking us away from the main topic.

Feel free to jump in here with ideas.
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Old 08-12-2017, 03:49 PM   #2
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My idea is that a group of horseplayers should get together and form a company to build a racetrack or buy a distressed one.

Nowadays, you companies can form "microventures" where stock can be issued privately to a large number of small investors.

In the old days, if a company was going to issue stock to more than something like 50 people, the investors had to be "accredited". That meant the investor needed a net worth of something like $2,000,000 or an annual salary of something like $200,000 per year for at least two years in a row.

That all changed when the JOBS Act was passed during the Obama administration. Now it is easier for startup companies to raise cash from a large number of small investors. A person can put in as little as $10 or $100. I think their might be an upper limit, too -- maybe like $10,000,000? Once you get so big you have to register with the SEC.
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Old 08-12-2017, 03:54 PM   #3
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What I meant by signal is two fold why I think it was an issue

1) it made it a practical impossibility to offer rebates

2) principle, tracks just didnt want to support a track who was cutting the very rake that they endorse. If it was successful it would be long term problematic for them

Its been a while, but I know Ellis had some issues when they offered some real low take bets.
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Old 08-12-2017, 03:57 PM   #4
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It's the horseplayers' nature to disagree on every single aspect of this game. How are they to agree on "how to run a racetrack"?
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Old 08-12-2017, 03:59 PM   #5
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Originally Posted by highnote View Post
My idea is that a group of horseplayers should get together and form a company to build a racetrack or buy a distressed one.

Nowadays, you companies can form "microventures" where stock can be issued privately to a large number of small investors.

In the old days, if a company was going to issue stock to more than something like 50 people, the investors had to be "accredited". That meant the investor needed a net worth of something like $2,000,000 or an annual salary of something like $200,000 per year for at least two years in a row.

That all changed when the JOBS Act was passed during the Obama administration. Now it is easier for startup companies to raise cash from a large number of small investors. A person can put in as little as $10 or $100. I think their might be an upper limit, too -- maybe like $10,000,000? Once you get so big you have to register with the SEC.
I don't think you have any idea what a morass of quicksand you would be stepping into.
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Old 08-12-2017, 04:04 PM   #6
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Here are some ideas for the new Bush League Downs Racetrack sans Casino:

1.) The racetrack company buys a piece of land to build a racetrack on.

2.) The track has low takeouts.

3.) The track is a simulcast-only track. There would be no on-track betting.

4.) The track's signal would distributed as far and as wide as possible.

5.) The horses would be mainly cheap claimers.

6.) The goal would be to have 8 or 9 races per night with 12 horse fields.

7.) Purses would be relatively small. Think Mountaineer Park when it used to be Waterford Park -- long before they had slots.

8.) A bonus purse could be paid to the owners of a race based on handle for the race. It would be paid once the betting handle account was reconciled.

9.) Expenses would be kept to a minimum. The operation would run on a shoestring, but bonuses would be paid based on handle.

10.) There might be a small fee to the owner to enter the race.

11.) The owner pays the jockey directly.

I could go on. You get the idea.
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Old 08-12-2017, 04:21 PM   #7
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3.) The track is a simulcast-only track. There would be no on-track betting.

4.) The track's signal would distributed as far and as wide as possible.


Gulfstrem Park West.
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Old 08-12-2017, 04:24 PM   #8
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It's the horseplayers' nature to disagree on every single aspect of this game. How are they to agree on "how to run a racetrack"?
Those were my exact thoughts, you beat me to it.
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Old 08-12-2017, 04:25 PM   #9
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Gulfstrem Park West.
Is that the old Calder racetrack?

What are their takeouts like?
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Old 08-12-2017, 04:26 PM   #10
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Those were my exact thoughts, you beat me to it.
That's why companies have a board of directors.

The way I look at it is that Elon Musk can build an electric car, solar roof tiles, and send rockets into outer space.

Those seem harder than running a racetrack.
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Old 08-12-2017, 05:01 PM   #11
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Fraught with problems from the get go...

Unless you do it "their" way -- the other tracks and horsemen are going to do everything in their power to make sure you fail.

I'm guessing:

Horsemen will vote to block your signal because your takeout and signal fees are too low.

Or maybe they will vote to block your signal because you decided to use someone other than Roberts because you wanted your video to not 'hang' in the middle of a race or have a built in 30 second lag time.

Or maybe you wanted players to actually be able to see your horses during post parades and warm ups. So you decided to do away with those stupid graphics that take up 70% of the screen so the cameraman could zoom in on the horses.

Or maybe because you decided to do away with runups entirely -- and time each horse -- accurately!

Or maybe because your stewards aren't afraid to hand out suspensions to jockeys for rides that are -- ahem -- questionable.

They'll find a reason (no matter how stupid) to block it.

Horsemen will pressure The Jockey Club to have your races be unsanctioned.

Horsemen will pressure Equibase to not collect and disseminate data for your track. (After all, your races aren't sanctioned.)

If you want to run drug free horsemen are going to figure out a way to keep that from happening.

Other tracks will figure out a way to prevent horsemen from shipping out to your track.

And on and on and on...

You'd basically need a mountain of venture capital to start with because you (literally) are going to be your own island -- with everybody in the industry rooting against you.



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Last edited by Jeff P; 08-12-2017 at 05:15 PM.
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Old 08-12-2017, 05:17 PM   #12
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Geez, you forgot that you have to invest in owning a racing commission and a big handful of legislators.
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Old 08-12-2017, 05:18 PM   #13
highnote
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Originally Posted by Jeff P View Post
Fraught with problems from the get go...

Unless you do it "their" way -- the other tracks and horsemen are going to do everything in their power to make sure you fail.

I'm guessing:

Horsemen will vote to block your signal because your takeout and signal fees are too low.

Or maybe they will vote to block your signal because you decided to use someone other than Roberts because you wanted your video to not 'hang' in the middle of a race or have a built in 30 second lag time.

Or maybe you wanted players to actually be able to see your horses during post parades and warm ups. So you decided to do away with those stupid graphics that take up 70% of the screen so the cameraman could zoom in on the horses.

Or maybe because you decided to do away with runups entirely -- and time each horse -- accurately!

Or maybe because your stewards aren't afraid to hand out suspensions to jockeys for rides that are -- ahem -- questionable.

They'll find a reason (no matter how stupid) to block it.

Horsemen will pressure The Jockey Club to have your races be unsanctioned.

Horsemen will pressure Equibase to not collect and disseminate data for your track. (After all, your races aren't sanctioned.)

If you want to run drug free horsemen are going to figure out a way to keep that from happening.

Other tracks will figure out a way to prevent horsemen from shipping out to your track.

And on and on and on...

You'd basically need a mountain of venture capital to start with because you (literally) are going to be your own island -- with everybody in the industry rooting against you.



-jp

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I'm trying to figure out if you're a realist or a half glass empty type of guy?
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Old 08-12-2017, 05:19 PM   #14
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Originally Posted by johnhannibalsmith View Post
Geez, you forgot that you have to invest in owning a racing commission and a big handful of legislators.
I was actually trying to type something along those lines but ran out of edit time.


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Old 08-12-2017, 05:20 PM   #15
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Geez, you forgot that you have to invest in owning a racing commission and a big handful of legislators.
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