Cal Expo license extended despite financial problems

Although the Sacramento Harness Association’s license to race at Cal Expo was set to expire Saturday, the California Horse Racing Board has reportedly granted an extension through March 30. The current meet is scheduled to run through Aug. 2, but financial problems could prompt a change.

According to a story in Thursday’s Sacramento Bee, the SHA must present audited financial statements and proof it can cover its obligations to be licensed beyond March. The story stated the purse account is underpaid about $350,000, but the SHA has only about $100,000 available. Thus, the SHA has secured a $400,000 letter of credit from Los Alamitos Racecourse owner Ed Allred to cover the difference.

"We're doing everything we can to keep harness racing viable," CHRB chairman Richard Shapiro was quoted as telling the SHA. "This board wants to see harness racing continue. … We're going to license you through March, but we want to see you succeed for years and years to come.

"When I first heard their application (in December), it was very clear to me that they were insolvent," Shapiro said. "They don't have any money. What's their solution? We're looking for ways to keep them in business."

The SHA recently received a 14.2-percent rent reduction at Cal Expo. The Racing Board said the SHA needed to reduce expenses and show a healthier bottom line as a condition for the license; the SHA plans layoffs and budget cuts.

"We jumped through a number of hoops (Wednesday), but ultimately not all of them," SHA general manager Dick Feinberg told the newspaper. “We're halfway home. … At least, the board sent a clear message to the harness industry and Sacramento; they'd like to keep racing here through Aug. 2 and beyond that."

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