Codey suggests solution to purse impasse

While the Standardbred Breeders and Owners Association of New Jersey (SBOA/NJ) continues to call attention to the impasse that has kept purse subsidy funds from flowing into Freehold Raceway, Freehold Raceway’s Don Codey told harnessracing.com that he has written a letter to the Casino Association of New Jersey, suggesting a solution to the impasse.

Freehold Raceway president and general manager Don Codey wrote the letter Nov. 11, but as of Friday morning, Nov. 14, he had not yet heard a response to his suggestion.

“We think our proposal, that any restrictions be racetrack-restricted, this appears to us to be the best solution of all,” said Codey. “We’ve asked the casinos to make this racetrack restrictive—that was the policy in 2004.”

The deal announced earlier this year for a purse subsidy in New Jersey from the casino industry was brokered by the Casino Association of New Jersey and the New Jersey Sports and Exposition Authority, whose two tracks, the Meadowlands and Monmouth, will receive 93 percent of the purse funds. Freehold would receive seven percent.

The purse agreement carries the restriction that the parent companies of Freehold Raceway—Penn National Gaming Inc. and Greenwood Racing—cannot pursue gaming outside of Atlantic City for three years.

Codey noted that Penn National Gaming is a publicly-traded company. “The fiduciary responsibility of a public company indicates that they can’t sign any agreement that prohibits them from getting involved in a business opportunity. What sense does it make for a chairman of a board of a public company to sign this?”

Codey added that in the prior purse-supplement agreement, Freehold Raceway—and all of the tracks--agreed not to pursue any gaming opportunities at the racetrack, but there were no restrictions on parent companies or affiliates.

While Codey was penning his letter to the casino association, the SBOA/NJ has been busy explaining its position on the matter and earlier this week it asked Freehold Raceway to either sign the deal or sell the track.

Also, legislators are reportedly unhappy that the purse agreement, which took place with the approval of state government, has not been signed. Monmouth County legislators—who represent the area where Freehold is located—are reportedly planning put their position on the record at a meeting of the New Jersey Racing Commission on Wednesday.

The Racing Commission is scheduled to award dates at the Wednesday meeting. SBOA/NJ president Tom Luchento has said that the commission should withhold approval of 2009 dates for Freehold until the purse subsidy agreement is signed. Freehold applied for its usual 192 racing days for 2009; its application and others will be addressed at the Nov. 19 meeting of the NJRC.

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