The State of Horse Racing

Business Lexington - Lexington,KY,USA

The State of Horse Racing

2008: For an industry that many predicted would be relatively immune to an economy in decline, the horse business has seen its share of tumult in 2008. The euthanizing of Eight Belles at the Kentucky Derby, followed by a series of suspicious performances by Big Brown calling attention to the use of steroids, caused onlookers to question ethical practices within the industry. Business Lexington articles on the horse industry in 2008 focused on the shift to off-track betting and the lack of centralized racing authority, topics that have weighed on the racing industry and to which our readers responded with fervor.

2009: Business Lexington horse industry columnist Rab Hagin predicts that "the overall equine industry will suffer from the economic downturn. Prices for all breeds of horses will decline, but some facets of the horse industry, like recreational trail riding, might grow in popularity. Participation in horse shows and other structured equine events will probably decline — though not precipitously." As for the Thoroughbred industry, Hagin predicts an overall decline in stud fees and sale prices, forcing "creative breeding arrangements" to become more commonplace. He also predicts we will see "continued horsemen's boycotts at various tracks over disputes about sharing advance deposit wagering (ADW) revenue, forcing some tracks to miss racing dates and subsequently reduce purses. ... Buyers from emerging markets like South Korea and Mexico will become more prominent in purchasing moderately-priced stock. There might be nascent movements towards real (as opposed to theoretical) consolidation of industry oversight and a national business model. The Thoroughbred industry — like the auto industry — might be forced, painfully, to acknowledge that its old state-by-state structures are woefully anachronistic."

2010 World Equestrian Games

2008: 2008 marked the "Halfway there" point for the 2010 FEI World Equestrian Games. It's a year that saw the resignation of Jack Kelly, chief executive officer of the World Games 2010 Foundation; the beginnings of millions of dollars in hotel renovations; and announcements of new sponsors (including Ariat and John Deere) and business partners (including Shorts Sports and Events, NBC Sports and United Way). Construction for a new indoor arena and outdoor stadium began at the Horse Park, and the city announced that a 16-day festival — Spotlight Lexington — will take place in downtown Lexington coinciding with the Games.

2009: According to Amy Walker, "We're only going to get busier as we progress toward 2010." Walker, the public relations manager for the World Games 2010 Foundation, said she's looking forward to 2009 as being the year when many aspects of the Games that WEG has been planning for the past two years will actually start to take shape.The city is planning on getting out entertainment applications for Spotlight Lexington in the first part of the year; according to Director of Special Events Penny Ebel, applications are open to street entertainers, bands and visual artists in Kentucky. At the Horse Park, the stadium and the indoor arena are both slated to be finished in spring of 2009, and WEG will begin test events, in the form of FEI competitions that will test various aspects of the facilities and overall functionality. General-public tickets for the WEG will go on sale on September 24.