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The Horsemen's Newsletter

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The Horsemen's Newsletter The Horsemen’s Newsletter January 2015 Vol. 25 • Number 1 Sinatra, Ritvo Take Helm at MJC Tax Break on STRONACH GROUP TOTALLY FOCUSED Racehorses ON MARYLAND RACING’S REVIVAL Ask Salvatore “Sal” Sinatra (pic- Helping him get acclimated here tured), the Maryland Jockey Club’s is Tim Ritvo, chief operating officer Passes new vice president and general of The Stronach Group, which owns manager, if he’s related to late singer the Maryland racetracks. Congress Frank Sinatra and he’ll laugh. Ritvo was a former jockey and “No,” he said. “I’m not related trainer before becoming director A provision that retroactively extends three-year tax and you don’t want to hear me sing. of east coast racing for MI Develop- depreciation for all racehorses was passed by the United But I do have blue eyes.” ments in 2011. Now, besides being the States Senate Dec. 16 as part of bill H.R. 5771. And as Sinatra casts his eyes over COO for The Stronach Group, he is The bill, which extends retroactively through the end his new domain at Pimlico Race also the president of Gulfstream Park of 2014 numerous provisions which expired or were re- Course and Laurel Park, they bright- in Florida. He helped oversee the re- duced at the end of 2013, passed the House of Represen- en in anticipation of what he hopes development of that track and Santa tatives with overwhelming support and is expected to will come to be. Anita in California, before being sent “I’m not overwhelmed by what’s to Maryland this month to oversee the pass into law with President Obama’s approval. ahead,” said Sinatra, who spent 15 redevelopment of Maryland racing. Continues Page 2 years building the racing product at “I’m here to help Sal develop the Parx Racing in Pennsylvania. “I’m right structure,” said Ritvo, a 30-year excited. Maryland has a good foun- veteran in the sport. “He’s coming Construction dation with good horses and good in from Parx Racing, and I’m teach- horsemen. Maryland is a horse- ing him how to structure Maryland of New Barns friendly state. Its citizens are proud racing for the Stronach Group. He’s of the Preakness. general manager, handling the day- “I’m here to try to build handle to-day operations, and I’m oversee- Begins at and to get more people into our ing from corporate.” buildings. I have to figure out The arrival of Sinatra and Ritvo why our signal isn’t as well signal a new focus by the Stro- Laurel Park received as it should nach Group on Maryland rac- Construction equipment rolled be. We have genera- ing. Ritvo said since 2010, into the barn area at Laurel Park tions of horsemen of when all the Stronach the week before Christmas as terrific quality; we Group-owned racetracks Maryland Jockey Club have a racing secre- became a separate entity, has broken ground tary in Georganne breaking away from MID, for the building Hale who does a great a publicly traded com- of long-promised job. It’s a much better pany, the handcuffs have new stalls at product here than I had been taken off and Stron- the racetrack. at Parx. It should be doing ach Group has been “I think there is definitely a buzz, a new enthusiasm much better and I’m here able to move around here, because after all the promises over all to help find a way f o r w a r d the months and years, it appears things are happen- to make that with rede- ing,” MTHA President Tim Keefe said of Laurel Park’s hap- uplifted atmosphere. pen.” Continues Page 3 Continues Page 4 Continued from page 1 Christmas Party, Toy Drive Maintaining the three-year recovery pe- riod for racehorse purchases has been a top legislative priority for the National Thor- Both a Phenomenal Success oughbred Racing Association since the provi- sion’s initial enactment as part of the 2009 Farm Bill. “The renewal of three-year tax deprecia- tion for racehorses indicates that lawmak- ers understand the contributions our indus- try makes to job creation and the country’s overall economic health,” said Alex Waldrop, NTRA president and CEO. The provision allows taxpayers to depreci- ate racehorses 24 months of age and younger when purchased and placed into service on a three-year schedule as opposed to a seven- year schedule. The accelerated schedule bet- ter reflects the length of a typical racehorse’s career and is more equitable for owners. H.R 5771 also retroactively extends two oth- er provisions that spur investment in racehorses. “Bonus depreciation” remains set at 50%. This investment incentive permits taxpayers to depreciate in the first year 50% of qualified property purchased and placed into service. Yearlings that an owner purchases and puts into a training program are one example of eligible property. The “Section 179 expense allowance” remains set at $500,000, with a $2 million threshold for qualified new or used property purchased and placed in service by small business owners in many industries. Total purchases of qualified property that exceed $2 million reduce the taxpayer’s expense al- lowance dollar for dollar. Broodmares may be eligible for expensing and are an example of used property because of their prior use as a racehorse or broodmare. Information on H.R. 5771 can be found on the U.S. Congress website by clicking here. The sections of key interest to the Thor- oughbred industry are Item 121 (racehorse depreciation), Item 125 (bonus depreciation) and Item 127 (expense allowance). A record crowd of over 350 horse- The Horsemen’s men danced the night away and enjoyed MTHA Toy Drive, the festivities at the MTHA Christmas Party which was a brainchild of MTHA’s Race- Newsletter Awards Ceremony on Monday, December 15 track Representative Diana Pinones. in the Carriage Room at Laurel Park. Published by the Receiving awards on the night were Santa visited the Laurel Park track kitch- MTHA Richard and Karen Papiese’s Midwest en on December 23 and distributed the toys Thor oughbreds (Outstanding Owner), Phil collected to children of backstretch work- 500 Redland Court – Suite 105, Schoenthal (Outstanding Trainer) and Back- ers employed at Laurel Park, Pimlico and Owings Mills, Maryland 21117; stretch Employees-of-the-Year Ronald Singh Bowie Training Center. (410) 902-6842; Fax: (410) 902-6841; (Pimlico), Dottie Jones (Bowie) and Victor A special thank you goes out to horse- E-mail: [email protected] Garcia (Laurel Park). men who donated toys and/or money for Website: www.mdhorsemen.com In addition, scores of toys were collected this occasion as well as those who helped at the door of the event for the 1st annual wrap and distribute the gifts. Continued from page 1 Continued from page 1 velopment at Gulfstream Park and Santa Ani- ening it up,” Sinatra said. “We want to of- How long it will take is an open-ended ta in California. Those tracks are now func- fer people something when they come here. question. Both Sinatra and Ritvo say their of- tioning soundly, and The Stronach Group is The Preakness is a great event, but we want fice doors are open to all and that they will now entirely focused on improving Maryland to be able to offer our fans some- be as forthright as possible with racing. thing the next day, too. We want anyone who has questions for “That could take a while,” Ritvo said. to try not to be stale. We want life them. “Fortunately, Maryland is rich in history and here.” culture. It’s a key state where Thorough- Together, Ritvo and Sinatra Right now they are both set- bred racing should thrive. We’re digging are working on a process that tling in, apartment hunting. Sina- into the weeds to find out why it isn’t and they hope will bring change to all tra said he hopes to be here for we’re going to put in place a structure that of Maryland racing. another 15 years, “long enough we hope will make Maryland’s signal the Ritvo believes one of his to see a Maryland horse win the fourth strongest in the country behind only strengths is that he knows all as- Kentucky Derby and the Preak- Florida, California and New York.” pects of the sport. He knows the Tim Ritvo ness.” Meanwhile, Ritvo said he’ll Ritvo said he wants to make the Maryland back side of a racetrack as well be here until Maryland racing is signal more interesting to fans around the as the corporate offices. What his experience rebuilt and back at the top of the sport. country and already sees two ways he wants has taught him is that “without the horsemen, to start working on that – by increasing field breeders and tracks working together, there “I will be here seven days a week, as long sizes and by lowering takeout rates to make will never be success. as it takes,” Ritvo said. “I’m a horseman. wagering on Maryland races more enticing. “What we’re building is a win, win, win Horsemen work seven days and so do I. But He said management will weigh a lot of program,” he said. “In it, the breeders win, getting it all done will take time, maybe even issues and run financial models and look at the horsemen win and the track wins.” years.” some complicated formulas to evaluate and determine “what moves the needle” in terms of increasing handle and revenue and low- ering takeout rates.
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