Racehorse Owners to Stage Protest
By Indiarace Bureau

Jan 27, 2009

The Karnataka Racehorse Owners Association (KROA) and Karnataka Trainers Association (KTA) have decided to stage a “peaceful protest” on January 28 to highlight the problems and sufferings of racehorse owners, trainers, support staffs and jockeys based at Mysore. The associations claim that the owners and trainers have become financially crippled due to the unilateral cancellation of the Mysore Winter Meeting 08-09 pursuant to the spread of the Equine Influenza virus in Mysore in mid November, 2008.

The Mysore Winter Meeting 2008-09, which commenced on November 12, was abruptly suspended after November 19. It was officially cancelled by the Mysore Race Club on January 15, 2009. The Winter meeting was originally scheduled to run up to February 25, 2009. The racing would now resume only around mid-May.

The Racehorse Owners Association pointed out that cancellation of 14 race meetings in the Mysore Winter Meeting means a loss of a total stake money of about Rs. 2,34,00,000 for the owners. The trainers, jockeys and the support staffs at Mysore have also lost out on their means of livelihood, the Association points out.

Considering this, the Owners sought from both the Bangalore Turf Club and Mysore Race Club 100% subsidy and release of the Basic Maintenance Cost for and on behalf of the Mysore based horses to their respective trainers from mid November 2008 till the date of resumption of racing at Mysore. They asked for full reimbursement of all the veterinary charges and other treatment charges incurred on the horses based at Mysore during the period from mid November 2008 till the date of resumption of racing at Mysore.

The Association also asked the BTC and MRC to compensate the trainers at Mysore for the loss of their livelihood by releasing an ad-hoc amount of Rs 3,000 per horse under their care to the trainer immediately.

The Turf Clubs, however, haven’t sanctioned the relief yet. Hence, the KROA and KTA decision of staging the protest.

Press Release issued by KROA and KTA

Regarding- Peaceful Protest to be held by the Karnataka Racehorse Owners Association (KROA) & Karnataka Trainers Association (KTA) on 28-01-2009- Reason for the same.

This peaceful protest is being organized by the KROA & KTA to highlight the problems and sufferings of Racehorse Owners, trainers, support staffs and jockeys based at Mysore who have become financially crippled due to the unilateral cancellation of the Mysore Winter Meeting 08-09 pursuant to the spread of the Equine Influenza virus in Mysore in mid November 08.

As you may be aware, most of the horses at Mysore, about 450 in number were affected by what has been represented by the senior veterinary officers of the Mysore Race Club to be the dreaded virus known as Equine Influenza in the month of November 08-09. Earlier to that, this dreaded virus had already spread to other racing centers in India like Pune and Kolkata, which resulted in the postponement of the racing for atleast two months in Kolkata and postponement of the Mumbai Meeting 2008-09 from November 2008 which is yet to commence as on date.

Consequently, the Mysore Winter Meeting 2008-09 which commenced on 12-11-08 was abruptly suspended after 19th November 2008. Further the Mysore Winter Meeting 08-09 which was to run upto 25-02-2009 was officially cancelled by the Mysore Race Club on 15-01-2009.

The financial impact on the Racehorse Owners and Trainers consequent to the aforesaid decision by the Mysore Race Club as mentioned above is as follows:

  1. Since Mysore never had racing during the months of March and April due to excessive heat and scarcity of water, the cancellation of the Mysore Winter Meeting 08-09 effectively means that there will be no resumption of racing at Mysore atleast until mid may. In effect, from mid November 2008 to mid May 2009 Mysore could be totally devoid of any racing activity for a total period of about 6 months.
  1. A total number of 14 race meetings which were to be conducted during the Mysore Winter Meeting 08-09 were cancelled which effectively means that the owners who were assured a total stake money of about Rs. 2,34,00,000/- for the 14 cancelled race meetings taking into account the division of races and owners incentives by the Mysore Race Club in the prospectus released for the Mysore Winter Meeting 2008-09, have now lost all chances to earn the same. The trainers, jockeys and the support staffs at Mysore have also lost out on their means of livelihood.
  1. In this background, it is important to note that the basic maintenance cost per horse per month being borne by a horse owner is Rs. 10,850/- both at Bangalore and Mysore although the Stake money offered at Mysore is far below that being offered at Bangalore if you consider the other incentives being paid at Bangalore.. Apart from this, a horse owner additionally bears the cost of veterinary charges, feed supplements, medicines, entry fees and other incidental expenses on a monthly basis. In the absence of the possibility of earning valuable stake money by racing their horses, the owners are left with no choice but to incur this expenditure without any return on investment. This is to be coupled with the fact that they pay substantial amount to the breeders for the purchase of racehorses adds to their financial strain.
  1. At this juncture, it is important to note that the Royal Calcutta Turf Club granted a 100% subsidy to the owners on the basic maintenance fee for a period of two months i.e. for the months of November and December 2008, when the racing was suspended there due to Equine Influenza. The total payout towards subsidy by the Royal Calcutta Turf Club to owners was to the tune of about Rs.83,00,000/-. Apart from the same, the Royal Calcutta Turf Club also incurred the entire cost of medication and veterinary charges for the treatment of the horses stationed there. The traveling expenses, accommodation and professional fees of senior veterinarians from the other parts of the country who visited the Club were also incurred by the Club. The Royal Western India Turf Club also granted a 50% subsidy to the owners on the basic maintenance fees for a period of three months i.e. from November 2008 upto the end of January 2009 by which they plan to resume racing at Mumbai. The total payout towards subsidy by the Royal Western India Turf Club to owners was to the tune of about Rs. 1,80,00,000/-.
The aforesaid two turf clubs took this decision obviously after understanding the suffering and pain of a race horse owner who is the backbone of the racing industry and is the person on whose product (i.e the Race Horse) the entire Industry revolves..

  1. In this background, before listing the relief package sought for by our association from both the Bangalore Turf Club and the Mysore Race Club we wish to highlight the role played by the Bangalore Turf Club in racing at Mysore.
    1. The Mysore Summer and Winter Meetings were started by the Bangalore Turf Club during the year 1997 with the twin objectives of solving the stabling problem at the Bangalore Turf Club and also creating an additional economic activity at Mysore which would benefit both the Bangalore Turf Club and Mysore Race Club.

    2. The horses at Bangalore aged 6 years old and above were relocated to Mysore and several trainers were also granted licenses to train horses at both at Bangalore and Mysore.
  1. The aforesaid Mysore Summer and Winter Meetings over the years have not only successfully solved the stabling problem at Bangalore but have also earned valuable revenues for both the race clubs. Although the Bangalore Turf Club does grant an amount of Rs. 8.5 lakhs per race day to the Mysore Race Club as on date, it is a known fact that the BTC earns upto approximately thrice this amount out of the off course betting on races at Mysore.

  2. It is important to note that the Mysore Race Club also conducts its racing under the Bangalore Turf Club Rules of Racing. Further, the entire financials pertaining to the accounts of the owners, trainers, jockeys and the various funds established for the benefits of the support staffs (syces) at Mysore are all controlled by Bangalore Turf Club till date.

  3. It is due to the aforesaid reasons that apart from the Mysore Race Club, the Bangalore Turf Club also needs to play a proactive role in the present scenario and cannot distance itself by placing the expected argument that it is a separate and independent legal entity distinct from the Mysore Race Club .

  4. Considering all the aforesaid factors both our associations sought for the following relief from both the Bangalore Turf Club and Mysore Race Club in the first week of January 2009:

    1. Subsidizing and releasing 100% of the Basic Maintenance Cost for and on behalf of the Mysore based horses to their respective trainers from mid November 2008 till the date of resumption of racing at Mysore.

    2. Reimbursing 100% of all the veterinary charges and other treatment charges incurred on the horses based at Mysore during the period from mid November 2008 till the date of resumption of racing at Mysore.

    3. Lifting the ban on owners who have horses both racing at Mysore and Bangalore and who have been under ban by the BTC as a result of which they are unable to run their Bangalore based horses which is effectively denying them a chance of earning valuable stake money at this crucial juncture from and out of their Bangalore based horses.

    4. Return of security deposit received from trainers at the time of grant of licenses to the trainers which will go a long way in improving their liquidity at present.

    5. To compensate the trainers at Mysore for the loss of their livelihood by releasing an ad-hoc amount of Rs.3000/- per horse under their care to the trainer immediately.

  5. In response to the same, a joint meeting between the Managing Committees of the Bangalore Turf Club, Mysore Race Club and our Association was held on 11th January 2009 at Bangalore. In this said meeting, it became evident to us that both the Clubs were involved more in blaming each other for the present situation then addressing the issues on hand and holding a meaningful dialogue with our Managing Committee Members. Even till date, in spite of our repeated pleas to both the clubs, (both oral and written) we have got no indication that they are seriously considering providing some relief to our members. The constant refrain from both the Clubs is that they are in a financial crisis. To counter this claim since the BTC is controlling the financial activity to a great extent as mentioned above, we are constrained to reveal certain facts and figures from the audited and finalized accounts of the Bangalore Turf Club for the year ended 31-3-2008:

    1. The Net Cash Profit disclosed before depreciation and after tax is Rs. 1,53,27,904/- (Rupees one crore fifty three lakh twenty seven thousand nine hundred and four only) for the year ended 31-03-2008.

    2. The Fixed Deposit maintained by the Bangalore Turf Club with Banks as on 31-03-2008 is Rs. 13,25,58,109/-( Rupees thirteen crore twenty five lakh fifty eight thousand one hundred and nine only).

    3. The Total Income from races, royalty from other racing centers and other income is Rs. 61,01,35,870/-(Rupees sixty one crore one lakh thirty five thousand eight hundred and seventy only).

These figures clearly disclose that the Bangalore Turf Club is in a state of sound financial health. and far from the dismal picture being painted.

  1. At this juncture, it is also important to note that the financial contribution of the club members of the Bangalore Turf Club (about 350 in number) towards their annual subscription is a meagerly sum of Rs. 250/- per annum and has been so for the past several years. The total subscription received from members of the Bangalore Turf Club for the year ended 31-03-2008 is Rs. 1,06,700/-. This obviously means that the financial health of the Club comes from racing activity only for which the owners of horses and the other racing patrons i.e the  punters  are solely responsible.

Inspite of all the aforesaid facts, the managements of both the race clubs have chosen not to grant any relief sought for as mentioned above for the reasons best known to them.

  1. The owners on their part have been more than co-operative with the management of the Bangalore Turf Club by adhering to their rules and regulations at all times. In fact, an amount of about Rs. 6,00,00,000/- (Rupees Six Crores only) lying to the credit of the owners in various funds and accounts with the Bangalore Turf Club as on date is still being retained by the Bangalore Turf Club in trust for the owners. Keeping in mind the financial relief sought for by our associations in the present hour of crisis, the KROA has till date chosen not to claim the aforesaid amount of about Rs. 6 Crores from the Bangalore Turf Club for and on behalf of its members. However, even this gesture on our part has not been appreciated by the Bangalore Turf Club. The trainers from whom deposits to the tune of about Rs. 33.50 lakhs have been collected till date by the BTC on the pretext of it being a pre-condition for granting a license have also till the crisis erupted, not demanded the return of the same which they are forced to do now to improve their liquidity in this hour of need. In this regard, it must be mentioned that in the past, deposits collected from several trainers were returned to them after they had completed about three years of training.

  2. Since after being fully aware of the aforesaid facts and circumstances, both the Bangalore Turf Club and Mysore Race Club have shown an attitude of indifference towards us, we have been left with no alternative but to stage a peaceful protest as mentioned above to bring to the notice of the public and the racing patrons the injustice being perpetuated by the Bangalore Turf Club and the Mysore Race Club on the owners, trainers, jockeys and support staff because of whom the racing industry is still stable.
Karnataka Race Horse Owners Association
Karnataka Trainers Association

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