Simulcast Impasse Continues

by T.D. Thornton 
    At the three-week mark, the ongoing contractual standoff that is keeping the Gulfstream Park simulcast signal from a cooperative representing 23 racetracks and simulcast centers is now threatening to disrupt the distribution of races from Santa Anita Park unless a deal can be struck before California’s premier winter meet opens Dec. 26. 
Monarch Content Management (a simulcast purchase and sales agent owned by the Stronach Group) and MidAtlantic Cooperative, L.L.C. (which negotiates group rates on behalf of individual simulcast outlets from Texas to New Hampshire) have been deadlocked over the signing of a new contract since Dec. 1. 

The dispute centers primarily on the fees Monarch wants to charge in exchange for the right to bet on signals it either owns or distributes. 

A secondary stalemate centers on Monarch’s insistence on charging a higher rate to simulcast facilities that conduct little or no live Thoroughbred racing. The MidAtlantic co-op, comprised of both active tracks and simulcast-only venues, is standing firm on a same-fee-for-all-members resolve, even though some partners in the group did not hold any live Thoroughbred racing in 2014. 

In addition to Gulfstream and Santa Anita, other currently active signal exporters represented by Monarch include Golden Gate Fields, Laurel Park, Turf Paradise and Portland Meadows. 

On Monday, neither side ruled out a deal being struck before opening day at Santa Anita. “Honestly, everything in the discussion can be negotiated,” said Phil O’Hara, executive director of MidAtlantic. 

“We did reach out to the MidAtlantic just today and told them that, as long as they’re willing to abandon their one-size-fits-all approach, we’d be happy to pick up discussions with them,” said Scott Daruty, president of Monarch. 
“If we feel we’re optimistic about getting close, we could even put a temporary deal in place for them to take signals,” Daruty continued. 

The last substantial gambit was a Dec. 8 counter- proposal by MidAtlantic. 

“I’ve spoken to them twice since then and there just hasn’t been any movement yet,” said O’Hara. “The only response we got was they were going to stick to their [original] proposal. Right now we don’t have an agreement.” 
When asked what message he would like to deliver to horseplayers caught in the crossfire of the dispute, O’Hara said, “We really regret that we don’t have the content. But at the same time, the rates that have been proposed are unacceptable.” 

O’Hara said he could not cite specifics on the amount of revenue MidAtlantic members have lost because December storm cancellations from 2013 make year-to-year business comparisons difficult. 
But with the contractual unavailability of the Monarch-controlled signals, plus an entirely unrelated void in the national racing calendar with Aqueduct in the midst of a 10-day holiday break, simulcast pickings are currently slim from coast to coast. 

“Every dollar that gets sent out of the region [has an impact on] horsemen, purses and breeders’ funds,” O’Hara said. 
Daruty said he’d “rather not comment” when asked if fragmented entities from within the MidAtlantic co-op have approached Monarch about splitting from the co-op to pursue individual deals. 
O’Hara said he knows of no instance in which a member association has sought to negotiate solo. 

TDN obtained an internal update that O’Hara sent to co-op members Dec. 17. In Monday’s phone interview, O’Hara confirmed the contents of that memo, which read, in part: 

“The MidAtlantic proposal was for multiple years, to ensure stability and deter future disruptions…We are disappointed that Monarch has chosen to not even respond with any counter offer or engage in any meaningful negotiations since our last proposal…In addition, the MidAtlantic asked Monarch to specify, in writing, the terms of an extension during this negotiation period; despite repeated public claims Monarch would offer such an extension, none has been offered in writing to date.” 

O’Hara said not to presume the Christmas break means a deal can’t be reached before Friday’s first race at Santa Anita. 
“The lines are absolutely open,” said Daruty.