Editorials:

Illustration by Jimbo Albano

End of civility at the race tracks

WHEN so-called “socio-fundadores,” composed of wealthy Spanish and Filipino aristocrats and headed by the then governor-general, started horseracing in the country in 1867, they had no inkling it would be a major industry in the future.

Started as a fun-sport among the aristocrats with no betting on the side, local horseracing has evolved into a major industry 140 years later and a prime source of money for the government. From sales of P8.88 billion last year, the government earned a whopping P1.3 billion (not including the revenue for the December sales yet) in the form of taxes.

The four corners of the racing industry were thrown into chaos recently when a full-blown war erupted between the three existing horseowners’ groups on one side—the Metropolitan Association of Race-Horse Owners (Marho), the Philippine Thoroughbred Owners and Breeders’ Organization (Philtobo) and the Klub Don Juan de Manila (KDJM)— and the Philippine Racing Commission (Philracom), headed by chairman Florencio Fianza, on the other.

The owners’ groups protested the “detrimental policies and directives implemented since 2007 by the Philracom” and even declared a “racing holiday,” which is tantamount to boycotting the races that should have been hosted by the Philippine Racing Club last weekend at the Santa Ana Park in Makati. The “war” is still raging; it even spilled over to the San Lazaro Leisure Park in Carmona, Cavite, after the Manila Jockey Club failed to come up with enough horses for its night racing Monday and Tuesday.

Chairman Fianza, on the other hand, insisted “the problems in the horseracing industry have been there long before my appointment to Philracom (he was appointed May 2006) and this group of horseowners chose to bring up other issues and cannot even be honest to the public on what their agenda is.”

Pledging “to restore integrity in horseracing in the country and ensure the betting public of a level playing field,” Mr. Fianza said the horseowners’ real agenda “is all about control and their bone of contention is the (new) handicapping system” that is now in place for the two- and three-year-old horses.

The horseowners, on the other hand, accuse Mr. Fianza of being very arbitrary, insisting on drastic reforms just before the Christmas holidays and ignoring their pleas for just a two-week moratorium.

The exchange of unsavory remarks on both sides of the fence is still raging in various media outlets and the “racing holiday” declared by the owners’ groups continues. Racing insiders estimate that the four-day suspension of the races has already resulted in big losses, not only to both racing clubs but also to the government (more than P100-million lost revenue is now the rough estimate).

Thousands of families whose incomes depend on the races are suffering, too. They include those of the trainers, jockeys, grooms, who do not receive salaries, unlike most of their counterparts abroad; they only get “commissions” from the winnings of their assigned horses. No races mean no winnings, and no winnings mean no money for the family. It’s as simple as that.

Then there are also the owners of the off-track betting stations (there are more than 300 OTBs nationwide) who depend on their 75-percent commission from the gross sales of their respective OTBs to pay for their rented stalls.

The racing clubs have already lost their respective 8.5 percent from the expected gross revenues which would amount to several millions even while they continue to pay their organic personnel. Without any sales, the government gets no revenue in the form of taxes.

The “racing holiday” is, indeed, wreaking havoc on the lives of many people who depend on the industry. Allowing it to continue will only heighten the tension between the warring sides and worsen the sufferings of families who have no direct participation in the “war of nerves;” Definitely, this is most unfair to the latter. Many are also afraid of the “ugly scar” the skirmishing would leave not only on the warriors but also on the very industry both parties claim to love and cherish.

The “racing holiday” brings to mind the suspension of the “daily-double” betting scheme for almost two months last year because of its suspected manipulation by illegal bookies. The suspension greatly reduced sales when the betting scheme was eventually restored, and many believe the exchange of “ugly words” between the two sides was partly responsible for it.

Many fear the acrimonious exchanges in the current feud may have the same effect even after it is finally over. But as things look, the situation may get worse before it gets better. Chairman Fianza and the horseowners’ groups—particularly Mandaluyong Mayor Ben-hur Abalos, who heads one group—seem utterly convinced of the justness of their positions. And this means the prospects of an early settlement of the case are not hopeful 

The Office of the President, which directly supervises Philracom, can help in the early resolution of the case. Perhaps bringing the parties to a conference table to thresh things out can be a good start.

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