I. Introduction
Thoroughbred Racing enters the 21st century in a flux, internal and external difficulties threatening its survival. There once was a time in the early 1900s when 30,000 people came to Arlington Park in the Chicago suburbs, presidents stopped their meetings to watch the races and racing pushed the Cubs off the front of the sports page (McEvoy). With casino gambling restricted to Nevada and New Jersey and state lotteries just a twinkle in lawmakers eyes, horse racing had a monopoly in gambling through pari-mutual betting. Racing seemed to be holding up to the intense competition with new exotic betting types, more races, more days and ultimately simulcasting. But the late 1990s was a different story, nearly every state has a lottery, and casino type gaming has gained a foothold in many forms including Indian reservations, river boats and casinos in the inner cities.

According to Larry Stumes, Golden Gate Fields in northern California, reported $4.2 million in handle for 1999 compared to $2.7 million in 1993. However, despite rising handle, the true barometer of interest in the sport, attendance, was dropping around the nation. Santa Anita Park in the Los Angeles area reported in 1987-88 an average attendance of 27,322 and 33,533. This year's figures were 23,396. Smaller tracks like Golden Gate Field dropped from a daily average attendance of 10,075 in 1985 to 3,111 in 2000 (D-1). Horse racing was lacking a cohesive plan with infighting between the large, profitable tracks and the smaller tracks that saw their customers lured to "easier" gaming opportunities.

Marketing racing was made more challenging by years of being associated with race fixing and having no retort through national press or television coverage. The biggest marketing faux pas of the history of the sport was the refusal by racing official against racing coverage when television was in its infancy. By the time racing realized television would not draw away patrons and would instead keep the sport in people's conscious, it was too late (McEvoy). Baseball, football, basketball ruled the prime time slots and by the 1990s television brought ice skating, NASCAR & golf, cutting into the few hours racing was shown. ABC once had one hour broadcasts of Grade I competitions, but by 1996, telecasts were regulated to a few minutes between other sporting competitions. In 1997, horse racing had a total of 12 hours on network television (Law). With cable added into the totals, racing had 137 hours in 1999, however about 75% of the total was on cable, limiting the audience able to appreciate the coverage or the advertising for racetracks. Racing had reached its lowest point and something had to be done as river boat and Indian reservation casinos continued to siphoned revenue and customers.

Hope brought about by desperation appeared in the form of the NTA (National Thoroughbred Association) formed by frustrated owners, which became the precursor to the current marketing arm of the industry, the NTRA (National Thoroughbred Racing Association). The success of this new organization is unknown at this time, but I believe it is failing in one of the most important areas it is responsible with: marketing the sport.

II. History - Image

But what is the underlying reason for the failure of racing to gain a new audience? Racing has been trying for nearly two decades using casino strategies to lure customers by having free giveaways and special services for high rollers. Although successful on some tracks, it is an expensive strategy. However the programs were better for luring semi-regular visitors who mostly come for the giveaways and bet very little or keeping the high rollers, who have kept the sport alive. There were no programs to bring in new fans or novice bettors who were intimidated by the hundreds of betting types.

The marketing strategies employed seemed sound as it appears to be similarities between horseracing and casinos. Before the advent of state lotteries and the legalization of card clubs, casinos and racetracks were the only means to legal gambling. Horseracing had an advantage because they were not regulated to certain states like casinos. They also share a similar problem, the dissolute image casinos used to have because of their past association with the Mafia, is similar to the pervasive image racing has of fixed races and as a haven for nefarious characters.

The image problem however, is not new.  It can be traced back to the beginning of organized racing in England. In the 1600s, Oliver Cromwell, Lord Protector, had ordinances against a variety of sports including horseracing, prohibiting racing in 1650-51 and 1654-55. His motives are unknown although Coward mentions he "had no wish to have his military and political objectives interfered with by the subversive activities of the Royalists, who used the race meetings as gathering places for purposes not entirely confined to the sport" (51).

By the 19th century, self regulation came about as King Charles II approach to racing was hands off. However, the growing commercialization and the involvement of large amounts of money attracted fraud and dishonesty. As it will be a repeated pattern, horse racing ignored the problem. It took a letter from Lord Derby in 1857 to force the Jockey Club to adopt a new code of rules since it inception 107 years ago (Coward, 53).

In America, Thoroughbred racing was still unorganized, with no starting gates or timing of races. It did however, help Lexington become the epicenter of racing. In the twentieth century, Racing had to face some of the biggest upheavals with various states banning racing as reformers raged against alcohol and Sunday activities. The early 1900s found the major racetracks in New York closed by the Hart-Agnew addendums banning gambling and owners sold their bloodstock to Europe as the business loss any value. However, many European countries were outraged at the sudden import that threatened their own bloodstock markets and passed laws requiring all Thoroughbred horses trace to the original Stud Book. Such laws would hamper any owner from shipping American horses to Europe to race or sell (Simon).

Then came World War I, further hampering racing. When racing returned, they were faced with extreme "sin" taxes on the revenue and the land the tracks sat on. As we enter the 21st century, these taxes have become the primary reasons racetracks have been sold to become malls or valuable real estate in the form of housing developments or office buildings. In the 1990s, Detroit Race Course, Bay Meadows in California and Garden State Racetrack in New Jersey have been sold and are set to be demolished to make way for such developments (Harrell, Johnson & LaMarra).

After the first world war, the United States was largely unaffected and importation of European bloodstock to raise funds for the war aided America in regaining the lost bloodlines lost prior to the first world war. And it was from those importations where some of the ancestors of one of the greatest runners in the twentieth century, Man O'War, came to be.

Man O' War, aka "Big Red" would become a living legend, setting track records and winning by great number of lengths. A product of European blood (West Australian from his sire Fair Play and Rock Sand, his broodmare sire) and America's ‘mongrel' bloodlines, he represented the new American Thoroughbred. Like his namesake, the horse smashed standards and retired when there was nobody else who wanted to run against him. Like Man O' War, America prospered and so did the sport of horseracing. As many as 30, 000 a day came to Belmont Park and fire marshals had to come for fear of fire hazards because of the crush of people who tried to get into the gates.

The gains continued even when the United States declared into World War II. Racing and other sports kept morale up and when war materials were needed, racetracks dismantled parts of the grandstands to supply much needed rubber and steel (Simon). Post war economics continued growth of the sport as Americans gained more leisure time to enjoy a variety of options available.

The good times rolled on, but the beginnings of the shaky foundation was being built. The late 40s through the 1950s saw Calumet Farms dominating the Triple Crown events and the first televised Thoroughbred star. Native Dancer, the "Grey Ghost" was easy to spot on black & white television. Despite losing the Kentucky Derby, the grey colt was a favorite with fans (Schmitz).

The 1960s saw the continued popularity of racing, the 70s however, was a mixed bag. Attendance was slipping and so was handle. The change in how the business of racing was conducted would develop. Whether for the better or worse, it was another possible circumstance to what has led us to the lack of large fields in race cards.

The 1970s started like gangbusters with Secretariat. The chestnut son of Bold Ruler showed a glimpse of what Man O' War may have been like 50 years ago. Dominating his rivals and with his charismatic owner, Penny Cherney, he was a star to be born. Because Cherney was inheriting her father's estate, fears of high taxes and loss of value after Secretariat's champion two year old season necessitated he become the first horse to be syndicated before he retired (Crist, 65).

Secretariat did not disappoint, winning the Triple Crown in spades, demolishing new track records. He would grace the covers of Time, Life, Sports Illustrated & the National Observer magazines (Crist, 71). Secretariat, like Man O' War was retired at the end of his 3-year-old campaign, as there was little else to prove and new fears of losing his value should his form go down when he ran as a four-year-old. It would take another decade before early retirement became common, but it was set by one of the greatest runners in the latter part of the twentieth century.

Racing received a good bounce off of Secretariat, the bleeding of fans seemed to have slowed a bit. But the hemorrhage to come was ready to return. The best remembered race for its impact on the sport was the match race against Foolish Pleasure and Ruffian in 1975. The two champions dueled through the 1 1/8 race, but as they entered the home stretch Ruffian broke down. The great filly broke her leg in front of thousands on the track and millions on television saw the cruelty of the mechanics of the horse. Balanced on one toe, carrying 1000 pounds of flesh as the bones absorb the impact of each stride, Ruffian had reached her breaking point. Carol Flake (1997) pointed her break down as the turning point for sportswriters as they turned away. As Ray Paulick pointed out, the tragic breakdown caused many racetracks from using match races as a means of advertising.

But the durability of racing returned with Seattle Slew, Affirmed and Spectacular Bid. The three horses raced on after their 3-year-old campaigns. But they were short termed gains as racing was invisible the rest of the year after the Triple Crown.

Despite or perhaps because of the popularity of racing on television, the powers that be decided against showing racing regularly for fear of losing on track attendance. It seemed like a good idea not to, but in hindsight we can say it was a very short sighted plan. Instead the networks set their sights on football and baseball.  Thus, solidifying their status of America's past time.

III. History - Marketing
John Gaines, realized the lack of cohesiveness that has been prevalent in racing since its inception was threatening the industry, and with his fellow breeders decided to form a committee to meditate a solution to improve the sport. Mr. Gaines realized that if the sport died so would their livelihood. After much debate the group decided a year-ending series championship was needed. Breeders and owners would nominate their foals to supplement the purses, which were set high to lure big fields. NBC signed on to show the first championship from Hollywood Park in 1984. The perfect weather in Southern California and the gathering of champion caliber horses drew some of the biggest attendance figures in a long time. Racing had a new focal point. The Breeders Cup was a great idea, but it was only for one day in the fall. What was needed was something to sustain and build up to the Breeder's Cup.

And so in 1991, the American Championship Racing Series (ACRS) was formed. It used a point system based on placing of the runners from a series of races spanning the nation of older horse races shown on ABC Sports to determine the "Champion." It was a wonderful idea, but infighting killed the idea after a few years (Law).

After the death of ACRS, it was decided the way to save racing wasn't through breeders or the racetracks. What the sport needed was a unified organization like the PGA or NASCAR. With the support of major horse owners the National Thoroughbred Association (NTA) was formed. It however was overtaken when breeders and racetracks agreed they had to work together. The NTA was enveloped into a new organization called the National Thoroughbred Racing Association (NTRA). It has widespread support through the industry, but there were factions who dislike the centralized idea of the NTRA. With various racing organizations, representing different segments of the industry, there was no shortage of ideas, just a lack cooperation.

The NTRA began its first nationwide advertising campaign in 1998. The tagline "Go Baby Go," was disliked by a majority of industry people and never really stuck (LaMarra). The print campaign tried to portray the sport as something of an adrenaline rush was poorly executed. The advertising firm from Atlanta focused on the people in the stands having a good time despite evidence showing people were more interested in the horses. The placement of when and where the tv commercials were on were wrong for gathering new, younger fans. They ran during racing programs and during David Letterman's Late Night Show. Unfortunately, David Letterman was being beaten in the Nielsens by the Tonight Show with Jay Leno. In addition, CBS had one of the oldest audiences of all the major networks, with CBS president Leslie Moonves stating: "Over the last four years, 35-and-younger men weren't watching anything on CBS" (Hontz). The coopting of the advertisements with local racetracks was a great idea, the advertisement did show some to gains in awareness but according to ESPN Polls, the sport was still 12th out of 14 sports surveyed (Law).

The supposed failure or the lack of progress by the NTRA has made some racetracks leery of the organization, with 22 racetracks pulling their support late October 2000, including the powerhouse group (Santa Anita, Gulfstream Park, Golden Gate Fields, Bay Meadows, Remington Park, Thistledown, Great Lakes Downs) owned by Magna Entertainment and several Mid-Atlantic racetracks, including the home of the Preakness, Pimlico Racecourse. The ramifications of the pull out may be severe, as some of the most important winter dates are held by the Magna group and the NTRA or Pimlico may be able to stop any deals involving the Triple Crown as television deals were bought by the NTRA.

IV. Details

So what can be done to improve the health of horse racing? Horse racing has the most difficult job as horseracing has a unique status as a sport, a gambling opportunity and a competition. Advertisers have tried to advertise it as a niche gambling product, as a combination of all three and as some adrenaline rush. None have had any real impact, although they may have been hurt by placement of ads. Unlike the major league sports, horse racing has kept their advertising to the sports pages and racing programs. The NTRA has tried to expand outside the classic markets, but the biggest problem may be not marketing per se, but the changes in the market. Horseracing is not something one can play. Children learn to play basketball, football, baseball, tennis, soccer and run against each other. As children grow older, they drive cars and play card games. Unfortunately many children have little if any exposure to horses and even if they do, racing horses is considered too dangerous for children.

Unlike the United States, England and some of their former colonies encourage children in racing their ponies in pony races. In addition to encouraging racing, the sport is subsidized by the government and their racing programs air live on non-pay channels.

However, It is unlikely the horse racing industry can change attitudes in the United States as the government has been trying to cut down on spending and many jurisdictions rely on the taxes they collect from racetracks.

The biggest asset is the fascination people have with the horse, especially the Thoroughbred. It is by far the most televised breed and a reputation of favorable traits of courage, speed and beauty. The market is virtually untapped with a majority of advertisers aiming at lower-middle-class Caucasian men. It leaves out the market for minorities and women who are a growing segment of the population (Shanklin). My own informal perusal of my local racetrack, Golden Gate Fields, finds the change in the gamblers at the track. What once was a majority of Caucasian and African-American attendees, has changed over nearly 10 years to almost all minority bettors, especially Asian-Americans. Some racetracks have targeted their minority bettors, such as Hastings Park in British Columbia. The manager there recognized the large Chinese population in Vancouver and marketed simulcasts of races from Hong Kong and Australia with great success despite the late hours which the races started. However, Hasting Park is an exception.

My own informal survey of the equine program here at Colorado State University shows there is approximately an 80-20 split in favor of women students. Women seem to have a natural affinity to equines yet there have been few if any advertisement that take advantage of it. The first NTRA commercial had Lori Petty, who was more known for her male-centric comic book based movie, Tank Girl. The print ads were more open targeted, yet they were only run in industry magazines and ESPN Magazine.

Despite studies showing "women make up the majority of racing enthusiasts, as 57 percent of the fan base is female" (Kamuf). The market for women fans have never been tapped properly by racetracks. Churchill Downs and a handful of tracks market Ladies Day, usually in conjunction with Mothers Day or a big distaff race, such as the Kentucky Oaks, but in effect racetracks do little to target them. The Kentucky Oaks is a very popular day and continues to grow in attendance, whether there are more women on that day compared to the Derby is open to question.

V. Solutions
I am not a marketing or advertising major, so I cannot really suggest real strategies. However I am a child of the television world and understand what holds my attention and what attracts one to something. I believe the marketing strategy was badly done, the advertising firm, Merkley Newman Harty, failed to take into account the basics on how to persuade the audience to listen to the NTRA's message. It failed to show the biggest asset of the sport, the horses. The advertisement was disliked by a great majority in the industry, thus showing an uncohesive organization, which may have lowered the credibility projected, which is biggest problem horse racing has.

This year the NTRA will be trying something new with popular music with scenes from racing (LaMarra). Unfortunately I have yet to see these new commercials here in Colorado or when I was in California. The NTRA needs to find a new advertising firm who understands how to start and sustain a nationwide sports/entertainment campaign. A much bigger advertising budget than the current $12.6 million (LaMarra, 3802), is fundamental in penetrating the market full of other entertainment options. The biggest threat to the sport right now is casinos drawing away customers. Their competitors have huge marketing budgets with one casino in New Orleans according to the Associated Press's (2000) story, spent $5.5 million a month in marketing efforts. Compared to an annual budget of approximately $13 million, the NTRA would be out spent by a three to one ratio. Other sport leagues have also found a bigger budget is required to survive and thrive in a competitive market as in the case of the women's basketball leagues. The fight between the American Basketball League (ABL) and the Women's National Basketball Association (WNBA) was won by the WNBA, which had more than twice as much money, $15 million to the ABL's $5 million for marketing (Robson). With the price for prime time television commercial slots continuing to go up substantially especially the most prized spot, the Super Bowl, the problem will only become bigger.

In Craig S. Ey and Donna De Marco's article, they highlighted some of the successes racetracks have achieved on limited budgets, including direct mailing lists ranging from 70,000 for the Maryland racetracks to a membership club started by Santa Anita Park, who's counted 80,000 active members. However, a majority of the marketing campaigns have not changed. "It's the same promotion, the same fliers, the same ideas every year," [Daily Racing Form Columnist, Maury] Wolfe said. "They're not that interesting."

The tagline of "Go Baby Go," is catchy but is not proactive like other sport or entertainment campaigns. The NFL has "Feel the Power" and Las Vegas has "See the Excitement." In addition to providing images of the horses, one has to form heros for the audience to root for. The advertising firm would have to be flexible and quick to recognize potential stars, but they also would have to be careful not to over hype as in the case of Fugiachi Pegasus, 2000 Kentucky Derby winner. A better example would be finding rivalries as in the case of Silver Charm, Free House and Captain Bodgit in 1997 or Cigar's drive in 1995 to break Citation's consecutive win record, which was never advertised nationally despite a campaign that spanned more than a year. The awareness has been built but what is needed now is to form long term fans who will be there even if there is a no possibility of a Triple Crown winner.

VI. Conclusion
Thoroughbred racing has a very hard problem in marketing the sport. It has a long history that is both an asset and a burden. The image of the sport is both glamourous and disreputable. Tax laws and government regulation continue to hamper efforts to expand the sport. The mistakes of the past continue to haunt the sport and they must be dealt with if the sport wants to continue into the 21st century. Horse racing has to become more expedient; adopt some national standard on medication rules; use the image of the running horse and apply a continuous marketing and public relations push to put horse racing into the forefront of people's minds, ease fears of cheating and truely become the sport of kings.
 

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