OCEANPORT – Dennis Drazin’s been the face of New Jersey’s thoroughbred industry since the state privatized its racetracks in 2012 and on Tuesday he did his thing, wielding a golden shovel at the groundbreaking of Monmouth Park’s new Caesar’s Sportsbook, before taking to the podium inside the track’s Turf Club to announce deals with Fox Sports to broadcast its races and NYRA Bets to sponsor its signature Haskell race for 3 year olds.
It’s important because Drazin now has complete control of the track’s fate at a time when shifting political winds, public perceptions and economic realities make for an increasingly uncertain future.
No pressure, with the track’s 79th season set to open Saturday.
At a meeting of the state Racing Commission two weeks ago, a Joint Petition of the New Jersey Thoroughbred Horsemen’s Association, which leases the track from the state, and Darby Development, was approved. It transfers Monmouth Park’s revenue streams, including race permits, off-track wagering licenses, simulcasting approvals and the right to receive account wagering revenue from the NJTHA to Darby, the operating company formed by Drazin, who serves as chairman and CEO, and his family 12 years ago to operate the track.
Now Drazin says Darby won’t go after the more than $60 million the NJTHA owes it, the bulk of which accrued from Darby’s share of the account wagering revenues it was due under the terms of the operating agreement. Darby was unable to take any money until the loans the NJTHA, which Darby backed, got from the state in 2012 were repaid, which happens this month, with the $60 million used to make ends meet over the years.
“The money they owed the operating company, they can’t pay it, so they requested that the operating company take over the operation and that is what we did,” Drazin said Monday. “We’re not going to collect the past due amount, so they’re getting a huge break. I’d probably rather get paid but they’re unable to pay so what do you do? They either go bankrupt and give the keys back or Darby picks up the ball and continues to keep the place running.”
‘I think we’ll be OK’
There’s a lot of things that have to fall into place. Most importantly the quest to get a five-year, $100 million purse subsidy, to be split between the thoroughbred and standardbred industries, approved by Trenton lawmakers to give the industry stability.
Monmouth Park has gotten a $10 million purse subsidy since 2019, although purses will be down anywhere from eight to 10 percent in most races from a year ago when the meet opens.
But there was no shortage of optimism Tuesday, four days removed from opening day.
“(Drazin) has worked miracles. He’s done a tremendous job” said Bob Matthias, a member of the NJTHA’s Board of Directors, on Tuesday. “Without his leadership and ingenuity and so on, we wouldn’t be here. I think this is just the beginning.”
“With the subsidy, and if Dennis can pull a couple of things off, I think we’ll be OK,” trainer Gregg Sacco said. “It’s a beautiful track in a great location and a great surface to train on. The thing I would like, like everyone else, is more dates. You want more days to race. And I hope that’s in the future. Right now we have limited dates with good money to race for, so you have the pros and cons.”
Challenging times ahead
The question now is how do Monmouth Park and Darby move forward financially.
It all ties into what has been the vision all along, turning Monmouth Park into a destination. The first step is the partnership with developer Morris Bailey that includes residential apartments, a hotel and recreation area, including pickle ball courts, although the groundbreaking on that project is likely at least a year away. And the ultimate dream of a casino, or racino, at Monmouth Park is being rekindled thanks to plans to bring casino gaming to New York City, in direct competition with New Jersey.
But there are no illusions.
According to Drazin, while there are no longer loan payments, Monmouth Park is getting hit with a $1.8 million annual charge from HISA, the national organization formed to improve racing safety, while the state will no longer be footing the bill for the $1.5 million in fees paid annually to the Racing Commission.
“Even the new development when that happens, it is a requirement that the majority of that money gets spent on racetrack related expenses to keep the track sustainable for the future, so it will be difficult for Darby to get paid,” Drazin said.
Now the spotlight turns to the upcoming 51-day meet, featuring an $8-million stakes schedule, anchored by Haskell Day and the $1 million NYRA Bets Haskell Stakes on July 20. And the deal with Fox will bring Monmouth’s races into more homes, and likely increase handle.
“This is our 13th year we are doing this since we took over,” Drazin said. “Everyone bet against us Year One and here we are 13 years later making a lot of progress, turning around a state operation that was losing $13 million a year to making a profit.”
But given the sport’s ever-shifting landscape, the most challenging times are likely still to come.
This article originally appeared on Asbury Park Press: NJ horse racing at Monmouth Park: Dennis Drazin, Darby take control
