Changes At The Breeders Cup Over the Past Year

1
Changes At The Breeders Cup Over the Past Year
Duncan Hinkle (USA) July 19th 2006
2
Growth Spurts and Growing Pains

• Change from NBC to ESPN
• Change in the Purse Money
• Change in the Nomination and Eligibility
  Requirements
• Changes in Personnel and Structure

The Maturation of an Event and an Organization
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Television, from NBC to ESPN

• Why?
• NBC did not want it
• NBC no longer fulfilled the Breeders Cups needs
• What?
• Longer Contract
• More TV hours
• Greater Multimedia Options

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Television, from NBC to ESPN
BAD
GOOD

• Narrow Audience
• Last Chance

• Younger demographic
• Larger, more diverse exposure
• More TV time
• Website
• Cell phones
• Spanish language
• More focused and flexible
• Sports network

5
Purse Increases

• 20 million dollars given away on Championship Day

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Nominations and Eligibility

• Make a Stallion Eligible
• Book of less than 50, pay 1 times the stud fee
• Book of 50 to 100, pay 1.5 times the stud fee
• Book of more than 100, pay 2 times the stud fee
• Nominate a weanling with a one time payment of
  1500 between Oct 15 and Dec 15 of the year of
  birth

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Nominations and Eligibility

• Eligibility for Championship Day

• -Horse by eligible stallion pays 9 of the purse
• -Horse by a ineligible stallion pays 15 of the
  purse

Pay a one time fee and get access to all
Breeders Cup Program races -150,000 for
Breeders Cup nominated stallion -250,000 for
non Breeders Cup nominated stallion

• -Horse by Breeders Cup nominated stallion paid
  9 of the purse
• -Horse by a stallion not nominated paid 20 of
  the purse

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Nominations and Eligibility

• Justification
• Financial
• Fund the 20 million dollars in purses
• More flexible income
• More accurately reflects reality
• Breeding- Large books and pinhooking
• Racing- Allow eligible horses to compete
• Keep incentive to nominate as foals
• One horse participated so far- Aragorn

9
Personnel and Structural Changes

• Loss of notable figures
• Van Clief and Taylor
• Change of organizational structure
• Creation of Board of Trustees
• Creation of streamlined Board of Directors
• Recent cuts- 25 of jobs, 40 of costs
• Expiration and brief renewal of Joint Operating
  Agreement with NTRA

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Changes in the Breeders Cup
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• Change in the Purse Money
• Change from NBC to ESPN
• Change in the Nomination and Eligibility
  Requirements
• Changes in Personnel and Structure

These changes are responses to the industry at
large, as the industry changes, so must the
Breeders Cup.