Prominent Horseman Calls Kentucky’s Commitment to ‘Aftercare’ Just a Sign – Mistakes in Horse Racing

In a recent LTE to the Thoroughbred Daily News, founder and board member of the Thoroughbred Aftercare Alliance and still active rider Reiley McDonald further exposed the sham of “aftercare.” Here’s some of what Kentucky-based McDonald had to say:

At auctions:

“Early on, the sales companies developed a mechanism whereby 0.05% of public auction sales could support the TAA – paid for by sellers, buyers, and the sales companies themselves. We purposely started small (too small for my tastes). The goal was to get industry buy-in, prove the concept, and expand over time. The original structure included an ‘opt-in’ by sellers and buyers. In subsequent years, sales companies moved to mandatory seller-side withholdings and buyer mechanisms that allowed that made unsubscribe.

“But here’s the problem: We never grew beyond the starter number. Thirteen years later, the contribution is still 0.05%. That means on a $200,000 horse, aftercare receives roughly $100 from the seller, $100 from the sales company, and $100 from the buyer (unless the buyer opts out). This estimate was never intended to remain permanently at 0.05%. It was intended to be fixed within a few year would not increase….”

About The Jockey Club’s $2.5 million “donation” to aftercare (see our post):

“TJC recently stated that it donates $2.5 million annually to the TAA. I don’t dispute that number… but I do believe it is misleading without clarification because a significant portion of the funding is generated through registration transaction fees paid by the breeders, essentially a pass-through mechanism. In other words, it is not ‘TJC’ alone that funds aftercare through TJC. It is actually the breeders.”

And finally, about Kentucky’s new law that allocates $250,000 each year for aftercare (note: the $250,000 comes from the subsidies KY Racing is donated via racinos):

“The Commonwealth of Kentucky… will provide $250,000 annually to the TAA beginning in 2025.… But given what Kentucky makes from thoroughbreds, that is not enough.

“Just look at tax revenues for stallion seasons alone. Even using conservative assumptions…Kentucky could conservatively generate about $40 million in state revenues from stallion seasons alone. Add in auctions, racing, tourism, payroll taxes and sales taxes on goods and services, and the revenues for Kentucky become much larger.”

“In that light, a $250,000 aftercare contribution is not a ‘solution’. It is a sign. Given the economic realities, Kentucky should fund aftercare at a much higher level, well into the millions.”

‘Token’ is one way to describe it. However, I prefer others – the disgusting and disgraceful leader among them.

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