IllinoisRacingNews_November2016

VOL. 44, NO. 11/NOVEMBER 2016Editor A PUBLICATION OFJoan Colby THE ILLINOIS THOROUGHBREDPublisher BREEDERS AND OWNERS FOUNDATIONIllinois Thoroughbred Breedersand Owners Foundation “Past Performances reprinted by permission of copyrightExecutive Director owner, Daily Racing Form, Inc. Reproduction prohibited.”Dan ArrigoProduction Manager CONTENTSDena GervasiGraphic Design & Page Layout Breeders of the Year . . . . . . . . . . . . . . . . . . . . . . . . By Neil Milbert . . . . . . . . . . . . . . . . . . . . . . . .3Ann E. Littleson Valdivia, Rivelli and Patricia’s HopePhoto/Art EditorJesse Saenz, Jr. Bag Second Straight Arlington Titles . . . . . . . . By David Zenner . . . . . . . . . . . . . . . . . . . . . .4Mailing Director A Smorgasbord of Food for Thought . . . . . . . . . . . By Neil Milbert . . . . . . . . . . . . . . . . . . . . . . . .6Tom Mikulski ITBOF President’s Update . . . . . . . . . . . . . . . . . . . . By Dan Sullivan . . . . . . . . . . . . . . . . . . . . . . .7Advertising Sales & Point of View . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . By Ray Hallett . . . . . . . . . . . . . . . . . . . . . . . .8Subscriptions Sid Drexler (1943-2016) . . . . . . . . . . . . . . . . . . . . . . By Joan Colby . . . . . . . . . . . . . . . . . . . . . . . .9Dan Arrigo Using the Tax Code’s Net Operating Loss Carryover By John Alan Cohan . . . . . . . . . . . . . . . . . .10 Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Professional Services. . . . . . . . . . . . . . . . . . . 12 Copyright 2016. Written permission must be ON  THE  COVER:obtained to reprint photographs and editorial material. Florent Geroux shown winning ILLINOIS RACING NEWS, (ISSN  #1083-8309), is the G1 Beverly D. with Sea Calisipublished bi-monthly by Illinois Thoroughbred won four graded stakes at Arlington.Breeders and Owners Foundation for $24.00 per year.Periodicals Postage paid at Oak Brook, IL  and at FourFootedFotos.additional mailing offices. POSTMASTER: Send Cover design by Jesse Saenz, Jr.address corrections to: Illinois ThoroughbredBreeders and Owners Foundation, P.O. Box 578,Arlington Heights, IL  60006. (847-253-3670). Unsolicited manuscripts and photographs arewelcome, and all will be considered. Return postagemust accompany all submitted materials if they are tobe returned. ILLINOIS RACING NEWS assumes noresponsibility for loss or damage thereto. Any materi-al accepted is subject to such revision as is necessaryin our sole discretion to meet the requirements of thepublication. Opinions expressed in this publication are thoseof the writers and do not necessarily represent theviews of the management.

Broodmare Management Foaling Layups ™ Retireeswww.indianhillstbfarm.com At Stud: Wild Gambler & Ameriheart 618-792-3398Breeders of the Year, 2015 by Neil Milbert A week after Rich and Karen Papiese Rich Papiese praised Prat’s riding per-of Midwest Thoroughbreds received the formance.Illinois Breeder of the Year and NationalSmall Breeder of the Year awards at the “It was a different pace but for theannual Thoroughbred Owners and Breed- race to play out the way it did he had toers Association’s dinner at Stonestreet be where he was,” Papiese said.Farm outside Lexington their 2015 Illi-nois Horse of the Year, The Pizza Man, “What I liked is he didn’t ask thecelebrated by winning the Grade I North- horse. Flavien just let him gallop alongern Dancer Turf Stakes at Woodbine. the path where he broke. He just galloped into position. If he had asked we’d have It was the first victory of the year for had a problem in the lane.the seven-year-old gelding. “It was a really, really good ride by He had lost four in a row this year Flavien, a very smart ride”after going to the Del Mar winner’s circleafter the Grade II Hollywood Turf Cup in The victory was the 17th in the careerhis final start of a 2015 campaign high- for The Pizza Man, who began his careerlighted by him becoming the only Illi- by making one start in 2011. He has wonnois-bred winner in the 34-year history of at least one stakes race in each of the pastthe Arlington Million. four years. All told he has taken 12 stakes. The 1-1/2-mile Northern Dancer wasthe first start for the homebred son of The Pizza Man is the final runner pro-English Channel—I Can Fan Fan, by Lear Fan. He was coming duced by I Can Fan Fan. Midwest Thor-off his worst performance of the year, a sixth place effort in the oughbreds claimed the deceased mare forMillion, a race in which less than three lengths separated the first $18,000 at Arlington Park in June 2005. After she was retired byhorse from the seventh place finisher. the Papieses, she was bred to English Channel, a runner of renown who went on to become a standout sire. Like the 2016 Million the Northern Dancer was an ultra-close The outstanding Illinois Breeder and Owner and Nationalrace. The Pizza Man bested Wake Forest by a neck and the third Small Breeder awards presented by the Thoroughbred Breedershorse, World Approval, was a neck behind the runner-up. and Owners Association were overdue accolades for Rich and Karen Papiese. In giving Roger Brueggeman the second Grade I victory of his The success of their Midwest Thoroughbreds operation ex-training career, The Pizza Man went the distance in 2:31.75 on a tends far beyond Illinois. For each of the past six years Midwestturf course labeled “good” with Flavien Prat in the saddle. Thoroughbreds has led the nation in wins. Not only are the husband and wife deserving of recognition Usually, The Pizza Man comes from far behind but this time for the racetrack accomplishments of thoroughbreds they breedhe settled close to the pace set by World Approval. When Wake and own, they also are to be commended for their care and con-Forest made his move on the outside in the stretch, The Pizza cern for their retired racehorses at their 170-acre Thunder RanchMan responded by passing World Approval and then holding off outside Anthony, Fla. In 2015 they were the recipients of anWake Forest. Award of Merit bestowed by Thoroughbred Charities of America. “There was no pace,” Prat said. “He was comfortable close tothe lead so that was fine with me. “When the leader picked it up coming for home I thought Icouldn’t catch him but when the horse came outside it helped meto pass him.” ILLINOIS RACING NEWS / NOVEMBER 2016 / 3

Valdivia, Rivelli and Patricia’s HopeBag Second Straight Arlington Titles by David ZennerWith summer turning to Roussel III (16) and Richardfall it is time to put a bow on Radke’s Asiel Stable (12)the Arlington International finishing out the top five.Racecourse meet for 2016 William Stiritz led thewhich showed repeat titles way in the purses categoryfor jockey Jose Valdivia Jr., for owners amongst those lo-Larry Rivelli and owner Pa- cally based with $472,673 intricia’s Hope LLC of Vince earnings. Patricia’s HopeFoglia. was second with $369,543.Valdivia, who made Ar- For the record, it was Geofflington his home for the first and Sandra Turnbull, whotime last season, earned his banked $570,000 for win-second crown in as many ning the Arlington Millionyears with 100 wins, 24 bet- with Mondialiste, who wereter than Mitchell Murrill overall leader in purseswho finished second in the earned at the meet.jockeys’ race one year ago Jose Valdivia. Larry Rivelli. The meet will no doubt beas well. Carlos Marquez Jr., Photo: FourFootedFoto. remembered by the perform-who made Chicago his sum- ances at the Internationalmer home for the first time Festival of Racing (with itsin many years, was next with five graded stakes races) of71 victories. Edgar Perez (53 French-born jockey Florenttallies) and Santo Sanjur Geroux in four of the graded(44) rounded out the top five stakes races: the Grade Ijockeys in races won. Beverly D. with the French-The money race amongst bred Sea Calisi, the Grade Ithe jockeys finished much Secretariat aboard ownersthe same with the top four in James Covello, Sheep Pondwins coming in 1-4 in purses Partners and Head of Plainsearned. Valdivia’s mounts Partners’ Beach Patrol, theled the way with $1,912,268 Grade III American St.in purses well ahead of Mur- Leger with Skychai Racing’srill’s mounts $1,501,658 in Da Big Hoss and the Gradeearnings. It should be noted III Pucker Up Stakes astridethe fifth position went to Great Point Stables’ NobleFlorent Geroux whose 13 Beauty. The only big prizemounts at the meet banked that eluded the 30-year-old$926,790 – earned primarily Patricia’s Hope LLC’s Midnight Cello winning the 2015 Hanshin Cup. Photo: Four- Geroux that day was thefrom his four graded stakes FootedFoto. Grade I Arlington Million, awins on Arlington Million race that he won last yearDay. with Midwest Thoroughbreds’ The Pizza Man.Larry Rivelli picked up his third straight crown and fourth Ar- With the Arlington meet in the record books, it’s time to focuslington trainers’ title overall with 58 victories, nine more than on the fall meet at Hawthorne Race Course, which opened Oct. 7Mike Stidham. Steve Manley had a strong meet picking up 29 tal- after a two-week break in the local schedule. The meet will be runlies, followed by Scott Becker (22), Louie Roussel III (18) and sans stakes races in order to keep the overnight purse structure atMike Reavis (18) to complete the top tier of trainers in races won. as high a level as possible meaning the Grade III HawthorneStidham was able to turn the tables on Rivelli in the money Derby and the Grade II Hawthorne Gold Cup will be sidelined forcolumn, banking $1,094,095 in purses to Rivelli’s $911,554. at least a year just as the Grade III Illinois Derby and the GradeVince Foglia’s Patricia’s Hope LLC led the way in the owners’ III Sixty Sails were this past spring.standings in terms of races won with 29 trips to the winner’s cir-cle. William Stiritz was second with 20 victories, followed byRichard and Karen Papiese’s Midwest Thoroughbreds (19), Louie4 / ILLINOIS RACING NEWS / NOVEMBER 2016

information is our businessfacebook.com/brisnet twitter.com/brisnet

A Smorgasbord of Food for Thought by Neil MilbertThere’s a flip side to the good news that Illinois horsemen will McCaffrey also pointed out that there are ramifications tobe able to continue training at Hawthorne Race Course in January Hawthorne purchasing the Oakbrook Terrace off-track bettingand February because this year’s harness meeting at the track dur- parlor from Maywood Park and the Crestwood OTB from Bal-ing those two months has been discontinued. moral Park because the recapture amounts from each parlor wereAnd that flip side is bad news for Illinois horsemen because part of the packages.the absence of a harness meeting means that in 2018 thorough- “They’re big numbers—somewhere around $1.1 million each,”bred horsemen will take a hit when the 2017 recapture kicks in. he pointed out. “This year Hawthorne’s recapture number in total-“There’s a methodology in the law on the split ratio and that is ity was around $2.6 million. In January when the Racing Boardbased on a ratio on the amount of Illinois handle on live harness certifies the 2016 recapture—which is payable in 2017—theand thoroughbred racing, respectively,” explained Illinois Thor- number is going to be close to $5 million.oughbred Horsemen’s Associa- “Recapture is bludgeoningtion Executive Director Dave the participants (in racing). TheMcCaffrey. amount for this year at Arlington“There was no harness rac- was $4.5 million. Divide that by theing at Hawthorne in 2015; the What is Recapture? 74 days (of the meeting) and theironly recapture handle there recapture number was aboutwas on thoroughbred racing Recapture is triggered when the $60,000 per day. Recapture is hurt-and the only Illinois harness ing us so badly that the only way tohandle that year was at May- total live Illinois handle in any calendar make up for it in the purse accountwood and Balmoral. So the year is less than 75 percent of the total is to reduce the number of races.”only harness recapture at “That’s why we’re seeing thisHawthorne was the amount live handle in 1994, the last year prior dramatic decline in the number ofwagered at Hawthorne (inter- to the legalization of full card simul- races.”track and off-track facilities) The 2017 schedule calls foron Maywood and Balmoral. As casts of out-of-state races. 71 live programs and 215 host pro-a result, this year thoroughbred grams during the Arlington meetinghorsemen will wind up paying Recapture gives back to each of the and a combined total of 59 live pro-about 70 percent of the recap- tracks two percent of the live handle grams and 150 host programs dur-ture amount there and harness ing the Hawthorne spring and fallhorsemen have paid about 30 that is lost on-track and at the tracks’ meetings.percent. respective off-track and inter-track On the harness side there will “But this year there was be 80 nights of racing and 365 hostharness racing at Hawthorne in betting facilities. programs during next year’sJanuary and at the beginning Hawthorne meeting that will beginof February and for 4 1/2 Illinois is the only racing jurisdiction on May 11 and continue throughmonths in the summer so in in North America that has recapture. Sept. 24.2017 we estimate the ratio will Before becoming executivebe close to 50-50. director of the ITHA late last year“Then, in 2018 you’ll lose McCaffrey was a harness trainer forall of the harness handle at many years and served as presidentHawthorne in January and February. Instead of the ratio being 50- of the Illinois Harness Horsemen’s Association.50 it’ll revert back to more of the onus of the debt being put on In his educated opinion, the absence of a winter racing venuethoroughbred horsemen.” in Illinois will have a detrimental impact on the standardbredAccording to McCaffrey, because there were cons as well as sport in the state.pros, the IHHA took a neutral position at the dates hearings on “They closed (at Hawthorne) on Sept. 25 and there will not beHawthorne’s decision to do away with January and February har- another harness race in the state for almost eight months,” Mc-ness racing as part of its joint agreement with Arlington on shar- Caffrey said. “There will be a big danger of not having a (suffi-ing dark time simulcast host revenue. cient) horse population for a summer meeting.“There was a big plus for us (in the January and February “It will crush that game.”.dates this year) and it came in the form of us having to pay less inrecapture (in 2017),” McCaffrey said. “It hooked the harnesshorsemen into paying recapture.“The biggest minus is we didn’t have a track to train on forseven weeks. And that’s a big minus.”6 / ILLINOIS RACING NEWS / NOVEMBER 2016

President’s UpdateITBOF By Dan SullivanCommission on Government Forecasting And Accountability Recently, the Commission on Government Forecasting and dance. “However, the Racing Board stated that little to no changesAccountability published Wagering In Illinois – 2016 Update*, (above what is typically spent) were made in the form of horse trackwhich is 80 pages long. The study analyzes Illinois horse racing in improvements from these additional dollars.”pages in pages 51 - 60. Please read these nine pages by going toITBOF’s website, ITBOF.net, and pray the legislature allows on The report observes claims have been made that slots would turntrack gaming. things around. Yet, in Indiana and Pennsylvania, slots have not increased handle but they have increased purses. They have I have repeatedly referred to the devastating effect the lower increased purses even though handle continues to decrease. Ofpurse structure is having on the Illinois agribusiness of breeding course by having slots subsidize purses all surrounding states areIllinois thoroughbreds. I have remarked upon a foal count that can- draining Illinois of owners and, therefore, horses. Let’s face it, tonot continue to support at least 50 percent of the field sizes of races save the Illinois race horse agribusiness, it must be subsidized bythat racing secretaries use their imaginations to try to fill with every alternate forms of gaming in the hope that the tracks can rebuilddiminishing purses. I have observed that owners must have purses to interest and increase handle. So to save Illinois horse racing all thejustify buying Illinois horses that fill 50 percent of the fields that stakeholders, Legislature included, must accept a combination ofrace in Illinois. gaming at the track is required to save horse racing. In 9 pages the Commission succinctly provides statistics and the “Although, data suggests that the horse racing handle will nothistory of the lack of favorable legislation that has caused the loss of necessarily increase as a result of having slot machines at the track,owners who will support Illinois racing. No one who is a sharehold- having this other source of revenue would give Illinois horse trackser in Illinois racing—a breeder, owner, trainer, jockey, hot walker or a secondary source of income needed to offer competitive purses,track owner—needs to gossip on the back stretch or speculate else- which should help sustain horse racing in Illinois.where on what is happening to Illinois racing. They can go to thearticle on ITBOF’s website and read the section on horse racing. In ********not more than half an hour, they will have all the cold hard facts that “And without the ability to compete with other states, many fearshow what is happening. Here are some quotes from the report if a that the pressure on additional Illinois tracks to close for good mayreader doesn’t have time to review the graphs illustrative of the become insurmountable.”problems owners and breeders now face trying to justify engaging in There you have it folks. Can the tracks come up with marketinga losing enterprise. plans that increase interest in actually attending a horse race? Can the legislature be brought to understand the need to support horse “The overall handle total in 2015 was 40.8 percent below the racing with on track gaming knowing they are doing so to get taxlevels from just ten years ago.” revenue but also that some of that revenue will support the agricul- ture interests of Illinois? Can the legislature be brought to an under- “Between 1990 and 2015 the percentage of the total handle gen- standing that we need purse subsidies right now—this minute; noterated from on-track wagering fell from 49 percent to 14 percent.” from tax revenue but from alternative forms of gaming that alsoThis quote raises a question of how much the tracks even care about provides tax revenue to help bail out our God-forsaken State and, atgetting spectators to the track? It is so much cheaper for tracks and the same time, support its agriculture?the companies that own them to realize on electronic betting. Fromthe viewpoint of the bettor, why go to the track when you can bet *If you are interested in reading the report men-from your couch or at a local OTB? This raises a further question. tioned in this article, please go to www.itbof.netWhat have the tracks done to excite someone enough to go to the and click on “Wagering in Illinois” on the lefttrack, even more than once a year? side of the page. This will take you to a page with a brief description of the report and there is But, even simulcasting, OTB and ADW operations are not the another button that says “Wagering in Illinoisanswer. “So, it appears that while advance deposit wagering has not 2016 Update.” Click on this button and you maycaused horse racing handle numbers to turn around to its higher lev- read or download the full 80-page report.els of the past, it has brought in enough interest to at least slow thedeclines of an industry that had been falling at a drastic pace.” Whatan observation. Our sport is dying because of a lack of participationbut only more slowly because of the advent of ADW. “While many ideas have been discussed over the past decade toturn Illinois’ horse racing industry around, so far little progress hasbeen made.” Right, if bettors lose interest in going to the track andbettors lose interest in understanding the sport, then the tracks, whohave the responsibility of marketing the breeders’ and owners’ prod-uct, have failed. The report remarks upon the fact that lawmakers provided$141.8 million in 2011 to subsidize horse racing. It was expectedthe tracks would make track improvements to bring in higher atten- ILLINOIS RACING NEWS / NOVEMBER 2016 / 7

Point of View by Ray Hallett I’ve never been a big fan of casino gambling at racetracks. To me 2012 and won. The leagues claimed the expansion of legal sports bettingthere has always been a disconnect. One form of gambling is dependent to New Jersey would damage the integrity of their games and lead toon luck and the other on skill. Nevertheless I’ve gone along with at- more game fixing. They chose to conveniently ignore the fact that illegaltempts to bring about slot machines at the local tracks. sports betting has been with us for decades. Why? Because, number one, we need the money. Casino gambling in New Jersey countered by challenging the constitutionality of PASPA,other states has managed to prop up the racing in those states by divert- arguing that it was illegal to allow sports betting in some states and noting casino funds into purses. Thus those tracks have gained a competitive others. Furthermore the state argued that the Federal Government was vi-advantage over the local Illinois product. Secondly, casino gambling rep- olating the 10th Amendment by dictating to the states how they couldresents a more efficient use of valuable property. Casinos can function and could not raise revenue within the boundaries of that state.all year, where horse racing has limited opportunities. After the 3rd Circuit Court rejected the state’s constitutional chal- Also, I believe that the existing casinos have severely hurt the race lenge to PASPA, Governor Christie signed a bill into law in the fall oftrack industry and it is only right that the playing field be rebalanced. 2014 that repealed prohibitions against sports gambling at casinos andThe state government, in its desire for more revenue, passed legislation racetracks. That tactic—repealing prohibitions instead of approving gam-that severely damaged private businesses. It didn’t have to happen. The bling—was seen as a way to get around the federal law. Again the Fed-legislature dropped the ball when they failed to transfer the tenth river- eral district court stopped the state and the state appealed again.boat to racing interests as was implied by law. Put simply, they owe usone. On August 9, the U.S. Court of Appeals for the Third Circuit upheld the district court ruling that the State of New Jersey’s attempt to partially There are some that believe that the state will get around to making repeal its ban on sports gambling violated PASPA. In doing so, the courtamends after the first of the year and the new General Assembly is sworn recognized that PASPA is still a good and binding law.in. I’ve heard that story before. Let’s wait and see what happens. Though the odds are growing longer the fight is not over. The New Like I said above, I’ll take slot machines for the tracks if that is what Jersey Thoroughbred Horsemen’s Association (NJTHA), which repre-the General Assembly is willing to offer. Beggars can’t be choosers, but I sents the interests of Monmouth Park Racetrack, has filed a formal peti-have always hoped for something else. tion with the Supreme Court asking the high court to review the recent decision. The NJTHA calculates that the horsemen are missing out on Going back over 20 years, I have advocated that a way be found to gross revenues of $1 million a week.initiate sports betting, with the licenses being held by the tracks. Whilecurrently illegal, I think it is only a matter of time before that obstruction There is no guarantee that the Supreme Court will choose to hear theis lifted. case. They have been reluctant in the past. However, the landscape has changed somewhat. It would be a good marriage. Most casino games are based upon purechance. Luck determines whether a customer wins or loses. Sports bet- The new player is the Fantasy Sports organizations that have sprungting, like horse betting, is a beatable game based on knowledge and skill. up. As a game of skill and not chance they are legal under PASPA,There is a natural carryover from one to the other that doesn’t exist be- though a number of states, including Illinois, have outlawed them as antween slots and horse racing. illegal form of gambling. Unfortunately, sports betting is only legal in four states—Nevada, The kicker here is that the professional sports leagues, which haveDelaware, Oregon and Montana. That decision was made back in 1992 opposed sports betting, have embraced the Fantasy Sports craze and havewith the passage of the Professional and Amateur Sports Protection Act actually invested in the new businesses. In the eyes of many this is seen(PASPA). as a hypocritical stance that has allowed cracks to form in PASPA and gives rise to the thought that, if the sports leagues were cut in on the ac- PASPA was drafted at the behest of America’s five major sports tion, their objections might evaporate.leagues, which feared that if states legalized sports gambling within theirborders, it would hurt the leagues’ bottom lines. The four sports betting So there we have the situation. Billions of dollars in revenue are wait-states were grandfathered in because they had offered legal gambling for ing to be picked up if the dam that is PASPA were to break. It hasn’t hap-10 years in the past. Also excluded from the reach of PASPA are jai alai pened yet but there are some cracks that are starting to appear. There areand pari-mutuel horse and dog racing. many ifs to be answered, but one can’t help but think that horse racing might benefit from the end to PASPA. At least I hope so. PASPA is now 24 years old and because of the Intranet the world haschanged dramatically. As a result PASPA is a flawed law. Despite the aim I know of at least seven states that have begun to consider the ramifi-of limiting the spread of sports gambling in the United States, illegal cations and I suspect the number is far greater than that. I don’t includesports betting has sharply risen since the law was enacted. Illinois on my list and this is something that a state that is billions in debt should be thinking about. Instead of hurting the leagues that gave birth to PASPA, the spread ofinformation has helped them grow and expand. Today, every sports show Legalized sports betting is coming. I don’t know when. All it takes istalks about point spreads and favorites and underdogs. Every office in one favorable court ruling for the dam to burst and for that reason theAmerica has a pool on the N.C.A.A. tournament. law will continue to be challenged. There is too much money on the line for that not to happen. Either that will happen, or the U.S. Congress will A total of $1.69 billion was bet legally on football in 2015 at Ne- change the law. The opposition is weakening and public acceptance ofvada’s regulated sportsbooks. This year the American Gaming Associa- sports gambling continues to rise. It could come in a year, or three, ortion estimates that $90 billion will be bet on football, almost all of it five, or maybe decades, but it is going to happen. I just have a feel aboutillegally. But that is just the tip of the iceberg. this. It just makes sense. The AGA estimates Americans wagered $149 billion in 2015. The en- What doesn’t make sense is that Illinois missed out on the racinotirety of America’s legal sports wagering handle in 2015 totaled $4.2 bil- wave that has swept the country and we are paying the price. Now we arelion. That puts the estimates of the illegal American gaming handle last playing catch-up and the farther behind we fall the harder that is going toyear at approximately $145 billion. Not a single penny of that was col- be.lected by either the states or federal government. That amount is not reg-ulated, not taxed, and the profits go to unsavory causes. Perhaps the time has come for us to look to the future instead of con- stantly worrying about the present or the past. This could be the time A windfall awaits any state that can gain access to that pile of money. when we should start building bridges and positioning ourselves, just inThe first state to attempt was New Jersey. In 2011 the state passed a ref- case something breaks. It might not happen. But then again maybe it willerendum that approved the state’s intention of allowing the race tracks and I certainly don’t want to see Illinois racing caught flatfooted again.and casinos to institute sports wagering. To block implementation thefour major professional sports leagues and the NCAA sued the state in8 / ILLINOIS RACING NEWS / NOVEMBER 2016

Sid Drexler (1943-2016)by Joan Colby Sidney R. Drexler, founder of Drexler With his first wife, Renee, he raised PaintHorse Transportation in Hampshire, Ill., horses and later started the transportationpassed away at the age of 72 on Sept. 5, 2016. business with the help of his father-in-law, Jerry Ahrens, a retired Elgin firefighter. Sid was raised in horsey Wayne, Ill. where Drexler followed a regular circuit fromas an eight-year-old he worked for famed au- Chicago to Kentucky and Florida with cus-thor Marguerite Henry whose horse stories tomers that included racehorses and showfor children included Misty of Chincoteague horses. Today, this also includes horses im-and Brighty of the Grand Canyon. ported from Europe, the Middle East, Aus- tralia and New Zealand. Dispatcher Doug “Marguerite would get the horse, then Jones, a long-time employee, still manages thewrite the story,” Sid recalled in an interview business out of the Hampshire office. In 2015,with Illinois Racing News in 1995. Sid went Creech Transportation acquired the company.with her to book fairs and schools to act outchapters in the books. He rode the donkey After the death of his first wife, TherineBrighty (real name Jiggs) and when Mar- Ann Ahrens Drexler, Sid married Deniseguerite moved to California she gave the don- Drexler who survives him along with his chil-key to Sid. When Sid was 21, the movie dren Jerry (Kristin) Drexler and Randy (Amy)Brighty of the Grand Canyon was made and Drexler; stepson, Jonathan Baker; grandchil-Jiggs starred in it. Sid accompanied the don- dren, Dylan, Josh, Caleb and Clair Drexler; and step-granddaugh-key to California to introduce him to his movie trainer, and later ter, Carly Swanson.took Jiggs all over to theaters to promote the film. Jiggs remained Memorials may be made to the American Cancer Society.with Sid until his death in 1974. In his late teens and early 20sSid followed the rodeo circuit, competing in bulldogging andbareback bronc riding events.Managing Equine Arthritis on a Budgetby Alexandra Beckstett, theHorse.com Equine veterinary advances and technologies generally come with a She also warned that when taking radiographs (X rays), the correla-hefty price tag. The economics of diagnosis especially become a concern tion between X ray results and what is actually going on in the joint canwhen treating older horses for OA, which can result from years of joint be poor (e.g., a horse with significant lameness might show little changewear. One veterinarian described ways to manage equine arthritis on a on radiographs, while a horse with no lameness might show significantbudget at the British Equine Veterinary Association’s 51st annual Con- change on radiographs), and “poor-quality X rays don’t help.”gress, held Sept. 12-15 in Birmingham, U.K. Jones believes ultrasound, on the other hand, to be an excellent tool “For many equine clients it is an economic fact that, while the utiliza- for evaluating OA. “It’s underused, cost-effective, noninvasive, and cantion of advanced diagnostic techniques may provide the ‘gold standard’ detect osteophyte (bony growths at the margins of the joint that form dur-in service and diagnostic certainty, they are too expensive,” explained ing remodeling) formation,” she explained.Emma Jones, MA, VetMB, CertES(Orth), MRCVS, from Abbey EquineCentre, in Monmouthshire, U.K. “In the present economic climate the di- She also said that intra-articular anesthesia as part of a diagnosticagnostic work up may cost in excess of the monetary value of the horse.” work up can provide additional information about synovial fluid and its viscosity. She added that many insurance companies don’t offer life coverage ordon’t cover these treatments past a certain age. So she proposed that vet- When it comes to treating the condition and the horse’s pain, Joneserinarians work with owners to extract as much information as possible advised that owners only pursue methods that will either improve athleticfrom routine tests before resorting to diagnostic imaging. “We’re not function or general welfare.doing enough with the whole horse basic workup,” she said. Ultimately, she believes the best thing owners can do is get the most Jones suggested looking for basic clinical signs of OA, such as in- information from their veterinarians as possible about how to help thesecreased respiratory rate; changes in normal behavior, such as eating less; horses. For instance, veterinarians can offer a wealth of informationabnormal behaviors, such as shifting weight; and increased behaviors, about appropriate weight, exercise, farriery, and expectations of futuresuch as lying down. When assessing the horse, the veterinarian should function to help give horses with OA the best quality of life.use easily gleaned information such as the horse’s history, conformation,joint palpation, range of motion, heat or pain upon limb flexion, and a Because there is not likely to be a cure for OA anytime soon, andcomparison of limbs. Further, he or she should evaluate what effect exer- therapies for affected horses might be expensive and required for manycise and ground surface have on the horse both immediately (during the years, owners and veterinarians must extract as much information fromlameness exam) and the following day. routine tests as possible, and owners need to communicate their expecta- tions and budget constraints with their veterinarian beforehand. As a money-saver, Jones advised caution when using diagnostic re-gional anesthesia (nerve blocks). “A lack of confidence in block resultscan lead to overuse of imaging with budget implications,” she said. ILLINOIS RACING NEWS / NOVEMBER 2016 / 9

Using the Tax Code’sNet Operating Loss Carryover by John Alan Cohan, Attorney at Law Since 1918, the Tax Code has provided for the net operating sands in sales. If ranchers didn’t have the benefit of the NOL toloss carryover (NOL). It is a fundamental feature of U.S. tax law. average the gains and losses, they couldn’t afford to be in busi-According to IRS statistics, in 2014 over 1.2 million taxpayers ness.”filed for an NOL deduction, with the average amount being$163,292, for a total amount of $196.2 billion. The NOL has received a lot of attention since it was revealed that Donald Trump incurred a $916 million loss in 1995 that Originally, the NOL was allowed to be carried back one year yielded a NOL on future and preceding years.and then forward one year. Presently, section 172 of the IRS Codeallows the NOL to be carried back two years and then forward 20 The NOL is available to any small or large business. Individ-years. ual taxpayers can use their NOL deductions for up to 20 years. The NOL provision is not a “loophole,” but is justified on the Most cases that end up in IRS audits or in Tax Court have abasis of fundamental fairness in light of the exigencies of busi- sizable NOL at issue. Expenses are incurred whether or not prof-ness. The House Report to the 1939 Revenue Bill stated that “the itable sales or prizes are realized: advertising, commissions, de-allowance of a net operating business loss carry-over will greatly preciation, insurance, repairs and maintenance, supplies, board,aid business and stimulate new enterprises.” The Supreme Court breeding, farrier, hay, memberships, show or racing expenses,has stated that NOL carryovers “ameliorate the unduly drastic training, transportation, veterinarians – and for many taxpayersconsequences of taxing income strictly on an annual basis. They these costs are often in the six figure range annually.were designed to permit a taxpayer to set off its lean years againstits lush years, and to strike something like an average taxable in- It is important to plan ahead. In IRS audits, taxpayers are usu-come computed over a period longer than one year.” (Libson ally asked to produce annual written business plans and profit-Shops, 353 U.S. 382, 386 (1957)). and-loss statements. Business plans should include goals, job descriptions, policies and procedures, an itemization of horses or The NOL carryover is especially important for owners of other livestock sold, proposed advertising and promotional activi-horse, cattle and other livestock businesses. As with other busi- ties for the upcoming year, and detailed information on methodsnesses, people in the livestock industries often experience cycles to decrease costs or increase revenues. The IRS tends to audit ac-of achievement and financial success, and their income may fluc- tivities that have generated a long history of losses, and will wanttuate over the course of months or years. Unusual events or set- to find out how these losses can be explained, and also how thebacks can occur that may unexpectedly cause losses in a given taxpayer can expect to generate an overall profit in the future.year. Periods of recession ordinarily yield an increase in loss de-ductions. John Alan Cohan is an attorney representing people in federal and state tax disputes, IRS appeals, and Tax Court litigation, and According to Terence D. Miller of Miller & Miller CPAs in is a long-standing of a legal advice column published in numer-Fresno, California, “All businesses are subject to a swing in the ous sporting magazines. In addition, he advises organizations onbusiness cycle, and it’s my experience that farmers are even more compliance with newly enacted laws and regulations. John is alsoprone towards swings. We all know that in the horse business you author of the book, Turn Your Hobby Into a Business – Tax andcould have a horse one year that sells for $100,000 and no sales Legal Tips. He can be reached at: (310) 278-0203, or email atin another year, but you’ve still got your expenses. It’s the same [email protected]. His website is JohnAlanCohan.com.with the cattle business. Sometimes people won’t sell one cow be-cause of the prices, and other years they realize hundreds of thou- Business Plans. IRS Appeals. Anthony Mitchell StablesTax Planning for Horse Owners. BREAKING & TRAINING Over 25 Years’ Experience Preparing Yearlings for Racing JOHN ALAN COHAN Arlington/Hawthorne Trainer ATTORNEY AT LAW Dirt & Turf Course – Starting Gate Eurosizer – Swimming – Breaking Pen Free Consultation [email protected] 847-815-5728 www.JohnAlanCohan.com www.AnthonyMitchellRacing.com10 / ILLINOIS RACING NEWS / NOVEMBER 2016

CLASSIFIED ADVERTISING • SAFE • CERTAIN Feral Cat Assistance • EFFECTIVE WOUND PROTECTION Trap-Neuter-Return (TNR) is a full BIOZIDE® GEL management plan in which stray and feral cats already living outdoors in WOUND DRESSING cities, towns, and rural areas are humanely trapped, then evaluated, Antibacterial • Antifungal vaccinated, and sterilized by veterinarians. Kittens and tame cats are It is the BEST! adopted into good homes. Healthy adult cats too wild to be adoptedUse for Wounds • Incisions • Lacerations • Barbed Wire Cuts are returned to their • Topical Infections • Nail Wounds • Trauma • Rope Burns familiar habitat under the lifelong care of the volunteers.PUT IT ON…IT STAYS PUT! Biozide Gel is a registered Trademark of For more information, Does Not Melt or Run Off —— PERFORMANCE PRODUCTS INC. —— contact a TNR facilitator in your area. 1% Available IODINE St. Louis, MO 63166 • USA PAWS Chicago-Cook Co. 773-475-9410Special Gel Formula Lets The Wound Breathe 314-421-0300 • Fax 314-421-3332 pawschicago.org FOR FASTER HEALING Toll Free 888-890-0659 Feral Fixers-DuPage Co. 630-881-3977Available in 6 oz. and 20 oz. Jars Distributors Wanted facebook.com/feralfixersORDER AT www.biozidegel.com or through your tack shop McHenry Co. Animal Outreach Humane SocietyHERD REDUCTION animaloutreachsociety.info or helpingpaws.net/TNRFILLY AND BROODMARE PROSPECTS FOR SALE Find other Illinois programs at: spayusa.org or 847-381-6199 lovethatcat.comMOVING? Call 1-630-887-7722 to report your change of address so you don’t miss an issue ofPlease let us know (Please allow six weeks for change to take effect.) Classifications (Check as Desired)❑ At Stud ❑ Boarding ❑ Breaking & Training ❑ Horses For Sale❑ Real Estate ❑ Transportation ❑ Wanted ❑ MiscellaneousPlease run my ad in the ___________________issue. One-inch boxed ad, $30; two-inch boxed ad, $50. All classifieds will appear bothin Illinois Racing News and on our website: www.ILracingnews.com under the clickable bannerCLASSIFIED ADVERTISING. This dual presentation of your ad greatly increases its exposure. Money must accompany order, or includeVISA or MASTERCARD number and expiration date. ❑ CHECK ❑ VISA ❑ MASTERCARDCard#______________________________________________________Exp. Date____________________Name _________________________________________________________________________________Address _______________________________________________________________________________City ___________________________________________________________________________________State ________________________________________________________Zip _______________________ ILLINOIS RACING NEWS P.O. Box 578, Arlington Heights, IL 60006 • 847-253-3670

PROFESSIONAL SERVICESBREAKING-TRAINING-LAYUPS-FOALING Churchill Lending Partners LLC HORSE VANNING 1/2 Mile training track, Starting Gate, COMMERCIAL real estate lending Creech/Drexler Horse Transportation 3 miles from Fairmount Park for a broad range of properties. Weekly to Kentucky and Florida BOARD-Including layups and broodmares We’re flexible, with national resources Member ITBOF & National Horse Carriers Assn. TRANSPORTATION ALSO AVAILABLE! broader products and lower fees & interest rates. Hampshire, IL Contact: Dawn Martin 618-410-3208 Borrow $1 million to $100 million and more 847-683-4464 • 1-800-262-4464 REALTOR Gas Stations / Repair Centers Restaurants / Bars Dave Nobbe Dry Cleaners/ Laundromats Office / Medical Buildings HORSE TRANSPORTATION Bowling Alleys Strip Malls / Retail centers Please call me for all your real estate needs. Condo Projects SBA – small business loans Sallee Horse Vans, Inc.• Selling • Buying • Farms • Homes • Commercial • Vacant Land Land Development Factories / Manufacturing Regular service throughout the U.S. and Canada Farms / Stables Self Storage / Warehouses office: 847-726-2100 • cell: 708-772-2763 Hotels / Motels Mixed Use / Apartment Buildings IL Agent: Steve Talbert 847-209-6036 Email: [email protected] Please call us for a free consultation on your next project 1-800-967-VANS (8267) 847-489-LOAN (5626)Suzanne J VanderSalm BREAKING & TRAINING DESIGNER DECKS & FENCE, INC. Accountant RockN4L Training Center Chicory Creek Breeding, Boarding, Breaking, Training, 269. 352. 3148 Hardwood Plank, Split Rail, Derby Fence and PVC Layups, Layovers. Vinyl,Ornamental, Composite Decking, Sunesta Remote www.suzannevandersalm.com 1/2 mi. track w/starting gates. [email protected] Indoor round pen & 6-horse equisizer. Controlled Awnings, Interlocking Rubber Pavers Hotwalker, pond for swimming, 62+stalls. Personal and Business, Payroll, LANCE BEAULIEU Back Taxes, IRS Issues 11255 N. Sparrow Lane, Mt. Vernon, IL 62864 4415 East Skene Road • Elizabeth, IL 61028 618-244-0700 Phone & Fax: (815) 598-3077 618-292-5100 618-214-0444 (Rick Lacey’s cell) Mobile: (815) 985-4758 email: [email protected] Place your listing in theILLINOIS RACING NEWS PROFESSIONAL SERVICES DIRECTORY Please contact Dan Arrigo at ITBOF: P.O. Box 578, Arl. Hts., IL 60006; 847-253-3670; ilracingnews.com$20/month $100 for 6 months $200 for 1 year (2 free months)(billed monthly) (1 free month)Please run my ad in the__________________issue. All Profesional Services ads will appear both in Illinois Racing News and on ourwebsite: www.ILracingnews.com. This dual presentation of your ad greatly increases its exposure. Money must accompany order, orinclude VISA or MASTERCARD number and expiration date. ❑ CHECK ❑ VISA ❑ MASTERCARDCard# ___________________________________________________Exp. Date ___________________Name ______________________________________________________________________________Address ____________________________________________________________________________City _______________________________________________________________________________State _____________________________________________________Zip ______________________ ILLINOIS RACING NEWS P.O. Box 578, Arlington Heights, IL 60006 • 847-253-3670



THE TRACTORS OF LEGENDAT THE PRICE OF MYTHThe John Deere E Series Compact Tractors. JohnDeere.com/eSeriesLegendary quality. Unexpected low price.Get to know the remarkably comfortable, versatile and easy-to-use E Series Compact7UDFWRUV3RZHU IXOIXHOHI ÷ FLHQW3RZHU7HFKéGLHVHOHQJLQHVIURPWRKRUVHSRZHU*)RXUZKHHOGULYHZLWK7ZLQ7RXFKéSHGDOFRQWURO$OOLQDIDPLO\RIPDFKLQHVEXLOWWRODVWfor decades. The John Deere E Series Compact Tractors, starting at $11,748.** To learnPRUHDERXWWKHEHQH÷WV*** to the equine industry, and how members can save onJohn Deere equipment, call us toll-free at 866-678-4289.*Manufacturer’s estimate of power (ISO) per 97/68/EC. **Price shown is MSRP for the 1023E Tractor and does not include taxes, setup, freightor delivery. Loader and implements sold separately. Prices may vary by dealer. John Deere’s green and yellow color scheme, the leaping deersymbol and JOHN DEERE are trademarks of Deere & Company. 16-66810. ***Some restrictions apply.