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Board suspends horse racing this year

by WILLIAM L. SPENCE The Daily Inter Lake
| March 25, 2006 1:00 AM

Combination of spiraling insurance costs and borderline profitability contributed to downfall

The Flathead County Fair Board has suspended horse racing at this summer's Northwest Montana Fair.

The unanimous decision - which held out the possibility of renewing the races in the future - came at the conclusion of a special meeting on Thursday.

About 30 people attended. Several spoke against the move, encouraging the board to consider other alternatives and give the races one more chance.

Horse racing has a long tradition at the 104-year-old fair. However, a combination of spiraling insurance costs and borderline profitability tripped it up.

The county commissioners decided last week not to pay for jockey insurance any more, in part because the premiums recently doubled. For the last several months, they've also questioned whether the races are profitable or if they're being subsidized by taxpayers.

Several people on Thursday suggested that if the fair just improved its accounting practices, the profitability of racing wouldn't be in doubt.

"Why aren't the concession sales and entrance fees [related to racing] reflected as revenue?" Marilyn Driscoll asked. "You need to run it as a business."

Driscoll, who has been coming to the Northwest Montana Fair and the horse races her whole life, said the board just needed to be a little more creative.

"I don't bet on the races, so the only way you're going to make money off of me is if you charge admittance," she said. "So charge me. I will pay, and others will too. I believe this event can more than support itself if you charge admission."

A couple of other speakers suggested that allowing beer sales at the races would greatly improve the profit picture.

"I know it's a moral issue, and that the board has always said no to any beer, but I would implore you to consider it," said Barry Smith. "If you say no to racing, I think you're penalizing the entire community. I'm asking you to give us one more chance. I'm not willing to see a

tradition we've enjoyed for so many years go away because an insurance company decided to raise its rates."

Sam Murfitt, executive director of the Montana Board of Horse Racing, said the state board was working toward a couple of rule changes that would allow race tracks to use purse revenues to pay for a $10,000 insurance deductible this year, and to use future Simulcast revenue to pay the deductible for any accidents that occur.

The bottom line, he said, is that insurance shouldn't be an issue.

"If you don't want to race in Kalispell, don't let it be because of insurance," Murfitt said. "Take that issue off the table."

However, Fair Board chairman Monte Long said even if the state board approves the rule changes, the county commissioners have already indicated that they won't budget anything for insurance.

"It doesn't matter what the Board of Horse Racing does to come up with money," Long said. "There's no mechanism by which the Fair Board can put up the money. The commissioners have publicly stated that they won't approve anything for insurance."

The board agreed to suspend horse racing for one year. Depending on what happens with the insurance issue, racing could resume at some point in the future.

Despite the late date of this decision, Fair Manager Jay Scott said he doesn't expect to have much difficulty in finding events to replace horse racing.

Some of the options that have previously been discussed, he said, including motocross competition, logging events, or possibly a skills competition involving local fire departments.

"We'll do what we can to make this the best fair ever, even without racing," Scott said.

Reporter Bill Spence may be reached at 758-4459 or by e-mail at bspence@dailyinterlake.com