RIDDEN OUT? HOLD YOUR HORSES

Baseball, boxing, track and field, and thoroughbred horse racing. What do they all have in common? Those were the four biggest sports at the turn of the 20th century. But what about in recent years? Well, baseball is still America's pastime - even with all the steroids stuff. Boxing can still call the media its best friend with all the pre-fight hype - even though most of the matches are on pay-per-view. Track and field is still a staple in sports culture from middle school to the Olympic Games - even with nearly no national coverage.

Then, there's thoroughbred horse racing - the so-called "sport of kings." Though baseball, boxing, and track and field are struggling to attract fans with their various misfortunes, nothing compares to the sudden bobbles at the races. Experts say the business is looking extremely washy and something needs to be done to soak up the sweat. Let's grab the reins.

Way before there was Secretariat - considered to be the greatest racehorse ever - and the Kentucky Derby, there were the first organized horse races around 4500 B.C. throughout Central Asia and the Mediterranean. By 638 B.C., the sport involved chariot racing during the ancient Greek Olympics, which became extremely popular later in the Roman Empire.

It was not until the 12th century when the origins of modern racing really developed. Arabian stallions were imported and bred in England where two-horse races were arranged for private wagers. This concept grew to a professional level in the 1700's when facilities were built to race several horses at one time and hold a number of spectators. As a result, breeding and racing became very profitable.

During the next 200 years, horse racing became, indeed, the "sport of kings" (for the pleasure of the royal courts). Major races were staged, including the Kentucky Derby, Preakness Stakes and Belmont Stakes, which make up the Triple Crown. Spacious tracks opened with the smell of stables and the sound of hoof beats, including Churchill Downs, Pimlico and Belmont Park. And several famous stallions shined in the national spotlight as multi-million dollar investments, including Man O' War, Secretariat, Citation, Kelso, Count Fleet and the diminutive Seabiscuit (a recent movie star).

But within the last 20 years, horse racing's growth has dwindled just about as drastically as the species of brightly-colored harlequin frogs in Central and South America. Take New Jersey for example. According to the New Jersey Department of Agriculture, the number of equine-related farms went from 400 in 1987 to 125 in 1997. During the same time frame, the number of racing dates shrunk from 324 to 120, the number of thoroughbreds dropped from 13,200 to 4,000 and the number of foals, or newborns, plummeted from 1,252 to 295.

What's going on? Well, first of all, breeding has become very expensive. Michael Harrison, president of the Thoroughbred Breeders Association of New Jersey, says it can cost between $15,000 and $20,000 to qualify a horse to race. Breeders, who tend to work very long hours (sometimes well past dark) are becoming impatient not only because they aren't selling their stallions, but they also know that it takes several years to nurture a quality horse farm.

"It's like planting a fruit tree," says Joe Kennings, who owns a 170-acre horse farm in Monmouth County. "It takes three, four, five years for it grow. People don't want to wait that long. They want a piece of the action. And there's a lot of risk. We don't get crop insurance as if we're raising beans."

It's also pricey to keep a track going - around $100 million - which is another reason why horse racing has a significant impact on the local community. That hefty price includes an enormous economic investment. On the other side of the coin, New York, for instance, had been nesting $1.3 billion from its racing product, which provided 152,000 jobs for owners, service providers, employees and volunteers to name just a few. Not anymore.

In Florida and California, it has been hardly any different. Though a 2003 study conducted by the Horse Racing Association determined that horse racing in both states yielded billions of dollars, attendance had nose-dived from 17 million in 1980 to 2.7 million in 2003. Research showed that fans were flocking elsewhere, especially in Florida where expansion teams were knocking on people's doors: the 1988 Miami Heat, the 1993 Florida Marlins and Florida Panthers. In addition, with the advent of simulcasting in the 80's, gamblers didn't have to go to the tracks to place wagers - they could do it online or over the phone from home.

So, what then is the solution to salvage the horse racing financial empire? For starters, it's imperative to implement slot machines and video lottery terminals at the tracks. Greg Melikov, who has been covering horse racing for decades, says if casino-style gambling can flourish in Las Vegas - the number one vacation spot in the country - then it can do the same at the race tracks.

"Slot machines are picking up where simulcasting left off," Melikov says. "Louisiana tracks that have them are doing much better than Texas tracks that don't. That's because purses for racing climbs as revenue from video slots rolls in."

Of course, one major diversion to having more centralized gambling is competing deregulation. And this is the reason why state governments need to create consistent racing laws, such as stricter penalties for off-shore wagering and higher insurance policies for jockeys. The four largest horse racing states - California, Florida, Kentucky and New York - need to have a management makeover and ultimately work together to deliver more synergy integrity, quality and most importantly - a better product.

Speaking of consistency, there needs to be a well-defined horse racing season and increased brand awareness, so there is more fan loyalty like with NASCAR. As a result, the horses will perform better instead of grinding their hooves 365 days a year. There also needs to be more host sponsorships (Yum Brands recently made the 131-year-old Kentucky Derby its first), more corporate signage along the tracks and more attention paid to local broadcast rights.

By the way, do you know who Jerry Bailey is? Probably not. Well, he was the "Jordan" of jockeys who retired this year after earning a shade over $300 million in his 31-year career. Case in point: the jockeys, just like their compensation, are under-represented and I'm not just talking about their small frames.

Another component missing from the tracks is the families, especially those with younger children. Even though the minimum age to gamble at most states is 18, there aren't enough activities for the under age. Furthermore, the facilities need to cross-promote by adding extra events to their calendars, such as a concert or amusement fair. That way they could not only advertise their venue, but also upcoming races. When the Belmont Stakes arrives annually on a Sunday in June, 100,000 people crowd the stands, but by Wednesday that Michigan Stadium-like number lowers to about 9,000.

The good news is that the horse droppings are being cleaned up. Casinos are being added as amenities at several tracks, most notably in Louisiana. The Kentucky Derby - known as "the most exciting two minutes in sports" - just received a host sponsor, which could create a trickle-down effect in the business. And just last week, the California Horse Racing Board passed a motion that may change the nature of the horse-betting game. The organization declared that all major tracks in the state must install Polytrack - a new, synthetic surface - by December 31, 2007, or else have their licenses revoked. Whether that's seen as a positive or negative, it will create buzz at the tracks to see how the horses will react to the new all-weather coating.

And how will the business side react? Well, first there needs to be some heady guidance. Remember when Michael Jordan retired from the NBA in 2003 and the league was looking for a new face to represent its players? But it wasn't just one guy. It was the young stars - the Lebron's and the Wade's and the Carmelo's. Horse racing needs the same - a collective unit of new leaders - to help recrown the "sport of kings" and bring it back to the finish line as a financial champion.

THE PIVOTAL MOMENT OF A SUPERSTAR'S MARKETABILITY

It was December 4, 2005, and the Pittsburgh Steelers had just fallen short to the Cincinnati Bengals, 38-31, for their third straight loss of the season. And Steelers' quarterback, Ben Roethlisberger (pictured), was too upset to even pick up his razor. Looking forward, though, that wasn't such a bad idea.

"I was so mad that we lost the game," Roethlisberger told David Letterman on last Monday's The Late Show. "I kind of went into a depression and didn't shave and we ended up winning the next game. And I am kind of superstitious - just a little bit to people who know me - but we won that game and I said I am just going to keep it going until we lose and we kept it going. I don't really like the beard you know. But we were winning so I had to keep it going."

And so came the scruffiness. Roethlisberger and the Steelers won their next eight games, including Super Bowl XL against the Seattle Seahawks, 21-10. It had to be the beard, right? Well, for Big Ben, it not only symbolized his tough-guy persona on the gridiron, but it was also his marketing juice. His grizzly look made headlines during the playoffs and was even featured on a front-page spread with an accompanying article in the New York Times Sports section. Then, as Gillette prepared to unveil its Fusion five-blade razor in a sharp Super Bowl commercial, the company struck a six-figure deal with Roethlisberger to have him shave off his beard using the new product on CBS' popular late-night talk show.

Whether or not you believe in superstitions, that belies the fact that because Roethlisberger grew a beard, it helped increase his market value to a Tom Brady level. Call it coincidence? Think it's timing? Maybe it's just the blessing of being a superstar. Now that he's won a championship at only 23 years old, he'll be demanding major endorsement dollars and could become the next centerfold of the NFL, according to the Sports Business Journal. Obviously, Roethlisberger's talent can't be denied - the beard didn't get him that ring - but not shaving on that day was the pivotal moment that grew into his newfound recognition.

Here are some other high-profile athletes whose careers were upgraded by a single circumstance that reflected their character and style of play:

1) Kobe Bryant - On January 22, the most loved-hated basketball player on the planet scored 81 points against the Toronto Raptors, second all-time to Wilt Chamberlain's 100 points back in 1962. What followed? More love for the Los Angeles Lakers' scoring leader. The Hall of Fame wanted Bryant's game-worn shoes. Spalding announced it would make a commemorative ball. The NBA Store started carrying special-edition gold T-shirts with number 81 on the back. NBA TV aired the historic offensive onslaught several times in the following week. Even Google sold the broadcast for $3.95 on its Video Store. And all this came during a time when Nike was advertising his new shoe, the Zoom Kobe I, which is now on sale.

2) Bode Miller - Just a month before this year's Winter Olympics in Turin, Italy, the world's best ski racer admitted on 60 Minutes to skiing hung over. What followed? He made the front cover of Sports Illustrated, Time, Newsweek and the inaugural New York Times sports magazine, Play. Not bad for publicity, especially since he's still got the versatility to compete in all five Alpine events and strike gold in each.

3) Tiger Woods - On the 16th hole during the final round of the 2005 Masters, America's wealthiest active sportsman hit a chip shot that landed about 20 feet from the hole. Then, as if by magic, the ball made a 90-degree turn in the cup's direction and rolled right to its edge with the Nike logo appearing before making a sudden splash. What followed? Nike, which has been paying Woods an estimated $90 million a year, capitalized on the Happy Gilmore-like miracle and turned it into a commercial. No special effects, no stunt doubles. It was Woods proving he's his own reality show - far superior to any other - and why he'll be the first sports billionaire.

4) Derek Jeter - In 2003, the New York Yankees' star shortstop sparred publicly with team owner George Steinbrenner who questioned Jeter's leadership and extracurricular activities (think singer Mariah Carey, former Miss Universe Lara Dutta, actresses Jordana Brewster, Jessica Alba and Scarlett Johansson, and the latest starlet: MTV VJ and former Miss Teen USA Vanessa Minnillo). Several months after their spat, they apparently made amends. What followed? The two appeared in a Visa commercial where Jeter visits Steinbrenner's office and the owner asks him how he can balance partying and picking up ground balls. The answer: Jeter holds up a Visa credit card. The proceeding montage shows both of them dancing at several New York City night spots and even joining a conga line. Sure, Jeter is sports' ultimate ladies' man, but the ad showed that he still has the boss' support to be the team captain. Being on the world's most represented team, that says a lot.

5) LeBron James - During his senior year at St. Vincent-St. Mary High School in Akron, Ohio, the 6'8" man-child received a 2003 Hummer H2 (not to mention a remote control mini-version). But was the $50,000 hefty gift from his mom or soon-to-be agent? Well, as the Ohio High School Athletic Association investigated the situation, the sports universe tuned into the King James saga. What followed? Even before he was picked first in the 2003 NBA Draft, Nike signed him to a seven-year deal worth more than $90 million and modeled his first trademark sneaker after the Hummer. The bulky vehicle is also synonymous with the Cleveland Cavalier's brute force in the paint.

6) Michael Jordan - Once upon a time, the greatest ever elevated toward the hoop for a jam and kicked his legs out mid-air. What followed? Sports marketing would never be the same. In 1988, one of Nike's main designers, Tinker Hatfield, who eventually became Jordan's go-to guy, came across a sketch of his spread-eagle dunk and used it as the "Jumpman" logo on the Air Jordan III sneaker (and every one thereafter). Then, in 1996, Jordan starred in the movie Space Jam, which featured Seal's song "Fly Like An Eagle" - an ode to the lead character. Its hook was, "Said I wanna fly like an eagle to the sea/Fly like an eagle let my spirit carry me/I wanna fly right into the future." Jordan went on to soar high above everyone else. During his second three-peat with the Chicago Bulls, Nike helped him launch his own apparel line, Brand Jordan, which has grossed more than $500 million. Now three years since retiring in 2003, his name still gets a lot of "Air" time, especially when his new kicks are about to hit stores (the Air Jordan XXI arrives February 18). In fact, you can argue the "Jumpman" is more recognizable today than the NBA insignia.