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.