Photograph: Churchill Downs
The Bureau of Horse Racing Security and Integrity has set a listening to for March 11 to handle allegations that Churchill Downs has not paid royalties for the 4 racetracks it operates.
In its discover of board listening to, HISA alleges that CDI has not paid the $6.3 million HISA valuation scheduled for 2025 for the namesake observe, Ellis Park, Presque Isle Downs and Turfway Park. That is the minimal quantity payable primarily based on HISA’s proprietary methodology guidelines and is calculated utilizing the anticipated variety of begins within the race in query, with charges weighted by anticipated purse worth.
CDI challenged this association in court docket, arguing in a lawsuit filed in December 2024 that charges ought to be primarily based solely on the variety of begins. The Federal Commerce Fee, which oversees HISA, has since amended its guidelines to base charges solely on the variety of begins. Primarily based on this components, CDI would pay $2.4 million and almost $94,000 in curiosity in 2025, HISA stated.
HISA is at the moment claiming solely that decrease quantity and plans to hunt the remaining quantity if the district court docket dealing with the case determines that CDI’s declare is invalid.
The listening to will likely be held by teleconference earlier than a committee of three administrators: Joe De Francis, Invoice Thomason and Teri Mazur. CDI might file an objection by February twenty seventh, and HISA might file a response by March sixth. Mr. De Francis and Mr. Thomason are former racetrack executives and two of the 4 administrators from the business. Mr. Mazur is an lawyer and certainly one of 5 board members from outdoors the business.
HISA is asking the board to difficulty an order directing CDI to pay $2.4 million plus curiosity inside 10 days of the order. The Authority additionally asks the Board to order that CDI be prohibited from simulcasting races at HISA-covered racetracks if these funds will not be acquired by the Authority by the date of the order.
