Claiming Races – Some Twists and Turns
Monday, November 16th, 2009A large percentage of both thoroughbred and harness races are claiming races. A brilliant concept by someone in racing history (if anyone know who “invented” the claiming race, please comment) that is elegantly simple. Set a price for race entrants using natural economic forces and rationality that result in competitive fields. Cool! Horses that are really “worth” $25,000 can enter a $15,000 claimer and win, but the horse will be lost to a new owner. You can race your beloved gelding that is “worth” $15,000 in the open market in a $25,000 claiming race and you will be able to sleep at night knowing you won’t lose him. The only thing you lose is your shirt as he will have little chance to turn a profit for you racing over its head.
So let’s accept the economic brilliance of the concept, and not debate here the merits of the race or knocks against this type of race, which typically include the “rent a horse” arguments (which, by the way, hold water especially in slot-subsidized harness racing).
I would like to hear YOUR VIEWS on some twists and nuances of the claiming race. So consider the following and please, comment below.
1) Announcement of Claims. Should claims be announced before the race or after? Some tracks do it, some don’t. In either case, should such announcement include how many claims were entered and who entered them? Should this data then be added to the historical records so such data appears later in the Past Performance record of the horse? Please chime in on all of these questions.
2) Shakes (when there are 2 or more claims entered on one horse). If there is “excess value” in the horse, the buyer gets it. By that I mean, if two $25,000 claims are entered, and one of the two claimants would have paid $27,000 and the other the $25,000, if the $27,000 wins the shake, then he keeps $2,000 that he otherwise would have gladly given the owner if the horse were sold privately. Here’s an idea. In addition to entering the basic claim, claimants enter a secondary “bid” in case of a shake. If there is more than one claim in, the judges open up the secondary “bid” envelopes and the highest gets the horse. If there is still a tie, then a traditional shake takes place between the tied high “bidders”. So, the question for you: Are sealed “secondary bids” a good idea rather than the traditional shake?
3) Sales Taxes. Some states (like California) charges sales tax on claims. Most states do not. New Jersey charge sales tax on the initial claim in a calendar year, then only charges again on any amounts over the amount of the first claim through the rest of the year. Sound a little crazy? It is. Some folks think sales tax is a good idea, as it is a disincentive to claiming and “jamming” (keeping a horse at the same class). Others think it inhibits that natural economic process of claiming. Still others think it is wrong, as technically speaking, if the horses stay in the claiming ranks, they really are being held for re-sale, and as such it could be argued, should be exempt from sales tax. [Note, this is an interesting, and likely untested argument as the horse IS held for re-sale, but is also being used, where typical re-sale items are inventoried and not otherwise used.] So, the question for you: Is sales tax on claims a good idea or bad idea?
4) Jail Time. Nearly every state and/or track has “jail time” associated with a claim. Typically between 30 and 60 days or the end of the meet, whichever comes first, a claimant cannot move the horse to another track (other than for stakes races). This too is very inconsistent across the county. New York has a 30-day jail-time rule, but Saratoga Harness has a 45-day rule that trumps the state. Pennsylvania has a 60-day rule but allows you to move within the state before the 60 days are up. California used to have the most protectionist rule, 60 days after the end of the meet! Now, due to some threatened litigation, California has no jail time at all. So, the question for you: Is jail time a good idea or bad idea and if good, what is the ideal amount of time?
5) Forced Class Change. Some jurisdictions for claimants to move their horses up in the claming ranks for some prescribed period or number of starts. This is done to lessing “jamming” as described earlier. The question for you: Are forced class movements following a claim a good idea or bad idea?
Claiming races often have the most competitive fields due to the economic rationality effectively forced upon their entrants. But given the above five items, the races do have some nuances of differences from state-to-state. I would really like to hear your thoughts on the points above so please chime in!
David Siegel
President – TrackMaster
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