UPDATE 3/12: Paulick on the Lasix Reversal
Mar 11, 2013 22:37:14 GMT -5
Post by cait on Mar 11, 2013 22:37:14 GMT -5
This confuses me because the BC Limited is a non-profit - however it's subsidiary, BC Properties is a for profit The BC consolidates it's financial statements so there is no breakdown for each BC "company". The expenses include 6.3M for salaries and 2.6M General Expense and over 8M for investments. The question is who gets the profit from BC Properties? Who actually owns the 36M of Unrestricted Net Assets. ID the BC went OOB, how would those assets be distributed?
This was the latest audit I could find
www.breederscup.com/sites/default/files/Jan-2012-Final-Audited-Financials.pdf
it states:
"Purpose of Organization and Nature of Operations: Breeders’ Cup Limited was incorporated in 1980 as
a non-profit organization whose purpose is to stimulate public interest in the sport of Thoroughbred
horse racing. The primary goal of Breeders’ Cup Limited is to build broad-based positive public
awareness of Thoroughbred racing, thereby increasing fan participation in the sport and expanding
opportunities for development of the Thoroughbred industry. This objective is achieved through a
multimillion dollar year-round racing and promotional program."
"Breeders’ Cup Properties was established to own and operate commercial business ventures and
investments that are profit motivated."
"The Company’s subsidiary for-profit is subject to U.S. federal income tax as well as state income
taxes."
Somehow this does not seem to be what the BC origional concept and purpose as a non-profit only was to be.
Rock and a Hard Place: Behind the Breeders’ Cup Lasix Decision
by Ray Paulick
Was it merely a change of heart that led the Breeders’ Cup board of directors to back away from their 2011 decision to ban race-day medication in all of its championship races beginning in 2013?
Or could it have been the financial projections given to the board for this year’s event if some owners and trainers opted not to race their horses because they were unable to be treated with the anti-bleeding drug furosemide, better known as Lasix. Maybe it was the threat of a federal lawsuit by a leading owner, citing fiduciary responsibilities of non-profit organization board members under New York law, where the Breeders’ Cup is incorporated. Perhaps for some board members, the decision was made out of frustration, knowing that local horsemen’s organizations have the ultimate approval rights for simulcasting the Breeders’ Cup under the Interstate Horseracing Act of 1978, and the event could have been held as a hostage over medication rules.
Most likely it was a combination of all of the above.
Full article:
www.paulickreport.com/news/ray-s-paddock/rock-and-a-hard-place-behind-the-breeders-cup-lasix-decision/
This was the latest audit I could find
www.breederscup.com/sites/default/files/Jan-2012-Final-Audited-Financials.pdf
it states:
"Purpose of Organization and Nature of Operations: Breeders’ Cup Limited was incorporated in 1980 as
a non-profit organization whose purpose is to stimulate public interest in the sport of Thoroughbred
horse racing. The primary goal of Breeders’ Cup Limited is to build broad-based positive public
awareness of Thoroughbred racing, thereby increasing fan participation in the sport and expanding
opportunities for development of the Thoroughbred industry. This objective is achieved through a
multimillion dollar year-round racing and promotional program."
"Breeders’ Cup Properties was established to own and operate commercial business ventures and
investments that are profit motivated."
"The Company’s subsidiary for-profit is subject to U.S. federal income tax as well as state income
taxes."
Somehow this does not seem to be what the BC origional concept and purpose as a non-profit only was to be.
Rock and a Hard Place: Behind the Breeders’ Cup Lasix Decision
by Ray Paulick
Was it merely a change of heart that led the Breeders’ Cup board of directors to back away from their 2011 decision to ban race-day medication in all of its championship races beginning in 2013?
Or could it have been the financial projections given to the board for this year’s event if some owners and trainers opted not to race their horses because they were unable to be treated with the anti-bleeding drug furosemide, better known as Lasix. Maybe it was the threat of a federal lawsuit by a leading owner, citing fiduciary responsibilities of non-profit organization board members under New York law, where the Breeders’ Cup is incorporated. Perhaps for some board members, the decision was made out of frustration, knowing that local horsemen’s organizations have the ultimate approval rights for simulcasting the Breeders’ Cup under the Interstate Horseracing Act of 1978, and the event could have been held as a hostage over medication rules.
Most likely it was a combination of all of the above.
Full article:
www.paulickreport.com/news/ray-s-paddock/rock-and-a-hard-place-behind-the-breeders-cup-lasix-decision/