UPDATE: Turf Paradise Lockout Continues; AHPBA Awaits Arbitration Ruling

According to a memo sent by Leroy Gessmann, executive director of the AHPBA, and President Bob Budoff, the association’s Board of Directors will await an arbitrator’s ruling before taking further action regarding the lockout at Turf Paradise, which has halted off-track betting operations and left preparations for the upcoming race meet uncertain.

The October 15 memo followed a board meeting that day at the offices of the association’s attorney, Mike Napier, to review developments involving track permittee Skyfall 7, identified in the memo with Hartunian, and property owner Jerry Simms.

CURRENT CIRCUMSTANCES
The memo outlined the following developments:

• On Saturday, October 10, landlord and lessor Jerry Simms locked current permittee Skyfall 7 out of the entire Turf Paradise property, including the racetrack grounds, grandstand, backstretch, offices and racing surfaces. According to the memo, the lockout stemmed from alleged lease defaults involving unpaid obligations.
• The lockout shut down the off-track betting system, which requires access to the track’s mutuel department to operate. As of the October 15 memo, all OTB locations remained closed, resulting in lost revenue for both horsemen and Skyfall.
• AHPBA reported that it had not received its share of OTB revenue for October 1–10. Payments were current through September 30. The association stated that it believes Skyfall has access to the October funds but has not transferred the horsemen’s share.
• Through its attorney, AHPBA sent a letter to Skyfall’s counsel asserting its claim to those revenues in an effort to protect the funds.
• On Tuesday, October 13, Skyfall filed an Emergency Request for Arbitration under the lease terms, seeking to overturn the lockout and restore access so preparations for the meet could begin and OTB operations could resume. Skyfall disputes that it is in default. As of the memo, an arbitrator had not been appointed, although an appointment was expected within the following day or two. The association could not predict when a ruling would be issued.
• If the lockout is lifted, Skyfall would be able to begin preparing the facility for the upcoming meet. If it remains in place, both the racetrack and OTB operations would remain closed.
• Counsel advised the board that it could file a separate court action seeking to freeze Skyfall’s bank account to protect the association’s revenue from potential improper use. The memo cited concerns about prior use of funds. Another option would be to seek participation in Skyfall’s arbitration proceeding to support reopening the OTB system.

The board noted that both legal options would be costly. It also expressed concern that, even if access is restored, Hartunian may lack the financial resources or staffing needed to prepare Turf Paradise for the meet.

As of October 15, the memo stated, all gates remained locked and there was no access to the property.

BOARD ACTION

The board elected to wait for the arbitrator’s ruling before pursuing further action. Its next meeting is scheduled for Friday, October 23, at 10:30 a.m. at Napier’s office, when directors will evaluate their options based on developments at that time.

The memo also stated that if Hartunian’s legal efforts are unsuccessful, or if he relinquishes his permit, Simms could seek another party to lease the property and continue racing.

GUIDANCE TO HORSEMEN

AHPBA advised members to make decisions for themselves, their horses and their clients based on their individual circumstances and best interests.

The association said the situation remains outside its control, with the next steps dependent on Hartunian, Simms and the arbitration process.

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