Arizona Downs ends its horse racing season early, putting comeback on hold

Dennis Wagner
The Republic | azcentral.com
Arizona Downs closed in 1985 and reopened at the old Yavapai Downs in Prescott Valley on May 25, 2019.

Corrections & Clarifications: Corey Johnson​ is the partner in Arizona Downs who had a prior legal dispute with Monarch Content Management.​ The name of that partner was incorrect​ in an earlier version of the story.

The struggling Arizona Downs horse track in Prescott Valley, which staged a grand opening in May, has abruptly announced it is cutting short the season because track operators have run out of money.

In a tweet posted Thursday, track operators said rumors of closure are "exaggerated" but "we may be forced to run an abbreviated meet this year." The Twitter announcement described the move as "a temporary setback," and promised a detailed announcement soon.

In a statement to The Arizona Republic on Friday, Arizona Downs confirmed that, "pending additional financing," races June 22 and 23 will close the meet because its off-track betting parlors have been unable to acquire simulcasts for key horse races nationwide.

The season was scheduled to run through July 21. 

Besides stunning local fans and tourism officials, the shutdown leaves hundreds of trainers, jockeys and others in a pickle. An estimated 800 race horses stabled in Prescott for the summer season must now find other racing venues.

Arizona Downs, formerly known as Yavapai Downs, had been closed for nine years before a J&J Equine Enterprises LLC purchased it out of bankruptcy early last year for $3.2 million.

The enterprise, led by brothers Dave, Tom and Mike Auther, with partner Corey Johnson, spent millions more on renovations before the grand reopening on May 24.

The Authers made clear that live racing alone couldn't sustain the operation, and they were counting on revenue from off-track parlors where patrons bet on simulcasts from tracks such as Santa Anita Park, Del Mar, Gulfstream Park, Pimlico and Los Alamitos.

Horse racing at Arizona Downs, formerly known as Yavapai Downs.

To date, that portion of the business has been stymied because the industry's biggest video company, Monarch Content Management, refuses to sell its simulcasts to Arizona Downs. Monarch officials have said the Prescott Valley operation does not fit their business plan, and they want no dealings with the track because of a prior legal dispute with Johnson. 

The Authers last year asked Arizona's Racing Commission to force Monarch to provide its simulcast signal. When that failed, they successfully persuaded lawmakers to pass a bill requiring Monarch to contract with Arizona Downs at the same price charged to Turf Paradise. That measure, signed last week by Gov. Doug Ducey, is scheduled to take effect Aug. 27.

But it may not go forward because Monarch and Turf Paradise announced they will seek a federal court injunction to block the law. Moreover, if the lawsuit fails, Monarch has vowed to stop doing business in Arizona entirely rather than serve Arizona Downs.

Scott Daruty, Monarch's president, said his company has not decided whether to take legal action.

Turf Paradise general manager Vince Francia said the Phoenix race track could not survive without Monarch's video feed to its 55 off-track betting sites statewide.

"This would kill more than 44% of (Turf's) simulcast business," Francia wrote on the track's website. "Purses would plummet by more than $3.5 million. … The loss would be too great. That would be a shame."

Arizona Downs' statement describes off-track wagering as "the lifeblood of horse racing" and blames uncertainty over simulcasting for the imminent closure. "Our lender is unwilling to move forward. However, we remain confident," said Tom Auther. "…(We) have several ongoing conversations with potential investors."

In the meantime, Arizona Downs general manager Ann McGovern said the relationship between Monarch and Turf Paradise is "stunting any opportunities for other racetracks to succeed." And Tom Auther said owners are "heartbroken" over the suspension of operations. 

Arizona Downs reported about 10,000 fans at weekend races since Memorial Day.