I promised the staff I wouldn’t go off script, but I’m going to start off script. Thanks for the yeoman’s work you guys did to put this together. Thanks for the programming this morning. It’s been enlightening and entertaining.

So good afternoon, everyone. Let me begin by expressing how truly honored I am to serve as your next chairman of The Jockey Club. I first want to take a moment to thank Stuart Janney for his many years of service to our sport, particularly his leadership over the last decade as chair. Under his guidance, we faced difficult challenges, some that questioned the very existence of our sport. Our social license to operate was indeed on the line. Today, Thoroughbred racing is safer than ever, and we continue to push forward with other initiatives that will improve the sport, several of which I will talk about today. The Jockey Cub was founded in 1894 and its mission, which you see on the screen, was to improve the breed and support the integrity of the sport. That remains just as relevant today, 131 years later.

As I prepare to step into this role, I felt it was essential to evaluate our current initiatives and priorities through the lens of our mission. I also believe it’s important to continually examine the role of The Jockey Club and the constituents we serve. Our first allegiance is to the Thoroughbred horse, followed by the breeders, owners, racetrack operators, bettors, and everyone else who makes their living in this sport. To fulfill our mission, The Jockey Club must serve all of them fairly, equitably, and effectively. As you can see, the number of initiatives on the screen that we support is significant. I urge you to look at our website and see just what we are doing today.

Some of the initiatives you heard about this morning. Stable Recovery, phenomenal work. Fastbreak AI, I’m cautiously optimistic. One of the new initiatives of The Jockey Club is the Regulatory Racing Vet Fellowship, a program that awards up to $25,000 for a vet school repayment, and the winner of this year’s 2025 award goes to Dr. Rebecca Butler of the Minnesota Racing Commission. Congratulations to Dr. Butler and we thank you for your important service to the sport.

My vision for this sport is one of growth, so let’s take a look at a few of the metrics that are relevant today. As an aside, what we’ll be looking at will include U.S., Canada and Puerto Rico. So, the first metric that I think is perhaps the most telling is all source handle. As you can see, it was on a nice trajectory through 2022. Both ’23 and ’24 have shown slight declines.

One of the most telling indicators is handle. Handle matters. It drives racetrack profitability; it reflects on our competitiveness in the broader entertainment and gaming markets and serves as a key barometer of our sport’s health. Several factors influence handle, one of which I wanted to depict here. As you can see, the number of racetracks we have in the United States and Canada has come down, and that does indeed put pressure on handle, needless to say. I think it’s also helpful to look at handle trends in a few select states. You can see some of our larger states carry the bulk of the nationwide handle. You can also see that Kentucky and Arkansas have risen significantly since 2021, and also you can see that Illinois and Texas, two of our largest states, have fallen in handle.

What else drives handle? Well, at its core, we are competing for the gambler’s dollar. How do we make our content more appealing and enjoyable to bet on? Track owners are keenly focused on that as are we. As you heard earlier, Fastbreak AI was engaged to assist the industry in scheduling our races in a more thoughtful way. I’m hopeful that this initiative will provide a path to better race-day scheduling, resulting in higher overall handle.

Another key metric that we look at is total purse money. The economics of racing appear to be improved. Purse money has gone up slightly. However, if you look at it over a 10-year period, it’s really risen only in line with inflation. So, there’s work to do.

However, interestingly, the number of starters that are pursuing these races has fallen from 55,000 to 44,000. The top left column depicts that. In 2014, there were 55,000 starters that raced in the U.S. and Canada in ’14. That number went to 44,000 in 2024. So essentially, we had 11,000 fewer races available compared to a decade earlier, resulting in more than 9,000 fewer races. Interestingly, you can see fewer horses are chasing more money in fewer races, which would appear to be favorable to the individual horse race owners. And I agree. It is. Also to note, since 2021, the average field size has remained very consistent at around 7.4. Also, the average annual starts per runner annually in the post HISA era appears to be settling in, at, or just below, six starts per runner per year, which is down only slightly from the pre-HISA era of around 6.2 starts per year.

As you can see, there is a very strong correlation between the number of horses available and the number of races we can actually run. It is perhaps the most concerning trend that affects the growth of our sport today. If we are serious about growing this sport, reversing this decline and the resulting foal crop is essential. I’ll touch on that later. Okay, a few positive things. We are in the midst of, as Shawn Smeallie said earlier, we have incredible news to talk about when it comes to 100% bonus depreciation. Without that, we would’ve had one more substantial economic problem to deal with. So Shawn, Tom Rooney, I know you’re here. Thank you guys so very much. This industry owes you one. And there are many other things to work on in the Washington, D.C., area and legislation area.

One of the most important elements of our industry or any industry is the new capital being invested. As you can see, we are in the midst of seeing over $2 billion of committed capital coming into some of our premier racing venues. These projects and others will allow us to have continued success in one of the most positive developments of our sport, and that is these marquee race days, beginning with the Kentucky Derby and Derby Week. Congratulations and thank you Churchill Downs, leadership of Churchill Downs, for strengthening what remains one of the most iconic brands in all of sports.

We also have the 1/ST Racing Pegasus Cup, the other Triple Crown races, the Preakness and the Belmont, the Derby preps, the Arkansas Derby, and Wood, and all of them frankly. We have the Whitney Day coming up, followed by the Travers Day. These are things we need to be talking about. And of course, we had the boutique meets at Keeneland and Del Mar and the Breeders’ Cup. In 2024 their global wagering exceeded $200 million over the weekend. There were 157 starters of which 61 were internationals.

These events excite fans, elevate handle, and spotlight our sport at its very best. Perhaps more important than anything, they are gateways for inviting new owners, breeders, bettors, and influencers. With that said, The Jockey Club remains concerned about the future of some of our most important racing venues, particularly in regions of the country that are deemed to be important to the overall health of the sport. One of my highest priorities will be to look at all strategic alternatives when those situations arise.

Media coverage also plays a vital role. Today, racing enjoys the support of three key media partners: NBC, FOX, and FanDuel. FOX alone had more than 900 hours of programming in ’24 and is on track for a similar number this year. NBC’s coverage of the Kentucky Derby, Preakness, Breeders’ Cup, continues to receive rave reviews from people within the sport and those comprising the general viewing public. Thanks to those relationships, we’re now more visible and accessible than ever. But to be clear, media coverage of our sport will continue to be a primary focus.

Now let’s turn to health and safety. I’m going to let you look at that slide for a minute. Wow, that is a remarkable achievement. The numbers speak for themselves. HISA has done a good job. Others in this industry and in this room continue to support HISA and all the other initiatives that comprise health and safety, but those are impressive numbers. Racing has never been safer for our horses and our jockeys. The Jockey Club will continue to strongly support HISA, and we need to look no further than the news we all read this week from Thistledown where concerns about safety prompted HISA to decisively step in. You can expect us to advocate for HISA’s mission, while also serving as a voice of reason concerning the cost of HISA to the industry.

Another foundational responsibility is aftercare. I’m going to start by reading a quote from Eliot Forbes who is the chair of the International Forum for the Aftercare of Racehorses. I think it calculates a lot about aftercare that we work on daily. He said, “Some argue that deepening our commitment to aftercare is costly. That it adds complexity. But the truth is, embedding aftercare and welfare into the heart of the industry isn’t just an ethical imperative — it’s a strategic one. A horse-centered model protects our social license. It attracts new participants and fans. It enhances the longevity and marketability of the Thoroughbred well beyond its racing years.” Thank you, Eliot. Well said.

There are approximately 620,000 Thoroughbreds in North America. Of those, call it around 44,000 will enter the starting gate and another 62 [62,000] are awaiting the starting gate or are broodmares and a few stallions. So that leaves just over 500,000 broodmares that are in so-called aftercare or, I really don’t like the word aftercare, I like the word “after they completed their racing career” because these athletes, they go on. It’s just as important in what happens after the track. Most racehorses thrive in second careers. Retraining and re-homing should always be the preferred path, allowing these athletes to continue to compete. As the official breed registry, The Jockey Club should be both an advocate and a funding source for aftercare. We are founding members of the Thoroughbred Aftercare Alliance, which currently accredits 83 aftercare institutions across the country. In 2026, The Jockey Club will make a meaningful increase in its funding to TAA.

We also established the Thoroughbred Incentive Program, or T.I.P. recognizing off-track Thoroughbreds in second careers, which has proven to be very popular and successful. Today I’m excited to announce the launch of a new pilot program to expand this initiative, which will be based upon the T.I.P championships that have been held annually since 2017. Our vision is to create a pilot program with a series of Thoroughbred-only events across North America. We see the tremendous growth the showing, eventing, and Western disciplines have experienced recently and believe there’s a similar opportunity for growth for Thoroughbreds in equestrian sports beyond the track.

In addition, a year ago at this conference, we announced a new traceability initiative, which leveraged the digital registration certificates with a mobile app to help identify Thoroughbreds. We are taking another step forward and the board of stewards has authorized an investment of more than 1,000 Bluetooth-enabled microchip scanners, which we will distribute to various touchpoints along the Thoroughbred lifecycle, including aftercare organizations, transportation companies, and veterinary clinics. I’m asking all that are in this room and listening online to increase your awareness and funding for aftercare.

Now, turning to the topic of the foal crop. In 10 years, the foal crop has fallen from 23,000 to 18,000. We all recognize that if we truly want to grow the sport, the current trend is unsustainable. So, what are the things, some of the things to examine? First, the breeding of Thoroughbreds has become increasingly more commercialized. In fact, we’re approaching a point where more than 50% of the annual foal crop will go through a public auction. As a result, the industry is starting to resemble an agricultural business more than ever before. Breeding decisions are now driven primarily by the anticipated sale price of the resulting foal weighed against the rising cost of production, namely boarding expense and stallion fees. So, what were the breeders up against in 2025 when they began to make some breeding decisions. Across the board, costs have risen sharply in the last several years.

On the surface, if you look at the sales price, the numbers looked pretty promising. There was a record number or record volume of yearlings sold in the yearly markets in 2024. Average sale price hit a record high of 92,000. However, the median sale price tells a different story. It has risen only modestly in the 10 years, from 2014 to ’24. Ideas such as auction restricted maiden races and the forthcoming rating system that are being developed by Equibase could offer support.

Last December, we announced a Mare Incentive Program, a tool that helps breeders identify certain mares that may have dropped out of production. I’m pleased to report that more than 100 of those mares have returned to production, and we hope use of that tool will yield close to twice that amount when all the foal crop tallies are complete.

Another promising initiative under discussion is the formation of regional alliances among states to combine their state breeding programs and development programs. I’m personally a big fan of that and a big believer in it. It is an initiative that The Jockey Club is prepared to assist in any way possible, including hosting meetings and researching the most effective incentive programs. The numbers suggest Kentucky is doing very well, but that doesn’t mean that Kentucky is immune to the broader challenges. I include myself as a breeder and a farm owner in Kentucky when I say we need to be more supportive of the broader economic initiatives outside of the Commonwealth.

Earlier we heard about the remarkable impact Griffin Johnson has made and continues to make in our sport. When ABR was founded in 2012, this is exactly the type of positive influence we envision. Thank you to Griffin and Terry Finley, West Point Thoroughbred, and of course, the Arkansas Derby winner, Sandman, and Ewing now, of course. That’s a vision that frankly few in this room other than maybe Griffin had even five years ago. Griffin’s story underscores the power of positive messaging in Thoroughbred racing, but it also reveals a broader need. Our sport would benefit greatly from a unified comprehensive national marketing strategy. We need a program that not only amplifies Griffin’s voice to his 14-plus million followers but also supports key stakeholders across the spectrum of racetracks in North America. The Jockey Club is committed to taking a leadership role in advancing this effort. Together we can build a stronger and more connected future of Thoroughbred racing.

As many of you know, The Jockey Club previously attempted to implement a cap on the number of mares a single stallion could breed. While that effort did not succeed, the underlying concerns it aimed to address remain very real. This slide illustrates the trends in North America. However, the phenomenon is happening worldwide, and while the U.S. is the largest producer of Thoroughbreds, we only represent approximately 20% of the global foal crop.

Whether you believe we’re facing a serious issue or not, it is critical that we keep this conversation going and to do so on a global scale. To that end, The Jockey Club of the United States is currently chairing the Inbreeding Task force of the International Stud Book Committee. Our focus is to dig deeper into the science and leverage emerging tools, including artificial intelligence and advanced technology, to better understand the long-term impact on the breed. At the same time, I fully recognize the economic realities of the industry we operate in. My role is to preserve the integrity and health of the breed while fostering an environment of innovation and investment. That’s why I plan to engage directly with the leading stallion farms, not only in the U.S. but around the world, to continue this important dialogue.

As I mentioned at the top of the speech, The Jockey Club’s constituency that it serves is broad and a highly important part of our sport is in fact the bettor as they provide the trust that runs the sport - handle. I say highly important because frankly, I bet myself. I further recognize the deep divide on the matter of computer assisted wagering, or CAW. I plan to use this position to better understand that issue and try to help the industry strike a right, the right balance that ensures growth, but does not disenfranchise the retail bettor. I look forward to my discussions with the interested parties and working towards practical solutions.

Now let’s turn to the for-profit subsidiaries of The Jockey Club. Businesses many of you know well. These companies have been developed over many years and include two major partnerships: Equibase, in collaboration with the Thoroughbred Racing Associations of America, and BloodHorse, in partnership with TOBA. Each of these ventures offers a wide range of products, but they all share one essential purpose, providing critical support to the broader Thoroughbred ecosystem. One of my commitments, together with our management team at The Jockey Club and the board of stewards, is to take a fresh look at these businesses. Our goal is to ensure their operations continue to align closely with The Jockey Club’s core mission and serve the long-term interests of the sport.

In closing, let me acknowledge the unwavering commitment so many of you have shown in advancing the cause of health and safety in our sport. We understand the stakes and we are truly committed to ensuring we never take a step backward. For the first time in recent memory, health and safety has become a strength, not a weakness. My vision for Thoroughbred racing is rooted in growth. Some see it as the cranes and construction shaping our iconic venues. Others experienced it through the thrill of placing a simple $2 win bet. Still others feel it in the energy, elegance, and comradery of a major race day. No matter how you engage with our sport, one thing is clear. We have a powerful story to tell, one of momentum, one of passion and promise. The excitement of betting, owning, or breeding a racehorse is alive and well across this country every single day. We invite you to be a part of it.

Thank you very much, and that closes the conference.