Thursday, April 3, 2014

The 9 Camps In the Keeneland Announcement

Keeneland's switch to dirt has been applauded, lampooned, assailed, and looked at with bewilderment. And sometimes these can come from the same person.

For the more curious aspect of this decision (and a bang-up review of the Wood) I send you to the lovely and talented Mr. Mann of Left at the Gate fame.

After you've read the good grammar and English at LATG you can come back here for my nonsense, that will more than likely revolve around using pictures, or other people's words. Trust me, it's better that way.

The reaction to this Keeneland thing seems to lie in a few camps. I'll try to summarize them here.

Asaro spreading the word of dirt to youngsters
1. Andy Asaro: This man stands alone in his own camp. If the death rate was three horses per racecard on dirt versus 1.22 per thousand on synth, Andy would say the data must be wrong. The man has posters of dirt over his bed. His favorite movie is Joe Dirt. His favorite movie would be the Dirty Dozen, but he doesn't like the "y". He sprinkles dirt on his breakfast cereal. He really likes dirt. Right now it's like Christmas for him.

2. The Logic Folks: These are the folks who look deep into something, dissect it, and decide it does not make sense. Congress hates these people because they have a hard time pulling the wool over their eyes, and so does horse racing. O Crunk is one of these people.
3. The Horse Lovers: These are the folks who care for horses and love 'em like they're their kids. I like these people, you like these people; they're good people.  They don't understand why a track would switch surfaces when the stats say more may perish.

4. The Traditionalists: These are the Byk's, some in the DRF. They hate synth because it changes the way the game is played. Even at only a couple of tracks this upsets them, and something like the Bluegrass Stakes losing a Grade I rating is like losing a forelimb. They are a bit like Andy Asaro, but they don't have posters of dirt on their walls, they have posters of say, Easy Goer, or another New York dirt horse instead. I can't really argue with them much either; synthetic racetracks are a third surface. They do have a point.

5. The "bettors who won't play plastic": This group is loud, proud and proclaim they are going to bet Keeneland more now because they are switching to dirt. When the handle at Keeneland does not go up, just like today is has not gone down, this won't make too much sense, but they are there and they are vociferous. They like the dirt.

6. Cold Hard Bettors: People looking for surface edges and betting value by adding more data and chaos to handicapping decisions, not less, are not overly happy. I think my pal Jerod Dinkin is going to blow a gasket. This group looks forward to Keeneland poly each spring and fall like Andy Asaro looks forward to a day at the beach.

7. The Church of Joe Drape: Joe and his minions are sending surface breakdown stats through the social sphere like Zeus throwing lightning bolts on disbelieving villagers. As Mr. Mann pointed out, Joe has the upper hand in this argument right now. No matter what you read on the web (the new narrative is that the class of horse makes all the difference, like somehow nobody knows how to do multivariate testing), remember Occam's Razor. A kid with a grade two math degree can figure out poly is safer than dirt after the past ten years of data, both here and abroad.

8. The Numbers Guys: This is an offshoot of the Traditionalists group. Perhaps they argued a little too much to live in the same house, or what have you. They like the seamless nature of stakes racing. Horse A preps on dirt for a dirt race. All the historical stakes are lined up in an easy-to-see easy-to-use package, just like they always have. My pal on twitter @insidethenumbrs is in this camp. I would be too, because I like this type of structure for any sport, but camps like camp six are too powerful a draw for me.

Where Mr. Racing lives. Ominous.
9. "Racing": This is a nebulous group that you can never figure out. Through stories, as far back as the 14th century, it's fabled that "Racing" is an old grey-haired rich man who sits atop a mountain in a huge castle. This man usually owns horses who have sex for money and makes decisions based on horses having sex for money. There is a large group out there who believe this is the man who made the Keeneland decision.

Those are the nine groups I see. There are probably more, but I'm tired of typing.

Enjoy your day everyone, and remember, it's movie night at Asaro's tonight if anyone is close by. It's a double bill of Joe Dirt and Dirt Dancing. BYOB.


Wednesday, April 2, 2014

Keeneland Reaction From the Social Airwaves

I am still pretty fascinated about this press release, in the here and now, about Keeneland going to dirt. It came at a pretty strange time.

I think this tells us (like we did not already know this) that racing is not about bettors, you or me, the horses, or anything else. It's insider run, with decisions made by insiders for the benefit of other insiders.

I'll spare some tweets from the people who like dirt (there are lots) and share only the ones who cut a knife through the interesting logic (illogic?) in this situation.















A Fascinating Day For Keeneland

This morning Keeneland topped the Horseplayers Association racetrack rankings yet again. The rating is an unabashed "bettor rating" based on field size,takeout - "bettability" if you will. (to read it, the tracks are all rated 1 through 64 here)

This rating has held firm over the years. Keeneland, despite its switch to poly in 2007, has grown in leaps and bounds. Their handle keeps increasing, even with the polarizing poly chatter. Their field size this year was a whopping 9.61, one of the best on the planet. It's easily and without question one of the big success stories in a game that has lost upwards of 50% of their inflation adjusted handles in a decade.

This flies into the face of logic. Don't people like "dirt" and hate Keeneland; I read so on Facebook.  Twitter doesn't like it either.

The switch from poly to dirt, announced today, is fascinating on a number of levels. Perhaps it will make the Blue Grass more fun to watch as a Derby prep. A few owners with dirt studs will like it; some of the people who love dirt will love it; traditionalists will do cartwheels.

But what will bettors do?

When Santa Anita switched back to dirt a couple of years ago, there were cries from the rafters "thank god". There were proclamations of huge handle gains, from all these surface folks who were so happy. Just watch handle now, they said.

Watch what? The handle did not go up and none of their predictions were true.  If you understand bettors and betting, these predictions could not have come true.

What some racetrack executives fail to realize about bettors, is that in this day and age where horse racing is not a monopoly, they need value. This was exemplified nicely during a chat former CEO of Woodbine David Willmot was having with a bettor years ago. Wilmott, who wanted the bettor to pay full boat at full takeout, said that if he didn't pay up he would have to bet on frogs, because there would be no horses.

"What would you do then?" Willmot asked. 

"Find the fastest frog", the bettor replied.

Frogs, sports teams, surfaces made of dirt, poly, grass or cottage cheese. It's all about value. Betting is not a charity. I had a chat with a sharp player last week who said "I am at the point where I can only find value at places like Kentucky Downs and Keeneland. It's a jungle out there." That's your current reality, horse racing.

Poly at Santa Anita was not a handle killer. Looking at the numbers, poly at Keeneland was not a handle killer either. They had internal field size and chaos, which bred some value. 

Look at the Breeders Cup Classic in 2009 at Santa Anita. They went too fast and Zenyatta swooped them. There were a half dozen horses with a chance to win at the head of the lane. The field was not particularly deep, but when fractions are fair, it brings the field closer together.

Now look at the last two years. They could've went 44, 108 and the results would've held firm. Bettors are smart and the odds breadth on the board showed it.

Polytrack at Keeneland allowed a field size to increase, internally. Instead of four speed horses having a chance in a field of nine, eight horses had a chance in a field of nine. Each horse, based on pace scenario's, fitness, dozens of factors, could come to play and land on your ticket. The more horses who can land on your ticket, the more inherent value, the lower the effective takeout and the better the chance to win.

That's what bettors bet for : A chance to win.

I am not a surface zealot. Keeneland is a big track and they can do what they want. I watch the Blue Grass to bet it, not to find a Derby horse or worry about the race's grading or black type. I don't really care either way from a fan's perspective. However, if they think for a second this will boost their handle from cartwheelers on social media, it likely won't happen. Dirt shortens field size, and when field size is shortened, value is squeezed. When value is squeezed, bettors bet less.


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