The Paulick Report
Undercover Boss
Those who think all the “suits” in racing’s ivory towers know nothing about the people who put on the show at racetracks across the country should talk with Churchill Downs Inc.’s chief operating officer Bill Carstanjen.
Carstanjen had a crash course for 10 days last September working incognito alongside employees on the front and backside of Churchill Downs, Arlington Park and Calder, and the experience was enlightening if not life-changing. He played the starring role in the new CBS television series “Undercover Boss,” which puts executives at major companies alongside front-line workers.
“Each week a different executive will leave the comfort of their corner office for an undercover mission to examine the inner workings of their company,” the reality show’s website explains. “While working alongside their employees, they will see the effects their decisions have on others, where the problems lie within their organization and get an up-close look at both the good and the bad while discovering the unsung heroes who make their company run.” Other companies profiled so far include Waste Management, 7-Eleven, White Castle, and Hooters.
Originally, CBS tried to get CDI’s chief executive officer Bob Evans to go undercover, but he was convinced too many employees would recognize him and his cover would be blown. Too bad: the Paulick Report has learned Evans has plenty of experience toiling in the trenches, reportedly helping pay his way through college by working as a janitor for the local school district.
Carstanjen disguised his look, replacing glasses with contact lenses and growing a scruffy beard on his jaw. Cameras followed him around through various jobs—as part of the clean-up crew on the front side, mucking stalls in the stable area, shadowing the track’s outrider, working with a jockey valet, and even the bugler for the call to the post.
Employees were told someone hoping to land an entry-level position was being documented by a film crew. “They thought he was an unemployed schmo trying out some entry-level jobs,” said Julie Koenig-Loignon, CDI’s vice president of brand development and marketing. “They were giving him a trial run as much as anything.”
Carstanjen didn’t just pose for the cameras. He was put to work alongside CDI employees.“There are some very high pressure jobs in horse racing where you’ve got to keep up,” Koenig-Loignon said. “Bill definitely got put to the stress test. There was also some down time spent with employees. In some cases, he got to understand more about their families, along with personal and professional challenges.”
Carstanjen learned a lot more than how to much out a stall or clean a urinal. “The best part of the 10-day voyage into the workings of the company was seeing and feeling the passion and dedication of the employees,” Carstanjen said. “Being undercover meant the people I was working side by side with, could speak frankly about their work. They could freely speak about their personal sacrifice, health issues and time management, all while showing up every day for work with the same attitudes so many of us feel for this business—the passion, dedication and drive to get more fans to love the sport as much as we do. “For me, it was a lifetime experience. There was a lot of enjoyment in experiencing the fun and passion without the corner office pressure, which focuses on the problems.”
Did he learn any lessons about how corporations like Churchill Downs can better connect with their employees?
“I could see all the things we’re doing right and all that we’re doing wrong and one takeaway and initiative will be to have a ‘Walk a mile in the other people’s shoes day’ at Churchill Downs Incorporated properties. Not forgetting about safety or security, we plan to have people switch roles to really appreciate and teach everyone from the front side to the backside, what it takes to run a racetrack operation.”
The show’s preview indicates there are some emotional moments between Carstanjen and those he worked alongside.
“There are so many moments we worked and lived through,” he said. “I performed many different jobs and I don’t know what is in the final film; that is part of the arrangement with CBS. I can tell you there are moments of joy, pride, and a whole lot of humble moments. I truly did very few of the jobs very well.
“Probably the most raw, emotional moment was when we revealed who I was. I really can’t say anymore, other than to tune in with us.”
The episode featuring Carstanjen and Churchill Downs Inc. employees is scheduled to air on March 14. Carstanjen plans to be with some of his family and Churchill Downs team members at the track on the night of the broadcast “so we can all watch for the first time together and have a good laugh at my expense.” - Ray Paulick

 

What’s Really Going On
That is the rather provocative headline on the TAB website, where the message hits home with this:
"HORSERACING, by its very nature, is both controversial and subjective with virtually every participant having a strong opinion on a variety of issues. Phumelela and Gold Circle welcome suggestions and constructive comment and criticism, but some views expressed in channels like newspapers and web sites are a distortion of the truth or factually incorrect. And occasionally they are absurd. When we deem it necessary, we will put the record straight rather than by responding directly in the relevant channel".
The Most Recent Comments from the website
GAMING Laboratories International (GLI) Africa has completed an independent audit of the TAB computerised betting system and found that no bets are placed after an event is closed.TAB recently completed a thorough investigation into the differences between dividends at the start of a race and the final official payouts. Phumelela and Gold Circle were totally satisfied that no bets were being placed into pools after the close of a race, but in order to further reassure TAB customers GLI was commissioned to carry out an audit of the wagering system.
GLI is a global company with its headquarters in the USA. It has long been the leading independent gaming industry testing and certification laboratory and is utilised by more than 450 gaming regulators in jurisdictions all over the world.GLI is also approved by South African regulatory authorities to certify systems for use within the South African betting and gaming market. - 3 Feb
TAB has taken several steps to address the concerns of its customers about significant differences between Win and Place dividends displayed at the start of a race and final official payouts.These include doing pool updates more frequently, commissioning an independent audit and ensuring that a major overseas customer bets earlier.
TAB recently completed a thorough investigation into the differences between dividends at the start of a race and the final official payouts. Phumelela and Gold Circle are satisfied that no bets are being placed into pools after the close of a race, but in order to further reassure customers independent experts are being commissioned to carry out an audit as soon as possible.
In general, the differences between payouts at the start of a race and the final official dividends are caused by the increasing volume of overseas bets taken just before the off into Win and Place pools on South African races. Overseas bets currently comprise more than 30% of Win and Place pools, but can be as high as 65% on a single horse in a race.
Big amounts are bet in the last few seconds and thus payouts shown at the start of a race can change significantly when the betting system does a final scan that incorporates the final bets.
All overseas totes commingling into TAB pools now transmit final betting data within 30 seconds of a pool closing. The only exception is Australia, which delivers final data 55 seconds after pools close. TAB has requested its Australian tote partners to seek ways of expediting the transmission of final data.
In order to limit the magnitude of the fluctuations, TAB’s tote system has since Monday 18 January been updating pools every 20 seconds compared to 60 seconds previously.
The TAB investigation has revealed that many of the major fluctuations in tote payouts result from last-minute bets taken by a single international customer. TAB has now taken steps to ensure his bets are placed earlier.
Horseracing and tote betting operators Phumelela and Gold Circle are fully aware that the integrity of TAB’s system is paramount to horseracing and all of the sport’s participants. Consequently, all controls in respect of betting are constantly monitored and Phumelela and Gold Circle will take whatever steps are necessary to ensure TAB retains the confidence of its customers
- 21 Jan

Keeneland Sale Revamped
In an attempt to serve its consignors and buyers more effectively, the Keeneland Association has revamped the world’s largest yearling sale.
Keeneland officials laid out their plans on Friday for a change in the format of the September yearling sale, which now is scheduled to take place from September 12 through September 26.
The new formatwill move the sale’s annual “dark” day from Friday to Saturday and allow Keeneland to offer 1,500 yearlings during the first week while offering fewer yearlings on average each day.
“I’m not sure that ‘relaxed’ is the right word, but we want to make the effort to provide a more social and welcoming atmosphere,” Keeneland President Nick Nicholson said.
“The old July sale got to be such a social event that, at times, not enough business got done. The September sale has kind of gone in the opposite direction, where it has become all business and people many times do not have time to enjoy the wonderful things Central Kentucky has to offer. We’re confident the new format will provide a better balance in both areas.”
Highlights of the format change include:
• A more focused Book 1, including a selected sale of only 200 yearlings spread over Sunday and Monday night sessions, with about 100 yearlings offered each night;
• A larger and more dynamic Book 2, which will run Tuesday through Friday with 1,300 yearlings offered at an average of about 325 per day, down from an average of about 400 per day the past few years.
“This new format reflects the changing Thoroughbred industry,” Nicholson said. “We’ve been working in collaboration with our customers—particularly consignors—over the last few years to develop a format that fits the current dynamic and needs of our buyers and sellers.”
Officials hope the new format will create more stability, continuity, and excitement within the Thoroughbred marketplace as economic conditions continue to rebound domestically and internationally.
Russell said the September yearling sale is an important barometer of the Thoroughbred industry as a whole and that a sale that is more open to the needs of buyers and consignors can help fortify the market in tough economic times.
Russell also said the reduction in the number of selected yearlings offered during the first two evening sessions should create more of a buzz and an electric atmosphere that could help kick start a strong first week of sales.
“The new format will give the sale some pizazz the first couple of nights,” said Reiley McDonald of Eaton Sales. “It will take some pressure off buyers the first week when there is more selection done in the barn area, and it will level off the playing field in Book 2 for both sellers and buyers.”
Nicholson and Russell both noted that the changes have been in the works for several years and that many consignors and buyers, from both the United States and abroad, were consulted to ensure the new format would be useful and well received.—Steve Bailey