Dubai World crisis could cause ripples in U.S. racing circles
Smoke and mirrors are key weapons in any public relations battle between perception and reality. Just ask Tiger Woods and his spinmeisters.
In horse racing, the nearest fire is the potential $80 billion debt default by Dubai World and how it may affect Dubai emirates leader Sheikh Mohammed bin Rashid al-Maktoum and his massive horse racing empire.
His racing people are saying it will be “business as usual,” that the sheikh’s personal wealth, estimated as high as $12 billion, is separate from Dubai World, an investment arm of the Dubai emirate. I say the two are intertwined — in the court of public opinion. I believe his horse activity might have to change for the short term, and here’s why.
Ever hear about Nero fiddling while Rome burned? Sheikh Mohammed could be accused of the same transgression if his spending on horses continues unabated while Dubai goes into dire economic straits. The public backlash could be great if he keeps pouring hundreds of millions of dollars of personal wealth into racing worldwide while sister emirate Abu Dhabi helps bail out Dubai, in his own backyard, with $20 billion. That would be sending the wrong message.
This is not to say Sheikh Mohammed will lessen his commitment and passion for racing. That will last a lifetime. What it hints at is, could the horse industry handle a temporary cutback in spending by the sheikh, maybe 25 percent or more? The most obvious hit would come at domestic horse sales.
This is conjecture on my part, but it’s a possible scenario, especially if things get worse before they get better in Dubai.
The sheikh is such a valuable player at U.S. horse sales that anything less than his best could have a serious ripple effect. Key parts of racing are supported by fragile underpinnings, such as purses from slot machine revenues and horse sales prices buoyed by two or three major buyers.
Time will tell if Sheikh Mohammed reduces his spending at all. His people will say everything is normal. But as we know, their actions will eventually speak louder than their words.
• TREASURE ISLAND — Tony Nevill, race and sports book director at Treasure Island, has set up two free jockey “meet and greet” sessions in the resort’s race book on Monday and Tuesday from 8 to 10 a.m. Tyler Baze, David Flores, Kyle Kaenel, Mike Smith and Danny Sorenson are scheduled to appear.
Richard Eng’s horse racing column is published Friday in the Las Vegas Review-Journal. He can be reached at rich_eng@hotmail.com.