The disqualification for the training partnership of Anthony and Sam Freedman starts today, with the penalty sensationally further watered down by Racing Victoria, Betsy can reveal.
Many within the industry were shocked when the Freedmans were only given a 28-day disqualification after being found guilty of raceday treatment breaches on Wednesday, and some questioned whether Racing Victoria would appeal.
However, Racing Victoria had already made a ruling that in the event of a disqualification, Anthony Freedman would be exempt from two of subsections relating to disqualification under the rules.
Disqualification is the most severe and biggest deterrent under the rules of racing, but will not be fully enforced in this case to allow the business of Anthony Freedman Racing Pty Ltd to continue operating, the Racing Victoria board decided.
It provides certainty and continuity for the more than 60 staff members of the business, which is not captured under the rules, apart from Anthony Freedman being a director. The decision does not allow the Freedmans to gain any financial benefit during the disqualification period.
Given the Racing Victoria decision, the majority of horses will now stay in their regular stables in Victoria and under the care of the same staff, under a trainer the Melbourne Cup-winning partnership hand-picked.
In a four-page letter obtained by Betsy, sent to Anthony and Sam Freedman dated June 26 by Racing Victoria chief executive Aaron Morrison on behalf of the Racing Victoria board, a deal for exemptions in the event of disqualification was confirmed.
“Any concerns regarding the optics and risk of criticism about Anthony Freedman Racing Pty Ltd being allowed to continue to operate during any period of disqualification can be mitigated by preventing any advertising, or the use of company branding,” the letter stated.
It continued to list that branding is not limited to trucks, floats, stable apparel, horse gear, saddle blankets, and racing colours.
The raceday treatments case from last August was finalised after more than 10 months by the Victorian Racing Tribunal, which is separate from Racing Victoria, on Wednesday.
The Freedmans had asked Racing Victoria for many more exemptions, but only the application for Anthony Freedman Racing Pty Ltd will be allowed to continue to operate and be party to contracts and employ staff.
It plays to the chorus of comments on social media saying bigger stables are treated differently by regulators.
Disqualified persons are not allowed to derive benefit from racing during any disqualification in the rules and part of the penalty is the inconvenience of moving horses and having the business shut down.
In this case, the vast majority of horses will stay in their regular stables and under the eye of the Freedman’s staff.
According to the letter from Racing Victoria, Anthony Freedman was granted an exemption from AR 263 (1) (d) and (n), which relate to the employment of stable and conducting activity associated with racing, including sales and breeding.
The letter from Morrison states that Anthony Freedman Racing Pty Ltd will be able to continue to operate under certain conditions, which included Clayton Douglas becoming the trainer and receiving all profits from the business during any disqualification.
Anthony and Sam Freedman would get no financial benefit during the disqualification and that no branding relating to the business be used during the 28-day ban.
“It is appropriate that Anthony Freedman Racing Pty Ltd, as a company and separate entity to the individual trainers, be allowed to continue as the employer of staff during any period of disqualification to avoid staff having to relinquish any privileges and re-supply banking/superannuation/taxation details to a new trainer, and protect the interests of all sponsored visa employees,” the letter reads.
“However, to assist Anthony and Sam Freedman in complying with the prohibitions under AR 263:
“The new trainer (Clayton Douglas) ought to be invoiced by Anthony Freedman Racing Pty Ltd for an amount equivalent to the wages amount after each payroll cycle is completed, and this amount should then to be transferred from the new trainer’s account to Anthony Freedman Racing Pty Ltd;
“Whilst Mr. Douglas can be approved to assume responsibility for the company’s training operations, it is necessary that Mr. Douglas be required to nominate separate bank accounts for any monies relating to the training of horses and associated prizemoney, and that all training fees and any prizemoney earned during this period be deposited into the new trainer’s account;
“Whilst any current contracts can remain in place with Anthony Freedman Racing Pty Ltd, all accounts are to be the responsibility of the new trainer and must be invoiced to and paid by the new trainer, and all owners must be billed by the new trainer; and
“Any transfer of horses from Anthony and Sam Freedman to the new trainer, or another trainer as nominated, should be made by the managing and/or majority owner and approved by the Stewards.”
The letter went on to state it would be inappropriate for Anthony and Sam Freedman to race horses or for Sam Freedman to be allowed to participate in the breeding of horses with stallion shares he holds.
It also stated that Anthony Freedman Racing will not be allowed to market or sell shares in horses during the disqualification.
“Any concerns regarding Anthony or Sam Freedman breaching of the terms of their disqualification, including receiving any benefit, can be addressed by Anthony Freedman Racing Pty Ltd agreeing, upon request by the Stewards, to supply any documentation necessary to satisfy the Stewards,” the letter stated.
It became clear why the Freedmans’ lawyer, Matthew Sterling, was quick to accept the disqualification on Wednesday, requesting it start on July 2 and not asking for the usual seven-day grace period to move horses.
However, Racing NSW has enforced all aspects of the disqualification and horses at Randwick were not allowed to work on Thursday and will be moved to other stables in the coming days.
For welfare reasons, horses were allowed to be walked and use walkers.
Sydney-based horses have to be moved to approved trainers, and it is understood they couldn’t be transferred to family members.
