From breeding to boardrooms: In conversation with reappointed Racing NSW directors Charny and Crismale

Cover image courtesy of The Image Is Everything

Last week, Garry Charny and Michael Crismale had their terms on the Racing New South Wales Board of Directors extended by one year and two years, respectively. Appointments to director and senior leadership roles in the racing industry often face criticism due to the limited industry knowledge of some appointees. In such a complex field, it is widely believed that those without direct experience and ‘skin in the game’ struggle to fully grasp the challenges faced by industry participants.

This, however, is not the case with Charny and Crismale. Both are long-standing enthusiasts of the racing industry, with deep involvement through years of bloodstock and breeding investments.

As Racing NSW navigates a pivotal period, including a potential inquiry into its operations and a review of the Thoroughbred Racing Act 1996 recommended by the Rosehill Inquiry Report, we discussed their passion for racing and breeding, and their perspectives on key industry issues.

A lowly clerk

Charny was young when he was bitten by the racing bug. He was no stranger to skiving off of afternoon lectures when he was a law student at University of New South Wales, and Randwick Racecourse, just a stone’s throw from his lecture hall, was a popular retreat.

“Many a delinquent afternoon was spent not at lectures, but down the road at the racecourse,” he told TTR AusNZ.

There are worse places for a young, carefree university student to be, and on his graduation, he invested in his first racehorse with a group of fellow new grads; Rachel’s Chance (Lucky Chance), a bonnie grey mare trained by Betty Lane - the first woman to be granted a trainer’s licence in Sydney by the Australian Turf Club.

“She started at Nowra at seven to four, and was beaten a nose,” Charny recalled. “Some things you don’t forget.”

Charny was hooked, and has been in the breeding and racing game for over thirty five years. Together with Duncan Grimley, the former general manager of Coolmore Australia, Charny has had a hand in numerous nice horses like Fratelli (Frankel {GB}), a son of South African stakes winner Lovetorn (Giant’s Causeway {USA}) who was purchased by Katsumi Yoshida for $850,000 at the Inglis Australian Easter Yearling Sale in 2017. The colt dually romped home in his Japanese debut by nine lengths.

His favourite horses to date have been Sunday Joy (Sunday Silence {USA}) and Tuesday Joy (Carnigie {Ire}), when he was associated with Strawberry Hill Stud, and, more recently, Believe (Fastnet Rock), a two-time winner that narrowly missed out on getting her name in large print on the pedigree page.

“She ran third in the Oaks,” Charny said. Trained by Anthony Cummings, she was beaten just 0.7l by Sofia Rosa (NZ) (Makfi {GB}) and three-time Oaks bridesmaid Ambience (Street Cry {Ire}) at Randwick. “She appears to have thrown two very good horses.”

Gallery: Some of Garry Charny's favourite horses, images courtesy of Sportpix

Charny sadly lost her to a brain tumour last year. His other broodmares under his Belannah Stud banner have patronised St Mark’s Basilica (Fr), Farnan, and Native Trail (GB) this season, and Charny is particularly taken by the latter who stood his first season at Darley’s Aberdeen property.

“He (Native Trail) is a magnificent horse,” Charny said. “He's worth having a look at. He is a real horse, he won the Dewhurst and he's got great form.

“You never know with imported stallions, but I think he's got a real chance of success.”

“We’re trying to breed stayers for ourselves and the rest to sell” he added. “We might be the only crazy people in Australia still doing that!”

Charny is particularly excited for Blue Poles (GB) (Cracksman {GB}), whom he bred from Pitch Blue (Fr) (Muhaarar {GB}), a member of the prolific Peinture family. The 2-year-old filly joins Believe’s youngest son, 3-year-old Stillbelievin’ (Castelvecchio), in the stable of Annabel Neasham and Rob Archibald.

“Annabel Neasham is a remarkable success story when you think about it,” Charny said. “Where she's come from in such a short period of time is because of her talent, but also because of how successful racing is in this state.”

A racing mentality

Crismale came to the game in the late nineties as an owner, before delving into breeding in the early 2000s. He set about establishing a boutique broodmare band, chiefly buying fillies at the yearling sales to race before retiring them to stud to produce the next generation.

“That's probably my most prominent entry into the industry,” Crismale said. One of his earliest yearling acquisitions was Shania Dane (Danehill {USA}), a five-time winner including the G2 Phar Lap S. who placed a further five times at Group 1 level. Her full brother Scintillation went on to win two top flight races in Hong Kong, bolstering her page so well when she retired to stud that she visited Encosta De Lago four times in the period where his service fee reached six figures.

Shania Dane was trained by John Hawkes, with whom Crismale has forged a long working relationship. In partnership with his sons, Hawkes also steered Crismale’s Mentality (Flying Spur) to eight victories, including the G1 Randwick Guineas among three wins at the highest level.

“We had a bit of good fortune with him,” Crismale recalled. Amassing over $2 million for his owners in a time when the G1 Doncaster Mile had half the purse that it does now, the Arrowfield Stud graduate was a striking presence at the sales and on the racetrack.

“He had a lot of white in his eyes,” Crismale said. “That's why the lady that named all the horses, for the Hawkes camp and the Ingham brothers, called him Mentality. And he proved to be a really tough, tough horse.”

Both the racing and breeding industries have remained important to Crismale, and he endeavours to participate at all levels. His mares this year have visited Hellbent, Tassort, and the young King’s Gambit.

“The aim is to ensure that I'm selling through the major auction houses, both Inglis and Magic Millions,” Crismale said. “With the racehorses, I (want to) make sure that trainers at all levels are being looked after, so I'll use provincial or country trainers as well as metropolitan trainers.”

He has one foal heading through the sales ring at the Gold Coast in January; Lot 400 in the Coolmore Stud draft by King’s Legacy out of Fire Opal (USA) (War Front {USA}) has Crismale looking forward to Magic Millions.

“I'm quite excited to see him go through,” he said of the colt, whose dam was an Inglis Digital purchase from Coolmore last year for Crismale, a platform he is fond of, stating: “I think that the whole digital side of offering bloodstock was quite a revelation, and I think a lot of people felt that it was quite a comfortable way of doing things.”

An industry connection

Growing up in Canterbury and then living much of his life in Castle Hill, Crismale was first elected to the board of Sydney Turf Club, then to the Australian Turf Club’s board after the 2011 merger. Serving terms for the Australian Studbook, Sydney FC, and Surf Lifesaving Australia, the progression to sitting on the board of Racing NSW seemed natural.

“I have a set of skills and experience that lends itself pretty well in this boardroom,” he said. “The boardroom is quite well-balanced.”

“It's always helpful for boards to have a broad range of skills, and one of those skills is having direct connectivity to the industry,” Charny agreed. “I think it's important to understand what's in the minds of our stakeholders.

“We're a regulator - and if you're regulating an industry, I think it's important to understand what's going on in the industry. Simple as that.”

Over the past year, industry participants have grown increasingly outspoken about concerns surrounding poor transparency and insufficient stakeholder engagement, with the lack of detailed disclosure on animal welfare a hot topic during the Rosehill Inquiry.

Both Crismale and Charny are keen to stress that only the CEO and chair of the board can make any statements on behalf of Racing NSW, but their personal thoughts will likely resonate with many industry participants. Both believe that effective communication and collaboration are essential to strengthening the industry and fostering stronger connections between stakeholders and the board, particularly in regard to welfare.

Known for getting out and about at industry events such as horse sales and stallion parades, Charny is appreciative of the many “memorable conversations” that he has had so far in his tenure as a director.

“There are a lot of strong opinions in the racing industry, and that's a good thing because it shows that people are passionate about the industry,” Charny said. “That's a real positive to me. I think it's important.”

He added, “I think it's worth noting that in the last three months, there have been huge steps forward in communication with key stakeholders. I think stakeholders will tell you that as well.”

Crismale believes there is more work to be done.

“I'd like to see a better communication plan that provides the industry with the news and information as to what we are actually doing,” he said. “The business model that is in place now is not broken and it doesn't need replacing.

“You need one voice that deals with the issues and the problems of the industry, and how they get solved.”

“From a delivery point of view, there's no doubt that there is a need for regulators and club participants to all work (together) across the state to make sure that we all understand how our tracks are.

“The facilities need to be modern and welcoming for our patrons and more importantly, they need to be at a higher safety standard. The wider scope needs to look at provincial and country tracks, and see where we are with those.

“And also horse welfare - the story of how we do look after the horse in New South Wales, even after racing, I think that's got to drive strategies across the board with regulators and with participants.

“We are doing good (with welfare), and the (outward) messaging has got to be stronger,” Crismale added.

Charny agrees - welfare and safety standards must always be in the spotlight.

“The industry does look after our horses,” said Charny. “New South Wales has a good regime for from cradle to grave care for horses. But society is not going to just give us a free pass on that ever, so we've got to make sure we do it better, and to make sure we tell the outside world.”

Thus it all circles back to transparent communication, which is certainly high on Crismale and Charny’s agendas heading into the new year.

Optimal tenure

How long should a director sit on the board? Charny has a personal theory.

“It takes three years to get accustomed to the job, three years to really make your best contribution, and three years to work out (that) it's time to go,” Charny said.

The year-long extension of his term on the Racing NSW board will bring him to the end of that initial three year stint. The one and two year terms afforded to Charny and Crismale are notably shorter than the four year extension given to George Souris, without any government announcement, back in April.

Crismale concurred with Charny’s take on tenure: “I think the range is somewhere between eight to 12 years. Every industry lends itself to a different time frame, and essentially that comes from what the specialisation is around the industry. It's not a hard and fast rule for every organisation.

“I believe we've got it right at the moment. And I think there's enough good, capable, skilled, experienced people that should be putting their hand up to join the board when others on the board are reaching the end of their tenure.”

As for the role of the CEO, he stated: “As long as the CEO is meeting the strategic direction of the board, and satisfying the goals and objectives of not only the organisation, but also of the industry that surrounds it, and if a person is competent and capable and skilled, there's no reason why they can't continue in that role.”

Charny also explained that it was his belief that the CEO role is different, and requires more circumstantial analysis.

Challenges in the breeding world

“It's a really tough market,” Charny acknowledged. As boutique breeders who always retain some foals to race, Charny and Crismale have a unique window into the breeding economy. One that Charny shone a light on is the rising cost of raising a foal to take to sale.

“I think there’s a mismatch between stallion fees and returns, and that’s not a criticism of the stallion owners, because they’re running a business,” he said. “Their job is to maximise their returns, I understand that.”

“But it is becoming economically impossible for small to medium breeders to survive. The other issue here is the rising cost, which is no one’s fault. The economics of the industry are asymmetrical at the moment.”

Charny is open to implementing more incentives to stimulate the breeding industry, if something substantial comes across his desk.

Crismale points to the rise of syndication within racing and breeding as a great positive, which has increased the accessibility of breeding beyond its normal demographics. He believes that the breeding industry isn’t quite in as dire straits as Charny believes.

“The move forwards has to have a really collaborative approach between the PRAs over the pattern of racing, and I think that would help the breeders themselves,” said Crismale. “Prizemoney has been good, and I think that has certainly encouraged participation in the industry.

“You can't look at participation as not being healthy, but every aspect of the industry can always use a boost. I think we need to look with a wider lens rather than anything specific in any area.”

A political sledgehammer

One topic looms large over the board, even as the calendar year winds to a close: the Rosehill Inquiry, with the report recommending the Legislative Council considers establishing an inquiry into Racing NSW and a thorough review of the Thoroughbred Racing Act 1996 to consider whether the Act is fit for purpose. Another recommendation deals with animal welfare and a government review of the Prevention of Cruelty to Animals Act 1979.

The Racing NSW board will need to deal with the whistleblower allegations mentioned in the report, which stated: “The committee grappled with how to address these allegations without breaching the confidentiality of those who came forward, many of whom feared retribution for their actions. The committee believes that these matters are worthy of further investigation.”

The report was also referred to the NSW Independent Commission Against Corruption (ICAC) regarding dealings between the New South Wales premier Chris Minns and the Australian Turf Club. ICAC has already determined it will not proceed with any action.

While the directors didn’t get into any report specifics, they gave their thoughts on the Rosehill Inquiry overall.

“I think the inquiry was entitled to be held,” Crismale said. “It was something that the industry needed. For me, it dragged on for too long, and it didn't deal specifically with the situation of the Rosehill sale or non-sale.

“And once it ventured off into other areas, I think it missed its point.”

In Charny’s opinion, the inquiry should have remained focused on the sale of Rosehill Gardens and the viability of another racecourse site in Sydney. Too much of the inquiry was, in his opinion, dominated by “inappropriate and unsubstantiated personal attacks” and finger-pointing as opposed to the core topic: the economic merit of the sale of an iconic racecourse.

“Rosehill was used as a political sledgehammer to achieve other goals,” he said. “I don't think that was right, because the Rosehill issue is an important discussion for the industry, and the members of the ATC are going to have to make some big decisions.”

Referring to the sale, he reiterated Racing NSW’s position on the topic, “It's not our decision. We're the regulator to make sure things happen in the interests of racing in the state.”

Crismale continued, “The responsibility that Racing New South Wales has is to future-proof the industry, and ensure that the participants can expect sustainability. That is something that we as a board are very conscious of.”

Tribute to a great horseman

The late Sam Kavanagh was a dear friend of Charny, who described his recent passing as “absolutely tragic”.

“He built his business alone,” said Charny. “He was a true rough diamond who owned his mistakes. But he was one of the best horsemen that I've come across. His knowledge of breeding was remarkable and the fact that he would try things as a trainer, new things, was remarkable.”

Kavanagh’s first winner in Sydney, Dubawi (Ire) mare Words Are Weapons, was bred and raced by Charny and Grimley and he still fondly remembers the day she was first past the post at Warwick Farm - although he wasn’t awake to witness it.

“I was having heart surgery,” Charny recalled. “And so, funnily enough, I was a little bit focused on something other than my horse running on that particular day.”

“When I woke up after the surgery, the second phone call I got was from Sam. I answered it, and I said, ‘Did it win?’ He said, ‘Of course it won, I told you it would. Did you back it?’

“I said, ‘Sam, I was having a heart operation. I was a bit focused on something else.’

“And I'll never forget this. Sam said, ‘Garry, you're an idiot. You should have looked at it this way. If you backed it and it won and you woke up from the operation, how happy would you have been? And if you died on the operating table and it lost, you wouldn't have cared.’

“That summed Sam up.”

A long-term fund for Kavanagh’s partner Kelly Fawcett and daughter Sienna is in the process of being set up, and Charny confirmed that Racing NSW is making a generous contribution.