I’d love to read the conflict checks at SKO
When Mike Repole took to X this week to name Bill Lear as the “Puppet Master” of American horse racing, the industry’s collective intake of breath should have been heard from Lexington to Saratoga. For those who follow Past the Wire, most of the names weren’t new, but the bluntness of the tweet was a signal flare.
Repole’s “fact check” on Lear—an attorney at Stoll Keenon Ogden (SKO), a Jockey Club Steward, a Keeneland Trustee, and the principal draftsman of HISA—is technically accurate. But the real story isn’t just one man’s resume; it’s the structural monopoly that we have been highlighting in these pages for months.
The Firm That Rules the Turf
In our February analysis of the Interlocking Governance of American Racing, we noted the industry’s levers of power is absolute. Add SKO.
- The Counsel: SKO represents The Jockey Club, Keeneland, and the Breeders’ Cup.
- The Leadership: The CEOs of both Keeneland (Shannon Arvin) and the Breeders’ Cup (Drew Fleming) are SKO alumni.
- The Regulation: Bill Lear didn’t just help draft HISA; he is a sitting Steward at the very body (TJC) that spearheaded its federal implementation.
In any other billion-dollar industry, this would be called a “closed-loop” system. In horse racing, they call it “Legal Horsepower.”
A Tale of Two Jockey Clubs: Transparency vs. The “Rainy Day”
The contrast between how power is wielded in the U.S. versus overseas has never been sharper. While the U.S. Jockey Club responds to inquiries about its reserves with silence or “executive contributions” that feel like rounding errors, their across-the-pond counterparts are providing a masterclass in transparency.
The UK Model: Every Pound Accounted For
In January 2026, the British Jockey Club announced that prize money would exceed £60 million (approx. $84.8M) for the first time. More importantly, they were transparent about the “why”:
- Executive Contribution: They are putting £31.7 million of their own money into the pots.
- Profit Reinvestment: Prize money now accounts for 70% of their overall profits, up from 55% in 2019.
- Targeted Growth: They openly detailed a £1.375M boost specifically for the Epsom Derby to “reinvigorate” the fixture.
The US Model: The “Ghost” Millions
Compare that to the U.S. Jockey Club’s latest “Industry Impact Report.” They tout $112 million reinvested since 2010. While that sounds impressive, it averages out to about $7 million a year—a drop in the bucket for an organization sitting on nine-figure assets.
While the UK Jockey Club is warning that a 70% profit-to-purse ratio might be “unsustainable” for their growth, the U.S. version seems to be running a “sustainability” model based on hoarding. As we’ve written, when horses are starving and small tracks are failing, a “rainy day fund” starts looking like a private equity war chest.
| Feature | British Jockey Club (2026) | U.S. Jockey Club (Current) |
| Total Prize Money | £61.47M ($84.8M) | N/A (Does not own racecourses) |
| Executive Contribution | £31.7M | Approx. $7M (Reinvestment) |
| Transparency | Publicly itemized by fixture | Aggregated over 15 years |
| Profit Reinvestment | 70% of profits to purses | Undisclosed |
The Ownership Void
Repole’s most stinging observation was perhaps the simplest: Bill Lear has no record of owning a horse in three decades. While one doesn’t need to be a horseman to be a great lawyer, the lack of “skin in the game” at the stable gate level creates a disconnect.
It explains why the “Live Cover” lockdown and “Interactive Registration” mandates feel like 19th-century anchors in a 21st-century digital world. They are rules designed by lawyers to protect a legacy, not by operators to grow a sport.
The Path Forward
Mike Repole is asking the question many in the industry ask privately. At Past the Wire, we’ve been asking it publicly: Is this governance or is it protectionism?
Transparency matters. Accountability matters. And as long as the path to the CEO’s office at our major institutions continues to lead through a single law firm in Lexington, the “small circle” will continue to run a very big, and very struggling, sport.
Our invite stands.
Can You Sleep at Night?
