by Steve Andersen

The Arabian Racing Cup, which administers the annual Darley Award championships and a bonus program that supplies additional monies for stakes nationwide, has dispersed its financial holdings because of poor economic conditions facing Arabian racing, a decision that chief steward Ted Wright said he hoped would be temporary.

The announcement was made in a letter distributed via e-mail to owners and breeders on June 18, stating that refunds will be sent to people who had nominated their weanlings earlier this year.

“We’re not getting enough nominated horses,” Wright said on June 19. “We’re saying we’re going dormant for a year or two and see if things pick up.”

Wright said the number of nominated foals numbered “in the 80s” this year, or down “more than 50 percent” from the number nominated two years ago.

Wright said a difficult economy has impacted the ARC in recent years. “It’s been a steady decline and it’s kind of going along with everything else,” he said. “The nominations are down.”

Through the ARC, sires were nominated for $500, and young horses were nominated through two payments — $200 as weanlings and $300 as yearlings — Wright said. This year, Wright said the ARC hoped to enhance purses for “six or eight” stakes in several states, a program that will not be in effect, he said.

The ARC was modeled partially after Thoroughbred racing’s Breeders’ Cup, which first began running championship day races in 1984 and has grown to offer more than $20 million in purses last year. But like its smaller Arabian counterpart, the Breeders’ Cup has also suffered revenue declines in recent years, though not to the extent of reducing purses for its annual two-day racing program held each fall.

The Arabian Racing Cup was formed in 1983 as an incentive program for breeders. The e-mailed letter, which was written by the ARC’s eight stewards, said that ARC has been “a victim of a brutal economy that has forced many breeders either out of business completely or to drastically reduce the number of horses they breed each year.”

The letter cited “a significant decrease” in membership and registered horses by the Arabian Horse Association, and therefore a smaller pool of horses that could be nominated to the ARC. Breeders who nominated a foal or stallion into the program after January 1, 2010, were told in the e-mail that they would receive a refund. Only nominations paid into the ARC during that time are eligible for a refund, the e-mail stated.

The Darley Awards, which has developed into a late winter weekend summit for Arabian enthusiasts to honor the preceding year’s champions and watch stakes races at a major track, may continue in some format, though Wright was not specific about the form.

“We’re trying to keep the Darleys alive,” he said.

Fundraising events held in conjunction with the Darleys, such as a stallion season auction, helped to offset costs of the event, although in 2010 the event operated at a loss, Wright said. “Everyone likes to win awards,” he said. “To put on those events, it costs money too. Ordinarily, we cover expenses. The stallion auction didn’t cover expenses. Maybe we can get someone to come to our rescue.”