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ONE-ON-ONE - June 2005
by Ed G. Lane
'The World Equestrian Games Will Put the Exclamation Mark on "Horse Capital"'
The head of the Kentucky Horse Park talks about how the park has evolved and his vision for the future
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John Nicholson
A native of Winchester, Kentucky, John Nicholson has been executive director of the Kentucky Horse Park since June 1997. Prior to being appointed to this position, he was the Horse Park’s deputy director. From 1994-96 he was director of sales for the launch of the international equestrian trade show, Equitana USA. He began his association with the Kentucky Horse Park from 1991-94 while serving as the Park’s director of operations.
He is a former president of the Kentucky Horse Council and chairman of the Kentucky Horse Fair. He served on the Board of Directors of the Horse Industry Alliance, a national marketing council for the equine industry.
He and his wife, Kendy, reside at the Kentucky Horse Park with their two sons, Christian, age 6 and Colin, age 2. |
Ed Lane: In 1978, the Kentucky Horse Park opened to the public. After 27 years of operations, how is the park faring?
John Nicholson: The Horse Park has essentially fulfilled the ambitious dreams of its founders. When the park opened, it was only a small percentage of what it was planned to be and what it could be. The opening in 1978 with the World Three-Day Event and Championships was one of the biggest events in the history of Lexington and Central Kentucky. Shortly thereafter, the Horse Park was essentially relegated to the same status of any recreational facility in the state park system. So, for a period of years, it had trouble gaining its sea legs.
Since then, the park has evolved into something actually similar to what was envisioned in the late 1960s. That is, the Kentucky Horse Park is a high-quality tourist attraction, the world’s leading equestrian competitive event facility, and the National Horse Center. The Horse Park has truly come to fruition.
EL: How large is the park and how many facilities does it have?
JN: It is 1,224 acres, 78 buildings, and 36 miles of fences. So it’s a lot to take care of.
EL: You have served as executive director of the park since 1997. What have been the major changes at the Horse Park during your management?
JN: The quality of the tourism facility – our product – has improved dramatically. Each one of our outdoor presentations has increased in sophistication and entertainment value. We have added events which are very popular – like this year’s “Best of the West” show and also our draft horse presentation.
Also, from the tourism point of view, the park produced two highly acclaimed international equine exhibitions. Both of these exhibitions are arguably the biggest and best international exhibitions that have ever come to Kentucky. The exhibits have not only given people a new reason to come to the Horse Park, but they have also created a new legitimacy for the Horse Park as a tourist attraction.
On the event side, the Horse Park has increased the number and quality of its events. Having the United States Equestrian Federation move to the Kentucky Horse Park from New York in 1999 not only helped the National Horse Center and its credibility nationally, but it also led to a number of high-caliber, international events coming to the Horse Park. All of that coming together made it possible for the park to bid for the 2010 World Equestrian Games.
EL: Was the China exhibit successful?
JN: The China exhibit was the first exercise the park had in international exhibits. New knowledge about the horse that had never before been known – internationally – was discovered.
The China exhibit helped foster better relations between Kentucky and the Peoples Republic of China. And I point to the trade conference in Kentucky that occurred with the ambassador from China, the week that the exhibit opened.
EL: The British Exhibit?
JN: The British exhibit certainly solidified the ties between Kentucky and Great Britain and the Royal Family. I’ll never forget Princess Anne lamenting the fact that she had to come all the way to “the colonies” to see an exhibition of that quality about the role of the horse in British history.
EL: Currently, the Henry Clay exhibit is running at the Horse Park.
JN: The Clay exhibit is another example of the park’s ability to tell a great story, a multi-dimensional story, through the eyes of the horse. With every exhibition we’ve done of a historic nature, that’s been the common thread. We are telling a great and grand enlarged story, all by simply telling a story of the horse. In fact, you can tell the whole story of civilization when you examine man’s bond with the horse.
EL: How many equine organizations are located at the Horse Park?
JN: Currently, 26 equine organizations make their headquarters at the Horse Park. This is a testimony that ambition, dreams and vision pay off. It didn’t happen overnight. As a matter of fact, it’s one of those things that happened very slowly, very tentatively, but then once it began, it took on an increasingly critical mass.
In June, the United States Dressage Federation will have their ground breaking. They have 40 employees and are one of the nation’s leading equestrian associations. They’re just the latest.
EL: Looking down the road, what would be your vision of how many equine organizations ultimately might be here?
JN: There is a finite number, because we are a finite facility. What the National Horse Center has contributed to, in my view, is the evolutionary change from Lexington and Kentucky being the Thoroughbred breeding capital of the world to Lexington and Kentucky being recognized as the “horse capital of the world.” We can make that boast no matter what Ocala, Florida says, because the leadership of America’s horse industry is largely here in Lexington.
EL: What are the plans for a new enclosed arena?
JN: This is a climate-controlled indoor equestrian arena that will seat between 6,000 and 7,000 people with all the amenities. It will be as fine an equestrian arena as there is anywhere in the country. The Horse Park has received a pledge of support from the governor for this – we’ve already received initial funding. This is certainly important to our World Equestrian Games bid, but it’s not essential to it and not the primary reason we’ve asked for it.
The Kentucky Horse Park wins in the recruitment of any competitive equestrian event that’s held outside. The park does not win, very often, on indoor events. There are a number of equine associations that have indoor national- and international-level competitions that would love to come the Horse Park because it has everything else. It has great amenities. Horses are happy here. The park is just so much better than a municipal setting. But the park does not now have an enclosed arena.
EL: What kind of events would an indoor facility attract?
JN: There are two main categories of events that we could count on. Western type events like reigning, cutting, roping, barrel racing, rodeo. We’ve already received a number of inquiries. The other is the gaited breeds like Morgan Horses, Arabian Horses, and Saddlebreds. All have wonderful championships that are well attended in terms of spectators. Right now, the park is unable to effectively compete for those events.
EL: Will you be able to use the arena for non-equine events on off dates?
JN: Yes. It certainly will be primarily an equestrian arena, but it will have a multi-use function.
EL: Can you provide an update on a proposed hotel to help support many of the park’s events?
JN: I would not be surprised if an announcement were made this summer. The park is in negotiations with a developer at this point. We’re reasonably optimistic about those negotiations. This is a public/private partnership. It came as a result of a competitive bid process where one developer emerged and we’re working out the details of a possible contract now.
The value of this hotel is threefold: It enhances the Horse Park as a tourism destination. Instead of people stopping at the Kentucky Horse Park on their way somewhere else, the Kentucky Horse Park will be their destination.
The second benefit is the park’s ability to recruit new and competitive events. And, our services will be enhanced and expanded for the 66 horse shows already using the park.
The third is an enhancement in the value of being a resident of the National Horse Center at the Kentucky Horse Park. Horse people compete when it’s warm and they meet when it’s cold. The associations with offices at the Horse Center have all kinds of committees, conferences, task forces and conventions. Lexington and the Horse Park will become more attractive for all of those events.
EL: How many visitors come to the Horse Park?
JN: Our level of visitation is between 800,000 and 900,000 visitors per year. That includes the people that come here for horse shows, as tourists, to camp, “Southern Lights” – for everything.
One of the most exciting things from the visitation standpoint is the one percent room tax that was passed in the last General Assembly. For the first time in modern history, Kentucky is going to be able to promote its tourist attractions. The Horse Park has really never had the kind of advertising and promotion opportunities that an attraction of its size and quality should have. That source of funding will be, to a reasonable degree, made available to the park through the Commerce Cabinet. That is going to have a very positive impact on our visitation just as the new hotel will be coming on line.
So, I can see a major increase in our visitation in the years ahead. The amount? I think you would be wise not to underestimate.
EL: Could the number of visitors range from 1.5 to 2.0 million within the next five to 10 years?
JN: I think within 10 years.
EL: Kentucky has created its own state brand – “Unbridled Spirit.” How do you feel this brand will work for the Horse Park? Have you incorporated it into your marketing and Web site?
JN: It fits in exactly with the image and philosophy of the Horse Park. It is wise to identify the horse with the state. The Horse Park can also play a role in creating this brand. “Unbridled Spirit” certainly will be a big part of our World Equestrian Games bid, so we have the opportunity to make this brand more recognizable worldwide. It will be incorporated into every single thing the park does.
EL: Is the park self-sustaining financially, or does it require funding from state government?
JN: The park is not self-sustaining at this point. It generates about $6.2 million in revenue and it costs about $7.7 million in expenses in terms of operations. Revenues have increased from $3.7 million in 1998. The park’s economic impact is over $170 million a year and it returns over $10 million a year to the state treasury.
There are two points to be made. Even at the subsidized level, the park is a bargain and a good investment. Two, it is our goal not to be subsidized in the years ahead. The hotel and arena are the two last pieces of the puzzle that will allow the park to operate in the black.
EL: You mentioned that the hotel is a public/private deal. An investor will build the hotel and operate it. Who is going to fund the arena? What kind of sticker price do you have on the arena?
JN: The state will invest $35 million in the arena.
EL: What other needs does the park have and where would you invest new capital?
JN: There’s no question that the park has grown so dramatically in the last few years that infrastructure is always a concern. In the last eight years, we have invested in water and electrical infrastructure. The area where there is need is internal transportation – the roadways. These are essentially the same farm service roads that existed when this was Walnut Hall Stud Farm.
EL: Central Kentucky is a finalist for the 2010 World Equestrian Games. When will the final decision of the selection committee be announced?
JN: We have been told that that decision will be made in late fall.
EL: Can you briefly describe what the “games” are for our readers?
JN: For decades, the seven sports that are governed by the International Equestrian Federation (the FEI in French) had individual championships every four years. In 1990, it was decided to put the entire seven disciplines into one huge world equestrian festival – almost an Olympian atmosphere. Since that time, the world games have been held every four years in a European city. Lexington is bidding to become the first non-European city to host these games.
The seven sports are three-day eventing, dressage, show jumping, driving, vaulting, reigning, and endurance. You can imagine the Rolex Three-Day event, which is an international caliber event, but multiply the competition by seven. Instead of being a three- or four-day event this will be a 14-day event. Lexington and Central Kentucky will have never before had as much international attention as it would for these games. Equestrian sports are very popular worldwide and they will be broadcast live on television throughout the world for 14 days. Lexington or any city of its size could never afford to have that type of international exposure. The World Equestrian Games will put the exclamation point on, “Horse capital of the world.” We expect 300,000 tickets to be sold. The economic impact will be approximately $90 million.
EL: Will the World Equestrian Games benefit Cincinnati, Louisville, Frankfort and other cities in the region?
JN: There is no question that they will benefit from the World Games.
EL: What support (financial and otherwise) does the Horse Park need from state and local governments to support the World Equestrian Games?
JN: The World Games bid is being financially supported by the Commonwealth and has the active support of Governor Ernie Fletcher and Commerce Secretary Jim Host. Governor Fletcher serves as the chairman of the bid committee. In terms of financial support, the Horse Park is not asking that from Lexington, but certainly infrastructure support would be required in terms of transportation, security, similar issues. The Commonwealth is not underwriting the games. We intend for the games to be profitable, but the state has offered to guarantee up-front monies and the organizational costs that are necessary to get started. We will be able to utilize the marketing infrastructure of the Commerce Cabinet to sell the sponsorships. Exciting opportunities have also presented themselves in terms of merchandising and branding.
EL: Are people able to give horses to the park?
JN: We have a pretty high standard of selection for horses. All of our horses have a job, and have a role, and they all have to fit into an overall scheme here. But the Foundation is the mechanism through which that often happens.
EL: How can people who want to support the Kentucky Horse Park help?
JN: Cash contributions to the Kentucky Horse Park Foundation, a 501(c)(3) are certainly welcome, as are in-kind contributions. The Kentucky Horse Park Foundation has allowed the Horse Park to do things that may not always be easy or necessarily appropriate for government – such as the continual improvement of the amenities around our competitive facilities. There’s no question that the park could not have done the international exhibitions were it not for the foundation. The foundation has been an integral and critical part of the growth of the Horse Park.
The Kentucky Horse Park demonstrates that wise public investment can pay dividends. The investment that the Commonwealth has made in the Horse Park has been returned 100 times.
Ed G. Lane is chief executive of Lane Consultants Inc. and publisher
of The Lane Report.
edlane@lanereport.com
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