SVDP Podcast with Churchill Downs Bill Mudd and Tonya Abeln (Episode 25)

Today's guests are Bill Mudd and Tanya Ablan. Bill has been the President and Chief Operating Officer of Churchill Downs Incorporated since 2015. He joined Churchill Downs in 2007 as Executive Vice President and CFO after working for several years at General Electric here in Louisville, and was promoted to the role of President and CFO in 2014. Under Bill's leadership, Churchill Downs' business has expanded through the development of live and historical racing entertainment venues, the growth of Twin Spires, which I've got money on deposit, thank you very much, horse racing online wagering business, and the operation and development of the regional casino gaming properties. Churchill Downs follows a long tradition of corporate responsibility and has been a committed charitable partner for decades. Bill received his bachelor's in mathematics and actuarial science from Bellarmine and Masters in Business Administration from Webster University, and recently served as the chair of the board of Bellarmine University, where I also served as a trustee. Under Bill's leadership, I consider Bill a colleague but most importantly a friend. Tanya, in her role as Vice President of Corporate Communications for Churchill Downs, is responsible for strategy implementation and oversight of internal and external communications, and revels in the opportunity to share the thrilling and inspiring stories behind one of America's most iconic brands, the Kentucky Derby. Additionally, as President of Churchill Downs Foundation, Tanya strives to drive strategic charitable initiatives and manages community partnerships across the company's entire portfolio of racetrack and gaming properties. Tanya, Bill, welcome. Thanks for being here.

Thanks for having us.

This is the timing of this is actually perfect. So we're sitting here close to the beginning of April. I know that in Louisville it's just a wonderful thing when you get to that point where you're trying to set up meetings with folks and when you get to the point where you say before or after Derby, you know you're getting close. It's like Christmas, right? You're like, we'll circle back to that after Derby. So I really it is an honor to have you all here. This is our 25th podcast, so we're celebrating the 150th Kentucky Derby. This is our 25th podcast, so you all are special.

Well, thank you. It feels very special to be here for that.

I know that you all have attended your share of Kentucky Derbies. I'm on my 35th straight. I would love to hear a story, one of your favorite Derbies that you've been to. What is that kind of unique story that you have about that? Because I know I have a bunch. Could you share yours?

Well, I like to say that I've done Derby almost any way you can, a variety of ways. I grew up watching with my dad. That's really how I fell in love with the Kentucky Derby. My favorite race that I remember watching as a kid was 1989, Sunday Silence and Easy Goer. I just love that rivalry, and that's the first year I remember wanting to watch the rest of the Triple Crown races and being really engaged with that. I attended the University of Louisville, so I went to the infield as a college student like many do. Eventually was named a Derby princess, which was a huge honor and that was a lot of fun. Now I get the opportunity to work for Churchill Downs, which is truly my dream job. But probably my favorite Derby memory is a little bit unexpected. My senior year, no, I'm sorry, my junior year of college, I decided I was going to make money during the Derby instead of spending in the infield like I had the year before, and so I trained to be a parimutuel teller. That was for Oaks and Derby, I was going to make $400, a lot of money at the time, particularly that was going to do me all summer probably. At the end of Oaks day, my drawer was short significantly. This is why Bill Mudd doesn't let me near the money or the numbers at Churchill Downs. I guess I was just making it rain, I was just giving people too much money when they cashed in their tickets. So I was really nervous that I wasn't going to make any money because I was going to have to make up that difference. On Derby Day that year, a long shot won, Charismatic, and a man who'd been coming to my window all day considered me good luck, and so he tipped me out enough for me to make up the difference and still make some money. That was a fun memory, just to be on that side of things and really learn the inside of the wagering process.

Yeah, that's got to be a difficult job.

Well, clearly it was because I did not do it correctly.

Yeah, that'd be good.

Yeah, it is just so much fun. My wife and I, this is our favorite time of the year and our favorite place to go is Churchill Downs. We belong to the Turf Club and just love going there. We'll be there Mother's Day, we do that every year, and Father's Day. It's just so exciting. I remember, I don't remember which Derby this was, but I was just out of college and I was there with my roommate, and we were going through the paddock area and we see Howard Cosell walked through the paddock. He was going somewhere, and I yelled out, 'Howard, who do you have in the Derby?' And he goes, 'Spend a Buck.' What year was that?

Probably somewhere around there. But it was just so much fun. You see these people and everyone's excited, everybody's happy. It's one of those things where you go to this event, everybody's happy.

Yeah, I mean you're right. It's the only sport where no one's cheering against each other, they're just cheering. So it's not tribal like team against team, it's communal because everyone's not, some people are happier than others at the end of that race depending on their choice. But I think that's the community energy. If you walk in sitting next to someone who you don't know, you're friends by the end of the day. You never know who you're going to run into. There's no better people watching anywhere than at the Derby.

That is, and the lead up to Derby, it is kind of like the lead up to a really big holiday. It is a holiday. I think that's something that's changed a lot in the recent decades as we talk about 150th legacy, the way that Derby week has built out new products. There was Oaks and Derby, now everyone wants to come to Thurby. We have Champions Day this year, 50 Tuesday, it's our second year for 50 Tuesday. The branding, but people are just as dressed up for Tuesday now as they are for Derby. This year for 50 Tuesday, we're actually celebrating all of the organizations in Louisville that are 150 years old or older. So I know that you will be on that list for sure, one of few who have weathered that for so many years like us.

We have an event on April 28th called Roses and Rosé. We always have it in April, received the invitation yesterday. It's a wonderful time. What's interesting about it is that it's focused on supporting the work that we do with individuals, families, namely families that are fleeing domestic abuse. It's one of those events that everyone, it's right before Derby, it's in the spring, so everyone comes dressed like Derby time. The name is very appealing, Roses and Rosé, it sounds fantastic. They have their fascinators and they, mainly women but they allow me to come to it. That time, the excitement in that time is built into this whole notion of leading up to Derby as well. Folks love it. Derby City Gaming is a proud sponsor of that event that we look forward to. Thank you very much, I appreciate that.

Let's talk about that. 150 years, that's 1875, right?

St. Vincent de Paul was 1853, or 170 years. You think of Louisville, there's a number of organizations you're going to be celebrating those that are more than 150 years. You think about the makeup of the community and the importance of these organizations to the community. Tanya, the Churchill Downs Foundation distributes at least $5 million annually to a number of causes. I know that there is a real focus on the industry, a focus on the needs within the industry, but you're also very generous outside of the specific support for the industry. Can you tell us about the Churchill Downs Foundation?

Absolutely, I'd be happy to. We really break it down in two ways. Churchill Downs Incorporated as a company has a long tradition of being what we hope is a responsible corporate neighbor, and that is both in the city of Louisville, our headquarters for 150 years, but in any of the communities in which we operate. Specifically in Louisville, we look at the Kentucky Derby as being this critical institution to not only the culture here but the economy. So as a company, we are really committed to supporting organizations who similarly support the unique culture of the city, improve the quality of life for the city, and that can fall under a large umbrella in terms of charitable strategy. So we're able to be really flexible with that and support organizations like your own who are doing good work, make our city a better place to live, work, and play, and visit for those who are coming to the Kentucky Derby. That's our focus as a company. Then to your point, we also have Churchill Downs Foundation, which is separate, and not everybody needs to know which bucket of money things are coming from, but the industry's mission is to be a good steward for this industry. That's really giving back to what I call the unsung heroes of the Kentucky Derby and horse racing. Of course, that includes the equine athletes themselves. A lot of money goes to thoroughbred aftercare, so after that racing career is over. You think about all the foals each year, 20 make it into that gate, so we want to make sure there's a sustainable lifestyle for horses on and off the track. We really have a focus on thoroughbred aftercare, what happens to those horses after they retire. The jockeys themselves, the permanently disabled jockeys fund, unfortunately there is a need for that, and so we're supportive of that. The backside community is really important to us, that those people who make this event possible for all of us to enjoy are supported throughout the year. I think not everybody realizes that the folks in the backside aren't employed by Churchill Downs. We feel a great responsibility to make sure that they have a good quality of life, that they're getting the resources that they need. It's a very migratory community, but often times families are here in Louisville year round, so there's a lot of support that's needed there. Then we include the neighbors of the racetrack in that as well.

I noticed that. I've noticed the change in the neighborhood around the track as well.

That's an important one. When I say unsung heroes, those neighbors, they put up with a lot Derby time. I will say they love it, I think being part of that culture, and they're a really important part. If you talk to people who come in and out of Churchill Downs racetrack year after year, some of their favorite traditions are parking in those yards and grabbing some barbecue on the way in or out, and they have relationships and they really enjoy that piece of it. It's an important part of the Kentucky Derby culture and what makes it feel magical. So we just want to make sure we're supporting them all year round, but specifically Derby time we want to make that economy possible for them. So we work with them and collaborate on how to make that happen with all the parking and traffic changes. We consider them part of our industry because they're so vital to making it work.

Yeah, the track, just amazing what you all have done. You got the new paddock.

It's going to be amazing. The accessibility to the paddock is just completely changed. It's going to take your breath away as soon as you walk into the gate. It's truly stunning. I'm someone who doesn't like change, but this is a magnificent structure and it will be really inspiring.

When folks think about Churchill Downs Inc, they think about the track itself, but in my introduction I mentioned all the different things that since you've been there that you've overseen the growth in. There's so much more to the company. Obviously there's that iconic brand of Churchill Downs and the spires, but your role is just so much more broad even than that.

How did you make your way? I mentioned that you were with GE. How did you make that transition? How did that work?

That GE experience is very unique. You all being able to speak a similar language has helped a lot, and being used to having a business that has so many parts and pieces to it, you had already been used to that.

I want to get back to that before we wrap up. To your point, it's one of those things where 20 years ago it's hard to imagine yourself in the seat that you are now. It's hard to predict the future, but all those things led up to where you are now.

Tanya, one thing I want to get back to. You were talking about the backside, and there's a ministry back there as well, the chaplain ministry. I'm not sure if I'm right exactly what it's called, racetrack chaplaincy. Could you talk about that? Because we find that very interesting.

It is very interesting. Kentucky Racetrack Chaplaincy, they're tremendous partners for us. As I mentioned, we don't employ the community in the backside, but there are things we can do to make sure that first of all their experience is great, and that as a migratory community, when the families are still left in Louisville, they have resources and they have a sense of community and support there. The racetrack chaplaincy is one of the primary ways we do that. Even if there is a language barrier sometimes, the communal language of faith brings people together. That's really important to us. They do work at racetracks all across the state, but they have a big footprint with a chapel on the backside. They have Sunday services, it's non-denominational chaplaincy, Christian based, yes, not a specific denomination. Beyond that, they do gift giving through the holidays, we do back to school supplies for the students, and it's just a recreational place for people to gather and spend time as well. In addition to the chaplaincy, there is a Backside Learning Center, and that's more education focused, making sure that the families have the resources they need. That's one of three nonprofits that are really based on our backside that aren't operated by us but supported by us largely. It's incredibly important that those thrive.

You think about all the different folks that are involved in the business, whether they're employees, not employees, volunteers, affiliated through some other way. I think of the jockeys as well. Back in the day when I was auditing, I did work on the Disabled Jockey Fund, so I'm familiar with that particular fund. One of the things that I realize through doing that and talking with folks, a lot of folks don't realize what amazing athletes the jockeys are, to be able to take a 2,000 pound, you guys see that all the time. The relationships that you have with the jockeys is probably incredibly strong. It might be in a smaller package, but there's so much strength there and muscle density, and obviously very demanding. That's another community that we just want to make sure we're supporting through nutritional support, the mental health support they need because of all the demands that they're up against. They're really strong, they're an interesting bunch of athletes like any athlete, the demands are very large, but in particular that's a tough one.

There are a lot of great opportunities to support these organizations during Derby week. The racetrack chaplaincy has an event Monday evening I believe of Derby week at the racetrack, and they always have an incredible keynote speaker, and you get an opportunity to bid on a lot of different auction items. I think there's Jocktails on Wednesday night, that is another fundraiser for the jockey and a party. The jockeys actually bartend at that, and their tips go to PDJF, which is the Permanently Disabled Jockeys Fund. That's a fun way to help support them.

Your own fundraiser, yeah. When you think about the use of property, we're always thinking about using the property that we have and finding ways for the highest and best use. I remember going there for the concerts that you had there for a while. I'm sure that had to be something that was kind of cool at the time but hard to pull off.

I'm really excited this year as well because I've got a dear friend of mine that I worked with at Arthur Andersen that is part of a group that has a horse that's going to run the Derby this year. How exciting! Really excited for him. A group of folks too, and so we're in the actual Derby race.

Yeah, he's going running in the Bluegrass next.

It's exciting. He's a Louisville guy, doesn't live here right now, but just to see the excitement building up for this. I'm always interested to hear from people even locally who are super into the Derby who don't understand or don't fully understand how horses qualify for the Derby in the Road to the Kentucky Derby and that whole process. That's a key part of the education of horse racing that people are really interested in because it doesn't naturally sort of fit into the context of how they celebrate the Derby. But that is really exciting. We have to keep an eye on that horse.

That's exciting. Very exciting. We were talking earlier about your journey. I'd like for our listeners, especially for our younger listeners that are out there that want to start off in a great job, it's not necessarily about the money, it's about going to a place that you want to be at, but also recognizing that over time you're going to have different experiences and those different experiences can lead to different things. You both have had that in your own careers, and now you're at the place that you're at, very exciting place with Churchill Downs. I'd love for you to explain your journey and the lessons and the learnings that you've had from that, and from a leadership perspective too, what are those important aspects of your jobs right now from a leadership standpoint that you think is important? I'll just open it up for conversation because I know I've had my own journey, never would have believed that I'd be in the position that I'm in today.

I think sometimes the detours are the more interesting way to travel. Certainly my path to what I now consider my dream job was not a straight line. I was speaking at a career panel the other day to a group of college students, and I said I see a lot now people looking at job descriptions and maybe seeing one or two bullet points that they don't love and they think I'm not really interested in doing that. I think what they're missing is that those experiences ultimately can lead you to your dream job. I think it's important, just like with our bodies, to exercise different muscles in our brain. When I look back at some of those jobs that certainly weren't my dream jobs and were a way of just getting a check at the end of the week, I still call upon so many of those experiences now. They inform either the way I lead or the way I execute, in so many ways that I wouldn't have benefited from that knowledge if I'd just taken a more direct path to this role. So I would encourage people to of course keep your eye on the goal, but there's more than one way to get there, so really keep an open mind to that. This might not be very popular, but something I'm observing is I think the younger generation, I'm finally the ager I can say that now, boundaries are really important to them which I admire. I think that what I'm observing is there is a fine line between maintaining your own personal boundaries but also fulfilling your obligations. I come from a generation where you get there earlier, you stay later, you do more than is expected. Boundaries weren't really part of the conversation then. So it's a balance now in respecting people's boundaries and how they can achieve balance in their life, but also proving yourself, working hard, and then getting someone's attention and getting an opportunity and walking through that door and making the best of it.

Imagine that, showing up early, leaving later, working hard. The pandemic has just kind of messed us up. I don't know what it is. We come out of this pandemic and we haven't reset fully.

That's what I was on my team.

One of the things that I've learned just in the last two years, and I'd love your thoughts on this, is maybe this was just because I was in public accounting, I was an auditor, lots of checklists and all that kind of stuff, I wasn't okay with ambiguity. I'm a lot better with ambiguity now. It's really about being kind of entrepreneurial where you're not afraid to kind of move and do this and all that kind of stuff. For me, I know that that was always something very difficult in the past was to recognize that anxiety or stress was being created because there was lots of vagueness and lots of ambiguity. You're not in control of everything, you can't control everything, you just got to let some stuff go and let it be okay, and recognize that it's going to be okay on the other side. Because invariably when you're worrying about something, you get to the other side of it and you say, what was I worrying about? It's hard to loosen your grip.

Oh, absolutely. It's so hard to loosen your grip sometimes. But I think that flexibility, adaptability, those are two really important words for me. If I'm looking at a resume or I'm thinking about who to incorporate on a team, those are very, but that's about that sort of adaptability or that operating in the gray area when it's a little bit ambiguous.

I'd be curious, I might be taking this a little bit of a different direction, and I'd be interested as a business how you guys managed through COVID and now coming out of COVID. I think a lot of what Tanya you're talking about there in terms of adaptability and sometimes you just got to be together.

Yeah, well you all, it's amazing. I love Louisville, I love Kentucky. I'm not originally from here but I've been here a long time, since the late 70s. To think of all the wonderful organizations in this community, Churchill Downs being one of those right at the top of the list, important to the community. I think of all the different things that you're doing, just from an employment perspective and from the economic development and the economic benefit that we get from Churchill Downs. It's just an icon. I do believe especially with St. Vincent de Paul, from a spiritual side of things, we know that with the ministry and the work that you're doing in the backside to help families and to help kids, and the work that you do to help others in the industry as well, is a real blessing. Same thing with us. I believe that Jesus is in all of that work, and he'll come back someday. I know that there's some places that he's not going to go to. I know the places that he will, one would be our kitchen, he would sit down and have lunch with the folks that are eating there, come to the backside, be part of the ministry that you have there. That's a beautiful part and a very humble part of our organizations that I think is so important to everybody. That's why for us and our family, going back to Churchill Downs, whether I'm in the Turf Club which is great, or upstairs, I actually like just kind of sitting in the grandstand, having a beer and some nachos, and just kind of hanging out casual, and just being there to enjoy the day and bet a little bit, not a big bettor, but just to enjoy that time at Churchill Downs as opposed to some other tracks that I won't mention. Our preference is to always be at Churchill Downs at the track.

Well, thank you for those points. I'm so grateful that you made them. I think about the work that you do and how there's so much meaning in your work. To bring it all full circle, we're talking about advice we give or what you look for when you're looking for your dream job. You have to make sure that your values align. Sometimes when we think about the Derby, we think about the pageantry and the fashion which I absolutely love and adore, and the horses. But I find so much meaning in my work. I think being a Kentuckian is central to my identity, and so this feels so important to the state for all the reasons that you said. Not only is it easy to find inspiration in this great institution as you have, but we have a responsibility to the state of Kentucky. Just like Bill said, when you hear the first strains of My Old Kentucky Home and you get a little choked up, it is really meaningful work that we do. And it's fun. I mean, fun is another one of my values, so I have to make sure I'm having fun. But it's really important to us to make sure that we're creating a sustainable ecosystem for the backside community, for other Kentuckians, for the horse racing industry. There's a lot of pride in that. We're very lucky.

Very fortunate. Any parting comments for our listeners as we wrap up?

150 is going to be absolutely fantastic. Can't wait.

You've got a race to the altar before the race at Churchill.

Can I bring you a magazine to throw in there?

That's awesome. Super cool. The Derby will be prominent in that. I want to thank you all for being here, and just thank you for your leadership in an organization that is so important to our community. It's important to us at St. Vincent de Paul. Thank you for supporting our Roses and Rosé event. It's going to be great. It's going to be some new fascinators. We have an individual that comes there that creates and donates some for the event that day.

Oh, how nice. We've got some talented hat makers, milliners, and they get wilder every year.

Love it. No doubt. Every year, I don't even want to guess how many my wife has, but it's a lot. You can't wear it twice, come on.

We appreciate that. We're all doing good work. Got to keep at it. Thank you. Thank you all so much. Thanks.