Maryland approved on Tuesday more than $94,000 for a nonprofit that helps organize marquee events such as the Preakness Stakes, Maryland Cycling Classic and Maryland 5 Star at Fair Hill after employees weren’t paid last month.
Michael J. Frenz, executive director of the Maryland Stadium Authority, declined to explain why and how many of the Sport & Entertainment Corporation of Maryland’s workers missed paychecks. Asked for specifics, he replied, “Why do people not get paid?” and declined to elaborate.
Officials with the nonprofit could not be reached for comment Tuesday.
“This is part of an overall effort to try to bring the 5 Star back to Maryland,” Frenz said of the funds during the MSA’s meeting Tuesday. “It’s reasonable to think that employees and vendors need to be paid.”
He said that the state funding, intended to stabilize SECM as it preserves these events, was approved under a 2017 law that allows the authority to award grants of up to $500,000 to affiliated foundations to provide equity to employees.
The Maryland 5 Star, an international equestrian competition, has faced uncertainty following the departure of key leaders. Former competition director Joanie Morris left in November to become chief operating officer of the Aiken Horse Park Foundation in South Carolina. SECM President Terry Hasseltine and CEO Jeff Newman abruptly left their positions in December.
Cecil County Executive Adam Streight wrote in a statement Tuesday: “Cecil County was taken by surprise by the sudden departures of Terry Hasseltine and Jeff Newman, learning of the news through social media. As we seek clarity, questions remain—particularly about the future of the Maryland 5 Star and the return of the Fair Hill Races, a long-standing Cecil County tradition we were proud to bring back last year.”
The Maryland 5 Star generates about $11.6 million in direct spending impact in the state, according to Tourism Economics, an independent global advisory firm.
Officials with the U.S. Eventing Association said it remains committed to keeping the Maryland 5 Star in Cecil County, describing it as one of only seven five-star eventing competitions in the world. The organization said it has supported the event since its launch through sponsorships and regulatory advocacy, as well as by securing multi-million-dollar liability insurance each year and working to attract long-term sponsors.
In a statement last month, USEA President Molly Pellegrini and CEO Rob Burk praised the Maryland Stadium Authority’s determination to retain the competition.
Launched in 2019 by the government’s Maryland Sports Commission, the SECM was created to develop and manage large-scale sports and entertainment events, and help transition them into self-sustaining operations. It’s governed by an 11-member board and provides operational, legal and financial support to events.
In addition to the Maryland 5 Star, the nonprofit has been involved in organizing the Maryland Cycling Classic, an international professional race, as well as efforts related to the Baltimore-Maryland 2026 World Cup bid, the Preakness Festival and other equestrian events at Fair Hill.
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