Personally, I don’t have a big problem with owners theoretically negotiating where to run their horses beforehand in an effort to maximize their profit as long "as it isn’t after the betting has begun".

Why would it be wrong for me to offer another owner “x” amount of dollars to scratch?

It’s a simple business transaction between two “private owners” that has no impact on the betting. Importantly, as long as everyone can theoretically participate in these types of negotiations there is no problem.

Where I would have a problem is if the negotiation extended to pace manipulation etc….

Let’s assume I have a one dimensional speed horse and there is one other speed horse entered that can ruin the race for me.

The other owner has to decide how much it is worth for him to scratch his horse and wait for another race. That might depend on fees already paid, what similar opportunities to run are available, where they are, when etc… his chance of winning the race in question. I have to decide how much I am willing to pay to gain an advantage. If everyone is playing the same game, so what?

Handicappers shouldn’t care less. Either way they will be presented with a set of past performances to dope out that will either contain 1 or 2 speed horses. The odds will be adjusted accordingly.

Now if I paid another owner to take his speed horse back, there is a huge problem because they are manipulating the outcome of a sporting/gambling event without the knowledge of other gamblers.