Magna demolishing GulfStream park in near future.

[Suff]

http://news.bloodhorse.com/viewstory.asp?id=20490


In financial statements for the third quarter of 2003, MEC noted it's considering a "major redevelopment" of Gulfstream. If a decision were made to proceed with the plan, an additional write-down would be necessary. The aggregate "carrying value" of the assets that would be demolished if the facility were redeveloped is about $21 million.

[Scammam]

Magna tried 2 or 3 years ago to tear down the GP grandstand and "rebuild" it, but was thwarted by the permits. So he built a Class A training facility instead.

This time, I think they are going to go ahead with their plans to "demolish" the place as you so aptly state and just ignore the permit holders like they have done at Santa Anita. And they will probably justify it as an entertainment center (i.e., "Casino"?), using the decline in handle at GP this year as an excuse for needing anything other than the horse to attract people to the racetrack.

Afterall, if you read on in the article you cited, McAlpine has the audacity to talk of MEC's commitment to full televised racing! So why not continue the fantasy line of thought and blame the $3-5 million per day loss in out of state revenues (compared to last year's figures) on the public's declining interest in horseracing rather than a direct result from Magna's actions in removing GP from the majority of out of state betting sites! Problem is, the rationale doesn't follow since on-track handle has gone up - because it's one of the few places left where you can bet Gulfstream!

In any event, the fact that this announcement on Feb 24th is accessible via website and conference call probably means that they are going to announce something other than status quo.
Still seems like a shell game the way they spend money buying tracks and then practically put them out of business with their management. Florida didn't vote for slots when both Trump and Wynne spent millions to buy the votes - it's unlikely they have changed much since then. So other than another $21 million write-down, what does Magna gain? They can stall on the actual re-building, even close down for a year and rent Calder. Who knows with these guys???

And as for Laurel, and all the slot machines housed in Frank's other tracks waiting for Maryland to give the thumbs up, he may have sealed his own doom. After getting the current governor elected with the return promise of slots at his MD tracks, the Washington Post did such a job on Stronach that the state legislature pulled back the promised legislation much to the governor's dismay.

So this year, the governor sends in another proposal - much the same with only racetracks as the owner/operator. But the division of profit was questionnable at best - from the point of view of the state legislature. The state would get 46%, the owner (i.e., Stronach) would get 39%, the local government 10% and the purses (you know - the category where we can save racing!) only 5%! So the legislature came back and said...why should we give a monopoly to racing and why should the owner get almost as much as the state??? The legislature countered with a bill proposing that the casinos be put out for bid - without giving any edge to racetracks. And they want to reduce the owner's share to 20% or less. Either way, Frank gets no slots or too little money to compensate for his expenditures. Too bad - he should have stuck with the horses.

Scammam

[trying2win]

Suff,

Thanks for the link to this Magna article. Many astute PA members know the real reasons why Magna lost money in the 3rd quarter in 2003. The unenlightened Magna executives don't seem to get it. I noticed that Jim McAlpine of Magna, writes in a gobbledygook style, to explain their excuses why they aren't making a profit in their horse racing sector.

I predict Magna's horse racing business in the 4th quarter of 2003, will show more red ink. Then I expect to read about more excuses from Magna executives, why they didn't accomplish their financial objectives in that 4th quarter.

--Magna's financial failures in their horse racing ventures, reminds me of a quote from the chapter entitled "Cure Yourself Of Excusitis, The Failure Disease, from the book entitled "The Magic of Thinking Big" by David J. Schwartz, Ph. D. The quote is:

"Persons with mediocre accomplishments are quick to explain why they haven't, why they don't, why they can't, and why they aren't".


T2W

[Suff]

Originally posted by Scammam
Magna tried 2 or 3 years ago to tear down the GP grandstand and "rebuild" it, but was thwarted by the permits. So he built a Class A training facility instead.

reduce the owner's share to 20% or less. Either way, Frank gets no slots or too little money to compensate for his expenditures. Too bad - he should have stuck with the horses.

Scammam

I read your post. Did it boil down to you saying they are turning the Grandstand into a Racino.

I Could'nt disgaree more.

1. Pratical point. When publicly traded companies refer to a carry value... they are not speaking in terms of "Renovations and Improvements". Thats Finicial speak that if we belly up the land is worth $21 Million. Improvements are expensed and deprciated, and current deprciation laws, coupled with expected revenue from VLT's means they can Borrow and build at a net-net on the financials. This is not a good sign.


2. I'm not in Flroida. SLots at Gulf stream soon enough to stop the 82 million in bleeding? How much pain can he take.

[Scammam]

Suff -

Sorry...forgot to provide you with this link of the same story from the "business" side of the house. That's where the info on the conference call/website re announcement is contained.

http://www.topix.net/com/meca

Scammam

[Scammam]

What I intended to say was that Magna will probably go forward with the announcement that they are going to rebuild GP. Otherwise why throw it out there? And I suspect they will try the "Entertainment Center" route as they are doing at SA, piece by piece. More room for entertainment, less room for the racetrackers.

He thought he could finance the buying and buildouts of all his tracks with the revenues from the MD slots, but those have not materialized and look unlikely to do so this year either. But he has the idea of a casino - not racino - in the wings for all of his purchases, particularly GP and SA where he at least wants to be ready with the groundwork and buildings. It doesn't matter to him whether there is legislation or not - he figures he can buy another governor...although it hasn't done him much good so far in MD!

And the reason that I don't use the term racino is that at some point, if he does have a casino on the grounds of a racetrack, he will want to make more room for the slots by eliminating the racetrack!

Scammam

[Suff]

I see no good in that same article.. Maybe I'm biased.

People went to the Guillitine over VLTS at NYRA. Bodies everywhere over that 400 million...

I don't think Magan is anywhere near anything? What in that article do you see do disagree with me?

Don't you think if Magna was within earshot of a RACINO it would be the "HIGHLIGHT" of the release..

I'm not listening to the Webcast... and if they mentioned it there it worthless ...because it would be the ODOR REMOVER on the stinking numbers... they did'nt use that cherry in any of the Legal releases.
His business model maybe a failure . Visions for public companys are 5 year plans.... what in that makes you think they will turn it around in 18 months? 2 years?

[Scammam]

Don't know what reference to 18 months or 2 years you are talking about.

In any event, we are not communicating here, so I will just close out on this topic by saying that I do not believe there is any grand plan for Magna racetracks that centers on racing. What he ultimately does with his "entertainment" centers will be to the detriment of racing - again, that is my belief.

Scammam

[Bubbles]

All I can say about this Magna garbage is this: Thank god NYRA didn't lose ownership of their tracks when the tellers were caught betting. If they had, Magna may have bought it and tried to "rebuild" Saratoga.

[Suff]

Originally posted by Scammam
Don't know what reference to 18 months or 2 years you are talking about.

Scammam

Sacmman... I thought your were making a case for Magna's plan. I misunderstood you. I read your post again and now see a few more things.. I undertsand you now... I was misreading what you were saying,,,,

[karlskorner]

Hialeah still holds its license (although John Brunetti is suing everbody). Horesmen would love to see the track open again, one of the best in the country. As I said 2 years ago, the land GP sits on is too valuable for a race track. On my 2-3 visits to Magna's Palm Meadows Training center last year, I can see were it would be very easy to add a Grandstand/Clubhouse.

Frank Stronach is a Billionaire, you don't make too many mistakes getting there at his age. All the latest hoopla will fade in time, he will keep buying race tracks, knowing that casinos are his future.

[Suff]

Originally posted by karlskorner


Frank Stronach is a Billionaire, you don't make too many mistakes getting there at his age. All the latest hoopla will fade in time, he will keep buying race tracks, knowing that casinos are his future.

lSo he's in it for his grand kids? or his daughter. That case would carry some water if it was private money. Its public money. They have policys. I'm not sure where they are exactly.with rrespect to debt/equity ratio and all the details,,. but when it gets all red , all the time.. they have to do something,,, because shareholder lawsuits will force them to. and nasdaq could delist them...

Haleagh was the most prettiest track to me. Prettier than Saratoga. It was my favorite track. Last time I was in Florida it was open for a Haitan Festival and I went anyway , just to see the track. It was the coleseum of racing,, beautiful place.


Tampa seems to be the center of gravity in Florida at the moment.

[depalma13]

It is going to take a major turn in the legislature to allow Casinos in Florida. It's not going to happen. Far too many of the religious right control the house and the Senate. Governor Bush is against them, and he's there for four more years. No democrat will win if he proposes casinos, and a petition for an amendment to the constitution couldn't muster the signatures to get it on the ballot.

I was at Hialiah on Tuesday of last week. It is infested with termites. It should be torn down, but it is a historical site, so it will just remain the mess it is. By the way, the rats in the place are huge.

Look for grandstands at Palm Meadows and Gulfstream to be torn down and sold. The property is too valuable to be a race track.

[Suff]

Originally posted by depalma13
It

I was at Hialiah on Tuesday of last week. It is infested with termite

Its predominately concrete is it not? Thats my vivid rememberance off it. Beautiful concrete Pillars and scupltures.

Where's the termites..? In the grandstand?


Speaking of Termites. They emit gas because of the way thier metabolism breaks down its nutrients. It is believed by scientists that Termites contribute to 30% of the Green House Gas in the world. They are in the trillions in africa. Thier shit adds up.

[Vinnie]

When I read some of your posts about Hialeah Park I couldn't help but jump in. On one of the last days that they had live racing I went to Hialeah and on the last race that I witnessed late on the card I hit a real nice win bet on a 10 to 1 shot named Sugar N Spice. He was in a 5 furlong affair from the 10 hole and he won by a nose. I had $30 bucks on him, so that hit really made my day. I collected the ticket and we went to dinner and stayed at a nice hotel before returning home to Central Florida. That made my last memory of Hialeah a nice lasting one.. You are right Suff, it was (IS) a beautiful Coliseum in which to watch the races.

All the BEST!

Vinnie

[depalma13]

The termites are every where there isn't concrete. It is a real shame, because the place is beautiful, except for those giant rats!