Slots and Horse Racing

[TrackManSam]

I have a very simple question. Is horse racing making money? In general? The reason I bring that up is because it seems in my state (Michigan) that these tracks have to pleed poverty and the pity of the people because if they don't. they won't get slot machines. Therefore they don't market their product right, and they do little or no advertising. However, I went to Hazel Park last night for the first time in forever, and they filled three floors of their clubhouse just for simulcasting. So once again that leads to my question. Are tracks, especially the ones that are in states that are trying to get slots, skewing their figures to make it look that their not doing so well, when in retrospect they are?

TrackManSam
www.ventyourfrustration.com (http://www.ventyourfrustration.com/)

[Kreed]

Strictly from a financial point tracks' land value is worth more than its use.
If Bemont or Santa Anita just razed the tracks guys LIKE ME could get them
probly ~30% Returns, year after year. I say LIKE ME because I personally
just couldn't see us lose any track, but accountants specializing in Equities
would jump to do just that. Magna could go from -100million to +500M in a
flash.

[CryingForTheHorses]

Now tell me in plain english what you mean Kreed?
You lost me!

[Kreed]

Magna would not even have to SELL his land outright. There are many plans
to LEASE it to developers. Understand Magna's MAIN value is NOT in the
tracks: if they get slots, then of course he will milk their value for a time.
But let's say that frank wanted to just GET RID OF THE TRACKS 100% ... after
dealing with the environmental issues, i KNOW his SA land alone would be worth
~600 Million. After accountants structure the deal(s), his INITIAL return might
be worth 600M, with ~30% returm for maybe the first 5 years, then a decent
15% thereafter. YEAH, big money wouldn't U say.