Will the 'Grand Vision' ever start to pay off?

[PaceAdvantage]

Magna loses $34.5-million in third quarter; sells harness track (http://www.thoroughbredtimes.com/todaysnews/newsview.asp?recno=58811&subsec=1)
Magna Entertainment Corp. on Wednesday reported third-quarter losses of $34,536,000, pushing the company’s losses over the first nine months of 2005 to $65,650,000. Thoroughbred Times (http://www.thoroughbredtimes.com/todaysnews/newsview.asp?recno=58811&subsec=1)


This is a scary stat:

Gross wagering at Magna tracks during the third quarter decreased from $71.604,000 to $59,411.000. Gross wagering the first nine months declined from $451,819,000-million to $398,647,000.

[Doc]

When Magna started buying all their tracks, the only thought I had was - what happens if Magna goes belly-up? And Jeez...what they've done to some of their properties is just terrible. I loved the old Gulfstream Park, and wish they'd left it as it was.

[Jeff P]

Part of the problem with the 'Grand Vision' is that Magna would have us bettors jump through too many hoops just to see and bet on their product. Case in point is the recently concluded Oak Tree Meet. Oak Tree puts on their own race meet while leasing the track from Magna. What did I find on the Oak Tree website? Free live video and free Bris past performances. Give Oak Tree some credit. At least they're trying to make their product available. Will we ever find free live video and PPs on a website for a Magna track? I doubt it. Why? Their 'Grand Vision' doesn't include the real source of their revenue stream. Namely us bettors. Instead of 'Grand Vision' I have another name for it: Sheer Stupidity.

-jp

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[rrbauer]

Magna was misguided from the get-go. Frank (more-money-than-brains) Stronach had a vision. Problem was that there wasn't an Income Statement and a Balance Sheet to matchup with that vision. Plus, Frank wasn't about to get himself into a hands-on position with running these tracks, so he hires some of his "yes" men to run them.

These guys didn't have Frank's passion for the game but they sure enjoyed the perks, expense accounts, juicy salaries and nice bonus arrangements that went with the territory. As reality unfolded and MEC headed for the toilet, heads rolled and Frank brought in another Magna subsisidary to try and implement some damage control. Problem there was that MEC had more bleeding than MD had bandages.

Add slots (or the promise of slots) to the equation and Frank had a new savior for his racetracks. Problem there was that getting slots requires lots of political effort from the regulatory side; and, lots of patience from the dealing-with-fickle-voters side. Problem there was that lots of money and time are required and Frank's enterprises had little of either.

Frank might have a couple tracks that can show positive cash flow if properly managed. Beyond that, it's more losses for the racetrack holdings and more subsidies from the parent to stay afloat. Look for MD/MEC to cash in more of their real estate holdings and for the Stronach racetrack empire to continue to implode.

[Tom]

Franky comes from the auto parts supplier business. It was a given he would fail - the auto parts industry is a total shambles filed with losers and bakruptcies - MAgna got big in that field by methods other than good business practices. In fact, no one gets big in auto parts by being a competent businessman - you survie-temporarily - by short term thinking and cutting corners. Eventually, they all go down. Right now, GM is stockpiling cars in anticipation of Delphi going on strike Dec 16 - when they reneg in thier union contracts and try to shove a 67% pay cut down the throuts of their employees.

Franky appears to have run is horsey store the same way he runs his car store.

[TravisVOX]

Sounds like a guy I want running racing in New York!

[GaryG]

Another drawback is his tremendous ego. He has to leave his mark at each of the MEC tracks. The "new" Gulfstream is a good example, but a better one was when he tried to do away with the downhill turf course at SA. Fortunately, wiser heads set him right, but he ruined the appearance of the grandstand with those elevator towers. Just have to see what's left when the empire finally finishes crumbling.

[cj]

Looks like the renovations at Gulfstream won't be finished for the opening, and will even be going on most of the meet.

[ezpace]

OOPS (goose) South Omaha slang for ..super (LOOK AT ME) rich.. you know the type honk honk look what i'm wearing.. honk honk look at my money.. honk look what i'm driving...honk honk honk watch me spend it.. ;) Im important and gawd honk! ;)

Completely F'd UP is what he did .bought into some bad markets at a bad time while his main buisness was faltering also.. I brand him the millenium ELstupido .... honk ;) may he rest in peace ;)

But really.... I like his divorced daughter Belinda.. ;)

[DrugSalvastore]

compared to Churchill Downs INC....I think Magna and Stronach are heros.

At least they try anyway......

The tv channel they have isn't a complete and total joke like TVG. They just only get the prime tracks in the winter.

I'm really no friend of track management anywhere.