View Full Version : Magna ready for Bankruptcy?
NoCal Boy
12-10-2008, 09:00 AM
Market cap as of yesterday was only a bit more than $4MM, and seemingly dropping daily now. There is a reorganization proposal out there, but is there any value left for shareholders?
What happens to Xpressbet, etc. in a bankruptcy? Regardless of BK protection, why would anyone wager much with a bankrupt company, let alone leave much on deposit?
Could Magna get out of the Tracknet agreement with a bankruptcy filing? Rumors abound that the CDI side of Tracknet is causing the issues with signals and horsemen, especially at Gulfstream, and Magna is far more conciliatory with horsemen.
Tom Barrister
12-10-2008, 12:22 PM
What happens to Xpressbet, etc. in a bankruptcy? Regardless of BK protection, why would anyone wager much with a bankrupt company, let alone leave much on deposit?
I would imagine that by law, customer funds have to be kept in a separate account that neither the company nor creditors can touch.
NoCal Boy
12-10-2008, 12:58 PM
Correct, but how many people will even bother if the company is bankrupt? Too many other choices out there.
Of course, maybe the company will not go BK, but it is spiraling down.
I would imagine that by law, customer funds have to be kept in a separate account that neither the company nor creditors can touch.
rrbauer
02-19-2009, 09:27 AM
Vultures are circling. Grim reaper is sharpening his blade.
http://www.bloodhorse.com/horse-racing/articles/49288/mec-reorganization-plan-scrapped?id=49288&source=rss
miesque
02-19-2009, 09:37 AM
Its "Game Over" for Magna and if anyone has any doubts, the second sentence from their press release is as follows:
MEC cautions shareholders and others considering trading in securities of MEC that there can be no assurance that any alternative transaction will be completed.
Brogan
02-19-2009, 09:47 AM
Its "Game Over" for Magna and if anyone has any doubts, the second sentence from their press release is as follows:
MEC cautions shareholders and others considering trading in securities of MEC that there can be no assurance that any alternative transaction will be completed.
That's essentially boilerplate language that the SEC has been requiring public companies to use for years now.
Of course, that doesn't mean that Magna isn't in a world of hurt anyway.
miesque
02-19-2009, 09:56 AM
That's essentially boilerplate language that the SEC has been requiring public companies to use for years now.
Of course, that doesn't mean that Magna isn't in a world of hurt anyway.
Oh that is definitely boilerplate, but when most of a company's crushing debt is about to become due "on demand," it has some added signficance.
Cangamble
02-19-2009, 11:34 AM
Is money at Xpress Bet safe even though it probably is segregated?
Brogan
02-19-2009, 12:19 PM
Is money at Xpress Bet safe even though it probably is segregated?
You'd think so, but quite a few people got burned when Hinsdale filed bankruptcy.
MIplayer
02-19-2009, 12:33 PM
Is money at Xpress Bet safe even though it probably is segregated?
I have an XB account but don't keep squat in it. XB is convenient for me because they don't charge any monthly or service fees. But, do we even know for sure if customer account transactions are seperate?
If Hinsdale could screw account holders, could XB?
trigger
02-19-2009, 12:45 PM
Wonder if HRTV will become 100% owned by Churchill due to MEC's problems?
Also, perhaps Churchill will buy Xpressbet at a firesale price and merge it into Twinspires.
Si2see
02-19-2009, 02:26 PM
Wonder if HRTV will become 100% owned by Churchill due to MEC's problems?
Also, perhaps Churchill will buy Xpressbet at a firesale price and merge it into Twinspires.
Seems like that might happen , hrtv has been advertising for both of the wagering companies for some time now.
Imriledup
02-19-2009, 03:40 PM
Time for Betfair to buy HRTV. That way, they'll permit Santa Anita's races to be shown live on TVG.....i really don't want to have two satellite dishes on my roof just to get HRTV.
miesque
02-19-2009, 03:49 PM
Time for Betfair to buy HRTV. That way, they'll permit Santa Anita's races to be shown live on TVG.....i really don't want to have two satellite dishes on my roof just to get HRTV.
Since Churchill Downs, Inc. owns the other 50% of HRTV via a joint venture, I think that they will allow the half of HRTV owned by Magna to be acquired by Betfair when pigs fly. But on the other hand as messed up as this industry is, would anyone really be surprised if pigs did fly?
Imriledup
02-19-2009, 03:54 PM
Since Churchill Downs, Inc. owns the other 50% of HRTV via a joint venture, I think that they will allow the half of HRTV owned by Magna to be acquired by Betfair when pigs fly. But on the other hand as messed up as this industry is, would anyone really be surprised if pigs did fly?
Good points. I think anything is possible at this juncture in time. Betfair has lots of cash and when you have lots of cash, anything is possible.
rrbauer
02-19-2009, 04:28 PM
Is money at Xpress Bet safe even though it probably is segregated?
I believe that in order to do biz in Calif that they had to post a sizeable bond. I think that the best thing for XB customers would be to make an inquiry as to the effect of a MEC bankruptcy on XB and customer funds. I don't have an account there or I would do it.
menifee
02-19-2009, 04:54 PM
Personally, I would get my money out of xpressbet and any other ADW that Magna owns.
I am aware of no law that requires ADW's to segregate bettor funds. If anyone can point me to one, I would appreciate it. There certainly is no type "FDIC insurance" on these type of funds.
I am not a bankruptcy attorney (commercial litigator), but I believe that anyone who has an account with an ADW would be considered an unsecured creditor for those funds. In my experience, unsecured creditors receive less than 20 cents on the dollar.
That is what happened with the Hindsdale accounts. They listed their individual account holders as unsecured creditors - $450,000 total. Additionally, they listed as an asset funds they were suppose to be received from other tracks on behalf of individual bettors (i.e., recent winnings from the past two weeks -200k). They had a tax lien and other secured debt. Accordingly, those creditors received priority over those gambler's winnings.
The scary part is that technically if you had taken a withdrawal from a Hindsdale account within the past year prior to the filing (say you hit a super for 10K and withdrew the money). The trustee in that bankrutpcy could theoretically try to come after the money. There is no law on this and doubt it would happen, but some bankruptcy trustee may try it some day.
The lesson from this is: 1. Never keep an account with a substantial balance. 2. Diversify your accounts. 3. Withdraw often.
menifee
02-19-2009, 05:16 PM
I believe that in order to do biz in Calif that they had to post a sizeable bond. I think that the best thing for XB customers would be to make an inquiry as to the effect of a MEC bankruptcy on XB and customer funds. I don't have an account there or I would do it.
You are right - xpressbet did post a bond. But I believe it is only 500K. If Hindsdale owed 450K to bettors, how much would a company like Xpressbet owe?
rrbauer
02-19-2009, 05:31 PM
The lesson from this is: 1. Never keep an account with a substantial balance. 2. Diversify your accounts. 3. Withdraw often.
Better lesson: 1. Withdraw often. 2. Withdraw often. 3. Withdraw often.
MIplayer
02-19-2009, 06:47 PM
For some serious shiggles, did you know that Mr. Stronach has an energy drink named after himself? http://www.franksenergy.com/
This officially calls for my first use of emoticons on this forum. :lol:
Why does he sponsor the Indy 500?
takeout
02-20-2009, 10:11 AM
Magna may not be able to pay off debt to controlling shareholder
http://www.baltimoresun.com/business/bal-bz.magna20feb20,0,3519391.story
[snip]
"If by some circumstances they did file for Chapter 11, it could get pretty crazy," said Maryland Racing Commission Chairman John Franzone, "because then you're at the mercy of a bankruptcy trustee."
[snip]
"I'm sure that [Stronach] would do whatever he can to [prevent] the public shareholders from getting wiped out," Rice said, "but I don't know if he can do that."
[snip]
Magna Entertainment shares closed at 38 cents yesterday.
[snip]
alhattab
02-20-2009, 08:55 PM
Everyone should have learned a lesson from Hinsdale. If I had money with Xpressbet, didn't take it out, and later had it held up I'd be kicking myself. Anyone with money in Xpressbet take it out now.
maxwell
02-20-2009, 11:47 PM
So what happens to the tracks Magna owns? I can see CD picking the bones ( SA & GP ) and scrapping the rest. Looks like "Old Frankie" has finally bitten off more than he can chew.
alhattab
02-21-2009, 06:45 AM
So what happens to the tracks Magna owns? I can see CD picking the bones ( SA & GP ) and scrapping the rest. Looks like "Old Frankie" has finally bitten off more than he can chew.
Maybe. You have to wonder how people will come up with the money. I don't know if CD has enough liquidity. They could offer shares but a tough proposition now. I think during bankruptcy tracks would continue to operate- it would be in the creditors' best interests to keep them operating
dutchboy
02-21-2009, 09:06 AM
The scary part is that technically if you had taken a withdrawal from a Hindsdale account within the past year prior to the filing (say you hit a super for 10K and withdrew the money). The trustee in that bankrutpcy could theoretically try to come after the money. There is no law on this and doubt it would happen, but some bankruptcy trustee may try it some day.
I read that in the Madoff case they can and plan go back a few years and require people who withdrew money to pay it back.
rrbauer
02-21-2009, 09:20 AM
The scary part is that technically if you had taken a withdrawal from a Hindsdale account within the past year prior to the filing (say you hit a super for 10K and withdrew the money). The trustee in that bankrutpcy could theoretically try to come after the money. There is no law on this and doubt it would happen, but some bankruptcy trustee may try it some day.
I read that in the Madoff case they can and plan go back a few years and require people who withdrew money to pay it back.
I don't think that withdrawing money from an intermediary that is clearly your money with no taint attached to it is subject to any post-bankruptcy confiscation. The Madoff case is entirely different with much of the money that was distributed being tainted by the fraudulent circumstances by which it was obtained.
Nacumi
02-21-2009, 11:08 AM
Has anyone in SoCal heard rumblings that Stronach was close to a deal for selling Santa Anita to foreign investors, particularly from Asia?
He was supposedly out there with lawyers this week....
ezrabrooks
02-21-2009, 11:17 AM
So what happens to the tracks Magna owns? I can see CD picking the bones ( SA & GP ) and scrapping the rest. Looks like "Old Frankie" has finally bitten off more than he can chew.
As to LS, the City of Grand Prairie announced that it would operate the track in the even Magna goes down. Not sure how the licensing process would be handled, but Magna leases the Track from the City. Understandably, the City does not want LS dark.
Ez
garyoz
02-21-2009, 11:23 AM
Technically the problem is going to be acceleration of debt maturities due to cross default provisions in the covenants (that's standard). So even if they due seek Ch.11, unless they can fund operations out of cash flow (while being in default) it will get difficult. There is not Debtor in Possession (DIP) funding available in the market today. This looks ugly. Maybe, creditors ultimately moving for asset liquidition. The greatest asset is the real estate, but you're not going to be able to repurpose SA or GP. Also the real estate market is hardly robust. Ugly....as usual Frankie's timing is terrible.
Cangamble
02-21-2009, 11:55 AM
Stronach sunk in tons of money trying to beautifying tracks at at time when people were leaving the tracks and starting to play online. While many of those Stronach was trying to impress never showed up as families stopped going to the track in the early 80's due to various reasons, one main one, competition: funds that used to make it to the track went to lotteries instead, another reason, simulcasting, caused people to leave the track with no dough, not encouraging anyone new to come back.
Stronach could have focused his resources to revolutionalize the gambling aspect of the game. Not just jumping on the ADW band wagon, but actually lowering takeout at all his venues, because that is the future of horse racing: either lower takeouts or high rebates.
Stronach could have been glorified has the one who got horse racing going again, instead he will be remembered as a monumental failure.
Greyfox
02-21-2009, 12:49 PM
He's a major player in the auto parts industry.
If the car makers are being helped, he likely will be to in both the U.S. and Canada. This guy has connections in high places and has kept them buttered.
so.cal.fan
02-23-2009, 02:11 PM
http://www.pasadenastarnews.com/ci_11761050#end
MIplayer
02-23-2009, 07:36 PM
Apparently, Xpress Bet customers will not lose any money in the event of MEC filing for bankruptcy because customer accounts are entirely seperate.
http://www.drf.com/news/article/101860.html
Although a loophole of some sort wouldn't surprise me.
Imriledup
02-25-2009, 01:28 AM
Does anyone know why Magna is going out of business? How did they lose all their money? Was it bad racetrack management or something else?
You would think that all the money xpressbet, HRTV, franks energy drink and the magna 5 is making, they would be flush with cash.
Its bizarre that a company with such a strong and incredibly intelligent leader can go under.
takeout
02-26-2009, 11:33 AM
INVESTOR: LET MAGNA GO BANKRUPT
http://www.paulickreport.com/blog/category/magna-entertainment/
[snip]
The Farallon letter calls it “folly” that current market conditions justify providing additional financing to Magna Entertainment. “There is no realistic prospect that MEC will ever be financially viable,” it states. “That the (MIM) board has authorized over $300 million in loans in a failed attempt to prop up this equity only highlights the foolishness of the two companies entanglement. There is no possible justification for MIM to deepen that entanglement by lending more money to, or accepting equity in, MEC.”
[snip]
takeout
03-05-2009, 01:47 PM
Stretched run
Magna loan due today could trigger bankruptcy
http://www.baltimoresun.com/business/bal-bz.magna05mar05,0,1024447.story
[snip]
A source familiar with the situation told The Baltimore Sun that Maryland Jockey Club employees were paid yesterday, two days ahead of their regular Friday payday. And sources told the Los Angeles Daily News that Magna employees had been told to turn in their timecards last Monday and were scheduled to be paid yesterday or today.
Companies typically pay employees before filing for bankruptcy protection because subsequent payments must be approved by a judge.
[snip]
Cangamble
03-05-2009, 02:04 PM
http://finance.yahoo.com/news/Magna-Entertainment-Corp-prnews-14555933.html
Wickel
03-05-2009, 05:29 PM
Guess most people saw this coming. I was especially glad to read that Lone Star is one of Magna's properties on the selling block. The track's has been in a downward spiral since Magna got its hands on it, IMHO.
Hajck Hillstrom
03-05-2009, 05:42 PM
San Gabriel Valley Tribune March 3, 2009
http://www.svgtribune.com/ci_11830879?source=email (http://www.sgvtribune.com/ci_11830879?source=email)
kenwoodallpromos
03-05-2009, 06:02 PM
Feb 25, 2009 04:30 AM
Tony Van Alphen
Business Reporter
Industrial icon Frank Stronach has taken a pay cut. And it's a big one.
In 2007, Stronach collected a stunning $70.6 million through a combination of consulting fees, the exercising of stock options and base salary.
The company said it had set aside $10 million (U.S.) for "business development, consulting and other services" for the "chairman of the board" and his affiliates in 2008. That's a huge drop from the $40 million (or $40.6 million Canadian) that the company had expensed for him for similar services in 2007.
In that year, Stronach also gained a whopping $27.3 million (Canadian) by exercising stock rights, $215,000 in base salary and other fees.
The exercise of option rights in 2007 proved extremely timely since the company's stock price tumbled dramatically last year."
__________________
I'll cry for him later.
Lucky his daughter has a job- a Canadian Prime Minister!
Relwob Owner
03-05-2009, 07:12 PM
Does anyone know why Magna is going out of business? How did they lose all their money? Was it bad racetrack management or something else?
You would think that all the money xpressbet, HRTV, franks energy drink and the magna 5 is making, they would be flush with cash.
Its bizarre that a company with such a strong and incredibly intelligent leader can go under.
I think intelligent is now debatable. As another poster noted, he totally misjudged his customer base and spent ridiculous amounts of money on tracks, not realizing that most betting is done off site.
Many people are successful in one business and think they should and will be in another and are wrong-just ask Dan Snyder-brilliant marketer, awful football team owner
cnollfan
03-05-2009, 07:15 PM
Not to mention that he tore down the stands at Gulfstream without replacing them so that nobody can sit and watch the races anymore unless they go to the restaurant and pay $$$.
rrbauer
03-05-2009, 08:00 PM
"Magna has agreed to sell Pacific Racing Association, Gulfstream Park Racing Association Inc., GPRA Thoroughbred Training Center Inc., and AmTote International to MI Developments, according to court documents. Magna also is selling its interest in a joint venture called The Village at Gulfstream Park."
http://www.bloomberg.com/apps/news?pid=20601087&sid=alQ1UPVAN1AA&refer=home
onefast99
03-05-2009, 08:06 PM
"Magna has agreed to sell Pacific Racing Association, Gulfstream Park Racing Association Inc., GPRA Thoroughbred Training Center Inc., and AmTote International to MI Developments, according to court documents. Magna also is selling its interest in a joint venture called The Village at Gulfstream Park."
http://www.bloomberg.com/apps/news?pid=20601087&sid=alQ1UPVAN1AA&refer=home
The Village is the mall right in front of GP with restaurants and stores, it use to be the valet parking lot. GP may not be affected by any of this. Palm Meadows will be sold possibly to Tipton/Fasig. If GP loses the Palm Meadows property it may cause an issue as there wont be enough stall space for the GP meet. Anyone think its time for Hialeah to be a racetrack again?
maxwell
03-05-2009, 09:00 PM
The Pied Piper will come out of this just fine thank -you -very - much ... not so for said mice.
exactatom
03-05-2009, 09:40 PM
I just watched a few live shows from HRTV and would have thought they would have the decency to address the bankruptcy and assure horseplayers that it was business as usual. This is one of Santa Anita's big weekends and from a PR aspect they should have been more pro active instead of trying to ignore the issue and not discuss it. The more I watch their product, the more I see why they are in the financial position they are.
PaceAdvantage
03-05-2009, 10:46 PM
Quite frankly, I'm surprised it took them this long.
rrbauer
03-06-2009, 09:24 AM
The Village is the mall right in front of GP with restaurants and stores, it use to be the valet parking lot. GP may not be affected by any of this. Palm Meadows will be sold possibly to Tipton/Fasig. If GP loses the Palm Meadows property it may cause an issue as there wont be enough stall space for the GP meet. Anyone think its time for Hialeah to be a racetrack again?
If MEC is selling all of it's Gulfstream-related properties they can't be too concerned about stall space at the track there.
Quite frankly, I'm surprised it took them this long.
I hope Karl is OK.
cj's dad
03-06-2009, 09:33 AM
It was reported here locally this AM that the rights to the Preakness Stakes
are being shopped around.
onefast99
03-06-2009, 09:39 AM
If MEC is selling all of it's Gulfstream-related properties they can't be too concerned about stall space at the track there.
If Palm Meadows is sold off and unavailable to put horses there it will hurt the amount of horses able to race at GP. GP only has 1000 stalls most tracks have 2000.
Bruddah
03-06-2009, 10:01 AM
It was reported here locally this AM that the rights to the Preakness Stakes
are being shopped around.
It's time to move the Preakness. What's wrong with having it at Laurel? Just playing Devil's advocate. I know this may seem to be Heresey to some of the Maryland fans, but the neighborhood hasn't been safe since the 80's and only gets worse. Of course, Laurel isn't in the best area, but it's much easier access and a newer facility. :cool:
If Pimlico was the orginal facility or a better version of it, I honestly could see the point to keep it there, but let's face it, Pimlico is a dump. The place isn't even old hill top, it is a dump. Although I think there is hope, many tracks neighborhood's have been improved, I remember Churchill's was pretty bad and now it looks great! Pimlico use to be a lot of fun, maybe with a proper owner with better political ties we can see a better and longer meet.
I think intelligent is now debatable. As another poster noted, he totally misjudged his customer base and spent ridiculous amounts of money on tracks, not realizing that most betting is done off site.
Many people are successful in one business and think they should and will be in another and are wrong-just ask Dan Snyder-brilliant marketer, awful football team owner
words to live by.
the master of the universe types just get to thinking all the success was actually their own doing and can be repeated anytime anywhere.
cj's dad
03-06-2009, 01:13 PM
It's time to move the Preakness. What's wrong with having it at Laurel? Just playing Devil's advocate. I know this may seem to be Heresey to some of the Maryland fans, but the neighborhood hasn't been safe since the 80's and only gets worse. Of course, Laurel isn't in the best area, but it's much easier access and a newer facility. :cool:
Not a thing- the track is a one mile oval like Pimlico- There is room for a chute if needed and the infield ponds could be filled and the infield used. The parking is much better as is the neighborhood- well actually there isn't a neighborhood, it's a commercial area for the most part.
And, it's right off of I-95 - 20 miles pretty much from downtown Baltimore and less from DC
Relwob Owner
03-06-2009, 01:22 PM
words to live by.
the master of the universe types just get to thinking all the success was actually their own doing and can be repeated anytime anywhere.
Amen to that
Relwob Owner
03-06-2009, 01:25 PM
Not a thing- the track is a one mile oval like Pimlico- There is room for a chute if needed and the infield ponds could be filled and the infield used. The parking is much better as is the neighborhood- well actually there isn't a neighborhood, it's a commercial area for the most part.
And, it's right off of I-95 - 20 miles pretty much from downtown Baltimore and less from DC
I hadnt been to Laurel in a few years until a few weeks ago and I could not agree more. It is a very nice facility and could handle a Triple Crown Race just fine, I believe---it is in a better location than Pimlico in terms of its proximity to fans in DC and Northern Virginia and my goodness, you cannot help but upgrade from the Pimlico neighborhood.
As far as worrying about "Die Hard" Maryland fans complaining....I cant imagine that there are that many left, as DeFrancis and Stronach have done everything they could to kill racing there
cnollfan
03-06-2009, 01:34 PM
Not a thing- the track is a one mile oval like Pimlico- There is room for a chute if needed and the infield ponds could be filled and the infield used. The parking is much better as is the neighborhood- well actually there isn't a neighborhood, it's a commercial area for the most part.
And, it's right off of I-95 - 20 miles pretty much from downtown Baltimore and less from DC
Not that it matters, but Laurel is a 1 1/8 mile oval. Still no reason not to run a 1 3/16 mile race there.
Two years ago I went to Hawthorne a couple of weeks after Laurel and I thought Hawthorne was the Taj Mahal in comparison. As far as I'm concerned the only thing that makes Laurel remotely attractive is comparing it to Pimlico.
Indulto
03-06-2009, 08:15 PM
http://www.thoroughbredtimes.com/national-news/2009/March/06/Magna-officials-meet-with-California-regulators.aspx
Magna officials meet with California regulators
by Frank Angst March 06, 2009… Greg Scroggins, national director of regulatory affairs for Magna, said all funds have been transferred with the exception of money withheld to cover currently outstanding checks.
… “Horsemen’s accounts and customer accounts are safe,” Scroggins said.
Scroggins was less confident about questions regarding money, both winnings and fees, owed to other simulcast facilities, off-track outlets, and advance deposit wagering outlets. Traditionally such outlets first pay customers with the understanding that the host track will square such payouts. Host tracks typically square accounts once a month.
The issue has twice come up in recent bankruptcy filings. In 2008, Hinsdale Greyhound Park, which handled significant action on simulcast Thoroughbred racing, listed players and outlets as creditors. That case is still being resolved. In 2006, the New York Racing Association listed numerous racetracks, off-track outlets, and ADW outlets as creditors. John Lee, of NYRA, said all of those outlets eventually were paid.
Racing and Gaming Services, an off-shore rebate shop, is listed as a creditor by Magna. Dick Powell, of RGS, encouraged the CHRB to consider regulations that would require all such payments be rectified in 15 days or less.
“In the 21st century, there’s no reason why these payments can not be paid overnight,” Powell said.
… Shifts behind the scenes will be significant. Magna parent company MI Developments Inc. has made a stalking bid that, if approved, would transfer Golden Gate and Santa Anita to MI Developments, which would then consider outside bids on those properties. In a release, MI Developments said if it acquires Golden Gate Fields, it intends to immediately seek approval to develop the property for commercial real estate uses.
rrbauer
03-07-2009, 11:03 AM
Rewind to ten years ago. Stonach comes to town with big bucks and big ideas and is embraced by racing interests as its new saviour. But, almost immediately Stronach began talking out of both sides of his mouth. No, he wasn't interested in the XYZ track because of the potential for slot machines at that location. Yes, if slots became an option for that location, he would seek a license because it tied in to his vision of that location as an entertainment complex. But, it didn't matter if they got slots or not, they would expand in other directions to enhance the racing content.
Other content came (concerts in the infield) and went (no more concerts in the infield). New management came and soon became prior management. New restaurants came and replaced half of the box seat area. I guess Frank doesn't eat hot dogs based on the menus that I've seen. Grandstands got torn down. New grandstands got put up but somehow standing room replaced seats, except the area where the seats are $25 (or more) a pop.
In Maryland, Frank had to overhaul the stable area to accommodate the racing board's insistence that the "off" track remain open for training to keep the horse owners from shipping off to another state. So the horse population got an upgrade and the customer population got squat.
I suppose much of that can be attributed to business as usual.
Doing a fast-forward to the current stage: One of Magna's tracks, Remington Park, got slots and has managed to maintain its racing product. It was even recognized by HANA as one of its top tracks (however that ranking will soon be corrected due to a data discrepancy). Gulfstream is doing better this year and Santa Anita has had only one racing surface for its main track during this winter's meet.
Maryland, where everyone but Stronach thinks that slots = survival, keeps playing three-card monte with the slots issue and its anyone's guess which card is the queen. (Truth be known the queen slipped out the side door with a couple politicians some time ago.) Frank bet the Maryland slot-license money on a couple Florida real estate ventures and found out that even in real estate a flip can become a flop. Now there's no money for Maryland (what's new) and the end game is up to bankers and lawyers.
Geez, if we had only seen this coming. :lol: :lol:
so.cal.fan
03-07-2009, 11:18 AM
Rick?
Any chance the San Manuel Indians will buy Santa Anita or part of it, leaving Stronach an interest? Or is that off the table. I've read nothing mentioned about the San Manuels.
However.....they have been running ads about themselves and their casino 50 miles away from Arcadia. The commercials were filmed at Santa Anita.
Their banners and names are all over Santa Anita.
Could it be possible that Gov. Arnold will kick Las Vegas to the curb and bring in slots to Calif. to help refill our empty coffers? Bring them in via the San Manuels?
rrbauer
03-07-2009, 12:28 PM
Rick?
Any chance the San Manuel Indians will buy Santa Anita or part of it, leaving Stronach an interest? Or is that off the table. I've read nothing mentioned about the San Manuels.
However.....they have been running ads about themselves and their casino 50 miles away from Arcadia. The commercials were filmed at Santa Anita.
Their banners and names are all over Santa Anita.
Could it be possible that Gov. Arnold will kick Las Vegas to the curb and bring in slots to Calif. to help refill our empty coffers? Bring them in via the San Manuels?
You are much closer to all of that than I am. However, if I owned a casino why would I want to buy a racetrack?
so.cal.fan
03-07-2009, 01:17 PM
Yes, you make a good point.
Latest rumor from Santa Anita this morning:
Marty Wygod and Jim Pegram have put in a bid for the track!
I hope this is true. This would be very good news for horseman and fans!
Indulto
03-07-2009, 03:55 PM
Yes, you make a good point.
Latest rumor from Santa Anita this morning:
Marty Wygod and Jim Pegram have put in a bid for the track!
I hope this is true. This would be very good news for horseman and fans!Isn't Jim Pegram a jockey's agent? Wasn't it Mike Pegram who was trying to expand Los Alamitos to run thoroughbreds there when Hollywood closes and also tried to purchase Fairgrounds?
so.cal.fan
03-07-2009, 04:51 PM
Yes you're right, Indulto, I got them mixed up.
In any event, I sure hope these horsemen buy Santa Anita.
Indulto
03-07-2009, 05:41 PM
Yes you're right, Indulto, I got them mixed up.
In any event, I sure hope these horsemen buy Santa Anita.Any buyer who want's to keep racing going rather than eventually develop the land for other purposes would certainly be welcome.
However, I've always had reservations about the Los Alamitos expansion and would like to have seen the results of an environmental impact study on that project, but I guess it never got that far. It wouldn't surprise me if Golden Gate sees bulldozers before Hollywood does.
BillW
03-07-2009, 05:48 PM
Any buyer who want's to keep racing going rather than eventually develop the land for other purposes would certainly be welcome.
Didn't the city pass a law requiring it remain a horse track?
cj's dad
03-09-2009, 09:12 AM
Not that it matters, but Laurel is a 1 1/8 mile oval. Still no reason not to run a 1 3/16 mile race there.
Two years ago I went to Hawthorne a couple of weeks after Laurel and I thought Hawthorne was the Taj Mahal in comparison. As far as I'm concerned the only thing that makes Laurel remotely attractive is comparing it to Pimlico.
Laurel Park is listed at 1 mile & 600 ft. - slightly less than 1 1/8 miles due to the recent ( 3 years ?) reconfiguration of the track I believe.
Pimlico is a 1 mile oval.
Not to defend Laurel Park, because I truly don't care, but the clubhouse 1st floor is quite nice and I've been (FWIW) to 37 tracks at last count.
Indulto
03-10-2009, 03:57 AM
http://www.horseraceinsider.com/blog.php/west-coast-wash/comments/03102009-the-not-so-great-race-place/#comments
The Not-So-Great Race Place
By Bill Christine March 09, 2009… There are actually wags out there who are saying that Hollywood Park will outlast Santa Anita in racing's survival game. Now wouldn't that be a kick in the head? Hollywood Park, with rigor mortis just around the corner, rising from the dead, and Santa Anita, long the jewel of California's race tracks, taking the fall instead. It might be a sick joke, but as a betting proposition, the odds could be shorter than you think. The future of Santa Anita and all of the other Magna tracks is in the hands of a bankruptcy judge in Wilmington, Delaware, named Mary F. Walrath. It is not known if the Honorable Ms. Walrath ever sneaked over to Delaware Park to try to cash a parlay on her lunch hour, but during times like these, that would help.
… To think that not too many years ago, the Big Three of U.S. racing were Churchill Downs, the New York Racing Association and the Stronach empire, and now all but Churchill have been forced into bankruptcies. Everything Stronach has is for sale, including Santa Anita and Gulfstream Park, and even the Preakness, if you can put a price on just one horse race. He'd best not count on finding a sellers' market.
… Not many things have gone right since he bought Santa Anita at the end of 1998. At the time, what did we know? He was seen as a white knight, a true, deep-pocketed horseman who had rescued Santa Anita from Meditrust, a nursing-home conglomerate which couldn't tell a horse from a hobbit, but had bought the track less than two years before because of some unique tax advantages.
Last week in Delaware, Stronach lawyers went before Mary Walrath to ask if MI Developments, Magna Entertainment's parent company, could loan the race tracks $62.5 million. The judge allowed about $13 million for starters, just to keep Santa Anita and Gulfstream Park going. Stronach will need much more. His utility bills alone average almost $1.3 million a month. He has, literally, thousands of creditors who are owed about $500 million. The list of creditors runs more than 500 pages. Big notes are due soon. …
… There were no Stronach sightings on Santa Anita Handicap day, and in fact the winner's-circle presentation was done by an executive from an Indian casino. How ironic that Santa Anita, in a small way, is doing business with one of the tribes. Many dollars short, and a decade late.
rrbauer
03-10-2009, 08:37 AM
"The future of Santa Anita and all of the other Magna tracks is in the hands of a bankruptcy judge in Wilmington, Delaware, named Mary F. Walrath. It is not known if the Honorable Ms. Walrath ever sneaked over to Delaware Park to try to cash a parlay on her lunch hour, but during times like these, that would help."
Rumor: Judge Walrath seen at Delaware Park playing a slot machine and drinking comp bloody marys.
"Not many things have gone right since he bought Santa Anita at the end of 1998. "
"There were no Stronach sightings on Santa Anita Handicap day..."
Comment: The failure of SA management to open a barber shop at the track has cost three (3) CEO's their jobs and got Frank jammed up in crosstown traffic getting to the track from his current hair salon in Beverly Hills. Frank is also sore at Equibase because they refused to change the close-finish description from a "nose" to a "whisker".
takeout
03-10-2009, 04:06 PM
Pepsi wants their stuff back.
http://www.mddailyrecord.com/article.cfm?id=10955&type=UTTM
onefast99
03-10-2009, 04:47 PM
Pepsi wants their stuff back.
http://www.mddailyrecord.com/article.cfm?id=10955&type=UTTM
Maybe an opportunity for Frank to peddle the only drink on premise, Franks Energy drink!
Indulto
03-10-2009, 05:06 PM
Pepsi wants their stuff back.
http://www.mddailyrecord.com/article.cfm?id=10955&type=UTTMWhat does a Pepsi TV ad go for? How much will it cost them to get that stock back and is it even resellable elsewhere?
Relwob Owner
03-11-2009, 11:50 AM
What does a Pepsi TV ad go for? How much will it cost them to get that stock back and is it even resellable elsewhere?
Quick question kind of involving this thread----Someone told me that jockeys agents cannot own horses-is this true and if so, why could a jocks agent not own a horse and a racetrack owner(Stronach) can?
kenwoodallpromos
03-17-2009, 12:24 PM
"Will this bankruptcy affect your Adena Springs breeding and racing operation and your other business ventures?
“No. I’m the controlling shareholder of Magna International (a supplier of automotive products). We’ve got no debt. We’ve got $1.2 billion cash in the bank. It’s all separate. That’s all separate.”
OK, but reports said Magna will buy some MEC tracks in 2 years if not successful; also, besides Magna shveling money to Frank through MEC, most of the bankruptcy debt is to MEC's parent company MID; and Frank cashed 500,000 shares of MEC at a "timely" time.
Can anybody show me that Stronach is not just using MEC asd a tax shelter or slush fund?
__________________
From Berkeley Planet news-
"Albany’s Golden Gate Fields goes on the auction block April 3 as part of a court-mandated sale of properties owned by ailing Magna Entertainment.
Magna, the Canadian-based firm that emerged as the world’s largest owner of race tracks, is in bankruptcy actions on both sides of the U.S.-Canada border. Three of its tracks will be auctioned off in the sale.
But the ultimate winner may well by the company’s parent firm, MI Developments (MID), which holds liens against the company and has entered a so-called “stalking horse bid” for three tracks—Golden Gate, Pimlico and Lone Star—as well as Magna’s odds-processing firm, a betting service and other real estate.
If MID wins its $195 million bid it will move immediately to commercially develop the site, a move certain to ignite a political firestorm in Albany.
In an announcement from corporate headquarters in Aurora, Ontario, MID announced that if it wins the Albany track, “it intends to immediately commence seeking all requisite approvals to develop the property for commercial real estate purposes.”
___________
Stronach is not hard to figure out- just what shell the ball is ubder.
Indulto
06-04-2009, 03:10 AM
http://www.paulickreport.com/blog/thoroughbred-owners-of-california-to-bid-on-santa-anita/ (http://www.paulickreport.com/blog/thoroughbred-owners-of-california-to-bid-on-santa-anita/)
THOROUGHBRED OWNERS OF CALIFORNIA TO BID ON SANTA ANITA
By Ray PaulickJune 3, 2009… Drew Couto, president of TOC, confirmed Wednesday night that the owners’ organization has filed an intention to bid on Santa Anita but would not offer any additional comment. It is not known if there are individual investors behind the proposed bid or if the funding would be institutional.
… There have been many rumors circulating through Southern California that another bidder for the track represents Chinese interests. Internet entrepreneur Halsey Minor has also expressed an interest in acquiring some of the tracks through the purchase of Magna Entertainment’s accumulated debt. …
… There are profound fears in the California Thoroughbred community that if Santa Anita is sold to a development company, racing in the Golden State would soon be extinct. …
… A successful bid by TOC on Santa Anita Park could go a long way toward preserving the California racing industry.
… TOC was incorporated in 1993 and eventually replaced the California Horsemen’s Benevolent and Protective Association as the recognized organization representing horse owners in the state.
rrbauer
08-23-2009, 01:00 PM
MEC owes the state of Florida $144,000 in back taxes and another $800,000 for fines from their failure to monitor or control "test" card usage for slot machine play that employees had rigged with hundreds of dollars of free slots' play that resulted in huge losses for the Gulfstream casino.
http://www.miamiherald.com/news/broward/story/1197348.html
so.cal.fan
08-23-2009, 01:43 PM
We are very hopeful that horsemen such as Marty Wygod, B.Wayne Hughes and other prominent owners and breeders will purchase Santa Anita.
I'm sure they will get a lot of support, no one wants California racing end.
Indulto
09-04-2009, 04:36 PM
http://www.thoroughbredtimes.com/national-news/2009/june/04/toc-interested-in-buying-santa-anita-park.aspx (http://www.thoroughbredtimes.com/national-news/2009/june/04/toc-interested-in-buying-santa-anita-park.aspx)
TOC interested in buying Santa Anita Park
by Larry Stewart June 04, 2009The Thoroughbred Owners of California, an organization that purportedly represents the state’s horse owners, has submitted an “expression of interest” to buy Santa Anita Park.
… “We are now awaiting notification that we are a qualified bidder,” Couto told THOROUGHBRED TIMES.
Couto said he could not offer any details about the bid, nor could he say who was involved.
… A source familiar with the proceedings said the finalists among the bidders will not be disclosed before the winning bid is identified in early September. The sale will be finalized sometime after that, depending on how long it takes to complete all the legalities.
However, Magna could announce at any time before then that it has selected a “stalking horse bid” or that it has decided it is not going to sale off Santa Anita, the source said.
“Santa Anita is Magna’s most profitable and most valuable piece of property,” Santa Anita President Ron Charles said. “This is really the diamond here.”
so.cal.fan
09-04-2009, 04:54 PM
We're sure hoping the horsemen buy it. Auction should be coming up soon this month.
Indulto
09-04-2009, 09:44 PM
http://www.drf.com/news/article/106966.html
Magna withdraws biggest tracks from auction
By Matt Hegarty9/4/2009Magna Entertainment Corp., the bankrupt racetrack owner, has withdrawn Santa Anita Park, Lone Star Park, and a handful of other assets from an auction scheduled for Tuesday, according to documents the company filed in U.S. bankruptcy court.
… The withdrawal is an acknowledgment that Magna did not receive any bids for Santa Anita or Lone Star that the company deemed adequate. Magna paid $126 million for Santa Anita in 1998 and $99 million for Lone Star in 2000. Also withdrawn from the auction was Portland Meadows in Oregon, an interest in a retail development at Santa Anita, a horse-bedding company, and a vacant property in Northern California.
It is unclear how Magna intends to complete its reorganization without selling the properties. Officials involved in Magna's bankruptcy did not return phone calls on Friday.
… On Friday, the Thoroughbred Owners of California said that it has formed a committee seeking to bid on Santa Anita. The committee is being led by Arnold Zetcher, who said that the committee had so far been "involved in" Magna's bankruptcy, though he declined to say whether the committee had submitted a formal bid and declined to provide details about the group's current finances.
takeout
09-04-2009, 10:52 PM
Just a feeling but something tells me the longer they stall the lower those bids are going to go.
KingChas
09-05-2009, 12:47 AM
It's time to move the Preakness. What's wrong with having it at Laurel? . :cool:
Can't wait to see the charts;
Laurel Preakness about *1&3\16 with no internal fractions. :D
Indulto
09-13-2009, 07:56 PM
http://www.pasadenastarnews.com/opinions/ci_13323490
Our View: Santa Anita bid a good bet
EDITORIAL 09/12/2009… As reported by Janette Williams Thursday in the article headlined "Group of thoroughbred owners plans to bid for Santa Anita Park," six months after its parent company, Magna Entertainment, declared bankruptcy and a few weeks after the deadline for buyers came and went with no bidders, there emerged word of a legitimate bid from a group of horse-racing insiders who say they want to buy the 303-acre site and run it as a race track.
The Thoroughbred Racing Association of California (TRAC), which includes Arnold Zetcher, wants to buy the track and run it as a nonprofit. Oh, they still want to make money, but they intend to put the earnings back into the track and into bigger racing purses. …http://www.pasadenastarnews.com/rds_search/ci_13302207?IADID=Search-www.pasadenastarnews.com-www.pasadenastarnews.com
Group of owners makes bid to buy Santa Anita race track
By Janette Williams 09/09/2009 ... "Our whole objective is to preserve quality horse-racing in California," said Arnold Zetcher, chairman of the four-member track-acquisition committee, the Thoroughbred Racing Association of California (TRAC).
"We've actually been working on this for several months," Zetcher said Wednesday. "We're putting together a `not-for-profit,' which doesn't mean we don't want to make a profit - we do. We want to take the money and put it into the purse structure."
... Ron Charles, Santa Anita president and CEO, said Wednesday that the situation was "fluid," but he believes a stalking horse bid could come in late October, and the bidding process would follow in about 30 days.
Charles said he believes the TRAC committee is "very serious about trying to put together a bid," but no minimum offer had been discussed. "They're trying to understand the economics of owning a racetrack and also trying to figure out how they would be able to create additional revenues to justify their participation, whether owning or partnering," Charles said.
... Zetcher said there are "a lot" of investors interested in backing Santa Anita, mostly in the thoroughbred racing industry.
"It's in the best interest of everybody to have very strong racing, and Santa Anita is a most important piece of that," Zetcher said. "We're going to stay in and do everything we can to be successful."
Zetcher said the group is now "doing the financials" on a bid for the 303-acre property, but declined to say what they were prepared to pay.
... "I can say we approve all the things they want to do," Chillingworth said. "But what we're refraining from doing is trying to select someone, or be biased on this. We've been told about their plans and we think they fit in very well with what we'd like to see happen."
..."Their idea is to plow most of the profits into renovation," Chillingworth said. "The program they plan to put in place we would view very favorably. And based on the current economic condition in the industry, they would have to be sportsmen - they would have to be doing this for the betterment of the industry."
Java Gold@TFT
09-13-2009, 08:07 PM
Like Frankie and his lawyers and the bankruptcy court really care about the betterment of the industry - "Show Me The Money".
so.cal.fan
09-13-2009, 09:37 PM
I sure hope they get the track, it's the only thing that may save racing in California.
CBedo
09-13-2009, 10:45 PM
Mr. Wygod is a heckuva business man. I was somewhat close to the situation when he sold his company (Medco) to Merck. He did an amazing job of convincing Merck that they would be severely disadvantaged if they didn't have Medco, and also convinced them that Bristol Meyers really wanted it as well. In the end, Merck way overpaid, and Marty sold Medco for 6.6 billion if I remember correctly.
so.cal.fan
09-13-2009, 11:23 PM
You're right about Marty, he is a genius.
How many guys can stay in the business of breeding, selling, owning, racing race horse in California and probaby turn profits?
Marty can.
Indulto
09-18-2009, 02:05 PM
http://www.drf.com/news/article/107324.html
After a life of sales, he's ready to buy
By Jay Hovdey 9/16/2009… Just because Santa Anita was taken off the formal auction list of MEC racetracks earlier this month does not mean it is no longer for sale. It is, and Zetcher's acquisition team, backed by the Thoroughbred Owners of California, is going full steam to assemble $100 million worth of investment capital in an effort to make a winning bid. There have been other groups mentioned as reportedly interested, but none has been as publicly aggressive as Zetcher and the TOC, who are positioning themselves as the California industry's best chance to save itself from extinction.
"California racing should not have to worry every two or three years whether or not this owner or that owner is going to lose interest in a track as important as Santa Anita," said Zetcher, who is joined on the acquisition team by Brian Boudreau, Pete Parrella, and Will de Burgh.
"We're trying to do it in a way that any profits from the venture don't go to individuals that take the money out of the industry," Zetcher went on. "Our models are entities like the Hong Kong Jockey Club, the Japan Racing Association, the Del Mar Thoroughbred Club. They focus their profits on horse racing."
This is not to say that investors would not reap some benefit. According to Zetcher, there would be earnings yardsticks that would allow investors not only to recoup their original plunge but actually make money on the deal. At the same time, there would not be the constant pressure applied by a corporate ownership required to satisfy shareholders first and foremost.
"No matter what kind of investors we have, no matter what kind of board we have, we will be in control of the racetrack," Zetcher said. "Santa Anita has a lot of property, and there are opportunities for development, but they can't be in conflict with the objectives of the racetrack."
… "The issue of track surface has to be a priority," Zetcher said. "But anything done should be based on dispassionate research. We need to get back to talking about the racing, not the racing surface.
"We have numbers in our proposal for the barn area, for water treatment systems, for renovations to the grandstand," Zetcher added. "But we can't do our numbers based on what might happen - like slot machines, or increased racing dates. We have to be realistic."
… "The one thing I've learned in retail that applies to horse racing is that it's still got to be about the customer," Zetcher said. "I think in horse racing right now that hasn't been on top of the list. You simply can't forget those people who come to the track. I was one of those guys, just sitting on a bench, doing my handicapping, and listening to what people wanted."
andymays
09-18-2009, 02:39 PM
I think I like his comments on the surface. I hope.
Indulto
09-21-2009, 07:41 PM
http://www3.signonsandiego.com/stories/2009/sep/19/del-mar-ceo-doesnt-see-much-change-next-meeting/?sports/horseracing&zIndex=168624 (http://www3.signonsandiego.com/stories/2009/sep/19/del-mar-ceo-doesnt-see-much-change-next-meeting/?sports/horseracing&zIndex=168624)
Del Mar CEO doesn't see much change next meeting
By Hank WeschSeptember 19, 2009… There is still hope among horsemen that Santa Anita will not go the way of Hollywood Park and remain a bastion of the sport for years to come.
Arnold Zetcher, owner of Pacific Classic winner Richard's Kid, is part of a group of horsemen hoping to gain control of the Arcadia track.
“Santa Anita is still for sale, but they didn't get the number of bids they wanted, so they took it off the auction block,” Zetcher explained in the post-Classic press conference. “But as soon as they do get enough bids, then it becomes a stalking horse and 30 days after that they will hold the auction.
“We are very vigorous in our efforts to buy it on a not-for-profit basis for the horsemen, that's what this is all about. Any profits we would get we would put back into the purse structure or the operations of Santa Anita.
“We're enthusiastic about it and we're hopeful that we'll succeed.”
If that not-for-profit, by-horsemen-for-horsemen concept sounds familiar, it should. That's the basic premise and how Del Mar has been operated by the DMTC since 1970.
How that's going to work with a previously privately, not-state-owned facility might need some clarifying.
But given the overall state of the sport these days, if you're running a racetrack, not-for-profit might not be the most optimistic, but seems the most realistic way to go. …
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