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06-15-2021, 06:38 PM
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#1
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Registered User
Join Date: Mar 2017
Posts: 5,800
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Report: Multiple parties interested in Stronach Group assets
The Stronach Group has enlisted an adviser to explore the potential sale or licensing of some of its assets, which include multiple racetracks and training centers, the betting platform Xpressbet, tote provider AmTote and other real estate holdings, according to a report.
Citing unidentified sources, Bloomberg reported that The Stronach Group has been approached by multiple parties who expressed interest in portions of its portfolio, which Bloomberg valued at $1.5 billion. The suitors include special acquisition companies as well as digital betting and media companies.
The Stronach Group, which does business as 1/ST, is a privately held company based in Canada and founded by Frank Stronach. It is now led by Stronach's daughter, Belinda, who took over as president and chief executive officer last year after a lengthy family feud played out in the courts.
The Stronach Group owns and operates six racetracks in the U.S., one in Austria, and multiple training centers. Its U.S. racetracks are Santa Anita Park, Golden Gate Fields, Gulfstream Park, Laurel Park, Pimlico Race Course and Rosecroft Raceway.
Requests for comment from The Stronach Group were not immediately returned.
https://www.horseracingnation.com/ne...oup_assets_123
https://www.bloomberg.com/news/artic...?sref=vdKurlBI
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06-16-2021, 08:22 AM
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#2
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Registered User
Join Date: Dec 2009
Posts: 997
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they have got to be losing a fortune operating Santa Anita and Golden Gate as racing venues
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06-16-2021, 11:45 AM
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#3
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Registered User
Join Date: Aug 2012
Posts: 8,798
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Quote:
Originally Posted by Al Gobbi
they have got to be losing a fortune operating Santa Anita and Golden Gate as racing venues
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One thing I noticed when I went back to SA post-pandemic. They haven't hired back a lot of their customer facing staff. Just one person at the front gate, one program seller, and a smaller number of mutuel clerks. Food service is centralized at one or two stands and most of it is still closed.
In other words, they used the pandemic to slash their labor costs.
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06-16-2021, 12:52 PM
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#4
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Registered User
Join Date: May 2015
Posts: 234
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First thought was offloading tracks, but...
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suitors include special acquisition companies as well as digital betting and media companies
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Those don't really seem like parties that would be interested in either running a racetrack themselves, or tearing one down for real estate development. Seems they'd be after the wagering arm of the portfolio (AmTote and/or XpressBet). Or possibly their historical horse racing product.
As sports betting gains more traction in the US, we've seen those companies getting into bed with existing US wagering providers. FanDuel acquiring TVG, Penn Gaming partnering with Barstool Sports, PointBets acquiring Premier Turf Club, etc. Wouldn't be surprised if something similar happens here.
Very interested to see how it all shakes out.
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06-16-2021, 12:56 PM
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#5
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PA Steward
Join Date: Mar 2001
Location: Del Boca Vista
Posts: 88,533
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Quote:
Originally Posted by dilanesp
In other words, they used the pandemic to slash their labor costs.
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Why wouldn't they? Who was showing up last year?
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06-16-2021, 01:03 PM
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#6
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Registered User
Join Date: Aug 2012
Posts: 8,798
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Quote:
Originally Posted by PaceAdvantage
Why wouldn't they? Who was showing up last year?
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I'm not blaming them. The point is, though, is that some people are showing up now (for instance, they got almost 10,000 on Derby Day) and they are running a skeletal customer service operation. Basically, they used the pandemic to make cuts they would have never gotten away with otherwise, and so far the cuts are sticking.
At the end of the day, I want Santa Anita to do what is necessary to survive. I am not at all critical of stuff like this if this is what is necessary to survive. But clearly, they took a big hit.
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06-16-2021, 03:45 PM
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#7
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Just another Facist
Join Date: Mar 2002
Location: Now in Houston
Posts: 52,768
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I could make SA profitable in 30 days.
Sell it for condos. The racing is horrible. Why not?
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06-16-2021, 03:55 PM
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#8
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Registered User
Join Date: Dec 2011
Posts: 4,285
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Quote:
Originally Posted by dilanesp
I'm not blaming them. The point is, though, is that some people are showing up now (for instance, they got almost 10,000 on Derby Day) and they are running a skeletal customer service operation. Basically, they used the pandemic to make cuts they would have never gotten away with otherwise, and so far the cuts are sticking.
At the end of the day, I want Santa Anita to do what is necessary to survive. I am not at all critical of stuff like this if this is what is necessary to survive. But clearly, they took a big hit.
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They didn't use the pandemic, they used a lack of business. How would they have never gotten away with it otherwise? You make it seem that they were just waiting for any excuse to eliminate payroll.
__________________
Best writing advice ever received: Never use a long word when a diminutive one will suffice.
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06-16-2021, 04:03 PM
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#9
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Registered User
Join Date: Aug 2012
Posts: 8,798
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Quote:
Originally Posted by AndyC
They didn't use the pandemic, they used a lack of business. How would they have never gotten away with it otherwise? You make it seem that they were just waiting for any excuse to eliminate payroll.
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Had they decided to close the main downstairs food court and lay off all of its employees pre-pandemic, they would have gotten a ton of customer complaints. But because people are happy to have any chance to watch a live horse race now, they were able to get away with it. We will see if it sticks.
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06-16-2021, 04:09 PM
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#10
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Registered User
Join Date: Sep 2007
Location: Boston+Ocala
Posts: 23,737
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Quote:
Originally Posted by JustRalph
I could make SA profitable in 30 days.
Sell it for condos. The racing is horrible. Why not?
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the people that live in Arcadia want the race track to stay.
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06-16-2021, 05:04 PM
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#11
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Registered User
Join Date: Dec 2011
Posts: 4,285
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Quote:
Originally Posted by dilanesp
Had they decided to close the main downstairs food court and lay off all of its employees pre-pandemic, they would have gotten a ton of customer complaints. But because people are happy to have any chance to watch a live horse race now, they were able to get away with it. We will see if it sticks.
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My point is that it was purely a business decision based on the attendance level and not a part of some overall strategy to just cut payroll. Using the phrase "get away with it" makes it sound like they did something nefarious.
__________________
Best writing advice ever received: Never use a long word when a diminutive one will suffice.
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06-16-2021, 06:35 PM
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#12
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Sartin Methodology Fan
Join Date: Mar 2007
Location: Earth
Posts: 328
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Quote:
Originally Posted by lamboguy
the people that live in Arcadia want the race track to stay.
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That will be tough to do. Santa Anita is a registered and designated WWII historical landmark. You can't just pave over it, and build up cookie cutter houses.
__________________
"And there they go! It's Toupée going on ahead, Long Underwear has fallen behind, Toothpaste is being squeezed out on the rail as Banana joins the bunch, and Cabbage is trailing by a head."
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06-16-2021, 07:30 PM
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#13
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Registered User
Join Date: Aug 2012
Posts: 8,798
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Quote:
Originally Posted by Psychotic Parakeet
That will be tough to do. Santa Anita is a registered and designated WWII historical landmark. You can't just pave over it, and build up cookie cutter houses.
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Never assume that historic status is talismanic. People with power (and big landowners have lots of power) and big plans can get past it. Look at what happened to Soldier Field in Chicago if you have any doubts about this.
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06-16-2021, 07:47 PM
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#14
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Buckle Up
Join Date: Apr 2014
Posts: 10,614
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Quote:
Originally Posted by dilanesp
Never assume that historic status is talismanic. People with power (and big landowners have lots of power) and big plans can get past it. Look at what happened to Soldier Field in Chicago if you have any doubts about this.
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Cancel Culture will pave over Santa Anita... 
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06-16-2021, 08:13 PM
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#15
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Beat up 💪
Join Date: Jun 2002
Location: Beach life in Fort Lauderdale
Posts: 11,938
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