Interesting online article about Richie Dutrow by Nick Kling-www.troyrecord.com got to sports/horse racing.
Nick Kling - \"I want to make one thing perfectly clear. I have absolutely no idea what this data means.\"
Me neither Nick.
This article reminded me of Woody Allen\'s comparison of \"adult education\" to \"mental masturbation.\" It\'s rare that I read an entire article and can\'t find one useful thing in it (even a tangent). This one fits the bill. The Troy Record must be hard up for content...
Tough to say from this article but it sounds as though Frankie boy is selling the land to the former parent development company of MAGNA.Can condo\'s and shopping malls be far behind at these racetracks, if thats the case? Frank Stronach should be put in jail for destroying beautiful Gulfstream Park.
Bloodhorse:
Magna Entertainment Corp. announced Nov. 26 an agreement with MI Developments, the company's controlling shareholder, which will allow it to "recapitalize and reposition MEC to enable it to pursue its strategy of horse racing, gaming, and entertainment on a standalone basis."
If the plan is implemented, MEC will ultimately be controlled directly MEC chairman Frank Stronach. MID would no longer have any ownership interest in MEC and would be prohibited from investing any additional funds into, or entering into any new transactions with, MEC without the approval of the minority MID Class A shareholders.
MEC said it has extended the maturity date of its $40-million senior secured revolving credit facility with a Canadian chartered bank from Nov. 28 to March 16, 2009, subject to certain acceleration provisions. MEC incurred a fee of $1.75 million in connection with the extension of the loan.
Initially, the proposal will give MEC a $50-million loan from MID for operations, and another $75-million loan from MID to fund the licensing of a potential slot-machine parlor at MEC-owned Laurel Park in Maryland.
MID has extended to March 31, 2009, the maturity date of the existing bridge loan from an MID. MEC has said it would use "commercially reasonable efforts to sell or enter into joint ventures in respect of its assets, including its core racetrack assets." Real-estate assets in California and Florida would be sold by MEC to MID for fair market value.
The $75-million loan for Maryland operations includes $45 million to pay for a slots license, and $30 million to construct a temporary slots facility at Laurel. The Maryland legislature still hasn't officially picked Laurel as a slots location, and if it does, local approvals will be necessary.
"We are thrilled with this announcement," Tom Chuckas, president and chief operating officer of the Maryland Jockey Club, said in a statement."The full financial commitment from MI Developments will allow the Maryland Jockey Club to have the resources to pursue the (slot-machine) application and the strength to make Laurel Park the best possible facility for alternative gaming."
As for the real estate, MID will purchase for cash from MEC land in Aventura and Ocala, Fla.; Dixon, Calif.; additional acreage at the Palm Meadows Training Center in Florida; and MEC membership interest in—and land underlying—the company's joint venture with Forest City Enterprises at Gulfstream Park.
The "fair market" purchase price for the assets is $100 million to $120 million in total, MEC said in a release.
miff Wrote:
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> Tough to say from this article but it sounds as
> though Frankie boy is selling the land to the
> former parent development company of MAGNA.Can
> condo\'s and shopping malls be far behind at these
> racetracks, if thats the case? Frank Stronach
> should be put in jail for destroying beautiful
> Gulfstream Park.
Mike, get a cup of coffee, then read the article.
They could be working out of bankruptcy, but SA and GP aren\'t going anywhere soon.
Happy Thanksgiving.
>
> Bloodhorse:
> Magna Entertainment Corp. announced Nov. 26 an
> agreement with MI Developments, the company's
> controlling shareholder, which will allow it to
> "recapitalize and reposition MEC to enable it to
> pursue its strategy of horse racing, gaming, and
> entertainment on a standalone basis."
>
> If the plan is implemented, MEC will ultimately be
> controlled directly MEC chairman Frank Stronach.
> MID would no longer have any ownership interest in
> MEC and would be prohibited from investing any
> additional funds into, or entering into any new
> transactions with, MEC without the approval of the
> minority MID Class A shareholders.
>
> MEC said it has extended the maturity date of its
> $40-million senior secured revolving credit
> facility with a Canadian chartered bank from Nov.
> 28 to March 16, 2009, subject to certain
> acceleration provisions. MEC incurred a fee of
> $1.75 million in connection with the extension of
> the loan.
>
> Initially, the proposal will give MEC a
> $50-million loan from MID for operations, and
> another $75-million loan from MID to fund the
> licensing of a potential slot-machine parlor at
> MEC-owned Laurel Park in Maryland.
>
> MID has extended to March 31, 2009, the maturity
> date of the existing bridge loan from an MID. MEC
> has said it would use "commercially reasonable
> efforts to sell or enter into joint ventures in
> respect of its assets, including its core
> racetrack assets." Real-estate assets in
> California and Florida would be sold by MEC to MID
> for fair market value.
>
> The $75-million loan for Maryland operations
> includes $45 million to pay for a slots license,
> and $30 million to construct a temporary slots
> facility at Laurel. The Maryland legislature still
> hasn't officially picked Laurel as a slots
> location, and if it does, local approvals will be
> necessary.
>
> "We are thrilled with this announcement," Tom
> Chuckas, president and chief operating officer of
> the Maryland Jockey Club, said in a statement."The
> full financial commitment from MI Developments
> will allow the Maryland Jockey Club to have the
> resources to pursue the (slot-machine) application
> and the strength to make Laurel Park the best
> possible facility for alternative gaming."
>
> As for the real estate, MID will purchase for cash
> from MEC land in Aventura and Ocala, Fla.; Dixon,
> Calif.; additional acreage at the Palm Meadows
> Training Center in Florida; and MEC membership
> interest in—and land underlying—the company's
> joint venture with Forest City Enterprises at
> Gulfstream Park.
>
> The "fair market" purchase price for the assets is
> $100 million to $120 million in total, MEC said in
> a release.
If I am not mistaken, Mr. Donn (Doug\'s father) had it in his will that Gulfstream will always be a racetrack.
Thanks Mike,
Did not know that Mr. Donn willed GP always to be a racetrack.I would not be too certain about Santa. How long can Stronach keep pouring money down a black hole. He\'s stupid but not dumb.
Happy Thanksgiving!
Mike
Ntheiroff Wrote:
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> If I am not mistaken, Mr. Donn (Doug\'s father) had
> it in his will that Gulfstream will always be a
> racetrack.
given where the US is heading, I wouldn\'t use the word \"always\" to describe any business. a few months ago, I would have bet you a zillion $ that Morgan Stanley would always be an investment bank.
the land the parent bought, however, is the joint venture Frank has with a developer down there. the original parking lot (not the track, but the make-shift parking lot) has been turned into a mini-village, and condos will follow if there is interest.
Off the top of my head I can think of two cash rich outfits that would love to own Santa Anita as a racetrack-- the same two that want TVG.
Gulfstream is another story. What a train wreck.
Realistically, with the state of real estate and building in this country, now and for the next year or so, I doubt either spot is ripe for anyone wanting to \"develop\" them.
Mike
Not to worry Miff.
Your man Alex Waldorp is planning to bring all US racetracks together as a
bank holding company and seek a bailout under \"the TARP\".
Actually, from what I\'ve read, it seems as if Polywood is more likely to
be extinct before SA, so CDSN could certainly use SA from a strategic point
of view; CDSN also a likely player for Maryland tracks.
Anybody look at the 2 AQ stakes today?
When is NYRA drawing Saturday entries?
Yes indeed Richie. From my perch here in Living Room Downs I looked at the Top Flight and really like Wolfson\'s 4 YO Filly Slewfoundmoney (#4). Boxing liberally with Any Limit.
Obvious huge speed bias today at Aqueduct...how does any limit lose since the race shapes put him clearly on the lead..by a good amount. Buck, I don\'t think Wolfson can get those huge figs outside of Florida...juice trainers very rarely ship in to NY and do well.
#4 was plenty game. Just got outrun the last 100 yards. Oh well. Proudinsky will get me even in the Citation
Uncle Buck Wrote:
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> #4 was plenty game. Just got outrun the last 100
> yards. Oh well. Proudinsky will get me even in the
> Citation
Tired of losing money on Proudinsky. Going with Formal decree to sit on the outside of the speed take over on the turn , open up and play catch me if you can with Whatsthescript.
He made Gulfstream a black hole. Also, if he is so smart how could he have lost close to $500 million in less than a decade.