Very Important...

[TGJB]

... that the bigger issues don\'t get lost. The industry needs to know exactly what Kitchingham was doing, how he was doing it, and WITH WHOM, where he was getting it, etc. No joke-- we are dealing with something that is getting past the milkshake tests in New York, or there are several things in use.

The man is confessing to what I believe is a federal crime. There is no shortage of leverage on him, or Gregory Martin.

[Silver Charm]

Do not disagree.

To follow up a point raised by Mall yesterday regarding Susan Bunning. I\'m sure she is both smart and professional and like both Democrats and Republicans who appear on nighttime TV will argue her cause with a passion. However she and the rest of the group she was representing  should have realized like when the Road Team takes the floor before the game and all the fans stand up and boo, they are fighting a cause that is AGAINST the FANS WISHES.

I do not know of anybody who posted and said \"More Drugs for Trainers and Horses.\" Or for that matter lets leave things the same.

As they say in Politics, \"The People have Spoken\".

Also who is the following comment attributed too, Kitchingman or Jose Conseco.

\"Unfortunately, because this is a competitive business, you do stuff you\'ve got to do to try to win.....\"

And why is everyone so ready to believe Kitchingman when he says everybody is doing it and Conseco is called a liar??

[Even for Life]

Sorry in advance for the poor spelling/grammer. This is a topic I have a lot of passion for and wanted to quickly get my two cents in.

Jerry, I agree--I think that it is called attempting to influence the outcome of a gaming/sporting event.

In a way, I think that tracks, and racing commissons actually have an opportunity to clean house and deal with the fairness of the product they are selling. They are dealing with \"corporate governance\" issues. It is serious stuff. The cheating in horse racing is no different than the underlying issues of the financial scandals of the 90s (Anyone hear of Enron, MCI, Tyco) where investors (shareholders) were not being accuratly apprasied of the true operating risk of a business.

Sarbanes Oxley was enacted to ensure disclosure of financial practices/risks (Hmmmm...that former operating facility that has contaminated drinking water, and we have class action lawsuits/toxic torts--maybe we should let our investors know). The law has some serious flaws, but it was a start.

Racing needs to be very careful--especially the public companies. An aggressive group of shareholders can questions if the risks related to \"cheating\" is harming the underlying business (the gaming product). Are racetracks in control of the legitimacy of their product??? An aggressive Attorney General could even look into their practices.  They whole underbelly of the sport can be exposed as a risk issue and racing would face an incredible amount of heat very quickly (if you follow business ask Marsh, AIG, Merck,etc.) The risk perception of \"cheating\" could impact racings public companies in a whole range of areas, from how they raise capital to insuring themselves from liability. Racing can take the opportunity to police itself and get a \"one-time pass\" by cleaning up its operations--or have someone else do it for them.

Perhaps we should advocate for class action suits. As bettors we are a major source of revenue for these operations. If you own shares in the mega tracks, a platform exists.

[SJU5]

Good post!!!!

[Chuckles_the_Clown2]

I believe Canseco. He\'s got enough money. He actually believes steroids are good. He thinks there are health benefits. I don\'t know how he can say that in one breath and then say Giambi was bloated and retaining water from them. I just don\'t understand it. Maybe they\'ve found a way to minimize the downside to them. I thought they resulted in significant health risks.

I agree with Jerry. The man that came clean on milkshaking should be questioned thoroughly. Lets get some names and formulas. Lets get a handle on this. I don\'t think he should be held for more than the set penalty. He\'s a brave guy and I think he\'s trying to level the playing field.

[JimP]

CTC:
\"I believe Canseco. He\'s got enough money.\" <<< Canseco is broke. That\'s probably what he deserves, but probably not what he considers to be enough.  

\"The man that came clean on milkshaking should be questioned thoroughly. He\'s a brave guy and I think he\'s trying to level the playing field.\"
<<< He might end up buried in the field, rather than leveling it.

[NoCarolinaTony]

In My Opinion, the public is speaking to some extent. Just look at the financial performance of the Magna Tracks is all you have to do. ( mis-management aspects aside).

The Public is speaking.

[Michael D.]

tony,
the numbers you are seeing from magna are 2004 results. the 2004 performance had nothing to do with the recent scandals. magna has expanded it\'s operation in a big way, and has some serious bills to pay. they have proceeded as though they will have slots at most of their tracks. until they get this revenue, they will have cash flow problems.

[Even for Life]

Magna is very much counting on slots in Maryland, which I think is 50-50 at best. The MD tracks are getting killed by the purse structure at Charlestown. For example, an open 5,000 claimer for F&M 4Y old, has a purse of 21,000. A 3K claiming race for nw3L has a 9,000 purse. A Wva bred NW1x allowance race is 34,800. They can\'t compete against the likes of Ct without slots. Plus, Pa is soon going to have a very generous slot program that will be a boon for its tracks.

[NoCarolinaTony]

This is an interesting topic of discusion in and of itself. I appreciate the clarification as well. I think that patrons to a certain degree, are already suspicious or fed up with the lack of trianer/drug enforcement and have curtained their betting dollars across the board at all venues and only part of MAGNA\'s woes can be attributed to that.However whatver revenues he does lose as a result of this, contibutes to his cash flow woes dispite his re-investment GAMBLE.(Obviously reinvestment in the hopes that SLOTS money comes in could bring Magna a potential windfall or the entire  MAGNA house of cards down if he loses his gamble and slots legislations does not happen).

Luckliy for him the breeding aspect of his business are seperate entities.

[Michael D.]

even,
re slots in maryland - proponents eke out a win. they needed 71 votes in the house to keep the plan alive... they got exactly 71. you are correct, it is a battle.

[xichibanx]

Due to the losses in 04 at Magna the Maryland construction at LRL, PIM has been stopped.  I wonder if the slot vote down here in Florida fails if you don\'t see the GP construction stop?

xichibanx

[Silver Charm]

When it came to the Magna acquisition strategy and this subsequent build-out, I hate to say I told you so but.......

What happens next now that everything is torn down and the Cash Burn is picking up the pace, expect to see Magna and Co. standing on the street corner holding their hat out. To you and me of course.

Also with next Saturday being THE BIGGEST day of racing so far this year, why don\'t we all, \"Just Say No\" to all the drugs and despair and fight over \"Who Likes Who\".

For a day or two at least.

[Michael D.]

silver, you haven\'t told anybody anything that the financial statements haven\'t said for the last year now. the industry as a whole is losing money, and magna is in the heart of their GP renovation project. they will struggle until GP is finished and they have slots at their tracks (the bills in fla and maryland are picking up steam). your post is reminiscent of the one i saw after opening day at GP. even though the card was just a test (a bunch of claimers on a monday), because they made a few mistakes (mistakes which everybody knew were coming), somebody inferred that magna had blown the entire project. it\'s simple: if the industry struggles this year like it did last year, magna will have cash flow problems, and might need an additional investor. if and when the industry turns the corner, magna will be well positioned. for now, one thing is for sure though - magna is putting out the best racing in the US. silver, do me a favor, just enjoy the great racing. the GP and SA cards next saturday will be two of the best of the year (from any track). if things at magna crumble, and they can no longer put out this great product, come back to me and i will gladly admit i was wrong.



Post Edited (02-26-05 19:51)

[Silver Charm]

>magna will have cash flow problems, and might need an additional investor.

Would you put up your money and have Frank Stronach still calling the shots??

Also last time I looked at Churchills Downs Financials things looked pretty solid, so don\'t know where you get this industry thing. In ALL INDUSTIRES there are businesses that win and businesses that lose. Usually it starts and ends at the TOP when they are both offering the same product.

And I will admit sitting at home and watching this great product on my satelite dish and the outstanding people who provide these telecasts is the best thing for racing since the Trifecta. Perhaps Magna is purposely bankrupting their operation so they can be exclusively: Made For TV Only.