Posts Tagged ‘Frank Stronach’

By Ray Paulick

Lane’s End Farm is expected to announce that reigning Horse of the Year Curlin will enter stud at the Versailles, Ky., farm in 2009 for a live foal stud fee of $75,000, the Paulick Report has learned. Lane’s End is owned by William S. Farish, vice chairman of the Jockey Club and former ambassador to Great Britain for President George W. Bush.

“Curlin has proven himself across two continents with 16 starts, the honor of 2007 Horse of the Year and the greatest North American money-earner in racing history,” Jackson said in the Nov. 15 announcement that Curlin would enter stud in 2009. “He always gave it his all and has done everything we have asked of him. I am proud to announce that he will start a new career in 2009 and contribute his soundness, stamina, durability and athleticism to the breed. I am looking forward to seeing his foals compete and possibly exceed his unequaled racing record.”

Curlin, who began his career under the care of Helen Pitts and was transferred to trainer Steve Asmussen after breaking his maiden at Gulfstream Park early in 2007, retires with record earnings of $10,501,800. He won 11 of 16 starts, with two seconds and two thirds. He won seven Grade 1 races: the Breeders’ Cup Classic, Dubai World Cup, consecutive runnings of the Jockey Club Gold Cup, Woodward, Preakness and Stephen Foster Handicap. Bred in Kentucky by Fares Farm, he sold for $57,000 at the Keeneland September yearling sale. Jackson, Satish Sanan and George Bolton bought at 80% interest in Curlin through bloodstock agent John Moynihan for about $3 million after the colt’s maiden win. Jackson eventually bought Sanan and Bolton’s interests.

Curlin’s sire, Smart Strike, stands at Lane’s End for $150,000. Also joining the 2009 roster at Lane’s End is War Pass, the 2007 2-year-old male champion and winner of the Breeders’ Cup Juvenile who will stand for $30,000 live foal.

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By Ray Paulick

Bloodstock prices continued their downward spiral on Tuesday during the second session of the Keeneland November breeding stock sale, and after two days total receipts are down almost 50% from one year ago and are the lowest in years.

The Lexington, Ky., sale company reported there were 150 horses sold on Tuesday for $42,006,000, a decline in revenue of 39% from the $69,435,000 gross in 2007. The average of $280,040 was a decline of 25% from $373,306 recorded last year, and the median fell by 27.3%, from $220,000 to $160,000. Tuesday’s buy-back rate was 34.2%, down from Monday’s 38.2% but still extremely high and an indication of how soft this market is.

Cumulative figures are worse, in part because last year’s opening session set an all-time record for gross revenue. After two days, Keeneland has sold 299 horses for $90,027,000, down 49.6% from a year ago when 380 horses brought $178.489,000 the first two days. The two-day average of $301,094 is a 35.9% drop from $469,734 in 2007, and the median fell by 32%, from $250,000 to $170,000. A higher number of horses, 315, were withdrawn from the catalogue (145) during the first two sessions or bought back by consignors (170), than the 299 that were sold. The aggregate buy-back rate is 36.2%.

The top lot to sell in the early stages was Hip 374, J Z Warrior, which agent Olin Gentry purchased for $1,125,000 on behalf of an unnamed female client from Washington state. J Z Warrior was the first racehorse or broodmare prospect to sell from the Zayat Stables consignment being handled by Eaton Sales. J Z Warrior is a 3-year-old stakes-winning filly by Harlan’s Holiday.

Half Queen, a 12-year-old Deputy Minister mare in foal to Distorted Humor, brought a higher hammer price of $1,650,000, but she was bought back by her owner. Hagyard Farm, agent, consigned the mare, who produced 2003 champion 2-year-old filly Halfbridled. 

The mood of the sale is anything but upbeat. Asked about the health of the market, one agent standing near the outside ring behind the sale pavilion pointed in the direction of a near empty viewing area. “That should tell you a lot right there,” he said. “There’s not many people here.”

However, another prominent commercial breeder said the prices represent a much-needed correction in a market that has been inflated in recent years by newcomers to the breeding industry. “Prices have been so out of whack for mares in recent years because of the presence of outfits like ClassicStar and a number of billionaires from other industries who decided to get into the breeding industry," he said. "They drove up mare prices to the point that they couldn’t possibly make money selling yearlings out of those mares, and that made it much more difficult for us. I think it’s a healthy change for commercial breeders who are in this for the long haul.”

One agent commented that he heard a rumor that as many as 20% of the horses being sold are “owned by banks.” A representative of one major lending institution said his bank had liens or interests in about 325 of the horses being sold. “There are a lot of horses in here where the money will go straight to the bank,” he said, adding it wasn’t that unusual an occurrence.

“There is still money out there to be borrowed,” he said in reference to the recent crisis in the banking industry and financial markets that resulted from the sub-prime mortgage fiasco in the real estate world. “The banks might be tightening the amount they’re willing to loan on a horse, maybe only 40% of its appraised value versus the 50% that had previously been the standard.” 

The session was topped by the $2.4 million Mushta, a racing filly from the Zayat Stables consigned by Eaton Sales, agent. Fran Abbott signed a ticket to buy the 3-year-old graded stakes winner on behalf of Betty Moran’s Brushwood Stable, The Empire Maker filly will continue to race under the care of trainer Bill Mott. Mushka, whose dam, Sluice, is a half sister to multiple grade I winner Lakeway.  Mushta won the Grade 2 Demoiselle Stakes at Aqueduct last year. Zayat purchased Mushka for $1.6 million as a yearling at the 2006 Fasig-Tipton Saratoga sale.

Mushta was one of seven horses purchased for $1 million or more on Tuesday, compared with 11 during last year’s second session. The cumulative number of seven-figure purchases is 18, less than half of the 39 sold at this point in 2007.

"There’s no depth here," said one horseman. "The best mares are still selling, but below that top level it’s not good. And there’s virtually no market for older mares right now." 

“There was more uniformity to today’s session; it was more comparable to the Tuesday session last year," Geoffrey Russell, Keeneland’s director of sales, said in a press release. "We saw active bidding from a wide range of people and countries,” he added, noting that the market continued to place a premium on quality young race fillies.

Click here to see results and a summary of leading buyers and consignors.

Copyright © 2008, The Paulick Report 

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Ray Paulick will be live blogging Friday afternoon’s Breeders’ Cup World Championships card from Santa Anita beginning around 3:15 p.m. Eastern. To get the latest news on the "Filly Friday" program, including bettings odds and results, along with Ray’s observations and analysis of the ESPN2 telecast (and a scorecard on his own selections), check back frequently throughout the day.

3:15 p.m. … The first "wise guys" horse of the day is Ventura, the Robert Frankel-trained filly who was 5-1 on the morning line but has been bet down to 2-1 in the Filly and Mare Sprint on the synthetic Pro-Ride track. She is the co-favorite with the morning line choice Indian Blessing. Zaftig is another early bet-down, currently at 9-2 from her 8-1 morning line for trainer Jimmy Jerkens. Ventura comes off a strong runner-up effort in the Woodbine Mile on turf. The daughter of Chester House has three synthetic track races, with two wins, one in England and one at Keeneland this spring in an allowance race that served as her U.S. debut.

3:20 p.m. … While we wait for the action to begin, there’s some good news about one of tomorrow’s contenders in the Breeders’ Cup Classic. WinStar Farm’s Colonel John, the winner of the Santa Anita Derby and Travers Stakes, will race as a 4-year-old next year, according to WinStar’s co-owners Bill and Susan Casner. That news came from the notes team collecting information daily on each Breeders’ Cup starter. Click here to read about Colonel John and all the other Classic entrants in Friday morning’s notes. Click here to read today’s "flash notes," a quick daily activity report on every horse entered in the Cup.

3:26 p.m. … Post parade for the Filly and Mare Sprint has begun. ESPN2 telecast doesn’t begin for a few more minutes, so there won’t be much time to set up what the Breeders’ Cup World Championships is all about. "We’re on the air, and let’s go to Trevor Denman for the call of the first race."

3:30 p.m. … ESPN2 is on the air, trying to set things up as best they can. in the few minutes before the first Breeders’ Cup race.  There’s a quick money comparison between the Breeders’ Cup purses and other championship events, from the Daytona 500 to Wimbledon. And there are people at Santa Anita! There is a buzz in the crowd. Oh, happy day.

3:35 p.m. … The very capable Joe Tessitore is hosting the telecast, with assistance from Randy Moss and Jerry Bailey. Reporters include Jeannine Edwards, Jay Privman and Caton Bredar. No sign of Hank Goldberg and his piggy bank yet.

3:38 p.m. … What kind of camera angle is that? Where are they….what a great time to use obscure camera angles, at the most important races of the year. "Why is this so hard to follow?" someone said as we tried to figure these bizarre camera angles.

3:40 p.m. … The wise guys were right. Ventura romped, beating Indian Blessing by daylight, with Zaftig third. My pick in the race, Dearest Trickski, set the face pace and then folded like the $10,000 claimer she used to be. Trainer Bobby Frankel’s got that cheshire cat grin working in the post-race interview. Owner and breeder Khalid Abdullah makes a rare appearance in the winner’s circle with one of his horses, even though he’s been one of the most successful owners of Breeders’ Cup horses. He rarely travels to the U.S. for the races. Ventura pays $7.60 to win and the $1 exacta with Indian Blessing pays $12.70. $1 trifecta  is $48.70 and the $1 superfecta with Miraculous Miss pays $733.30. Final time is a scorching 1:19.90. Chart.

3:45 p.m. … Tessitore hands it over to someone with an English accent and a made-up name of Nick Luck. I assume that’s just his racetrack name. Nick is the foreign horse expert. Where’s John McCririck? Oops…first bad technical flub. Tessitore is talking about something and some loud music crashes over him.

3:50 p.m. … Privman grabs Dodgers manager Joe Torre for a quick post-race interview. Turns out he and Bobby Frankel are best buddies.

3:53 p.m. … Hank and his bank make their first appearance. "I’m a little bit educated," Hank insists. Kenny Mayne says Hank would bet on giraffes if he had to, introducing a cute feature about Hank, playing himself and a mutuel clerk. This is a nightmare,…two Hank Goldbergs on one telecast?

4:00 p.m. … The wise guys are out again, this time slamming the odds on the horse I picked in the Juvenile Fillies Turf, Consequence. She was 8-1 on the morning and is now 5-2. Former Sports Illustrated senior writer Bill Nack is introduced as the essayist on the weekend telecasts. Good move by ESPN2. Not since the days of the great Jack Whitaker on ABC have racing telecasts enjoyed someone who could comment with intelligence and eloquence. Nack wrote and did voiceovers on the 25 greatest Breeders’ Cup moments that will be sprinkled throughout the telecasts today and tomorrow.

4:08 p.m. … Props on the anchor desk. Tessitore, Moss and Bailey show off a sample of turf from the Santa Anita grass course and the Rose Bowl football field.  The point was lost on me. Next up is a Bailey interview with South African horse breeder and golfing great Gary Player (who plugs Sentient jets, a race sponsor). Gary then tees up a golf ball on the grass course and aims it at one of the windows in Frank Stronach’s office. Fore!

4:15 p.m. … Overhead shot of Santa Anita shows dozens of people in the track infield. The infield parking lot looks to be about one-third full.  They’re loading into the gate for the Juvenile Fillies Turf. Another horrible directing job….way too many camera cuts to figure where they are on the track. Laragh tried to take this field all the way, but got nipped at the wire by Maram and Heart Shaped. Saucey Evening was fourth.

4:20 p.m. … Maram is trained by Chad Brown, a former Bobby Frankel assistant who went out on his own this year. Johnny Murtagh rode a terrific race, breaking from the outside and getting the Storm Cat filly Heart Shaped  into a ground-saving position. Prado took Laragh through some quick fractions, and she was game to the end. Brown’s grandfather died earlier this week and was buried in New York today. Brown said his grandfather would have wanted him to be at the Breeders’ Cup. Talk about the highs and lows of racing. Jose Lezcano rode the winner, who is unbeaten in three starts, including a narrow victory in the Miss Grillo Oct. 1. She’s a daughter of Sahm (beter than a "son of Sahm"). The photo finish shows Maram getting up to beat Heart Shaped by a matter of inches. The winner paid $24.20. $1 exotics were: $175.10 for the exacta; $898.90 trifecta; $5,796.30 superfecta. Our pick, Consequence, finished seventh and was never a threat. Time of the race was 1:35.10. Chart.

4:30 p.m. … C.S. Silk is taking a lot of money in the Juvenile Fillies, bet down to 9-2 from her 15-1 morning line. Stardom Bound is a solid favorite at 8-5.

4:35 p.m. … The obligatory feature on synthetic surfaces shows, guess what? There is no consensus on whether it’s good or bad.  Caton Bredar on horse back says the Pro-Ride surface temperature is 145 degrees. Don’t go runnin’ barefoot on that, Caton!

4:43 p.m. … Now seriously, whoever is directing this telecast should try to remember one thing: people who watch horse races are interested in finding the horse they like and following its progress. Constant camera cuts and jumps make it almost impossible.

4:45 p.m. …. Returning from a commercial break, we hear Randy Moss saying he wants to see if someone is perspiring. He can only be talking about the all-time sweat king, Hank "The Bank" Goldberg. Post parade for the Juvenile Fillies. Sentimental pick is Stardom Bound, the favorite, who will be sold by 84-year-old owner Charles Cono in Kentucky after the Breeders’ Cup. Chris Paasch, her trainer, has hinted at retirement because of health problems. He’s a good guy and good for the game. Same reaction I had when hearing that Larry Jones was thinking of hanging it up because of the pressure that followed the death of Eight Belles. I’ll bet Larry just cuts back on the number of horses he trains and will continue. The way things are going it might be my only winning bet of the day.

4:58 p.m. … Stardom Bound will have to win from last place.Betdown C.S. Silk took the lead, followed by Be Smart. A half-mile in :45.92. Stardom Bound makes a six wide swoop around the turn and takes the lead. What a breathtaking performance! Dream Empress finishes second, with Sky Diva third and Dave’s Revenge fourth. Stardorm Bound was ridden with tremendous confidence by Mike Smith. This is what a championship performance looks like. 

Quick story about this filly. Mother-in-law Helen touted me on Stardom Bound  at Del Mar when she lost her debut July 20. I got to the track shortly after that race was run, and she said "Stardom Bound is a good one. She was unlucky to lose."  Helen was right. Hope she stuck to her guns and made a winning bet today. The winner paid $5.20, and the exotics were:  $24.50 for the exacta; $77.90 for the tri, and $2,538.90 for the superfecta. Time of the race was 1:40.99.  Chart.

5:10 p.m. … Stuart Janney, presenting the trophy for the Juvenile Fillies, doesn’t seem to think Charles Cona has the strength to hang onto the miniature Ecorche horse that is emblematic of the Breeders’ Cup. "This is very heavy," Janney says, "and I’ll give it to whoever would like to hold it." Cona grabs it out of his hands. Cona is asked about whether or not he is going to go through with the sale. "We’re thinking," Cona says to much laughter.  

5:14 p.m. … Here comes a Filly Friday feature on life at the track, focusing on female trainers Carla Gaines and Helen Pitts. Wayne Lukas, who’s been married to several females, says he never wanted to hire a woman because he’s afraid someone would fall in love with them. Nice. Gaines was asked what she sacrificed for the racetrack lifestyle. "Children….marriage," she says. Good feature. Uh-oh. Let’s put a little sour taste in it by bringing in Rick Dutrow for words of wisdom. He essentially says, "I have no interest in learning anything from a woman trainer." That’s why we luv ya, Rick. Dirt bag.

5:22 p.m. … They brought some celebrity with too many lip injections to scare the horses in the paddock. Lisa Rinna? I’m told she’s famous for being famous and that’s about it. "Rider’s up…Woo-hoo."

5:26 p.m. … What racing telecast would be complete without a Jeannine Edwards-Mike Iavarone interview? Why did you retire Big Brown and take all that money for breeding him instead, she asks him. Blah-blah-blah, he says. "His life is incomplete and my life is incomplete," Iavarone says. So was mine, Mike, until this interview. Question: Why do you have  a bodyguard at the track all the time? Do that many people dislike you? There are billionaires that drive to the track in their own car, walk through the gates on their own, and wander around without a bodyguard. I know you have a nice tan and all, but that doesn’t make you a  a celebrity — with or without a bodyguard.

5:32 p.m. … I’m wondering if Hank Goldberg had his sweat glands removed. Or did ESPN2 borrow Sarah Palin’s makeup artist for the telecast? Speaking of sweating, Forever Together drinks a lot of Guinness  beer, according to Randy Moss, to make her sweat more. She stopped sweating in Florida, apparently. Hank, were you listening?

Frankie Dettori guns Folk Opera to the lead in the Filly & Mare Turf, gettting the first quarter in a slow :25.46 and half in :50.02. Halfway to Heaven sits in the perfect spot in second and Wait a While third. Slow three quarters in 1:14.78. Out of nowhere comes Forever Together, who sweeps by them all to win, with Sealy Hill second, Wait a While third and Visit fourth. Julian Leparoux gets it done. Forever Together, racing for George Strawbridge and trainer Jonathan Sheppard,   comes off a win at Keeneland in the First Lady on Oct. 3 Good thing they don’t do a breathalyzer test for these horses. Forever Together might be DQed because of the Guinness. 

Meanwhile, there is a run on Guinness at the nearby liquor store by other trainers.

5:46 p.m. … Bailey accuses the French jockey of being bi-coastal. Good thing Julian isn’t listening. Trainer Sheppard (one of the great jump trainers ever) gets his first Breeders’ Cup win after seconds with Storm Cat and With Anticipation. He hit the lottery with Storm Cat, however, getting  a lifetime breeding right in the horse from owner W.T. Young and enjoying a long, profitable run. Strawbridge says he and Sheppard have been friends who have been "forever together." I notice Sheppard is sweating a bit from the heat…or was it the Guiness?

On a serious note, Strawbridge is the second cancer survivor to win on Friday, following trainer Chris Paasch. Part of the decision to have Filly Friday was to raise awareness and research funds for breast cancer in women. Cancer is a disease that doesn’t discriminate.

5:54 p.m. … Payoffs in the Filly & Mare Turf, run in 2:01.58 for the 1 1/4 miles. Forever Together, a 4-year-old by Belong to Me, paid $11.80 to win. Exotics: $224.50 for the exacta; $996.10 trifecta; $13,505.10 superfecta. Hank Goldberg had the winner. I didn’t. My pick, Halfway to Heaven, was in perfect position but had nothing left for the stretch run, finishing eighth. Chart

6:02 p.m. … Crowded paddock for the Ladies’ Classic. Everyone wants a close-up look at Zenyatta, and for good reason. She is spectacular looking. Aaron Gryder’s jockey introductions have been an OK addition to the show. Just got some insight from someone close to the Darley/Godolphin camp. Cocoa Beach is jumpin’ out of her skin, but the filly I picked to upset Zenyatta, Music Note, isn’t on her game. Let’s see how good the inside information is. It may not matter. If Zenyatta runs her race, the only contest is for second.

6:08 p.m. … Great feature on Zenyatta…little about the filly, a little about the music business that owner Jerry Moss has been such a big part of. Sting, the Police. But how come no one has asked Jerry why he failed to sign the legendary Captain Beefheart to a contract? Just realized that the Downbeat winning exacta would be Zenyatta-Music Note.

6:16 p.m. … Bear Now sprints to the lead in the Ladies’ Classic, with Zenyatta dropping back to last. Opening quarter in :23.71. Malfunction on the timer for the half mile (it said :58.08).  Zanyatta on the move as the field makes the final turn. She’s good, sweeping by the on the far outside, but this was no gimmie. Cocoa Beach got  an inside trip and ran hard, making the daughter of Street Cry work for the victory. Music Note gets third, with Carriage Trail fourth and Hystericalady fifth.  Big day for Sheikh Mohammed, who stands Street Cry and owns the second and third place finishers.

Zenyatta’s jockey Mike Smith tells Jerry Bailey while on horseback: "Jerry, I’m in awe. Those are the best mares in the world right there. She’s just amazing. … She was there at any time that I wanted her." Let the Horse of the Year debates begin."She just makes things happen," trainer John Shirreffs tells Jeannine Edwards."She is so special and we are so blessed to have her in our barn." Randy Moss tells us that Jerry and Ann Moss intend to race Zenyatta next year when she’s five. Would that be cool, or what?

Prices: $3 to win, $6.70 on the $1 exacta; $34.30 on the tri; $116.80 for the superfecta, and $254.50 for the Super High 5. Chart.

6:30 p,m. … Nice touch: Joan Gaines, the widow of Breeders’ Cup founder John Gaines, presents the winning trophy to the Mosses. "This is our first Breeders’ Cup win, and she’ll be our first champion," Moss says. "It’s pretty amazing, pretty fantastic." Moss is fighting off tears. "I can’t help it. Applause makes me pretty emotional, somehow. I’m sorry."

A good way to end a very fine day of racing. It was mostly formful, accident free, and definitive in all of the applicable Eclipse Award divisions:  Ventura in the filly and mare sprint division; Stardom Bound, 2-year-old fillies; Forever Together, filly and mare turf; and Zenyatta, older filly and mare and possibly, just possibly, Horse of the Year.

We’ll be back for more tomorrow. I hope my selections for Saturday are better than today’s 1-for-6.

Copyright © 2008, The Paulick Report

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By Ray Paulick

A major institutional investor in MI Developments, the Frank Stronach-controlled real estate company that has kept Stronach’s failing racetrack entity Magna Entertainment afloat with bridge loans, has threatened legal action against the MI Developments board of directors, alleging they have “flagrantly breached their fiduciary duties to shareholders.”

Richard Fried, a managing member of the San Francisco-based Farallon Capital Management that owns 8.5% of the Class A shares in MI Developments, protested the board’s most recent extension and expansion of a now $125-million bridge loan and delay of a due date of a separate $100 million loan payment. Fried wrote that Magna Entertainment “has been, is, and will remain a financial sinkhole. Continuing to finance it offers no conceivable benefit to MID’s shareholders.”

“There is no possible justification for the Board to approve loans to a near bankrupt horseracing concern, especially one that is hopelessly entangled with irrational, non-economic, and conflicted parties and has a track record of massive value destruction,” Fried wrote. The letter was filed with the Securities Exchange Commission on Friday, the same day that technology entrepreneur and Thoroughbred owner and breeder Halsey Minor went public with an offer to buy out MI Developments’ loans to Magna Entertainment.

The letter said Farallon concludes that “the (MI Developments) Board is pursuing a value-destroying investment instead of a relatively safe and accretive investment because the Board is ignoring common shareholders’ interests and is only interested in pleasing Frank Stronach, even if his desires conflict with the best interests of MID’s shareholders.”

Farallon also went on record as opposing what it called “an ill-conceived transaction” that would have MI Developments buying out Magna Entertainment, whose stock has lost more than 95% of its equity value. MI Developments already owns a controlling interest in Magna Entertainment, which operates Santa Anita Park (host of the Breeders’ Cup world championships in 2008 and 2009), Gulfstream Park, Lone Star Park, the Maryland Jockey Club tracks Pimlico and Laurel, and Golden Gate Fields.

“We believe the Board’s duties require it to end MID’s support of MEC and focus urgently with management on developing a coherent and fair reorganization plan. You must tell Mr. Stronach that his time for self-serving maneuvers is over. It is time for you to meet your fiduciary duties as directors. If you do not, Farallon will consider all legal tools available to it as a shareholder.”

Magna successfully defended a previous lawsuit by Greenlight Financial alleging that Greenlight and other investors were oppressed by Stronach and the MI Developments board.

Click here for the complete text of the Farallon Capital Management letter.

Copyright © 2008, The Paulick Report

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By Ray Paulick

Technology entrepreneur Halsey Minor has gone public with a letter sent to the Special Committee of the Board of Directors of MI Developments (MIM) asking the board to consider his proposal to acquire outstanding loans made by MI Developments to the financially beleaguered racetrack company Magna Entertainment (MECA). 

Both MI Developments and Magna Entertainment are controlled by Frank Stronach, though Stronach owns just 2% of MI Developments.Both companies are offshoots of auto parts giant Magna International (MGA), whose stock price has declined by 67% over the last year.

On Thursday, Magna Entertainment received another extension on more than $250 million in outstanding loans, all but $40 million from MI Developments. The new agreement on a bridge loan from MI Developments added $15 million to the amount Magna Entertainment could borrow.

Minor, the founder of CNET and several other technology firms, said his proposal was made several weeks ago but that he has yet to receive a response from the Special Committee, necessitating the need to make the offer public so it could receive full consideration from shareholders of MI Developments.

“While it is unfortunate that we have to take the unnecessary step of making our proposal public,” Minor said, “we believe that MI Developments’ shareholders deserve to know about the opportunity to relieve the company of what has become an increasingly burdensome debt obligation. Magna Entertainment owns some of the world’s premier racetracks, but many of them have fallen into disrepair and are in desperate need of capital to both improve the facilities and attract fans back to the industry. I have long had a passion for the horse racing industry, and believe strongly that this storied, exciting sport can be revitalized. I want to help rebuild this industry, and initiating discussions with MI Developments to explore ways we can solve Magna Entertainment’s liquidity problem and help provide a better strategic direction to these under-capitalized properties is a winning proposition for MI Developments and the horse racing industry overall. I look forward to a response from MI Developments’ Special Committee.”