Posts Tagged ‘lone star park’

By Ray Paulick
I was all set to name Satish Sanan the winner of the first annual John Mayer Foot in Mouth Award for comments he made on Steve Byk’s “At the Races” Sirius/XM satellite radio show last Tuesday from which he was quoted in a Bloodhorse.com article as saying Churchill Downs was the “worst” racing organization and each of the Breeders’ Cups at Lone Star Park and Monmouth Park was a “disaster.”

Then I thought I’d better listen to the show before throwing Sanan under the bus with Mayer, the pop star who made some outrageous remarks in a just-published Playboy magazine interview about former girlfriends Jessica Simpson and Jennifer Aniston, among other subjects. Since the interview was published, Mayer, a profilic Twitterer, said he has “been trying to prove to people I’m not a douche bag.”

For what it’s worth, I don’t think Sanan has to take that drastic of a measure.

He did, however, agree to send out a statement admitting that he “mischaracterized” the relationship between the Breeders’ Cup and Churchill Downs during the course of the interview, which mostly consisted of him responding to criticism from several callers who disagreed with the concept of a permanent site for horse racing’s championship event. The callers especially disagreed with Santa Anita Park being named the permanent site, a rumor that has been making the rounds after numerous trial balloons were sent out by Breeders’ Cup officials but as Sanan pointed out on more than one occasion during the show is a decision that has not been ratified by the board. His personal preference, he said, was for Santa Anita Park to be the permanent site. (Archives for Sanan’s weekly segment on the show, entitled “Our Industry,” can be heard here.)

The full board of members and trustees of the Breeders’ Cup met in Florida on March 3, the day after Sanan’s radio appearance, and the Bloodhorse.com article published that morning apparently caused Breeders’ Cup board chairman Bill Farish’s blood to boil.

Farish issued a testy statement by mid-afternoon:  “The Breeders’ Cup board is extremely disappointed with recent statements from board member Satish Sanan with regard to host sites and those views in no way reflect the official position of Breeders’ Cup, LTD. The Breeders’ Cup has longstanding and valued partnerships with Churchill Downs and the New York Racing Association. No final decisions have been made on host sites beyond 2010 and as we indicated in December the board is looking at a permanent host location as a potential option as part of our ongoing strategic planning initiative. We extend our sincere apology to Churchill Downs and the State of Kentucky. We look forward to our return to Louisville and Churchill Downs for the 2010 Breeders’ Cup World Championships.”

Only Tiger Woods has apologized to more people.

Sanan sent an email to all of the members and trustees on March 4, a copy of which was leaked (not by Sanan) to the Paulick Report.

It reads: “I want to take this opportunity to address and clarify a number of issues raised in Bill Farish’s memo and mischaracterization of my comments during my regular show on Tuesdays on ‘At the Races’ radio network. The facts are as follows:

Regards,
Satish Sanan”

Sanan said things on his radio appearance about Churchill Downs that almost certainly have been said privately by other Breeders’ Cup board members, but the horse industry is not used to someone who serves on some of these exclusive boards being as candid publicly as Sanan has been. Perhaps Farish is somewhat sensitive because his father, William Farish, is the former chairman of the Churchill Downs board, but he knows the attitude about the Breeders’ Cup represented by CEO Bob Evans and his top executives  in negotiations to be host site can be summed up as follows: “We don’t really care if we host your event or not.”

Was there anything to be gained by trashing Churchill Downs, Lone Star Park, and Monmouth Park? No, there wasn’t, and I’m sure Sanan has said other things he’s regretted during the many hours he has spent communicating with racing fans and horsemen on the “At the Races” show. In the heat of the moment, I think Breeders’ Cup chairman Farish was just as much out of line, overreacting publicly to what Sanan was quoted in a news article as saying.

This industry needs people with the candor, the fresh perspective and the creative business acumen that Sanan has brought to Breeders’ Cup and other industry organizations, including the Thoroughbred Owners and Breeders’ Cup, where he is member of a committee addressing issues related to structural changes and horse racing’s broken business model.

The candor sometimes gets him in trouble. “There is a group of people particularly pissed off at me,” he said on the radio show, “not as to what I’m trying to achieve or what the group is trying to achieve, (but about) what I had said about the alphabet soup organizations…People are taking it personally, some of the officers of some of these organizations. Candidly, the old saying in business is if you are trying to solve a business problem, generally speaking people who are part of the problem are people who are going to object to it.”

It’s that kind of candor and blunt talk that doesn’t endear Sanan to some people, but I get the feeling he doesn’t really care about that. We haven’t gotten very far in this business by having boards who rubber stamp cautious executive decisions, discourage open dialogue, and keep electing the same people year after year after year.

Copyright © 2010, The Paulick Report

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By Ray Paulick
He is a combination of P.T. Barnum, Perle Mesta and Frank Sinatra—an innovative promoter, unmatched host and fiercely independent man. He rules over one of the last family-owned racetracks on the American landscape. He is Charles Cella, the longtime president of Oaklawn Park, and if anyone is going to lure Rachel Alexandra and Zenyatta into the same starting gate, it’s him.

Cella announced plans to increase the purse of the April 3 Apple Blossom to $5 million if the two champions show up. He didn’t need to go out and find a corporate sponsor, didn’t hire a slew of consultants, didn’t seek approval from the bean counters or a board of directors.

He did it his way.

That’s how Cella has been running Oaklawn Park since taking over the Hot Springs, Ark., racetrack upon the death of his father in 1968. There have been hard times and good times. The venerable track, founded in 1905, has taken some lumps, but through perseverance and innovation has managed to survive and even thrive at times. That’s more than we can say about a lot of racetracks these days.

“I think he has been great for the sport,” said longtime Keeneland executive Ted Bassett, one of Cella’s closest friends. “He’s put the best interests of Oaklawn and the sport above his self interests. Always. And he marches to his own drum, regardless of the pressures or the cacophony from the outside.

“He is at heart an impresario. He loves to think and to create events. He is a master at that.”

Long before the Breeders’ Cup championships, Arlington Park’s International Festival of Racing, the Maryland Million, or Keeneland’s Fall Stars Weekend, there was the Racing Festival of the South. Created in 1974, the week-long festival packs a bundle of  top-class stakes races onto the end of the annual winter/spring meeting, culminating with the closing-day Arkansas Derby, which has attracted crowds in excess of 70,000.

For years, racing-starved fans from Texas, Oklahoma, Louisiana and other states in the region swamped Hot Springs. But then competition sprang up with shiny new tracks like Louisiana Downs, Remington Park and Lone Star Park, and later came casino boats in Mississippi and slot parlors in Louisiana and Oklahoma. Oaklawn Park no longer was the only game in town.

Cella and his management team launched the first full-card simulcasting parlor of any track in the country. It wasn’t enough to keep pace. They tried to get a casino at Oaklawn, but realized it was a longshot at best. So, working with Ted Mudge at tote provider AmTote, Oaklawn came up with a pari-mutuel based electronic game called Instant Racing. It’s been the track’s salvation since the first machines were installed 10 years ago.

In 2004, Cella wanted to do something special to recognize Oaklawn Park’s 100th anniversary, and created a $5-million “centennial bonus” for any 3-year-old that managed to sweep the Rebel Stakes, Arkansas Derby and Kentucky Derby. The triple had only been accomplished once before, by Sunny’s Halo, in 1983, but Smarty Jones stepped up and swept the series, and Cella happily handed over $5 million to Smarty’s owners, Pat and Roy Chapman. It was the richest payday in American racing history. A $5-million Apple Blossom would be the richest filly and mare race in history.

“It’s a genius idea,” Bassett said of the Apple Blossom purse boost. “Even if they don’t show, he’s gotten a million dollars worth of publicity.”

I wouldn’t bet against it happening—not yet, even though the statement from Jess Jackson, the owner of Rachel Alexandra, was a bit non-committal and the 2009 Horse of the Year has a lot more training to do to get back into racing shape.

“He has the courage to take the chance,” Bassett said of Cella, “the courage of his convictions. What other racetrack would have the courage, foresight and will to propose this? If they show, he will show.”

And if they show, you can be certain Cella will throw one helluva party to celebrate the event. “He is the male Perle Mesta,” Bassett said, a reference to the legendary Washington, D.C., “hostess with the mostest” from a half-century ago. “He loves to throw a party. He’s a modern P.T. Barnum.”

But Cella is a lot more than Good Time Charlie. In an era of corporate ownership of racetracks, where heads of top management roll over with the frequency of Pick Threes and Daily Doubles, Oaklawn Park has been an island of stability, not unlike the other remaining family-owned  tracks in America: the Carey family’s Hawthorne in Chicago and Stella Thayer’s Tampa Bay Downs in Florida.

“Continuity and stability have been hallmarks of Oaklawn Park,” said Bassett. “They know where they are, they know when they are going to open. He never quakes to outside pressures. Charlie was the lyricist of Sinatra’s ‘doing in my way.’"

Copyright © 2010, The Paulick Report

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By Ray Paulick

A hearing has been scheduled for April 3 in U.S. Bankruptcy Court in Delaware to consider a motion requested by bankrupt Magna Entertainment to auction some of its assets on July 16.

Included in the proposed auction, tentatively scheduled at the New York offices of Weil Gotshal and Manges, is Gulfstream Park in Hallandale, Fla., Palm Meadows training center in Palm Beach County, Fla., the AmTote totalizator company, Magna’s 50% interest in the Village at Gulfstream mall, the XpressBet advance deposit wagering company, and the partnership interest in Lone Star Park, a Grand Prairie, Texas, racetrack built on leased property.

In Magna Entertainment’s chapter 11 filing, parent company MI Developments made a stalking horse bid for those assets of $195 million. The auction has been proposed in the event more than one party makes a qualified bid on any of the properties.

Not included in the proposed auction is Santa Anita Park in Arcadia, Calif., Remington Park in Oklahoma City, Okla., the Maryland Jockey Club tracks Pimlico in Baltimore and Laurel Park in Laurel, Thistledown near Cleveland, Ohio, and Portland Meadows in Portland, Ore. Miller Buckfire and Co., and a financial adviser and investment banker hired by Magna in 2008, is handling a marketing and sale process for all Magna Entertainment’s assets.

Copyright © 2009, 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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