2005 - Harness Tracks of America, Inc.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSALES AND STORM WARNINGSChurchill Downs’ sale of Hollywood Park to BayMeadows Land Co. for $260 million was today’sbig news in racing, but it is not necessarily goodnews. Although the announcement stated that liveracing will continue at the huge Inglewood track-- one of America’s best known racing venues --for at least three years, and Churchill can reinvestas a majority partner for eight years, thebuyer is a land company. It operates a race track-- Bay Meadows -- but it also develops property,and its president, Terrence E. Fancher, while talkingabout his love for racing, also made clear thatchanges must be made so California racing canbetter compete with other forms of gaming. “Ifchanges are not made,” Fancher said in a newsconference, “then it’s simply a reality that thiswill not be an economically viable track over thelong term. We don’t know how much more clearthe message could be. A huge track in NorthernCalifornia and a huge track in Southern Californiawould be gone.” Los Angeles Times writerBill Dwyre, writing about the turn of events, likenedthe comments of Churchill CEO TomMeeker and Fancher to the movie “Network.”He wrote, “Two men who have spent a lifetimeconducting business with quiet, understated dignitybecame Howard Beale....they were mad ashell and they weren’t going to take it any more.”Dwyre called what happened Wednesday “gutsy,brilliant and also somewhat desperate.” He saidpart of the brilliance was “that it so publicly dropsthe hot potato in Sacramento’s lap.” But headded, “Sacramento, of course, may yawn andturn its back. It may legitimately have biggeragendas, much larger blocks of constituents than60,000 race employees, much bigger losses offace than two horse tracks folding. But you haveto give California horse racing credit for one thingafter Wednesday’s power play. Somemajor players in the sport may eventuallygo, but they won’t go quietly.”July 7, 2005GREAT CANADIAN MARCHES ONThere was another major development on the westcoast, as Great Canadian Gaming Corporation,which has been expanding its racing holdings exponentially,announced it was buying FlamboroDowns from Magna Entertainment for some $63.9million. The track, 45 miles from Toronto, has 230acres and offers year-round live harness racingand daily simulcasting on-track and at fourteletheaters and OTBs. It also has 752 slot machinesGreat Canadian has in the last year boughtHastings Park, Fraser Downs, Sandown Park andGeorgian Downs. MEG president/CEO W. ThomasHodgson said the divestiture “allows MECto focus resources on a strategic goal of deliveringprime racing content, developing our U.S. gamingpotential, and expanding our signal deliveryand wagering capability within North America andinternationally.”BITTER HERBS, SUGAR IN OHIOThe Ohio State Racing Commission has grantedThistledown, Cleveland’s thoroughbred track, permissionto discontinue sending its signal toNorthfield Park, at the request of the Ohio divisionof HBPA. On a brighter note, the commissionapproved the sale of the Sandusky CedarDowns OTB -- Ohio’s only remaining OTB -- toNorthfield Park by Argosy Gaming.DANCER IN BAD SHAPEStanley Dancer, perhaps the best known driver inharness racing history, is hospitalized, in constantpain and unable to walk. Plagued by the thoughtthat the harness world has forgotten him, he wouldbe bolstered by cards and letters. Send them to1300 S. Ocean Blvd., Apt. 101, Pompano Beach,FL 33062-6914.Also send best wishes to Meadowlands chiefDennis Dowd, recovering from another roundof hip surgery.