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, Editor$1.5 MILLION HAMBLETONIANHarness racing’s biggest and most important race,the Hambletonian, takes center stage at theMeadowlands tomorrow afternoon. CBS willtelevise the event, as usual, starting at 2 p.m.eastern time, with Gary Seibel again emceeingthe show, working with the talented Caton Bredarand Jay Privman. The presence of the threeknowledgeable racing personalities, and the interestingcast that includes Chicago-area ownedfavorite Classic Photo, a winner of $411,801 thisyear, with Ron Pierce driving, as the favorite,assures an exciting afternoon. The colt, an$87,000 yearling at the Kentucky StandardbredSale, enters the classic with four straight victoriesin races worth $100,000 or more. He is oneof two colts by S. J.’s Photo, is trained by ErvMiller, and is owned by H. W. Wright of Morton,IL, Dennis and Kevin Lakomy of ChicagoHeights, IL, racing under the nom de course ofMystical Marker Farms, and Jack and PeggyHood of Valparaiso, IN. Another S. J.’s Photo,Vivid Photo, owned by trainer-driver Roger Hammerof Bedford, PA and Todd M. Schadel of Gratz,PA, was a $30,000 yearling at the Harrisburg, PA,Standardbred Sale and has won five straight and9 of 11 races this year entering the Hambletonian.Others in the richest Hambletonian ever, and theirpurchase prices as yearlings, areGettindownanddirty, $80,000; Mr. Dream Om,$30,000; Muscle Bound, $175,000; MuscleMemory, $17,000; Northern Ensign, $40,000 Canadian;Racino, $30,000; Self Professed,$30,000; and Strong Yankee, $52,000. In an interestingcontrast last night at the Meadowlands,Keystone Savage, a $12,000 yearling, won thesport’s richest race for 2-year-old trotters, the$460,000 Peter Haughton Memorial, while thecompanion $390,000 Merrie Annabelle for 2-yearoldtrotting fillies was won by Miss Wisconsin,who cost $150,000 last fall as ayearling.August 5, 2005MEADOWS A “HIGH PRIORITY”Magna Entertainment president and chief executiveThomas Hodgson, in a press conference thismorning, indicated that MEC is looking for a partnerto operate The Meadows’ racino when it isup and running, possibly in 2006, and althoughhe did not name names industry speculation isthat Boyd Gaming may be the partner. Hodgsonsaid of The Meadows, “There is no financing inplace (for building the racino) but clearly it’s apriority.....It’s very high priority for us.” Hodgsonsaid Magna did not intend to sell Gulfstream orSanta Anita, but that “the sale of excess real estateis absolutely the critical part of our debt-reductionstrategy.” Hodgson revealed that MagnaEntertainment lost $26.9 million in the threemonths ended June 30, bringing total losses for2005 to $31 million, and three and one-half yearlosses to $215,128,000. “Our financial resultsfor the three and six months ended June 30 aredisappointing in absolute terms,” he said, “but atthe same time they are in line with our expectationsfor 2005 and are consistent with our previouslystated expectation that Magna Entertainmentwill continue to incur operating lossesthrough 2006 but is expected to achieve sustainableoperating profitability in 2007 and beyond.”MI Developments, the parent company of MagnaEntertainment, reported earnings of $22.3million in the three months ended June 30, up87.3% over the same period last year. Revenuesrose 16.4% for that period, and net income rose67% and revenues were up 14.7% for the firstsix months of the year. In New York, the NewYork Racing Association reported drops of15.17% in attendance and 11.2% in handle atBelmont’s summer meet, in part reflecting the absenceof a Triple Crown bid in the BelmontStakes. TVG, meanwhile, passed $100 million inbets during its second quarter, a first, andYoubet.com reported record second quarternet income of $1.3 million.