HARNESS TRACKS OF AMERICA Executive Newsletter

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, June 23, 2010STRONACH VS. DEREK, ET AL.And other features of a stormy sessionof the California Horse Racing Board.The main bout was irrepressible FrankStronach, leader of MI Developments andowner of Santa Anita Park, telling membersof the board they were responsiblefor everything but the Gulf oil spill, andexperiencing -- for him -- the highly unusualreprimand of being told to shut up.Newswise, the main item was Stronachannouncing he would allow Oak Tree racing,which he had deposed as a tenant atSanta Anita, to race this fall for one meetingonly if they chose (they did quickly)but that he wanted “no tenants in ourhouse” and intended to have none in thefuture. Stronach began his presentationby saying board members had slanderedhim by not understanding his ideas, andthat “I’m very resentful when you trashmy reputation. I need this like a hole inthe head.” His ideas include changingCalifornia racing by proposing to operatehis tracks at Santa Anita and Golden GateFields year-round but on weekends only.He told the board he had invested $250million in his tracks and “haven’t broughtout a cent,” and added that “a businessthat doesn’t make a profit is a burden tosociety.” He said racing was “trapped inlaws, but laws are made and changed bypeople. It’s very urgent. It’s got to befree enterprise,” and said that tracks, notstates, should decide when theywant to run.His brush with Bo Derek came whenthe actress-turned-racing commissioneraccused Stronach of driving away theBreeders’ Cup, and he responded thatthe racing board, not him, had done that.At one point a board member shouted atStronach to be quiet, saying, “Hey, hey,hey, I’m talking now.”OTHER CANDID COMMENTSJohn Johnston, who runs Balmoral Parkin Crete, Illinois, testified in Chicago yesterdayin the corruption trial of formerIllinois governor Rod Blagojevich. Johnston,who allegedly had been asked for butrefused to pay $100,000 to Blagojevich forpassage of a bill that would benefit racing,was questioned about a statement he saidwas made by Alonzo Monk, a former Balmorallobbyist and chief of staff to the governor,in a conversation on Dec. 3, 2008.Johnston said Monk told him, “I spoke tothe governor and he’s concerned that ifhe signs the racing legislation you mightnot be forthcoming with a contribution.”Johnston said he responded negativelyand angrily. “I got agitated, animated...Ishut the conversation down.” He said heunderstood the conversation to mean thatif he paid “they’d cash the check and signthe bill.” Johnston was asked in cross examinationby attorney Sam Adams Jr. ifMonk, Johnston’s former lobbyist, wasthe only person to put any pressure onhim. He answered, “That’s correct...myown lobbyist.”