Karried
09-17-2007, 05:59 PM
Remington Park could be on sale block
By The Associated Press
From NewsOK
The company that owns Remington Park has included the Oklahoma City racetrack on a list of possible properties that might be sold to relieve debt.
In a news release issued Thursday, Toronto-based Magna Entertainment Corp. said it plans to sell off assets - including some of the 11 racetracks it operates - as it tries to rid itself of its debt load, which was at $550 million as of mid-August.
http://promos.newsok.com/adlog.php?bannerid=4013&clientid=2660&zoneid=485&source=&block=0&capping=0&cb=e6279afb53cfb1ba0b120df32121d58d
Magna Entertainment had earlier revealed its intentions to sell other racetracks, including Thistledown in North Randall, Ohio, Great Lakes Downs in Muskegon, Mich., and Portland Meadows in Oregon. But it's thought that Thursday's announcement was the first to include Remington Park on the list of the company's for-sale tracks.
According to the news release, Magna Entertainment "intends to explore strategic transactions involving other racing, gaming and technology operations, including ... the possible sale of Remington Park in Oklahoma City."
Magna Entertainment bought Remington Park from the Edward J. DeBartolo Corp. in November 1999 for $10 million.
Remington Park general manager Scott Wells said Monday that last week's announcement didn't catch him completely off-guard.
"They announced some time ago there are no sacred cows," Wells said. "They want to eliminate their debt by the end of 2008."
To do so would require Magna Entertainment to raise about $600 million to $700 million during the next year through sales, partnerships and joint ventures and a possible future equity financing, said Tom Hodgson, a former Magna Entertainment chief executive officer who led the company's recent strategic review, which was done to try to lower the company's debt and improve earnings.
"It is a tall order, but I believe that MEC's strong asset base makes this feasible and it is a target that all member of the company's senior management and board, including the chairman, are firmly committed to," Hodgson said in a statement.
Blake Tohana, the company's executive vice president and chief financial officer, did not immediately return a phone message left Monday by The Associated Press.
Remington Park, considered a racing palace when it opened in 1988, fell upon hard times a decade later and was on the verge of closure before November 2004, when Oklahoma voters approved State Question 712, a measure that allowed for electronic gaming at state racetracks.
Fueled by the money generated by a track casino, racing at Remington Park quickly rebounded. Magna Entertainment sunk about $35 million in renovations into the facility, which has attracted renewed interest from both horsemen and fans.
"It's worth a lot more than what it was when they bought it," Wells said.
Wells said he does not know of any potential suitors interested in buying Remington Park, but he does not fear for the track's future.
"Remington Park is a thriving business with a bright future and people tend to be interested in a business like that," he said.
"We're taking a wait-and-see attitude, but I'm confident in that we're the (management) team that turned the place around. I'm confident that whatever is best for MEC stockholders and Remington Park will happen."
The Magna Entertainment release offered no timeline about any potential sales of racetracks.
Frank Stronach, Magna Entertainment's chairman and interim chief executive officer, said he believes the company's "place within the thoroughbred racing and entertainment industries remains strong" and that he is "determined that our debt elimination plan will be successfully and fully implemented on a timely basis."
Other tracks owned by Magna Entertainment include Pimlico Race Course in Baltimore, which annually hosts the Preakness Stakes; Gulfstream Park in Hallandale Beach, Fla.; Lone Star Park in Grand Prairie, Texas; and Santa Anita Park in Arcadia, Calif.
By The Associated Press
From NewsOK
The company that owns Remington Park has included the Oklahoma City racetrack on a list of possible properties that might be sold to relieve debt.
In a news release issued Thursday, Toronto-based Magna Entertainment Corp. said it plans to sell off assets - including some of the 11 racetracks it operates - as it tries to rid itself of its debt load, which was at $550 million as of mid-August.
http://promos.newsok.com/adlog.php?bannerid=4013&clientid=2660&zoneid=485&source=&block=0&capping=0&cb=e6279afb53cfb1ba0b120df32121d58d
Magna Entertainment had earlier revealed its intentions to sell other racetracks, including Thistledown in North Randall, Ohio, Great Lakes Downs in Muskegon, Mich., and Portland Meadows in Oregon. But it's thought that Thursday's announcement was the first to include Remington Park on the list of the company's for-sale tracks.
According to the news release, Magna Entertainment "intends to explore strategic transactions involving other racing, gaming and technology operations, including ... the possible sale of Remington Park in Oklahoma City."
Magna Entertainment bought Remington Park from the Edward J. DeBartolo Corp. in November 1999 for $10 million.
Remington Park general manager Scott Wells said Monday that last week's announcement didn't catch him completely off-guard.
"They announced some time ago there are no sacred cows," Wells said. "They want to eliminate their debt by the end of 2008."
To do so would require Magna Entertainment to raise about $600 million to $700 million during the next year through sales, partnerships and joint ventures and a possible future equity financing, said Tom Hodgson, a former Magna Entertainment chief executive officer who led the company's recent strategic review, which was done to try to lower the company's debt and improve earnings.
"It is a tall order, but I believe that MEC's strong asset base makes this feasible and it is a target that all member of the company's senior management and board, including the chairman, are firmly committed to," Hodgson said in a statement.
Blake Tohana, the company's executive vice president and chief financial officer, did not immediately return a phone message left Monday by The Associated Press.
Remington Park, considered a racing palace when it opened in 1988, fell upon hard times a decade later and was on the verge of closure before November 2004, when Oklahoma voters approved State Question 712, a measure that allowed for electronic gaming at state racetracks.
Fueled by the money generated by a track casino, racing at Remington Park quickly rebounded. Magna Entertainment sunk about $35 million in renovations into the facility, which has attracted renewed interest from both horsemen and fans.
"It's worth a lot more than what it was when they bought it," Wells said.
Wells said he does not know of any potential suitors interested in buying Remington Park, but he does not fear for the track's future.
"Remington Park is a thriving business with a bright future and people tend to be interested in a business like that," he said.
"We're taking a wait-and-see attitude, but I'm confident in that we're the (management) team that turned the place around. I'm confident that whatever is best for MEC stockholders and Remington Park will happen."
The Magna Entertainment release offered no timeline about any potential sales of racetracks.
Frank Stronach, Magna Entertainment's chairman and interim chief executive officer, said he believes the company's "place within the thoroughbred racing and entertainment industries remains strong" and that he is "determined that our debt elimination plan will be successfully and fully implemented on a timely basis."
Other tracks owned by Magna Entertainment include Pimlico Race Course in Baltimore, which annually hosts the Preakness Stakes; Gulfstream Park in Hallandale Beach, Fla.; Lone Star Park in Grand Prairie, Texas; and Santa Anita Park in Arcadia, Calif.