Horse Racing

Former owner says he has tentative Rosecroft deal

LIZ FARMER
Daily Record Business Writer
June 24, 2009 2:55 PM

The former owner of Rosecroft Raceway says he has reached a deal to buy back the bankrupt harness racing track in Prince George’s County — but the Greenbelt developer is still far from clearing another hurdle in bringing live racing back to the track.

Mark R. Vogel, who owned the track in the late 1980s and early 1990s, said Rosecroft parent Cloverleaf Enterprises Inc. has agreed to a deal to sell the track. Vogel declined to reveal the terms and referred all questions to Cloverleaf President Kelley Rogers, who did not return calls Wednesday.

The sale would need to be approved by the Cloverleaf board of directors, which Vogel expects, and the judge overseeing Cloverleaf’s bankruptcy case in the U.S. Bankruptcy Court for the District of Maryland in Greenbelt. Vogel’s race track license would also have to be approved by the Maryland Racing Commission.

Vogel to push for ‘alternative gaming’ at Rosecroft Raceway

LIZ FARMER
Daily Record Business Writer
June 22, 2009 7:03 PM

Greenbelt developer Mark R. Vogel would reinstate live racing at Rosecroft Raceway and plans to push for alternative gaming there if he succeeds in buying the bankrupt harness racing track.

“We’re working to get a deal structured where I’m putting up enough money so we can start live racing next year,” Vogel said Monday.

He added he is also hoping for revenue from slots to start coming in next year to boost the track’s purses.

“So the goal is to show Rosecroft can be a prominent live racing venue again,” he said.

Vogel, who owned Rosecroft in the late 1980s and early 1990s, would not elaborate on what alternative gaming he was considering except to say he was meeting with community members on the topic and looking beyond slot machines.

Vogel in talks for Rosecroft Raceway

LIZ FARMER
Daily Record Business Writer
June 19, 2009 8:41 PM

A Greenbelt-area developer with a mottled past as the former owner of the now-bankrupt Rosecroft Raceway is in talks to again purchase the Prince George’s County harness racing track.

But the move could hinge on whether the thoroughbred industry will reauthorize the track’s right to broadcast and take bets on their races.

Mark R. Vogel, president of Mark Vogel Cos. LLC, has been meeting with representatives of the raceway and the thoroughbred industry for about two months to discuss a sale, said Gerald E. Evans, an attorney who is advising Vogel in the negotiations.

“We are trying to settle the long-simmering dispute between Rosecroft and the thoroughbred industry about the simulcast agreement,” Evans said. “If Mark can pull it off I think he’ll start live racing again ... and I think he’d be a terrific owner.”

Average bet amount at Pimlico up nearly 9 percent

LIZ FARMER
Daily Record Business Writer
May 27, 2009 7:49 PM

Thanks to heavy betting on the Preakness Stakes, the average amount wagered this spring at Pimlico Race Course jumped nearly 9 percent despite declines in attendance and total handle for the track.

Total wagering fell $4.1 million or 2.5 percent over 20 live racing days — 11 fewer than last year — to $159.5 million. Attendance fell 17.8 percent to 271,031 for the spring meet, held April 18 to May 23.

The average daily handle, however, rose from $6.3 million to $6.9 million over 20 days of racing and 21 days of simulcast racing.

The Maryland Jockey Club credited Preakness, the second jewel of the Triple Crown, for the upswing.

“The buildup to the Preakness was nothing short of spectacular and the race lived up to the hype,” Tom Chuckas, president and chief operating officer of the jockey club, said in a statement.

The long road to uncertainty

LIZ FARMER
Daily Record Business Writer
May 14, 2009 6:57 PM

On a typical Saturday at Pimlico Race Course, longtime Maryland horse racing reporter Dale Austin could walk into the racetrack’s press box and find it flooded with at least 25 or 30 reporters.

“Pimlico was a red-hot place, the hottest in the East,” said Austin, who covered racing for The Baltimore Sun for 29 years. “You could go up to a window in Washington to get a ticket the day of a Redskins game, and, except for Opening Day, you couldn’t fill up the ballpark for baseball games. But there’d be 20,000 people at the racetrack in Maryland.”

But that was in 1962.

And since that time, perhaps the only thing that the horse racing industry nationwide and in Maryland has done is consistently miss the boat, falling further into obscurity and an uncertain future.

Pimlico, Laurel, Preakness out of auction, but not off the block

LIZ FARMER
Daily Record Business Writer
May 4, 2009 1:56 PM

WILMINGTON, Del. – Although Maryland’s thoroughbred racetracks and the Preakness Stakes have been scratched from the auction block, the tracks’ bankrupt owner and its creditors would still entertain bids for the properties, their attorneys told a Delaware bankruptcy judge Monday.

Maga Entertainment attorney Brian S. Rosen (left) and Kenneth H. Eckstein, who represents the company’s unsecured creditors, after Monday’s bankruptcy hearing.“By no means are we abandoning the possibility that we can sell those assets in the future,” said Magna Entertainment Corp. attorney Brian S. Rosen of New York-based Weil, Gotshal & Manges LLP. “We are going to permit parties to do due diligence, and in the extent that a bid comes in that is attractive, the debtors will consider it.”

Kenneth H. Eckstein, who represents the unsecured creditors committee, said that although Magna was withdrawing some highly prized assets from its auction plan — namely, Pimlico Race Course, Laurel Park and the Preakness — the group approved of streamlining the process for now.

Rosecroft Raceway may reopen this weekend

LIZ FARMER
Daily Record Business Writer
May 1, 2009 12:53 PM

Rosecroft Raceway, which earlier this week had its simulcast wagering signal yanked, may be back open to take bets on the Kentucky Derby Saturday.

A Prince George’s County Circuit Court judge has issued a temporary restraining order that would allow the track to regain its televised signal for thoroughbred racing and simulcast wagering, but it is contingent upon payment of a $2 million bond — money that raceway owner Kelley Rogers says he does not have.

Rogers and his attorney are asking the judge to change the order to require a cash bond in the “hundreds of thousands,” Rogers said. With about $700,000 in cash on hand, the bond payment would nearly deplete the raceway’s immediate funds but keep it open for one of its biggest moneymaking days of the year.

Rogers said this year’s projected profit from bets placed during the Kentucky Derby day is about $140,000, if Rosecroft reopens.

Rosecroft Raceway’s simulcast signal is pulled

LIZ FARMER
Daily Record Business Writer
April 28, 2009 7:19 PM

Four days before the Kentucky Derby, the Maryland Racing Commission has voted to cut off Rosecroft Raceway’s simulcast signal of thoroughbred races in response to the track owner’s refusal to pay a $5.9 million fee for the signal rights.

The 6-2 vote came during a contentious commission meeting held at Pimlico Race Course Tuesday. One member was absent from the meeting.

Kelley Rogers, president of Cloverleaf Enterprises Inc., the horsemen-owned parent company of Rosecroft, said after the meeting he intends to file a motion in Price George’s County Circuit Court Wednesday requesting a stay order on the commission’s action.

If granted, the order would allow Rosecroft, which has suspended live racing and functions solely as a simulcast betting site, to take bets on the Kentucky Derby this Saturday.

Preakness ticket sales down 12%

LIZ FARMER
Daily Record Business Writer
April 23, 2009 5:31 PM

With just over three weeks to go, ticket sales for the Preakness Stakes — Maryland racing’s biggest moneymaker — are down 12 percent, according to the Maryland Jockey Club.

While some blame the economy, others say the new policy banning outside alcohol and other beverages from the infield may be playing a part, despite the fact that the ticket price has not increased for the May 16 race.

“I think it’ll be fine, but they might suffer from that a little bit,” said Lee Corrigan, of Elkridge-based Corrigan Sports Enterprises, who is organizing the InfieldFEST event. “It’s a tough year and financial market to be doing what they’re doing, but I think they had to for many reasons.”

Wagering at Laurel Park falls 26 percent

LIZ FARMER
Daily Record Business Writer
April 21, 2009 7:52 PM

After a racing season at Laurel Park marked by the poor economy and the bankruptcy of its owner, total wagering at the track dropped by nearly 26 percent this winter — nearly three times the national average.

Over 58 live racing days — one fewer than last winter — the total amount wagered dropped by $56 million to $219.8 million, according to the Maryland Jockey Club. Laurel’s season ran from Jan. 1 through April 11.

According to the Equibase Company LLC, an industry research firm based in Kentucky, wagering in the U.S. from Jan. 1 through March 31 totaled $3.1 billion, a decline of 9.4 percent from the corresponding period in 2008.

Tim Rice, an industry analyst with Rice Voelker LLC in Louisiana, called Laurel’s struggle “significantly worse” than other tracks’ since the economic downturn began last fall and attributed the gap to competition from neighboring states.

Magna can’t bundle properties

LIZ FARMER
Daily Record Business Writer
April 20, 2009 8:31 PM

The state’s position in its fight to keep the Preakness Stakes got a little stronger Monday after a judge ruled that Magna Entertainment Corp.’s Maryland properties could not be bundled with its out-of-state properties in the bankruptcy auction process.

If bankruptcy judge Mary F. Walrath hadn’t ruled in Maryland’s favor, there’s no way the state could have matched bids for the Preakness, Pimlico Race Course and Laurel Park, said Raquel Guillory, spokeswoman for the Office of the Attorney General.

“It seems clear that the company is now seriously taking into account the importance of the state’s regulatory and public interest of the racing industry here in the state and it’s certainly a welcome move,” she said.

Preakness is a trademark of the Triple Crown

LIZ FARMER
Daily Record Business Writer
April 16, 2009 8:15 PM

Despite the recent efforts to keep the Preakness Stakes at Pimlico Race Course, the race’s status as the second leg of the Triple Crown is only loosely protected by a marketing group and trademark that do not legally bind it to any state.

The Kentucky Derby, Preakness Stakes and the Belmont Stakes have been referred to as the Triple Crown races since the 1930s. But their official designation as such and the Triple Crown trophy didn’t begin until 1950.And at least one member of that group is concerned about a new owner’s potential impact on the Triple Crown brand.

“I would argue that if you were to move the Preakness from Pimlico you would have a new construct, and you might still call it the Triple Crown, but I wouldn’t call it the Triple Crown,” said Charles Hayward, president and CEO of the New York Racing Association Inc., which owns the Belmont Stakes. “We’re watching this very closely.”

Technically, a developer could buy Preakness and Pimlico but still move the race to an out-of-state track without violating the articles of incorporation of Louisville-based Triple Crown Productions LLC or the Triple Crown trademark.

City officials look for legal ways to keep Preakness at Pimlico

LIZ FARMER
Daily Record Business Writer
April 10, 2009 3:54 PM

In an attempt to secure Pimlico Race Course’s future as host track of the Preakness Stakes, Baltimore officials are looking at other legal avenues to give the future owner more incentive to keep the race there.

According to City Solicitor George Nilson, the city is considering changing the track’s zoning designation to allow for retail and mixed-use properties to increase the value of the 116-acre site — but there’s a catch.

The winning bidder for the track must plan on keeping Preakness, the second leg of racing’s Triple Crown and the industry’s biggest moneymaker in the state, at Pimlico.

“It’s a big piece of land and it’s underutilized space — generally used once a year as parking for Preakness,” Nilson said last week. “There are commercial uses that could be put on the property ... that would create more density and more variety of uses while being sensitive to neighborhood ... and we’d make that available if the owner were to continue to run Preakness there.”

Nilson said city officials planned to meet this week to discuss more specific possibilities and that their next move had not been finalized yet.

Legislation seeks to keep Preakness in Maryland

ANDY ROSEN and LIZ FARMER
Daily Record Business Writers
April 8, 2009 9:36 AM

ANNAPOLIS — Gov. Martin O’Malley on Wednesday began a late-session push for stronger state control over the fates of Pimlico and Laurel racetracks and the Preakness Stakes.

All three properties are owned by Magna Entertainment Corp., which has filed for federal bankruptcy protection in Delaware. The company is asking for an auction of its assets, including the Maryland tracks, on July 30, and uncertainty over the future of the Preakness — the second jewel in horse racing’s Triple Crown — has raised increasing concern with city and state officials.

A bill proposed by O’Malley and introduced Wednesday would give the state power to seize the tracks through eminent domain, and would also give the Maryland Economic Development Corp. the authority to issue debt to buy the tracks. The state already has the right of first refusal over the sale of Preakness, but some are concerned about how that would play out in bankruptcy court.

Tracks draw interest from 2 prominent Baltimoreans

LIZ FARMER
Daily Record Business Writer
April 2, 2009 6:21 PM

With another Baltimorean showing interest in rescuing Laurel Park and Pimlico Race Course, keeping the Preakness Stakes from leaving the state may easier than solving the long-term problems of the Maryland racing industry.

“The state is going to have to come to grips with how to save racing in the state — we can’t just do it with keeping 40 racing days at Laurel and one race [Preakness] at Pimlico,” Alan Foreman, general counsel for the Maryland Thoroughbred Horsemen’s Association, said Thursday.

A spokesman for Baltimore developer David S. Cordish said Thursday that Cordish plans to bid for Pimlico, Laurel, the Preakness and the Bowie Training Center, which Magna Entertainment Corp. has put up for sale. Magna, more than $553 million in debt when it declared bankruptcy on March 5, is accepting bids for its assets until July 8.

Orioles owner Peter G. Angelos also met with state officials last month to offer his help in ensuring the second jewel of racing’s Triple Crown stays here.

Senate President Miller: Buy Preakness, build track if Magna sells

LIZ FARMER
Daily Record Business Writer
March 17, 2009 8:05 PM

Maryland Senate President Thomas V. Mike Miller Jr. said Tuesday that the state should consider building a racetrack and buying the Preakness Stakes if Pimlico’s bankrupt owner is forced to sell it.

Alan Forman, general council for the Maryland Thoroughbred Horseman's Association, speaks to the Maryland Racing Commission during Tuesday’s meeting at Laurel. Commission Chairman John B. Franzone, left, and Commissioner Louis Ulman listen.But at a meeting of the Maryland Racing Commission later in the day, Maryland Jockey Club owner Tom Chukas said it is “business as usual” right now.

“The bottom line is Maryland live racing will continue, simulcasting will continue and Preakness will continue,” he said.

Chuckas noted that since parent company Magna Entertainment Corp. declared bankruptcy on March 5, the Jockey Club has received a $13.4 million loan to continue operations while the corporation reorganizes.

Miller, D-Calvert and Prince George’s, told reporters Tuesday morning that building a track and buying the Preakness, by far Pimlico Race Course’s biggest money-maker, would be “last ditch” options the state might have to consider to keep Preakness here.

Racing is important to Maryland, Miller added, pointing to stories about George Washington coming from Virginia to wager on horses in Annapolis.

Pepsi wants its products back from Magna

LIZ FARMER
Daily Record Business Writer
March 10, 2009 12:33 PM

With the owner of Laurel and Pimlico race tracks filing for bankruptcy, Pepsi is asking Magna Entertainment Corp. to return nearly $45,500-worth of product recently delivered to Maryland tracks and others across the country.

The Pepsi Bottling Group filed a notice in bankruptcy court Monday asking for the return of products it delivered to the company’s U.S. tracks in the 45 days before the Canadian-based company — North America’s biggest race track owner — filed for bankruptcy last Thursday.

According to the reclamation demand, Pepsi made eight deliveries to the Maryland Jockey Club, Laurel Park, Pimlico Racecourse and Bowie Training Center between Jan. 29 and Feb. 20 totaling $1,583.

A reclamation demand is the right of a vendor to reclaim goods sold to a financially insolvent buyer.

After bankruptcy filing, Magna to seek approval to sell all its assets

LIZ FARMER
Daily Record Business Writer
March 5, 2009 1:54 PM

The future of horse racing in Maryland lurched further toward uncertainty Thursday after the owner of Laurel Park and Pimlico Race Course filed for bankruptcy. Magna Entertainment, the company that owns Laurel and Pimlico racetracks, has filed for bankruptcy protection.

To raise cash, Magna Entertainment Corp. said it was selling its race tracks in Florida, California and Texas to its parent company, and would seek court approval to market its “other” assets — including Laurel and Pimlico — during the Chapter 11 process.

The prospect of Pimlico, home of the Preakness Stakes and the biggest racing day in Maryland, and Laurel Park being up for grabs to the highest bidder has state racing officials upset.

“The thing that concerns me is we don’t know who that could be, and someone could come in and ... run [races for] three weeks at Pimlico because the Preakness is a gold mine, then stay dark the rest of the year,” said John Franzone, chairman of the Maryland Racing Commission. “And that’s not acceptable by any means.”

Pimlico owner Magna's stock delisted

LIZ FARMER
Daily Record Business Writer
March 4, 2009 7:32 PM

On the day before many believe it will declare bankruptcy, the Canadian-based company that owns Laurel and Pimlico racetracks has notified the federal government its stock will be delisted from the Toronto Stock Exchange.

Magna owns racetracks in Maryland including Pimilico.Magna Entertainment Corp.’s stock, which opened at 30 cents a share on Wednesday, will be delisted on April 1. Following the news, shares fell more than 31 percent for the day, closing at 20 cents. Two years ago, the stock was worth $76 a share.

Magna received the delisting notice from the Toronto Stock Exchange Tuesday, two days before its payment on a $40 million loan to a Canadian bank is due — the first of three loans totaling $226 million due this month for the financially distressed company. After watching Magna accumulate more than $600 million in losses over the last six years, racing industry analysts and officials have said they expect the company to declare bankruptcy as early as Thursday.

Preakness promoters ban outside beverages

LIZ FARMER
Daily Record Business Writer
February 5, 2009 12:50 PM

The biggest change so far to this year’s Preakness doesn’t have anything to do with horses.

In an effort to change the image of the race’s wild and often unruly infield fan area, the Maryland Jockey Club announced Thursday that all outside beverages, including soda and water, will be banned from this year’s race.

Instead, the club is hoping new attractions, including Rock ‘n’ Roll Hall of Famers ZZ Top, will keep the area youthful and fun — and civilized.

The infield, which drew more than half of last year’s Preakness crowd of 112,222, will be the first stop of the Toyota Pro Beach East Volleyball Tour’s season, with a daylong women’s tournament ending before the Preakness Stakes.

And with the addition of music acts ZZ Top, Grammy-nominated Buckcherry and a third local band to be announced, Preakness promoters hope to still attract a young audience while maintaining more control over the infield.

“Change is inevitable,” said Tom Chuckas, president of the Maryland Jockey Club, which operates Pimlico Race Course. “For the past couple of years we’ve been looking at this ... the goal here is to make Preakness the best experience for everyone.”