The Stronach Group, a major player in the horse racing industry, has recently made headlines by exploring the sale of its 1/ST tracks, including famous locations like Santa Anita and Gulfstream Park. This move is seen as part of the company’s larger effort to step back from the horse racing business. But why is this happening, and what does it mean for the future of racing at these iconic tracks? Let’s dive into the details.
Who is Leading the Sale Effort?
To help explore the possible sale of 1/ST tracks, Stronach Group has hired Keith Brackpool, a former executive with the company and the former chairman of the California Horse Racing Board. Brackpool has been tasked with talking to potential buyers about the sale. This decision is part of the Stronach Group’s larger plan to step away from the horse racing business.
What is the Situation at Gulfstream Park and Santa Anita?
According to a report by John Cherwa from the Los Angeles Times, Stronach has made it clear that Santa Anita is not for sale, but discussions about selling Gulfstream Park are ongoing. The main issue lies in the economics of racing in California and Florida. At Gulfstream Park, there have been discussions about decoupling the track’s racing and slot machine licenses. If the Florida legislature agrees to this split, the track could remain open until 2028. However, without approval, Gulfstream Park might close much sooner.
The Price Tag: Is It Too High?
The Stronach Group is asking for $2 billion for its 1/ST properties, but potential buyers have raised concerns about the price. While the tracks themselves may be worth more than $2 billion, the value drops significantly if they continue to be used for racing. This is a big factor in the ongoing talks about selling the tracks.
What Are the Challenges Facing Horse Racing in California?
Horse racing in California is struggling, and the Stronach Group is looking for ways to fix these issues. One of the main challenges is the inability to use gaming subsidies to help boost race purses. Additionally, with racing in Northern California winding down, the situation is becoming even more difficult. The Stronach Group is continuing discussions with various stakeholders to figure out the best way forward for the future of racing in California and beyond.
Is the Future of Racing in South Florida in Doubt?
In addition to the troubles in California, the Stronach Group’s commitment to racing in South Florida is also uncertain. The company is looking into separating its slot machine casino from its racing operations at Gulfstream Park. This change could have major implications for the future of horse racing in the region.
What Happens Next?
For now, the Stronach Group is still exploring its options. While they have not confirmed any specific plans, they are working hard to find solutions for the challenges that horse racing faces, especially in California and Florida. The next steps will depend on whether they can find a buyer willing to pay the asking price and whether state regulations, like the decoupling of racing and slot licenses, allow them to continue racing operations at their tracks.
The sale of the 1/ST tracks could mark a major turning point for horse racing, especially in places like Santa Anita and Gulfstream Park. The Stronach Group’s decision to hire Keith Brackpool is a clear sign that they are serious about stepping back from racing. While the outcome is still uncertain, it’s clear that the industry faces tough economic challenges. The future of horse racing, especially in California and Florida, may look very different in the years to come.
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