NEWS
Maryland Jockey Club properties attract interest
Posted: Thursday, April 02, 2009 1:02 PM
by Frank Angst
At least two groups with Maryland ties plan to bid on Maryland Jockey Club properties once a Delaware bankruptcy court determines how the sale will proceed.
Maryland Jockey Club owner Magna Entertainment Corp. filed for Chapter 11 on March 5 in United States Bankruptcy Court for the District of Delaware. The court had scheduled a Friday hearing on the best approach to sell the company’s assets, but in documents filed Wednesday, the court said that it would likely reschedule those discussions.
The Baltimore Sun reports that Cordish Cos. is interested in purchasing the Maryland Jockey Club, which includes Pimlico Race Course, Laurel Park, the Preakness Stakes (G1), Bowie Training Center, and an off-track betting parlor. Baltimore developer David Cordish’s company is pursuing a license to operate slot machines in Anne Arundel County at a mall and entertainment complex.
Heritage Racing, an interested party in the bankruptcy that has filed an objection to Magna’s proposed bidding procedures, also will bid on the Maryland Jockey Club. In its objection, Heritage contends it is unclear if the Preakness Stakes and Bowie Training Center are included as part of the sale of assets.
The Sun has reported that Baltimore Orioles owner Peter Angelos met with Maryland Governor Martin O’Malley and state Senate President Thomas V. Mike Miller (D-Prince George’s) to discuss ways to keep the Preakness at Pimlico.
Joe De Francis, who sold majority ownership of Pimlico and Laurel to Magna in 2002, has not ruled out bidding on the tracks. Magna’s parent company, MI Developments Inc., also is expected to bid. Churchill Downs Inc. has partnered with Magna in ventures like racing signal marketer TrackNet Media and HorseRacing TV and is already a creditor in the bankruptcy. Ownership of both the Kentucky Derby (G1) and Preakness Stakes (G1) could prove attractive.
Cordish has previously told the Sun that Pimlico and Laurel would be attractive for redevelopment. In an April 2 story, Cordish said even if he acquired the slot machine license for Laurel Park, he would place the machines at the mall and entertainment complex.
Under Magna’s proposal, the Maryland Jockey Club sale would not be finalized until this fall at the earliest. Creditor PNC Bank has requested an auction be conducted in the coming weeks, believing the May 16 Preakness, which generated more than $73-million in handle last year, would be attractive to potential buyers.
Breaking the Preakness out from the other Maryland Jockey Club properties could produce more value for Magna creditors and open the possibility of moving the classic. The state of Maryland has filed motions contending under Maryland law it has the right to match any offers made on the Preakness.
Maryland Jockey Club President Tom Chuckas has said every effort will be made to keep the Preakness at Pimlico.
Frank Angst is senior staff writer of THOROUGHBRED TIMES
