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Thoroughbred Times

Posted: Saturday, December 02, 2000

Interview: Frank Stronach; Independence personified

From the time he was a young teenager in his homeland of Austria, Frank Stronach always has possessed a clear idea of what he wanted to do. As World War II raged and he lived on cornmeal, Stronach knew he wanted to "end school as soon as possible" to "earn a little money and buy my own bike," he once told the Toronto Sun.

Then known as Franz Strohsack, the son of a dedicated local Communist Party leader, he bought his bike, and before turning 14, he began apprenticing in the tool-and-die trade, laying the groundwork for capitalist history once he immigrated to Canada in 1954.

Frank Stronach
Birthdate: September 6, 1932
Birthplace: Weiz, Austria
Family: Frieda (wife), Andy (son), Belinda (daughter)
Residences: Canada, Florida, Colorado, Kentucky, Switzerland, Austria
Horse farms: Adena Springs (divisions in Kentucky; Florida; Ontario, Canada)
Businesses: Magna International Inc., Magna Entertainment Corp. (a spinoff of main company, Magna International), Frank Stronach & Co. Company-owned racetracks: Santa Anita Park, Gulfstream Park, Thistledown, Remington Park, Golden Gate Fields, Great Lakes Downs, and racing license for Bay Meadows
Awards: Sovereign Award outstanding breeder (1984, 1997-'99), Sovereign Award outstanding owner (1993-'95, '97, '98, '99); Eclipse Award as outstanding owner (1998-'99), Ontario Lifetime Achievement Award
Grade 1 winners and/or champions: Alwuhush, Awesome Again, Basqueian, Canadian Factor, Collect the Cash, Glorious Song (in partnership with Nelson Bunker Hunt), Golden Missile, Hero's Love, Honky Tonk Tune, King Ruckus, Macho Uno, Mi Selecto, Perfect Sting, Red Bullet, Sintrillium, Tap to Music, Touch Gold (in partnership with Stonerside Stable), Wild Rush

After enduring hunger and unemployment that forced him to take a job washing dishes in a hospital kitchen, Stronach created a tool-and-die business in a Toronto garage, where he worked 15 hours a day and slept on a cot in a corner. From there, his intense drive for success led to the establishment of what is today Magna International Inc., the world's largest automotive-parts conglomerate, which employs about 60,000 people in 16 nations.

Stronach's rise to an unparalleled position of prominence in the Thoroughbred racing industry has been just as meteoric. From the time he bought a riding horse in 1962 and a $700 claimer at about the same time, he has poured his energy and wealth into the sport. He now operates divisions of his Adena Springs farms in Kentucky, Florida, and Ontario, and he has earned Eclipse and Sovereign Awards in the United States and Canada for the exploits of his racing stable.

In the past six months, his triumphs have included the Preakness Stakes (G1) with Red Bullet and the Breeders' Cup wins of probable champions Perfect Sting and Macho Uno.

In late 1998, he bought Santa Anita Park. Since then, Stronach, 68, has spun off Magna Entertainment Corp. from Magna International, and the new company owns six racetracks, the racing license of Bay Meadows Race Course, and is pursuing the purchase of several other tracks.

Despite his power, or perhaps because of it, Stronach now looms as the most controversial figure in racing. Blamed by many associated with the National Thoroughbred Racing Association (NTRA) for the announced defection of 22 of its racetrack members, including his seven tracks, Stronach is steadfast on his suggestion that the organization elect its board of directors based on democratic principles, develop a mandate for specific goals, and commit to free enterprise in racing.

Although the NTRA and its merger partner, Breeders' Cup Ltd., have threatened to punish nonmember tracks and forbid them from hosting the championship event, Stronach has said he is "ready to do my own thing." However, he stresses that he hopes an agreement can be reached. (After this interview was conducted, Stronach developed more detailed proposals-see page 24.)

In the meantime, he is actively planning for the future, which will include Magna establishing "super tracks" with entertainment centers.

Already, Magna has trademarked the name "Cirque de Cheval," which will be a Las Vegas-style show with horses that Magna plans to introduce at its major facilities such as Santa Anita and Gulfstream Park. The company also has filed for a trademark for "NASTRACK," designating a circuit among its largest North American tracks.

Saying his relationship with the NTRA has "been too distorted" by the news media, Stronach met with Thoroughbred Times Executive News Editor Michele MacDonald on November 8 to talk about the NTRA, his philosophies, and his future plans.

Thoroughbred Times: Why do you think you are you being blamed for the membership crisis within the NTRA?

Frank Stronach: "I've been always, I guess, somewhat outspoken. When I speak, I don't want to annoy anyone, but I have strong beliefs and, fortunately, I'm very independent and say what I feel. I love this industry, and I think I can make a great contribution, but I resent it when people say I'm turning my back on it. How can I turn my back if I invest more and more?"

TT: Did you have discussions with some of the Mid-Atlantic track owners and others regarding membership renewal in the NTRA?

Stronach: "Not really. Like we were annoyed, they were annoyed. I just said if the basic principles are not sound, I cannot be part of something. There was very little interfacing. They expressed themselves that they were very unhappy for different reasons. Of course, for me it isn't a question of whether you're happy-I can't be part of something if the ground rules are not okay.

"I stated very clearly that I think the ground rules are that any service organization's board of directors should be elected by its stakeholders, by democratic principles. Of course, we've got to talk about that-how the elections should be held. You've got to break it down so that different areas would elect a director-the breeders, or the owners, or the racetracks. That we can talk about. But in the final analysis, the directors must be elected."

TT: Do you feel as though you have not been listened to enough or that you do not have enough input as the board stands now?

Stronach: "It seems that, whatever I say, it's distorted. I think I speak very clearly, and have for the last two years. I can't be more clear.

"I said early in the fall last year, when we had the same go-round (over membership), that, as a sign of good faith, I would pay for another year of membership. But nothing happened. I'd be very happy if those things I've requested are addressed and if there are serious talks, to come back in at a later stage.

"We don't want to control; we just want to search for common ground-what can we do to foster and better the horse industry."

TT: Where do you think the NTRA has failed?

Stronach: "The NTRA has failed because perhaps it hasn't listened to its constituencies. It is run somewhat on a club-like basis. I think it is fine if you have a golf club or a tennis club. If you don't like one, you join another one until you find a club that you like. But this is a national organization, and there are so many aspects to it. The board must be elected.

"I've stated over and over I would like to be part of a national organization, but if the ground rules are not right, then I can't be."

TT: What do you mean when you say the NTRA should commit itself to free enterprise in racing?

Stronach: "When you analyze things, might it be your private life, or might it be the business you are involved in, when things don't function, you should know you have a problem. If you're too fat or you don't feel good, you know you have a problem. And problems won't just go away. Pro

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