The Stronach Group stepped up its apparent effort to get out of the horse-racing business.
John Cherwa of the Los Angeles Times reported that Stronach hired Keith Brackpool, a former executive with the company and chairman of the California Horse Racing Board, to explore the possible sale of the company’s 1/ST division and its Santa Anita and Gulfstream Park tracks.
Brackpool resurfaced last month when he told Florida horsemen about 1/ST’s desire to decouple its racing and slot-machine licenses. He said if the state legislature approved the split, Gulfstream Park would stay open until 2028. If, however, decoupling was not accomplished, Brackpool said the track could close at any time.
Two people with knowledge of the situation but not authorized to speak publicly told Cherwa that Brackpool met with at least one investor about the sale. Stronach Group has said Santa Anita is not for sale, according to the report, but the understanding is that if the track were sold, the buyer would continue racing there at least in the short term.
The sources told Cherwa that at least one prospective buyer thought the $2 billion asking price was too high. The track properties easily are worth more than $2 billion, but not if they continue to be used for racing.
Stronach Group did not confirm or deny the details but issued a statement saying that “racing in California is facing challenging economic circumstances. This is not an easy problem to solve. We are continuously thinking about solutions and in discussions with various stakeholders about the best way forward. Those discussions remain ongoing.”
Cherwa’s report breaks down the difficulties that face racing in California, including an inability to supplement purses with gaming subsidies and the implications of the end of racing in Northern California. And it noted that Stronach Group’s commitment to racing in South Florida also is in doubt as it seeks to decouple its slots casino from racing.
