Magna plays for stupid sympathy in Annapolis
Magna Entertainment, owner of Pimlico Race Course and Laurel Park, got out the Stradivarius Friday for Maryland officials by announcing it had defaulted on a loan secured by the racetracks. That Magna Entertainment is near bankruptcy is not news. That it announced its loan defaults to PNC Bank only a day after it pleaded in Anne Arundel County Circuit Court that its hilariously botched slots bid for Laurel be revived was no accident.
In more than an hour of impassioned monologue yesterday in Anne Arundel Circuit Court, [Magna lawyer Alan] Rifkin narrated a wide-ranging argument that suggested Maryland bureaucrats might be committing a "felony" if they were to refund fees, and he implored Judge William C. Mulford II to prevent "enormous harm" to Maryland horse racing by preserving Laurel's chances for slots.
Rifkin's rif was the overture. Magna's default announcement was the first movement. This symphony has a long way to go. Nothing any judge or slots commission can do can match the enormous harm already done to Maryland horse racing by Magna. Just file for Chapter 11, sell yourself to Churchill Downs and get it over with.
Comments
I think you need to add in Joe De Francis when placing blame. Both are/were horribly negligent in managing the race tracks. All Joe wanted was for the state to allow slots so he could become even wealthier.
I've never understood why racing should be the winner in slots. If it can't exist on its own then let it die.
Posted by: rich | March 2, 2009 12:44 PM
I get the feeling that were Magna to be sold to Churchill Downs Inc., the resulting monopoly would be far worse for racing than Magna has been. At present, at least tracks are effectively free to compete with one another.
If Churchill becomes the big dog, then all the little puppies will have to play their way or hit the highway with unfavorable simulcast scenarios.
Picture the TVG horse racing network's limited coverage made even worse.
Posted by: Jimmy | March 2, 2009 4:10 PM
Jay, do you know if the DeFrancis slots profits deal would survive Chapter 11? If that part of the deal cannot be broken, the value of the tracks is significantly impaired.
Posted by: Aaron Meisner | March 2, 2009 9:36 PM
Nothing like calling a business stupid to make the Maryland government feel so much better about itself. Pennsylvania and Delaware approve slots and their horse racing industry explodes. Maryland takes years to approve slots, then doesn't even strike a deal that will work for its racetracks.
No one believes Magna is the best run company in the world. Then again neither were the Irsay Colts. If the goal was to drive horse racing out of Maryland...along with the Preakness...we're only a few short months away from the last Preakness to be run in Baltimore.
Good thing we don't have to blame ourseleves and we can point to Manga. Sounds kind of like what we did with the Irsays.
Posted by: Furzyweb | March 3, 2009 10:18 AM
"the last Preakness to be run in Baltimore"
Seriously, who cares?
Posted by: Anonymous | March 3, 2009 3:07 PM
If we are going to have slots in this area, it seems to me it would be better to have them at the Laurel Racecourse than elsewhere. It is already set up for crowds (of gamblers) and there wouldn't be the sudden impact of placing a slots facility in a new location.
Posted by: Dave | May 15, 2009 12:15 AM