Cordish Indiana trouble has little bearing on Maryland
As Hanah Cho reports in today's paper, a David Cordish project in Indiana -- managing the Indiana Live! casino for landlord Indianapolis Downs -- has hit a setback, as Indianapolis Downs tries to terminate or change the terms of Cordish's contract.
The racetrack is in miserable shape. Its debt is rated way into the junk category. Why it isn't already in bankruptcy proceedings is a bit of a mystery. But its casino seems to be running very well, spinning money for its owners at the high end of the industry scale, Cho reports. If there's any lesson for Maryland here, it's that casinos aren't a guaranteed savior for racetracks. (The Indianapolis Downs casino does, however, seem to have more competition than Cordish's casino planned for Arundel Mills would. And I assume the revenue-sharing terms are different than they are in Maryland.)
How Indianapolis Downs thinks it can terminate the Cordish deal without going into bankruptcy is unclear. As Jeffries analyst John Maxwell told Cho: "The question really becomes 'Are they legally allowed to terminate the management agreement?'"
Cordish's competence in running the Indiana casino doesn't seem to be in dispute. The company has a successful record running other facilities. There's no reason to believe Arundel Mills would be any different, whether you're for it or against it. The Indiana dispute seems to be a fight for the lawyers and a setback for Cordish, but not a reflection on Cordish's managment.







Comments
The sun is circling the wagons to protect Cordish. The article you cite Jay was more like a press release than journalism. When someone manages people, a casino, or a ship they are responcible for performance. If the casino is failing then management is responcible, period. The buck must stop somewhere.
Posted by: Anonymous | October 19, 2010 5:19 PM
I'm looking forward to visiting the casino at Arundel Mills once QA is passed in November. From what I've seen, Cordish is the one acting honorably during this campaign and has managed to bring in really big names (Bobby Flay) as well. I'm confused as to why, in this economy, the No Slots group seems so set on crushing a potentially vibrant and sustainable source of tax revenue.
Posted by: John Palmero | October 19, 2010 10:35 PM
I'm glad I don't buy the Sun newspaper anymore. I wish they would blatantly state that they support Cordish and are essentially and advertisment for Cordish without deceiving the public of being unbiased. Where did professional journalism go? Mr. Hancock should be embarrassed for writing such trash. I guess this is what happens when you have little respect for yourself. Hopefully, fewer people will buy the Sun and it will go out of business. At least Jay Hancock will have a job at Cordish's casino's.
Posted by: patrick stewart | October 20, 2010 7:18 AM
And Maybe you can have a job there, too, if you lose your job after you vote FOR Question A.
Posted by: Russ | October 20, 2010 10:58 AM
Hey pat it's a blog its a person statement
Just fyi if there is no slots arundel mills then the only place will be Hollywood. BECAUSE they own a part of the track so they can't open. Any slots there unless they change the law which wont happen I'm sorry you bought your house next to the mall. And don't want slots but if I buy house near BWI does that mean I can make them stop the planes
Posted by: Anonymous | October 20, 2010 12:14 PM
Everyone has an opinion on this matter I'm sure. So here is mine, the original bill for slots said a venue within 2 miles of rte. 295 with no clue about Arundel Mills.
The politicians and developers have been in and out of love more times than you can shake a stick at.
We, as residents of A.A. county are asked to believe the state will give over monies to education and public service.
There is no free speech or transparent truth to any of this proposed development and ppl. like Russ above, and others like him, must have a personal matter of gain in this venue ie: supervisor w/security or something like that since Mr. Diaz is a police w/the feds.
The residents of A.A. county will never see a dime towards education until Baltimore city and county get their cut first, and this money goes to the general fund first anyway. where will the money for widening roads etc. come from.Mr. Cordish' co. is supposed to put up 25 million per every 500 slots in construction costs, I have yet to see where it is stated that money is.
Posted by: Robert Mayhew | October 20, 2010 3:12 PM
hey Robert would you pay to build a house before you knew it was your no he is a bis. man he is not stupid why would he put out money beside the millions he had to pay for the slot permits which laurel didn't pay BTW
Posted by: Anonymous | October 20, 2010 5:15 PM
I tend to agree that the money will never get to it's intended purposes. It's a shell game. They will allocate slots money to this or that, but will reduce (or never increase) the original funding. It's like taking a drink of water directly from the glass vs using a straw. It's still coming from the same glass. The funding for education or police will never be that much more than it currently is. Or it will be a temporary thing to give folks the warm fuzzies. Then it will be re-directed.
As for where? They have been portraying slots patrons like they are a bunch of gangland thugs. We don't need "their kind" at Arundel Mills Mall. Geez, whenever I go the slots, the crowds are mostly over 65 who come and go on a bus trip. Sure, there will be some riff-raff. But you'd have the same thing if they put in a Walmart. In fact, I bet a Walmart would result in MORE traffic as well.
Arundel Mills can certainly handle the volume.
But again, this is the wrong argument. The state will be the only real winners. They will take the money and add a few more government programs. And when slots don't bring in projected revenues, we'll be on the hook to cover the budget deficit.
So, Arundel Mills.... or the Racetrack... I don't care anymore. It's a scam either way. We'll be screwed either way.
Posted by: Widget | October 20, 2010 6:47 PM
Indiana is struggling to pay for the debt required to pay the $250 mm upfront license fee required by the state. It has nothing to do with whether it is a racetrack or not.
Posted by: Matt | October 21, 2010 5:15 PM