Penn Central
Restructuring Magna Entertainment for a Prosperous Future
Magna Entertainment (MECAQ) is the largest owner of Horse racetracks in America. It also owns a wagering platform, XpressBet, Casino properties connected to its tracks and other horse racing related entities. Currently, the firm is operating under Chapter 11 bankruptcy. It’s founder and Chairman, Frank Stronach has promised aggressive action to fix its problems.
The horse racing industry, like many businesses, has suffered during this tough economic downturn. Firms with excessive debt have experienced extreme difficulties, Magna is no exception. The company had gone through an ambitious buying spree from 1999 through 2002. During this time period it purchased Golden Gate Fields (Albany, CA), Gulfstream Park (Hallandale Beach, CA), Thistledown (North Randall, OH), Portland Meadows (Portland, OR), Santa Anita Park (Arcadia, CA), Laurel Park (Laurel, MD), and Pimlico (Baltimore, MD) where the Preakness is held. Recently the firm sold Lone Star Park (Grand Prairie, TX) and Remington Park (Oklahoma City, OK) to the Chickasaw Nation. Now it appears, with its bankruptcy filing, the rest of these properties are on the auction block.
Laurel Park and Pimlico are expected to be auctioned off sometime in January 2010. Included in the package is also the Bowie Training Center in Baltimore, MD. Presently there are a number of bids for these prized facilities including from Penn Central Gaming. Penn Central owns a number of racetrack facilities, racinos and casinos around the country. What price these tracks fetch will help reduce Magna’s debt load. More needs to be done.
Magna should preserve its crown jewel, Gulfstream Park, in order to continue to be a viable and eventually prosperous entity. Additionally, it should maintain its Palm Meadows Training Center in Palm Beach County, Florida. Gulfstream is a wonderful property with additional development opportunities and a Casino. This should be the base upon which the revitalization of Magna can be built.
Santa Anita Park in Arcadia, California is one of the most beautiful racetracks in North America. It should also be preserved as part of the Magna entity when it emerges from bankruptcy. With both Gulfstream and Santa Anita remaining in the company’s portfolio it will be well on its way toward creating strong growth and income for its shareholders.
Additional properties that should be preserved under a newly reformulated Magna Entertainment would be:
- San Luis Rey Downs (San Diego, CA)—a thoroughbred training center.
- XpressBet—its online wagering platform.
- Steufex TM—a straw based bedding product with facilities in Austria and North Carolina.
All of these entities will add value to the company’s core assets, Gulfstream and Santa Anita.
All other racetracks should go on the auction block with the proceeds used to retire debt. Any other excess land should also be sold off as real estate conditions improve. It should make an aggressive move now to sell off all of its off-track betting (OTB) facilities connected to its tracks. The online experience is rapidly gaining popularity and unless an OTB has the appeal and appearance of a race-book like they have in Las Vegas, NV. The company should also dump its investments in other subsidiaries in a timely and profitable manner.
Magna Entertainment runs excellent operations in an efficient and profitable manner. They just got caught in the economic downdraft coupled with a decline in interest in horse racing. Add to that the tremendous debt load the company took on and the seeds of failure were sown. The entity can remain a vital operation by holding onto its prized possessions, Gulfstream Park and Santa Anita Park. With the prescriptions above Magna can have a prosperous future.
About the Author
Amateur handicapper that writes about horse racing. He provides insight to folks who seek to build a bigger bankroll on a blue collar budget.
Penn Central
 |
 N POSTAGE SAMP TRAIN SET MADE IN WEST GERMANY TRIX PENN CENTRAL  US $165.99
|
 N scale 137 2024 PENN CENTRAL GG1 4923 US $115.00
|
 N scale 137 2023PENN CENTRAL GG1 4885 US $115.00
|
 Kato N Scale GG1 Electric Locomotive Penn Central 4923 US $113.10
|
 Kato N Scale GG1 Electric Locomotive Penn Central 4885 US $113.10
|
 NEW KATO 137 2024 GG1 PENN CENTRAL 4923 US $106.87
|
 ATLAS 50841 N Scale GP7 PC 5633 Penn Central Engine Locomotive w DCC US $104.90
|
 N SCALE KATO PENN CENTRAL 4 CAR PRR ADD ON SET 1063521 US $100.00
|
 PENN CENTRAL AMTRAK Ph I SMOOTHSIDE PASSENGER CAR KATO 106 3521 N SCALE US $99.99
|
 KATO N GG1 Penn Central US $97.95
|
 Kato 1372023 N GG 1 PENN CENTRAL 4885 US $97.95
|
 Kato 1372024 N GG 1 PENN CENTRAL 4923 US $97.95
|
 Penn Central GP 35 US $97.95
|
 KATO N GG 1 PENN CENTRAL 4885 KAT1372023 US $97.95
|
 Kato N GG1 GG 1 Locomotive Penn Central Black 4885 DCC Ready 1372023 NEW US $97.29
|
 Kato N GG1 GG 1 Locomotive Penn Central PC Black 4923 DCC Ready 1372024 NEW US $97.29
|
 KATO 137 2024 N GG1 Penn Central 4923 US $95.88
|
 Kato N 137 2023 Penn Central Black 4885 GG 1 Electric Engine DCC Ready 1372023 US $90.24
|
 Kato N 137 2024 Penn Central Black 4923 GG 1 Electric Engine DCC Ready 1372024 US $90.24
|
 ATLAS N SCALE GP30 PENN CENTRAL 2230 w cars US $89.99
|
 NEW KATO 176 5343 EMD E8A PENN CENTRAL No 4285 US $80.15
|
 Penn Central GP 7 DCC ready US $79.95
|
 ATLAS 48296 N GP7 PC 5628 Penn Central Engine Loco US $77.90
|
 N SCALE EMD F7B PENN CENTRAL LOCOMOTIVE 4156 US $74.95
|
 Kato N 176 5343 EMD E8A Penn Central 4285 DCC Ready US $74.85
|
 NEW KATO N 106 3521 N Scale Penn Central 4 Car Passenger Set US $72.85
|
central penn. found grubs in fall heard about milky spore .will the grubs keep eating now?
weve noticed 2 areas but we have 2 acres is it neccesary to do whole yard.should we also put another chemical down now to stop them?
Grubs are everywhere...I wouldn't go out of my way to apply a chemical to the lawn unless it is an infestation.