Churchill Downs, CHDN, on the acquisition trail.
When I thought about Frank Stronach having bought San Anita, I looked into it a little and found out that he is in the process of setting up a company to buy horse-racing tracks. I'm still looking into that.
I also looked further into some other large companies involved in horse-racing, and found that there seems to be a trend towards smaller companies, or individual tracks, integrating into larger companies.
Churhill Downs, owns and operates their flagship, Churchill Downs, which runs the Kentucky Derby, a sporting event with one of the largest number of viewers (and wagers) in the world. In 1997, it was honored as the only racing company named to Forbes list of the "Top 200 Best Small Companies in America."
Churchill Downs is definitely on the acquisition trail. In their 10-K, recently filed with the SEC, they said:
"We have a $100 million line of credit, of which $89 million was available at December 31, 1998, to meet working capital and other short-term requirements and to provide funding for acquisitions scheduled to close in 1999. We are arranging a new $250 million line of credit which will replace the $100 million line of credit. We anticipate closing on the new line of credit during the second quarter of 1999."
A recent press release reported on their latest quarry:
[04/01/99] - Churchill Downs in Negotiations to Acquire Hollywood Park
In addition to Churchill Downs, the company also owns and operates Ellis Park Race Course in Henderson, Ky.; the Kentucky Horse Center in Lexington, Ky.; and the Sports Spectrum, a simulcast-wagering facility in Louisville. The Company operates and has a majority interest in Hoosier Park in Anderson, Ind., and simulcast-wagering facilities in Indianapolis, Merrillville and Fort Wayne, Ind. Churchill Downs holds a majority interest in Charlson Broadcast Technologies LLC, a simulcast graphic software and video services company for racetracks and simulcast-wagering facilities. Additionally, the Company has a minority interest in Kentucky Downs Race Course in Franklin, Ky.; Kentucky Off-Track Betting Inc., an alliance of Kentucky's racetracks that operates simulcast-wagering facilities in Maysville, Jamestown, Pineville and Corbin, Ky.; NASRIN Services LLC, a telecommunications company specializing in the simulcasting needs of racetracks; and EquiSource, a company that provides group purchasing services for the Thoroughbred industry.
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Through recent acquisitions and expansion, Churchill Downs demonstrates its determination to remain atop the horse racing market. In January of 1999, Churchill Downs became majority owner of the Charlson Broadcast Technologies LLC, a simulcast video services company for racetracks and simulcast-wagering facilities. In the same month, it acquired Calder Race Course in Miami, Florida, adding to the three racetrack the company already owns and operates.
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Finally, I remind you of the statement that Churchill Downs either is, or has just obtained a $250 million dollar line of credit for further acquisitions and expansion.
My only comment, is that Sungold, with it's capitalization of about $20 million, though that's growing daily, is probably considered prime fish food for the barracudas cruising around in these waters. The main purpose of the purchases that Churchill Downs is, and has made, seems to be not so much for the "gate", as it is to attain rights (and fees) for simulcast transmissions of the races, and the associated pari-mutuel wagering. Recall that Richmond Downs, as a new facility, will be outfitted with the most up-to-date simulcast facilities.
Here's a link where you can eventually find all the info. I posted here:
churchilldowns.com
oh yes, one more thing - I asked Kim about Frank Stronach, and his only comment was: "I can't talk about that." |
