Churchill threatens to close Fair Grounds

[Calhoun]

I spend a week or so most years in New Orleans in late winter or early spring. I go to the Fair Grounds a couple of time when I'm there. It's a very cool place.

Today I read Churchill Downs is threatening to close the Fair Grounds unless further welfare/gaming revenue is approved by the legislature.

Churchill claims they just can't cover costs otherwise. They've already killed Hollywood Park, Calder and Arlington.

As an aside, CDI made $423,000,000 in profit last year.


https://www.nola.com/news/business/nola-fair-grounds-race-track-owner-threatens-to-leave-state/article_8e63eba5-47c2-421e-be3d-307656030468.html

[Papillon]

what I found a bit humorous was the fact that Louisiana gave FG the dates when CDI didn't even apply

CDI makes a ton of cash on those historical racing machines and the state said that needs legislation--which means the state wants a payoff

https://www.drf.com/news/churchill-downs-opposes-number-dates-awarded-fair-grounds

doesn't look good for Fair Grounds

[The Answer]

They can run slot machines but not HHR machines not sure why they just wouldn’t switch.

[Bitter Truth]

They make way more on them and don't want to go back. Trying to bully and blackmail
their way back to them returning or receiving subsidies.

[Papillon]

They can run slot machines but not HHR machines not sure why they just wouldn’t switch.

CDI owns the company that makes the HHRs

they say racing loses money there

[Grandstand Handicapper]

You are never going to get transparency from CDI. Just won't happen. Forget anything they say and just watch what they do. I know a little something about the FG situation only because a few years ago a group expressed interest in buying the FG, had discussions with CDI, and I was offered an opportunity to invest and be a limited partner in the deal. I can't explain anything about the alleged "loss of revenue." How much their handle and OTB revenue has decreased since 2021, I have no idea. But, all this was fine until last week? Come on. In one week they know it's 46% of the OTB revenue and 74% of the OTB (EBITDA). Seems like typical posturing and leverage to me. Ironically the legislature is in session currently.

Ironically, the 25-26 race dates which were applied for by the HBPA, were approved-----the the FG didn't even apply. Louie Roussel, who spoke on behalf of Governor Landry said that CDI presented no evidence of any loss of funds, but did ask for a subsidy. Roussel said Bill Carstanjen, CEO of CDI, threatened to “padlock the track” if they didn’t get their way. That's not a surprise to me. CDI has long been a bully. Allegedly Gov. Landry has said there is no state subsidy for CDI.

Let's see what happens if the FG doesn't open/run the meet and the approved race dates----or if they try and prove financial/economic distress-----and if they get hit with fines.

[JT]

The article said they lose money from racing like Papillon said. I know real shocker right lol. Maybe Churchill is trying to recoup some money or raise money for their 1 billion dollar renovation of Churchill Downs, which I read recently that some of that has been put on hold temporarily.

[Papillon]

You are never going to get transparency from CDI. Just won't happen. Forget anything they say and just watch what they do. I know a little something about the FG situation only because a few years ago a group expressed interest in buying the FG, had discussions with CDI, and I was offered an opportunity to invest and be a limited partner in the deal. I can't explain anything about the alleged "loss of revenue." How much their handle and OTB revenue has decreased since 2021, I have no idea. But, all this was fine until last week? Come on. In one week they know it's 46% of the OTB revenue and 74% of the OTB (EBITDA). Seems like typical posturing and leverage to me. Ironically the legislature is in session currently.

Ironically, the 25-26 race dates which were applied for by the HBPA, were approved-----the the FG didn't even apply. Louie Roussel, who spoke on behalf of Governor Landry said that CDI presented no evidence of any loss of funds, but did ask for a subsidy. Roussel said Bill Carstanjen, CEO of CDI, threatened to “padlock the track” if they didn’t get their way. That's not a surprise to me. CDI has long been a bully. Allegedly Gov. Landry has said there is no state subsidy for CDI.

Let's see what happens if the FG doesn't open/run the meet and the approved race dates----or if they try and prove financial/economic distress-----and if they get hit with fines.

this sums it up

I am sure the video slots they have at the 13 OTBs in the state show a profit--but they are viewing as we could be making $xxx more if they allowed us historical racing machines, which we own.

as stated earlier--they are just playing the bully. The Rams are playing at Hollywood Park land and The Bears will be playing where Arlington was. I don't think Louisiana will give in-so CDI may just be looking to sell if they don't get their precious historical racing machines approved.

This will also help their growing horse population at Turfway Park if they are allowed to not race at FG.


 

[Grandstand Handicapper]

https://www.thoroughbreddailynews.com/report-cdi-threatens-to-pull-out-of-racing-at-fair-grounds-over-recent-court-ruling-on-slots/

Interesting.

[Papillon]

I posted this a few months ago

Churchill Downs-CDI-successfully closed Arlington and Calder--Fair Grounds is next

[Grandstand Handicapper]

Let's see if LA stands up to them. I hope so.

[Bitter Truth]

I hope they don't. Give them what they want. They have shown that they 'WILL'
close tracks and I love the Fairgrounds.

[Grandstand Handicapper]

I hope they do, and I have zero interest in the FG, LOL.

Giving anyone a chance to close, not run dates, or whatever, without accountability is simply wrong in my mind.

[Bitter Truth]

They're slippery. They didn't actually apply for dates, therefore I would think that would relieve
them of any obligation to fulfill them. Time will tell.

[Papillon]

They're slippery. They didn't actually apply for dates, therefore I would think that would relieve
them of any obligation to fulfill them. Time will tell.

perfectly said