Fort Erie Update
Interesting. OLG in Fort Erie has advertised for a Customer Relations Manager. It comes with a one year contract. I'm wondering if the contract is automatically terminated if there are no customers.
Nordic has until March 16th to announce whether or not there will be racing at Fort Erie in 2009. Their ability to run as a racetrack terminates March 31st if they state there will be no racing.
As stated previously on this blog, I can't see how the slots will be allowed to operate without live racing. It would be a terrible precedence where a track can say they lose money overall because of live racing. This opens the door to many tracks in Ontario to shut down their track operation and keep the profits made on slots.
So is the fact that a Customer Relations Manager is being sought a positive, do they expect live racing to continue? Or does this mean that the former CRM left the ship and the OLG is filling the position by law? Or does it mean that the OLG will keep slots going regardless of whether live racing in Fort Erie takes place?
Nordic would love it, if they just had slots. They would be making a profit.
Ongoing negotiations are still going on. It is approaching the 11th hour however. Nordic is impossible to deal with it seems. And the government hasn't helped because they've put Nordic in a power position by not announcing that slots would officially close without live racing.
Is Woodbine waiting in the lurk? Is it possible that they can come in and lease the business operation for at least 2009? Maybe Eugene Melnyk can come in and buy the place, and change the name to some street in the Bahamas.
Of course, the OLG can get racing to go for the foreseeable future by upping Fort Erie's take from the slot revenues.
Kentucky drops bills that would increase takeout.
Don't think for a second this move has nothing to do with HANA, and especially the top 20 racetrack list where Kentucky tracks received prominent ratings (thanks to their lower takeout rates compared to the rest of North America). Of course, Keeneland was number one. They put a quick 15 second promo on TVG up mentioning this:
Beyer article on Magna bankruptcy. Stronach might have had good intentions, but he was a terrible visionary. And now he left the racing industry in a carpet bombed state (my words, not his).
The Business of Horse Racing makes a good case to show that Stronach is still not letting go. Far from it. What the bankruptcy of Magna Entertainment really means.
For a lot more on the bankruptcy, go to Equidaily and scroll to around the middle of the page.
Ray Paulick has details on the creditors and also mentions that major MID shareholders aren't too happy with the go forward plans.
Business likely to struggle badly in a recession? Especially those involved in a dysfunctional industry to begin with aka horse racing.
Turfway cuts purses. Low field size, brought on by low purses to begin with, the likely culprit.