Magna machinations: Frank's new trick
 

A remarkable few days for those that enjoy the Magna sideshow with Stronach yet again finding a way to wrangle money (another $40 million) out of his auto parts business. David Einhorn (Greenlight Capital) screaming again about the outrageous tactics and brazen behavior of Stronach.. Below find 4 pieces that will help you understand the sad and bizarre failure Magna Entertainment is.

To understand the players:

A.) Magna Entertainment Corp (MEC): Stronach Racing-related business

B.) Magna Development Inc (MDI): Holding company created by Frank to lend money to MEC and manage real estate/lease property to Magna Industries entities. The entity Greenlight invested in and complains is failing to provide value to shareholders by fatuously pandering to failed MEC needs.

C.) Magna Industries (MI): Original, highly successful and financially stable Stronach auto parts business.


GLOBE & MAIL STORY ON PROPOSED DEAL:
http://www.theglobeandmail.com/servl...Story/Business


MAGNA PRESS RELEASE ON THE DEAL:
http://www.shareholder.com/MID/NEWS/20080331-302190.pdf


GREENLIGHT CAPITAL PRESS RELEASE OBJECTING TO DEAL:
http://money.aol.com/news/articles/_...02084709990013


NATIONAL POST STORY GIVING BACKGROUND ON MI EXECS DISPLEASURE WITH MEC:
http://www.financialpost.com/story.html?id=415244

Dude is a Class A Scumbag. I have no idea when Greenlight bought their shares, but they obviously didn't know who they were dealing with when they did.

I love how he can use Super-Voting Shares to overturn a 92% vote.

I can only hope that the money infusion into MEC will make things better for their racetrack holdings, but I doubt it. Not as long as this clown is holding the puppet strings of the decision makers at MEC.

Just before Magna bought MJC, I had a friend who vehemently opposed the sale to the point he would stand in the clubhouse at Laurel whenever Joe was walking around and raise his voice in protest. I always told him what an ass he was being and that ANYTHING was better than Joe DeFrancis owning MJC.

Looks like I was wrong....

At some point the constant infusion of money to Magna will come to an end, the question then become who will take over the tracks that are still left?

People Who Live In Glass Houses Should Not Throw Stones ( don't criticize other people when you yourself have faults and weaknesses ... )

NYRA No Bid Contracts, plus every bit of other BS they have been involved in over the past few years.

One of the biggest supporters of NYRA getting the bid to run NY racing is the head of this forum board.

I believe the correct word is "Chutzpah"

I thought the guy with the biggest EGO in NY sports history was Denis Potvin. I now think we have a horse race.

Are you serious?

April Fools Day was Tuesday.

[quote=theiman]People Who Live In Glass Houses Should Not Throw Stones ( don't criticize other people when you yourself have faults and weaknesses ... )

Perhaps you should heed your own advise..... instead of starting up this nonsense again.

:rolleyes:



I laughed..

Denis Potvin?!? Figures a presumed Ranger fan would come up with this drivel.

[quote=3kings]So it applies to me and not the board owner when he comes out all the time and knocking the other owners of tracks?

The Kool-Aid crowd makes me laugh too.

Magna has singlehandedly ruined Gulfstream Park and is the process of burying racing in Maryland. Mr. Stronach basically has a set up where his vote supercedes the will of the shareholders and funnels money to failing MEC.
NYRA, despite a conspiracy between the former Governor, state lottery division and a broken racing model continues to put out the best year round product out there. If this is Kool Aid, make mine cherry.

I want some...

[quote=theiman]As to MEC, I gave links to all the viewpoints on Frank's latest shenanigans. People can read the news stories, the MEC and Greenlight press releases and decide flor themselves. Stronach has operated in a foolhardy and spendthrift manner answering to no one and ignoring the advice of scores of advisors. He is threatening the long term viability of Gulfstream and Santa Anita specifically in doing so and has singlehandedly destroyed racing in South Florida. Many notable strings will NOT return to the area next year because of the poor condition books and pathetic purses and idiotic new track configuration that deters the development of 3 year olds.

As to your other churlish and trollish comments, when do I 'come out all the time and knock the other owners of tracks'? Find all the examples... I'm eager to see them... Secondly.. It does happen to be my website, and I will express whatever views I care to.... No one is obligated to agree with me on anything.

What's your point already? Don't like our community here... leave. It's obvious what you're all about.

By the way... Funny that as someone 'attacking owners of other tracks' I had Ron Charles of MEC-owned Santa Anita on "At the Races with Steve Byk" (M-F, 4-7pm, Sirius 126) repeatedly to help stem the negative publicity of the CushionTrack difficulties and defended SA's position in the situation endlessly.

Funny that as someone 'attacking owners of other tracks' I traveled to MEC-owned Remington to broadcast "At the Races with Steve Byk" (M-F, 4-7pm, Sirius 126) and have endlessly plugged what a great facility it is and what an asset Scott Wells is to Magna and the racing industry.

Funny that as someone 'attacking owners of other tracks' I had Lou Raffetto of the MEC-owned Maryland Jockey Club on "At the Races with Steve Byk" (M-F, 4-7pm, Sirius 126) repeatedly whenever he needed to try to offset negative publicity associated with Magna's mismanagement of Laurel and Pimlico.

Want some more examples... friendo?

The Del Mar forum is full of sissies and trolls.

Where is BTW?

;)

[quote=theiman]

I prefer Frank's Energy drink.

If I was given full control of Gulfstream, that place would be turned around in one year, at least from the racing side.

First thing would be to install another finish line for 8.5f races.

2nd thing would be to not allow cheap crap (10k) on the lawn

3rd thing would be to abolish FL BRED RACES

4th thing would be to install an actual FINISH LINE on the turf course, instead of a f'n colored rail that no one can see

FRANK, yOU LISTENING? I AM AVAILABLE AT A COST..

You cant abolish FL bred races they are important for FL breeders and owners!!


You're Fired!!

Why would you need another finish line installed?

Laurel is now running 8.5f races and the tracks (Lau & Gulf) are the same distance, aren't they?

i think franks horses are drinking his energy drink because stronach and brian lynch have teamed up to win just about everything they enter in lately, other than that i agree they cant do a damn thing right ive seen hot dog stands run much better

:o

Arlington has the same configuration as Gulfstream, and Arlington had the same issue, so they did what both Keeneland and Fairgrounds was already doing, and installed an alternate finish line. Simple solution and it gave the Arlington racing secretary alot more options as far as races.....It used to be 6f, 8f one turn, 9f, and that was it for the dirt. Now they have 6f, 8f one turn, 8.5f two turn, 9f, and they actually added 7f last year.

It is pretty hilarious actually in that when they are running to the alternate finish line, Arlington puts up this HUGE stop sign at the finish line that says this is where you are suppose to end. Everytime I see it, I crack up....

I'll bet Desormeaux could still screw it up.

There are 5 major institutional inverstors in Magna Dev. Their percantages of total Mag Dev stock range from 14% to 8%. Greenlight owns 10%.

How come the other major sh holders aren't barking as well?

According to Magna's response today, Greenlight has been been "attampting to impose its views" since 2003, when Magna Dev spun off.

You have to ask why Greenlight has stuck it out so long, as Stronach has been feeding money into MEC for years? It's interesting that the initial stock price was about $18/sh and as recently as 10 months ago traded as high as $39/sh. so, over those 4 years ending 10 months ago, Einhorn's initial $80 million turned into $190 million.

That's not bad. But, the stock has been beat hard the last 10 months and that $190M is now $130M. Maybe that's what's got Einhorn especially po'd?

The second most interesting fact is that the five biggest inverstors Magna Dev holdings represent the following percentages of their OWN firm's portfolios:
0.8%, 0.9%, 1,7%, 1.7% and 5.0%.

The 5.0% is Greenlight. Einhorn certainly does have a lot of his eggs stamped Magna.

The most interesting fact is that upon news of the proposed restructuring, Magna Dev stock rose 16% in a day which addded just under $200,000,000 in value to the company's stock.

SOMEBODY liked the reorg plan.

Tampa Bay Downs doesn't go below 16k claimers on the grass.

Bruce..

Thanks for your imput here.. I know you have a real grasp of the financial market side of this, and the details of that aspect are not easy to grasp. Einhorn was on ATR last month and couldn't really expand too much on the pending court case, but his frustration with MI and MDC catering to MEC was palpable. I have no idea how Stronach plans to straighten things out at MEC. There just isn't any coherent direction..

tommy boy part dux