SUN ON MAGNA: Autocracy; Misplaced risks

[Kasept]

Big Baltimore Sun Sunday report profiling machinations of Stronach and growing reality of impending collapse...

http://www.baltimoresun.com/business...ll=bal-all-nav

[ninetoone]

I think one of those Horse Wizard machines would be a good contest prize for the next DT contest...you could probably get one for a song these days...

[Cannon Shell]

Originally Posted by ninetoone

I think one of those Horse Wizard machines would be a good contest prize for the next DT contest...you could probably get one for a song these days...

I called Frank and he said he would see one to us for $11.3 million each. He figures if he can sell them for that much he can breakeven on the whole experiment.

[phystech]

Even thoguh the Horse Wizard was a complete flop and they shut down access to the machines, they still sit in the room Magna renovated to house them at Laurel. It is a beautiful room. It has LCD/plasma tvs that are large and easy to see. Are we allowed to use that room to watch and wager on the races? No!

It just sits there, as it has for over 2 years now, collecting dust while we watch the crappy tv's out in the clubhouse or grandstand.

Maybe they can renovate the bathrooms next and then suggest to us we go crap outside next to the railroad tracks.....

[blackthroatedwind]

It's an interesting article ( I tried to post it last night but I couldn't get the link to work ). A few things struck me, beyond the completely obvious, one being that they don't mention specifically one of the problems. Stronach paid way too much for all these properties, which is specifically why they were pretty much immediately worth less than he paid for them, and of course one of the big reasons Magna Entertainment got in financial trouble. $130 Million for the two Maryland racing properties? If memory serves me right the general consensus had them worth $30 to, maybe, $40 million at the time of purchase. The other point the article brings up a few times is that, supposedly, Stronach didn't have anyone to tell him that some of his ideas, big ideas, were wrong. I'm not sure that's the way many would put it. I think he had people who told him those things.....but he fired them.

He has done some good things in Maryland. The new racing surfaces at Laurel are great. The dining rooms at both Laurel and Pimlico have been upgraded substantially. The bar area on the third floor at Laurel, by the dining room, is great. Unfortunately, the bizarre choices in South Florida have overshadowed that dramatically. While building a smaller plant is, in and of itself, a good idea, what was eventually created is a disasterous maze of confusion and confinement.

[ninetoone]

Stop the press, Magna's up 10%...oops, that's only 8 cents.

[phystech]

Originally Posted by blackthroatedwind

Stronach paid way too much for all these properties, which is specifically why they were pretty much immediately worth less than he paid for them, and of course one of the big reasons Magna Entertainment got in financial trouble. $130 Million for the two Maryland racing properties?

Note - minor nit-pick here - Magna bought three properties from MJC. Laurel, Pimlico and Bowie Training Center.

Originally Posted by blackthroatedwind

He has done some good things in Maryland. The new racing surfaces at Laurel are great. The dining rooms at both Laurel and Pimlico have been upgraded substantially. The bar area on the third floor at Laurel, by the dining room, is great.

The old dirt track at Laurel was fine so there's no upgrade there. Changing the track circumference removed the 8.5f races - you either get 1 turn miles or 9f's now. Eliminating the 8.5f race was a major downgrade, IMO.

The turf course at Laurel was a major, major outstanding improvement - now they need to run their meet when they can take full advantage of that wonderful tuirf course. Doesn't do you much good to have a fantastic grass racing strip in Dec, Jan, Feb and most of March - and that's almost half of the meet.

In the last 11 years, I can't say I've seen much change in either dining room at either facility but if you feel they have been upgraded, I'll take your word - to each his own. I do agree that the bar area near the dining room is a major improvement.

Now, if they could just get rid of the mudcraters in the horseman's parking lot....

[docicu3]

Originally Posted by blackthroatedwind

It's an interesting article ( I tried to post it last night but I couldn't get the link to work ). A few things struck me, beyond the completely obvious, one being that they don't mention specifically one of the problems. Stronach paid way too much for all these properties, which is specifically why they were pretty much immediately worth less than he paid for them, and of course one of the big reasons Magna Entertainment got in financial trouble. $130 Million for the two Maryland racing properties? If memory serves me right the general consensus had them worth $30 to, maybe, $40 million at the time of purchase. The other point the article brings up a few times is that, supposedly, Stronach didn't have anyone to tell him that some of his ideas, big ideas, were wrong. I'm not sure that's the way many would put it. I think he had people who told him those things.....but he fired them.

He has done some good things in Maryland. The new racing surfaces at Laurel are great. The dining rooms at both Laurel and Pimlico have been upgraded substantially. The bar area on the third floor at Laurel, by the dining room, is great. Unfortunately, the bizarre choices in South Florida have overshadowed that dramatically. While building a smaller plant is, in and of itself, a good idea, what was eventually created is a disasterous maze of confusion and confinement.

Andy with the exception of the day you were there Laurel Race Track has no fans......YES NO RACING FANS in the seats or the dining area to enjoy these amenities.....simulcasting is everything at Laurel in terms of betting. The track is completely dead with less than 100 fans in the stands most days so renovations are completely unused except for Staurdays of big racing days.

[docicu3]

Originally Posted by blackthroatedwind

It's an interesting article ( I tried to post it last night but I couldn't get the link to work ). A few things struck me, beyond the completely obvious, one being that they don't mention specifically one of the problems. Stronach paid way too much for all these properties, which is specifically why they were pretty much immediately worth less than he paid for them, and of course one of the big reasons Magna Entertainment got in financial trouble. $130 Million for the two Maryland racing properties? If memory serves me right the general consensus had them worth $30 to, maybe, $40 million at the time of purchase. The other point the article brings up a few times is that, supposedly, Stronach didn't have anyone to tell him that some of his ideas, big ideas, were wrong. I'm not sure that's the way many would put it. I think he had people who told him those things.....but he fired them.

He has done some good things in Maryland. The new racing surfaces at Laurel are great. The dining rooms at both Laurel and Pimlico have been upgraded substantially. The bar area on the third floor at Laurel, by the dining room, is great. Unfortunately, the bizarre choices in South Florida have overshadowed that dramatically. While building a smaller plant is, in and of itself, a good idea, what was eventually created is a disasterous maze of confusion and confinement.

Andy with the exception of the day you were there Laurel Race Track has no fans......YES NO RACING FANS in the seats or the dining area to enjoy these amenities.....simulcasting is everything at Laurel in terms of betting. The track is completely dead with less than 100 fans in the stands most days so renovations are completely unused except for Staurdays of big racing days.