MAGNA Entertainment Corp worth peanuts

[zinn21]

Magna's quick exit from their "Stalking Bid" speaks volumes on why they ended up BK. Decisions made out of arrogance, ignorance or little regard of the big picture. What were they thinking when they built a non user friendly Gulfstream grandstand? What were they thinking purchasing track after track while piling up tremendous debt? What were they thinking when they bought Dixon Ca. property in order to build a racetrack to town folks not interested?

[docjocoy]

What would have happened to all these tracks had Stronach not bought them all and now jeopardized them? He has always come off to me as extremely arrogant, his way or no way. Santa Anita is caught up in the bankruptcy and to me would have been better off had he never bought it. (The thought of condos replacing the downhill turf course is so repugnant). But I don't know about some of the other tracks that are caught up in this. Would they have gone under even if he had not bought them? Will some of these tracks be purchased by people that want to keep the facilities as racetracks or has Stronach assured us of more malls?

[st. louis kid]

Ego is a destructive thing. In a perfect world Stronach would be banned from ever running a race horse again for what he did to Gulfstream Park. Hey, bring out some more dancing girls Frank, you idiot.

[Bunty Lawless]

What would have happened to all these tracks had Stronach not bought them all and now jeopardized them? He has always come off to me as extremely arrogant, his way or no way. Santa Anita is caught up in the bankruptcy and to me would have been better off had he never bought it. (The thought of condos replacing the downhill turf course is so repugnant). But I don't know about some of the other tracks that are caught up in this. Would they have gone under even if he had not bought them? Will some of these tracks be purchased by people that want to keep the facilities as racetracks or has Stronach assured us of more malls?

Do you seriously think this economy would support another mall, when the next foreclosure wave is in the commercial office buildings and the malls?

In the entire economic scheme of things, this is just another correction of false wealth that created this whole mess.

[Bunty Lawless]

Magna's quick exit from their "Stalking Bid" speaks volumes on why they ended up BK. Decisions made out of arrogance, ignorance or little regard of the big picture. What were they thinking when they built a non user friendly Gulfstream grandstand? What were they thinking purchasing track after track while piling up tremendous debt? What were they thinking when they bought Dixon Ca. property in order to build a racetrack to town folks not interested?

In this economy, Dixon would be smart to reconsider what it would mean to their town to have a racetrack there.

Maybe Stronach saw the future of CA racing in his attempt to build a track at Dixon. Anyone here have half the money that Stronach has or gained through business? It's kind of interesting to watch those that have never stood in another's shoes, judge as if they had.

Stronach's let me be everywhere and control everything all at once approach kind of reminds me of our new President. Hmmm?

[docjocoy]

What would have happened to all these tracks had Stronach not bought them all and now jeopardized them? He has always come off to me as extremely arrogant, his way or no way. Santa Anita is caught up in the bankruptcy and to me would have been better off had he never bought it. (The thought of condos replacing the downhill turf course is so repugnant). But I don't know about some of the other tracks that are caught up in this. Would they have gone under even if he had not bought them? Will some of these tracks be purchased by people that want to keep the facilities as racetracks or has Stronach assured us of more malls?

Do you seriously think this economy would support another mall, when the next foreclosure wave is in the commercial office buildings and the malls?

In the entire economic scheme of things, this is just another correction of false wealth that created this whole mess.

Of course I don't think they will put up a mall. I didn't think I would be taken literally. My point only was that if Stronach hadn't bought these tracks in the first place would some of them be in bankrupcy anyway? I was assuming not, but that was why I asked the question.

[Bunty Lawless]

What would have happened to all these tracks had Stronach not bought them all and now jeopardized them? He has always come off to me as extremely arrogant, his way or no way. Santa Anita is caught up in the bankruptcy and to me would have been better off had he never bought it. (The thought of condos replacing the downhill turf course is so repugnant). But I don't know about some of the other tracks that are caught up in this. Would they have gone under even if he had not bought them? Will some of these tracks be purchased by people that want to keep the facilities as racetracks or has Stronach assured us of more malls?

Do you seriously think this economy would support another mall, when the next foreclosure wave is in the commercial office buildings and the malls?

In the entire economic scheme of things, this is just another correction of false wealth that created this whole mess.

Of course I don't think they will put up a mall. I didn't think I would be taken literally. My point only was that if Stronach hadn't bought these tracks in the first place would some of them be in bankrupcy anyway? I was assuming not, but that was why I asked the question.

They were for sale. Stronach bought them. No one else offered a better price.

Let's look at other tracks, not owned by Stronach: Hollywood Park, in the last two decades has been through 4 different owners. It will be closing soon. NYRA has been struggling for years. WA racing has been shutting down, track by track. Don't forget California racing also has to compete with a very one-sided gambling pact with the indian tribes. Just where is racing doing well in this country? What tracks are doing well in Florida? Did Stronach shut down Hialeah?

I think people sometimes cannot separate their dislike for personalities from the realities of the real world.

[docjocoy]

Personalities have nothing to do with it, much as I don't care for Stronachs. He bought the tracks and then mismanaged the company. He as well as the rest of the world is caught up in the over-leveraging of real estate. What I was asking (again) was are there racetrack properties that will go under because of him, or would they have become nonviable anyway.

[zinn21]

Bunty wrote:

Let's look at other tracks, not owned by Stronach: Hollywood Park, in the last two decades has been through 4 different owners. It will be closing soon. NYRA has been struggling for years. WA racing has been shutting down, track by track. Don't forget California racing also has to compete with a very one-sided gambling pact with the indian tribes. Just where is racing doing well in this country? What tracks are doing well in Florida? Did Stronach shut down Hialeah?

Points well taken. But my problem with Magna was their decision making or lack thereof. It doesn't look like they thought out anything. I can only conclude that either Stronach was calling all the shots or his management team was incompetent. Based on the revolving door his management team was, it appears Frank was calling most of the shots.

His attempted stalking bid sort of put the cherry on the top for me. What was he thinking? That creditors were going to lay down quietly while he re acquired his racetracks for pennies on the dollar?

[Bunty Lawless]

Personalities have nothing to do with it, much as I don't care for Stronachs. He bought the tracks and then mismanaged the company. He as well as the rest of the world is caught up in the over-leveraging of real estate. What I was asking (again) was are there racetrack properties that will go under because of him, or would they have become nonviable anyway.

You are asking people to engage in total speculation, which can never be proven or disproven.

The whole real estate and banking industry was mismanaged and helped along by everyone wanting to be rich OVERNIGHT!

[Bunty Lawless]

Bunty wrote:

Let's look at other tracks, not owned by Stronach: Hollywood Park, in the last two decades has been through 4 different owners. It will be closing soon. NYRA has been struggling for years. WA racing has been shutting down, track by track. Don't forget California racing also has to compete with a very one-sided gambling pact with the indian tribes. Just where is racing doing well in this country? What tracks are doing well in Florida? Did Stronach shut down Hialeah?

Points well taken. But my problem with Magna was their decision making or lack thereof. It doesn't look like they thought out anything. I can only conclude that either Stronach was calling all the shots or his management team was incompetent. Based on the revolving door his management team was, it appears Frank was calling most of the shots.

His attempted stalking bid sort of put the cherry on the top for me. What was he thinking? That creditors were going to lay down quietly while he re acquired his racetracks for pennies on the dollar?

Point me in the direction of a company that hasn't been mismanaged of late. I think he's known to be "cheap" and that is why the revolving door.

As for creditors laying down quietly, it was a 50/50 wager. In this economy, they (the lender) would be better off restructuring the loan, IMO, and giving him "x" time to clean it all up. Stronach was betting that California would get slots. He put it all on "Lucky 13" and he crapped out. Smart ones, like R.D. Hubbard got out and went to a more racing-friendly place.

It's been going on for years. Nobody is ever really happy with management, but people are taking out the whole California business-unfriendly, racing-undriendly and now super tax-unfriendly situation on Stronach's managing skills. People with real money won't likely invest in California. They are all leaving.

Let's make it simple: If it was so easy to make a profit and run a successful racetrack, where are all the buyers? Personally, I think they should turn Los AL into a real race track and be done with it.

Maybe the Chinese or the Arabs will buy it. They are the only ones left with any real money.

[Joltman]

[/quote]

As for creditors laying down quietly, it was a 50/50 wager. In this economy, they (the lender) would be better off restructuring the loan, IMO, and giving him "x" time to clean it all up. [/quote]

There have been so many nebulous refinancinings, lines of credit, and other financing tiers and other exotic ways to keep things afloat that now the creditors want real $, even if only 10 cents on a dollar.

I'm no fan of Stronach. I know from a source that when he bought the Meadows Harness track that he gutted the mgmt there, but with that one he lucked out because PA got slots and he sold for a profit. Nevertheless he assumed a lot of risk - some of it his own - and he has paid dearly for it.

I would like to believe that Halsey Minor could manage this empire but I doubt it. He is (was?) being sued for his own extravagances by the auction houses. Something rather fishy in all of that... In the end, the lawyers will get it all.

But you CA folks had better watch out. Hol is on its way out this year, SA is marginal, GG will soon be gravel. Los Al should have full fields at least.

jm

jm

[tbrace]

Great. Los Al has full fields for all of 4 1/2 furlongs. Now that's horse racing.

Don't count Golden Gate out just yet. A messager from God would have a tough time getting demolition and building permits that close to the Bay, through the RR right of way, and in the adjoining wet land.

[zinn21]

GGF is currently profitable and with Berkeley/Albany politics such as they are, don't look anytime ever for any sort of significant development on said property.

As I reported a few months back Halsey Minor spent a full day at GGF in February and he's already gone public with his interest in GGF and other Magna racetracks. GGF has some earnings upside as they have a business model linked to a lot of union labor costs. They could save millions transitioning union unskilled (i.e. parking attendants; janitors; gate attendants) to non union unskilled.

[Bunty Lawless]

Great. Los Al has full fields for all of 4 1/2 furlongs. Now that's horse racing.

There has been talk for years about expanding it and turning it into a mile track.

Then again, if they could solve the tide issues affecting the barns, Del Mar would be a great track to have open at least as much as SA. Well, great except for the track surface, anyway.