MEC '07 losses total $113,000,000

[Kasept]

http://www.drf.com/news/article/92634.html

DRF's Matt Hegarty lays out Magna's financials announced this a.m.

'Cannot continue without turnaround' according to MEC auditor... Lost $43MM in 4th quarter alone.

That's pocket change sprinkled with a little lint for Frank.

[Thoroughbred Fan]

Agreed. Frank is a multi-billionaire. At 5% intrest his money makes that much money. He needs to get his head out of his ass and stop dreaming up fake slot machines for non-horseplayers. He gets what he deserves. Bad management, bad ideas, and lack of understanding about the industry andn his "real" customers = losing money.

[blackthroatedwind]

Whatever anyone may think of Stronach, this is very troubling news for the entire Thoroughbred industry, and could have serious repercussions in the future.

[Holland Hacker]

The REALLY scary part is that MEC believes that Gulfstream is having trouble (declining attendance, handle, etc) because people have to walk too far from the parking lots due to constructions. What about being a track that is no longer conducive to getting a horse to the Kentucky Derby via a "traditional" stretch out in distances of races (1 mile - 1 1/16 miles, 1 1/8 miles). Not to mention a lame condition book being written due to the lack of funds to support a good purse structure.

Does anyone at MEC know what it takes to run a race track, or has Mr. Stronach "excused" nearly all of the capable individuals because their opinions differed from his.

OK I'll step down from the soap box now.

[SentToStud]

Originally Posted by Holland Hacker

The REALLY scary part is that MEC believes that Gulfstream is having trouble (declining attendance, handle, etc) because people have to walk too far from the parking lots due to constructions. What about being a track that is no longer conducive to getting a horse to the Kentucky Derby via a "traditional" stretch out in distances of races (1 mile - 1 1/16 miles, 1 1/8 miles). Not to mention a lame condition book being written due to the lack of funds to support a good purse structure.

Does anyone at MEC know what it takes to run a race track, or has Mr. Stronach "excused" nearly all of the capable individuals because their opinions differed from his.

OK I'll step down from the soap box now.

I don't buy the part about Stronach ruining things by building a 9F track. What's gone now? A few n1 and n2x Allowances and one Graded race at 8.5F? I'd much rather see racing on a 1 1/8 track any day over a 1 mile track. And there is realy no comparing grass racing over a 1 mile track vs a 7/8.

It's also not as if GP is now irrelevant as far as prepping goes. Barbaro did ok prepping there. And last year, Street Sense didn't run at 3 until mid-March so the FL Derby was certainly not going to be on his schedule.

Also, it will be interesting to see how GPs 3 yo race in April draws.

As far as the construction, it is unbelieveably ridiculous. If you park on the west side of the track, you can either walk 1/3 mile or take a shuttle which is pretty nuts on days when there are 2,000 people there.

And you can't deny $113,000,000 isn't a lot of money. That buys a lot of strudel or cheescake.

[asudevil]

Originally Posted by blackthroatedwind

Whatever anyone may think of Stronach, this is very troubling news for the entire Thoroughbred industry, and could have serious repercussions in the future.

Absolutely! How enticing is a potential transaction after reading those numbers?? The salvation may be that it becomes a real estate play....But then the acquirer may not give a sh%t about the actual business...They may just be looking for a short term "flip." Very scary.....

[hoovesupsideyourhead]

well losing a few days at sa didnt help..but maybee an increase in purses would help at gs..go out with a bang.. the energy drink was a bust..he needs to get somebody with a brain..to fire him..

[Cannon Shell]

Originally Posted by blackthroatedwind

Whatever anyone may think of Stronach, this is very troubling news for the entire Thoroughbred industry, and could have serious repercussions in the future.

I have always maintained that when Frankie boy passes the Board will move quickly to liquidate all the assets of ME and dissolve the company. Maybe it will get tied up for a few years but I dont have much faith that his tracks will survive as racetracks.

[hoovesupsideyourhead]

get rid of woodbine for starters

[Scav]

Originally Posted by Cannon Shell

I have always maintained that when Frankie boy passes the Board will move quickly to liquidate all the assets of ME and dissolve the company. Maybe it will get tied up for a few years but I dont have much faith that his tracks will survive as racetracks.

You would have to think that his son is involved in owning this tracks in the future, no?

I don't know if he is the kid from Caddyshack or the next Einstein but he seems to have the same passion as Frank

[freddymo]

Originally Posted by blackthroatedwind

Whatever anyone may think of Stronach, this is very troubling news for the entire Thoroughbred industry, and could have serious repercussions in the future.

Why? Other then the obvious that all he properties would be liquidated and then have to be reinvented into a profitable format.. What do you think is going to happen? frank sells GP and some developer is going to build Condo'd in this market? lol

Ultimately racing will reinvent itself in a profitable manner..There just might be a lot less racing in the next 20 years..

[freddymo]

Originally Posted by DaHoss9698

Don't you think that's a serious repercussion Freddy?

It's apositive long term and it accelorates a cleansing that is badly needed. I think Andy meant serious repercussions to have negative implications.. I see it as a huge long term positive. The industry is dying because nobody has figured out how to earn.. So one of two things have to happen.. Either the Europeans buy up the real estate with there inflated euro and try to run these properties at cash flow break even or half the dates for racing get eliminated and the industry downsizes to something that the betting base can support.. I view the latter as a huge positive

[AeWingnut]

I think they have lost over $300 million in the last 3 years.

[Danzig]

have they looked under the couch cushions yet--some loose change may have fallen down there.