Justin Schneider, Herald Bulletin
justin.schneider@heraldbulletin.com
INDIANAPOLIS - In Greek lore, centaurs are half-man, half-horse creatures known for their ferocity.
The comparison to Centaur Inc. is either apt because the company is set to become the new owner of Hoosier Park, or absurd because it is nothing to fear.
"Centaur is a known quantity," said Joe Gorajec, executive director of the Indiana Horse Racing Commission. "They've established their reputation during their years as a minority owner. They're good businessmen, and they still have the most valuable part of a relationship with Churchill Downs."
On Tuesday, the Indiana Horse Racing Commission approved Centaur's request to become the sole owner of Anderson's standardbred and thoroughbred racetrack. The deal is expected to close in mid-March, but the company has had a hand in Hoosier Park for years.
Centaur was formed in 1991 by a group of a dozen or so Indiana agriculturists and businessmen. They began investing in Hoosier Park and controlled 13 percent of the track by October 2001, according to reports in The Herald Bulletin.
"We have a 90 percent Indiana ownership, people primarily in agriculture, but some in business," Centaur Chairman Rod Ratcliff told the Commission. "We have a great group of people who are in touch with what the state of Indiana needs. There will be no change in the commitment of Centaur to Hoosier Park."
As of Tuesday's hearing, Centaur controlled 38 percent of the track and is in position to capture the other 68 percent controlled by Churchill Downs Inc. Jeff Smith, CEO of racing for Centaur, said the privately held company now has 35 to 40 shareholders.
At least four of those shareholders appear to be rather well off.
Rod Ratcliff, Michael O'Malley, Michael Raisor and Robert Williamson have personally backed a $4 million bank note for Churchill Downs' equity in Hoosier Park. Ratcliff, O'Malley and Williamson, meanwhile, have also guaranteed a $3 million revolving loan for expenses incurred.
Centaur has other holdings including Fortune Valley Hotel & Casino in Central City, Colo., and interest in an Indian casino in Palm Springs, Calif., and the riverboat Argosy Casino in Cincinnati. According to Smith, Centaur has applied for a standardbred horse racing license in Pennsylvania.
The company's business model would surely change if a proposal for slot machines at Hoosier Park should pass the Indiana Senate. Centaur spent $550,070 on lobbying in 2000, according to an Associated Press report.
"The state of Indiana owes Churchill Downs a debt of gratitude for establishing horse racing in Indiana," said Rick Moore, president of Hoosier Park, who will stay on as part of Centaur's offer. "They invested in capital projects; they never balked when we needed something. But we're looking forward to doing business with our new partner. We're expecting smooth sailing."