INDIANAPOLIS - The Indiana Horse Racing Commission on Tuesday unanimously approved the transfer of ownership of Hoosier Park from Churchill Downs Inc. to Centaur Inc.
Hoosier Park will no longer be part of Churchill Downs, the horse racing industry's premier name, but the two parties will maintain a working relationship. Churchill Downs will continue to market Hoosier Park racing through its simulcast network.
"It's the best of both worlds," said Tom Bannon, vice president of operations and communications for Hoosier Park. "On the one we have the power of simulcasting with Churchill Downs and, on the other hand, we have a group of committed investors from the state of Indiana who have a vested interest."
Centaur will retain Hoosier Park President Rick Moore and his operations staff.
Centaur currently holds a 38 percent stake in Hoosier Park, and the transfer will give the company the remaining 68 percent held by Churchill Downs. Centaur officials quoted a purchase price of $8.2 million, but that figure represents some restructuring of debt.
Part of the transfer addresses the $24 million in debt owed by Hoosier Park, around $18 million to Churchill Downs and another $6 million to Centaur.
Churchill Downs will accept Centaur's payment of $8.2 million and agree to drop the remaining $10 million debt it is owed from Hoosier Park.
"This transaction will effectively eliminate all debt," said Jeff Smith, CEO of Centaur. "The most important part is that, after the transaction, Hoosier Park will be much better off financially than it was before."