Rick Teverbaugh, Herald Bulletin
rick.teverbaugh@heraldbulletin.com
There seems to be little doubt that losing Churchill Downs as one of the owners of Hoosier Park takes a bit of the luster off the Anderson track's image.
But those involved, including the new majority owners, Centaur, LLC, feel that perception will be the only negative about the sale, which was formally approved in a meeting of the Indiana Horse Racing Commission Tuesday.
"Being affiliated with Churchill Downs was a most prestigious thing," said Hoosier Park President Rick Moore. "It was a very good thing for our track especially in terms of getting our signal out across the country."
Even though Churchill Downs no longer owns any part of Hoosier Park, there will still be a connection that is vital to the financial stability of the track. Hoosier Park's simulcast signal will still be carried in Churchill Downs tracks and those tracks will still feed their signal to Hoosier Park.
"Our continued partnership with Churchill Downs is very important in that regard," admitted Jeff Smith, CEO of Centaur and former executive at Hoosier Park.
But why did Churchill Downs want out of the ownership of Indiana's first pari-mutuel horse racing track?
"It's no secret that the opening of a second track in the state made it difficult for the track financially," said Julie Koenig, Churchill Downs' vice president of communications.
When the track opened in 1994, with Churchill Downs as the majority owner, it made sense to the Kentucky firm. "We were growing our simulcast market," explained Koenig. "We were looking to purchase the source of some content."
That included purchases of Ellis Park in Henderson, Ky., Arlington Park in Arlington Heights, Ill., and Calder Race Course in Miami, Fla..
Churchill Downs has backed away from ownership in places other than Anderson as well.
In a statement from the Churchill Downs Inc. Web site, this explanation is offered: "In early 2005, CDI began examining its nonstrategic racing assets, and in late September of that year, CDI sold Hollywood Park and its surrounding acreage for $254 million. ... As part of the sales agreement, CDI has the option to reinvest in Hollywood Park should alternative gaming become available at the racetrack. In September 2006, CDI sold Ellis Park to Kentucky businessman and horseman Ron Geary. ... The sale of Hoosier Park is expected to close during the first quarter of 2007, which will bring CDI's racetrack holdings back down to a core four facilities (Churchill Downs, Calder Race Course, The Fair Grounds in New Orleans, and Arlington Park), all located in major racing states."
"In the case of Hoosier Park, we felt like it was better run by a local entity," said Koenig.
"Centaur is excited to take full ownership of Hoosier Park and bring Indiana's first horse-racing track under the leadership of an Indiana company," said Smith, a former Churchill Downs executive. "We thank Churchill Downs Inc. for its investment in the racing operation and its stewardship over the years, and we look forward to working with Hoosier Park President Rick Moore and his team of employees, our horsemen, Indiana government officials and the Anderson community on a plan for growth."
There is no indication from Smith of any major changes in the near future following the completion of the sale.
"We are proud of the track and the people there," said Smith. "The track has run into financial issues. We're committed to Indiana racing. We believe in the Indiana horse industry. If there's something we'd like to change, it would be a more targeted approach to marketing than they've had before."
Of course, the possibility of slot machines at Hoosier Park represents a potential financial boon for the track.
"The possibility of alternative gambling is a long-term solution to the industry's problems," said Smith. "We believe if we get people to the track, then we can get them back again. Alternative gambling gives us a chance to do that. They come for the slots and discover the racing."
Moore is looking forward to the new partnership. "We haven't really sat down with them (Centaur) yet because they've been really busy," he said. "It's not like we're dealing with people we don't know. They've got a business plan in place. I think this will be good for us."