Lost Rider: Empire Racing Talks Merger But Loses Bid Partners

Empire Racing and Capital Play, former competitors for the franchise to run New York's horse racing tracks, "were privately discussing a merger" in which Empire "would lose Churchill Downs [CDI], Magna Entertainment and Mary Lou Whitney as part of its team," according to sources cited by James Odato of the Albany TIMES-UNION. Whitney indicated that she "dropped out partly because of politics and Empire's changed makeup," while CDI said that it was leaving "because Empire had reconfigured and the franchise competition had become 'undefined.'" Empire's development leader Richard Bronson also announced that Suffolk Downs Owner Richard Fields "has dropped out" to concentrate on his Boston track (Albany TIMES-UNION, 10/11).  In addition to CDI and Magna, Delaware North is also withdrawing from Empire. Empire CEO Jeff Perlee said that the departures "were in response to comments in legislative hearings, including that the involvement from so many racetrack operators could raise antitrust issues," though he would not comment on the reports that Empire and Capital could be merging (Louisville COURIER-JOURNAL, 10/11). CDI President & CEO Bob Evans said in a statement, "We continue to believe that thoroughbred racing's success in the United States requires that New York racing be economically viable. ... Remaining part of Empire Racing is not serving that goal, so we've ended our participation." Magna said in its statement the bid process has "progressed in a manner which MEC does not see leading to a successful outcome for Empire racing" (THE DAILY).

SUPPORT FOR SPITZER? The TIMES-UNION's Odato also reports that New York state Senate Republicans "sharply questioned" Gov. Eliot Spitzer's suggestion to give NYRA a 30-year franchise to run the tracks, "citing the bankrupt NYRA's financial failures, threats to close the tracks and no-bid contract" to N.Y. law firm Getnick & Getnick.  Sen. Thomas Libous said, "New York has subsidized NYRA for years. Why should we continue?" The Senate Racing & Wagering Committee estimates NYRA would receive about a $250M state bailout, while "other franchise bidders propose to invest hundreds of millions in the tracks." But NYRA President Charles Hayward indicated that if the association does not get the franchise, "the tracks could go dark" on January 1, while a bankruptcy judge "decides NYRA's claim to owning the tracks." Additionally, NYRA Chair Steven Duncker said that Getnick & Getnick "is uniquely qualified to be NYRA's integrity consultant since it monitored NYRA for 18 months two years ago" (Albany TIMES-UNION, 10/11).