News Summary
The Fair Grounds Race Course in New Orleans has kicked off its 150th season, but financial troubles loom large. The current owners, Churchill Downs Inc., are facing a significant revenue drop of 46% and may need state subsidies to continue operations. Potential buyers, including Gayle Benson and Jim Bernhard, are exploring ownership options as discussions on financial support intensify. The racetrack, integral to the local racing community and cultural events, has a critical season ahead, with funding and legislative action crucial for its survival.
New Orleans – The Fair Grounds Race Course in New Orleans has opened its 150th season amidst looming financial troubles and uncertainty about its future ownership. On Thanksgiving Day, the racetrack marked its milestone with an opening day that saw losing bets tossed onto the ground, reflecting the concerns surrounding its financial viability.
Churchill Downs Inc., the current owner of the Fair Grounds, has announced that it may be forced to leave Louisiana if it does not receive a public subsidy to offset financial losses. The company claims the Fair Grounds has experienced a 46% loss in revenue following a recent court ruling that impacts their earnings from Historical Horse Racing machines. The ruling has stirred fears of predicted profit losses exceeding 74% for Churchill Downs in the state.
In light of these challenges, key figures in the local horse racing industry are exploring potential buyers for the Fair Grounds. Notably, Gayle Benson, who owns the New Orleans Saints and the Pelicans, has emerged as the top contender. Benson has a history of interest in acquiring the Fair Grounds, having considered the purchase alongside her late husband, Tom Benson. Her involvement in horse racing includes ownership of a Kentucky breeding and rehabilitation facility.
Potential Buyers and Partnerships
Another potential buyer of the Fair Grounds is Jim Bernhard, the founder of Bernhard Capital Partners, who also has significant operations in horse breeding. The interest from these prominent figures indicates a willingness to invest in the legacy of the Fair Grounds and ensure its continued operation.
A spokesman for Gayle Benson stated that she will keep a watchful eye on the developments concerning the Fair Grounds’ ownership and its financial situation. As decisions loom over state subsidies, the local horse racing community remains hopeful for a resolution.
Impact on the Racing Season
The Fair Grounds is home to a 76-day racing season and has been a crucial part of the New Orleans Jazz and Heritage Festival for more than five decades. However, Churchill Downs has warned that without reinstating state subsidies, there may be no way to maintain operations for the racing season. The cost of running the Fair Grounds annually amounts to approximately $9 million, relying heavily on the influx of state funding and revenues from racing activities.
Last year, the Fair Grounds accounted for roughly half of Louisiana’s thoroughbred purses, totaling $32 million. The pending discussions at the Louisiana Racing Commission are pivotal, as they will address potential legislative solutions to counteract the revenue loss caused by the recent judicial ruling affecting Historical Horse Racing machines.
Historical Significance
The Fair Grounds Race Course, established in 1838, is one of the oldest racetracks in the United States, covering 145 acres of land. Churchill Downs acquired the venue from bankruptcy in 2004 and has since invested around $200 million in upgrades and improvements to enhance the facility and its offerings.
The financial challenges faced by Churchill Downs and the Fair Grounds underscore the broader implications for horse racing in Louisiana, which is significantly reliant on financial support from state legislation. The future operation of the Fair Grounds now hinges on the outcomes of ongoing discussions and legislative action intended to protect the interests of the racing community and ensure the racetrack’s survival in the competitive industry landscape.
Deeper Dive: News & Info About This Topic
- NOLA: Fair Grounds Sale
- Paulick Report: Fair Grounds Situation
- WWLTV: Fair Grounds Threatens to Leave
- FOX8: Fair Grounds Future Unclear
- BloodHorse: Touchuponastar
- Wikipedia: Fair Grounds Race Course
