Calder President and General Manager Maureen Adams:
â€œWe would like to thank the horsemen, the breeders, the Division of Pari-Mutuel Wagering, and The Stronach Group for their cooperation in finalizing an agreement which is in the best interest of South Florida Racing. Today, we received regulatory approval which allows The Stronach Group and Gulfstream Park to operate racing in South Florida. Live racing will return to Calder in October under the operation of The Stronach Group and Gulfstream Park.
â€œAfter Tuesday, July 1, simulcasting will no longer be available in the Calder Grandstand or Casino. Studz Poker Club closed Monday, June 30, however, all other gaming operations in the Calder Casino are not affected by this agreement and will continue under the leadership of Calder and Churchill Downs Incorporated. Again, we would like to thank all parties for their hard work in reaching an agreement which allows for the long-term preservation of racing in South Florida on a year-round basis.â€
Additional Information on the Agreement:
LOUISVILLE, Ky. (May 28, 2014) â€“ Churchill Downs Incorporated (CDI) (NASDAQ: CHDN) announced that it has entered into a binding term sheet with The Stronach Group (TSG) under which TSG will operate, at TSGâ€™s expense, live racing and maintain certain facilities used for racing and training at Calder Race Course (Calder) located in Miami Gardens, Fla.
TSG will run at Calder the minimum number of race days required by Florida law while also running live racing during the course of the rest of the year at Gulfstream Park. This arrangement will be in effect through the end of 2020.
The transaction is anticipated to be completed by June 30, 2014 and is contingent upon regulatory approval, certain amendments to Calderâ€™s agreement with the Florida Horsemenâ€™s Benevolent and Protective Association, Inc. (FHBPA), execution of certain other definitive agreements (such as the facility lease agreement) and other usual and customary closing conditions.
The transaction will involve a lease to TSG of Calderâ€™s racetrack and certain other racing and training facilities, including a portion of the barns on Calderâ€™s backside consisting of approximately 430 stalls. TSG will operate live horse racing at Calder, under Calderâ€™s racing permits, in compliance with all applicable laws and licensing requirements. TSG will operate and maintain the racing and training facilities that are subject to the lease agreement on a year-round basis. TSG will be responsible for substantially all of the direct and indirect costs associated with these activities and receive the associated revenues. CDI will continue to own and operate the Calder Casino.
In addition, TSG and CDI reached agreement with respect to extending their current contracts to provide each other with their respective horse racing content for simulcast and account wagering purposes and modification of their HRTV operating and ownership agreement which will result in, among other things, the disposition of CDIâ€™s remaining interest in HRTV to TSG early next year.
CDIâ€™s President and COO, William Carstanjen, said he believes this transaction makes sense for all of the stakeholders of the thoroughbred racing industry in South Florida in light of the limited supply of thoroughbred horses racing in the region.
â€œWithout this arrangement, there is no other apparent, viable long- term solution to preserving racing in South Florida on a year-round basis. In addition, CDI and TSG addressed the future of their HRTV partnership and other outstanding topics of discussion between the companies, all of which sets the stage for a mutually productive working relationship going forward,â€ Carstanjen said.
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