On the day Magna Entertainment Corp. announced a $4.4 million quarterly loss in Maryland, the president of the Maryland Jockey Club said yesterday that the Laurel Park fall meet will be cut by 11 days.
While Magna's total quarterly loss of $21.4 million was in line with past performances for the struggling corporation, the loss in Maryland was unusual because it came in the quarter that includes the Preakness Stakes.
The Maryland losses are being primarily attributed to a 12 percent loss in handle, a Preakness betting decline of $13.7 million from 2007 and a loss of $1.7 million in maintenance contributions from the Maryland Thoroughbred Horsemen's Association.
"This is the first time we've been down [in this quarter], in quite awhile," said Tom Chuckas, who became head of the MJC in May. "It's because of [declines] in our live import and export handles and a soft Preakness. Those are the main contributing factors. They're very concerning because they are our two biggest sources of revenue, and it is following a national trend."
The quarterly loss and Laurel racing cutback follow Wednesday's report in The Sun that the MTHA will not fund the state's six major fall stakes races, including the Grade I Frank J. De Francis Dash, Grade III Safely Kept Stakes and the Laurel Futurity, leaving only state-bred or state sired stakes.
And yesterday the MJC confirmed yesterday's report that it is closing the barn area at Pimlico Race Course effective Aug. 31, pending approval by the Maryland Racing Commission at its Aug. 19 meeting.
"It was a very difficult decision," Chuckas said of closing Pimlico's barns. "It is not something the MJC wants to do. But business is down significantly and operating three facilities is a significant expense. But we're not evicting anyone. We're relocating everyone to Laurel or Bowie. The MJC is taking on that expense. I know we'll be upsetting a normal way of life. I appreciate that. And we're going to do everything we can to make the move as easy as possible."
Maryland racing secretary Georganne Hale said she will disperse letters this morning to everyone affected by the Pimlico barn closings with information about their new assignments at Laurel Park or the Bowie Training Center.
"They'll indicate on that letter whether they are accepting or declining, sign it and then return it to me," she said. "At that point, I'll have a clearer picture of what we're looking at."
