When the Preakness Stakes runs its 134th race Saturday, it could be the last one under its bankrupt owner.
While Pimlico Race Course and Laurel Park are no longer among assets that Magna Entertainment Corp. will auction off in September, state and industry leaders believe it is a real possibility that Maryland's thoroughbred tracks will have a new owner when bankruptcy proceedings end.
So far, the state has had discussions with at least a dozen potential buyers, including local, national and international parties, who know of Maryland's interest in keeping the second leg of racing's Triple Crown here. The linchpin of Maryland's thoroughbred industry, the Preakness is profitable enough to support racing the rest of the year.
A Pikesville developer, who had previously expressed interest in the tracks, said this week that he and three undisclosed partners with racing experience plan to submit a bid to buy Pimlico, Laurel Park and the rights to the Preakness. And technology entrepreneur Halsey Minor said in an interview Thursday that he, too, is still pursuing the Maryland tracks, along with other Magna properties, including Santa Anita Park in Southern California.
"When all of this shakes out, there will be interested parties in [the Maryland] assets. Our objective is that the Preakness stays right here in Baltimore and horse racing remains a vibrant part of Maryland's culture, history and tradition," said Christian S. Johansson, secretary of the Maryland Department of Business and Economic Development, whose agency has been charged with maintaining Maryland's single largest sporting event.
Johansson said he has personally met with several potential bidders to make the state's interests clear and what "we've done is encourage them all to look at bidding on the tracks."
Johansson declined to identify the potential bidders.
"And our position has been pretty consistent that we favor a private sector solution," he added.
Gov. Martin O'Malley has said that the state is "agnostic on ownership" as long as the Preakness stays in Maryland. To that end, the General Assembly recently passed legislation authorizing the state to seize the tracks and the Preakness, though that authority may not hold up in bankruptcy court.
The eminent domain legislation was prompted in part by Pikesville developer Carl Verstandig's initial plans to buy Pimlico and replace the Northwest Baltimore property with a shopping center before changing his mind. Verstandig said he and his partners plan to submit to Magna's creditors a bid for the tracks and the Preakness and maintain racing at both properties.
