Jockey Club adds to corporate owner net loss

March 11, 2011|By Hanah Cho, The Baltimore Sun

The money-losing operations of the Maryland Jockey Club significantly contributed to corporate owner MI Developments' $47.3 million fourth-quarter net loss from its overall racing business.

Part of that loss is $23.7 million from the company's equity investments, which is primarily the operations of Laurel Park and Pimlico Race Course, the company announced late Thursday.

The Ontario-based MI Developments owns 51 percent of the two tracks, while Pennsylvania casino operator Penn National Gaming owns the remaining equity. MI Developments also owns other U.S. racetracks.

MI Developments and Penn National are seeking financial help from the Maryland General Assembly, which is considering a proposal that would divert slots revenue allotted for capital track improvements to help fund track operations for several years. If approved, the legislation would essentially extend a deal that Gov. Martin O'Malley brokered to ensure live racing at Laurel Park and Pimlico continues in 2011.

Taking into account its real estate business, MI Developments posted a total $89.3 million net loss in the fourth quarter.

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