Report: Churchill Downs seeks to sell Fair Grounds

The New Orleans Advocate reports (http://bit.ly/1qwBlm9 ) that Churchill Downs Inc. is trying to sell New Orleans' Fair Grounds racing track.

Citing unnamed sources, the newspaper reports that Churchill Downs, which has owned the Fair Grounds and 11 off-track betting facilities since 2004, has hired JPMorgan Chase to seek bids with a deadline of Wednesday.

Churchill Downs bought the Fair Grounds when the track was in bankruptcy for an estimated $70 million.

Horsemen criticized conditions at the Fair Grounds, especially problems with the turf course that led to nearly half of turf races being cancelled or moved to the dirt track over two years. The Louisiana Racing Commission had demanded an improvement plan.

The company derives most revenue in Louisiana from slot machines at the track and video poker in off-track facilities.

Spokeswoman Courtney Norris said Churchill Downs, based in Louisville, Kentucky, does not comment on business-development issues. In addition to Churchill Downs and the Fair Grounds, the company owns Arlington Park in Illinois, Calder Casino & Race Course near Miami, a harness track and casino in Ohio and free-standing casinos in Mississippi and Maine.

Bob Wright, recently named chairman of the Louisiana Racing Commission, said the commission had not been informed but that he was not surprised.

"We've understood for some time that CDI is seeking to move out of racing, except for Churchill Downs, while expanding its gaming interests," he said. "At the same time, the asking price we're hearing shows that they value the Fair Grounds.

The canceled races contributed to the track reducing purses for non-stakes races by 10 percent and lowering the purse or canceling some stakes events during the latter part of this year's meet.

However, at a recent meeting of the commission, the track's operators received favorable notices for the improvements made thus far.

"Our working relationship is good," said Bernard Chatters, of Lake Charles, president of the Louisiana Horsemen's Benevolent & Protective Association, which had lodged many of the complaints about the Fair Grounds. "Every request we've made has been met. I appreciate the working relationship we now have."

A threat of legislative action remains. A bill by Rep. Patrick Connick, R-Metairie, mandating that CDI dedicate 10 percent of its slots revenue for track upkeep gained unanimous approval in the House of Representatives, but it was withdrawn after assurances from CDI about the upgrades.

Churchill Downs officials have said they are interested in reducing the number of racing days at the Fair Grounds to reduce expenses. That would require legislative approval.

The 2014-15 thoroughbred racing season begins Nov. 21.