The Stronach Group Explores Sale of 1/ST Racing Division

As per reports, the Stronach Group has now enlisted the services of former executive Keith Brackpool to assess a potential sale of the 1/ST racing division, which consists of Santa Anita Park and Gulfstream Park. L.A. Times reporter John Cherwa broke the first story on uncertainty surrounding the future of these historic thoroughbred racing venues.

Brackpool, who previously served as the chairman of the California Horse Racing Board, re-emerged last month when he informed Florida horsemen about 1/ST racing’s interest in separating its racing and slot machine licenses. According to Brackpool, if Florida lawmakers approve the separation, Gulfstream Park would continue operations until at least 2028. However, without legislative approval, the track could face closure at any time.

On the condition of anonymity, two sources familiar with the discussions told Cherwa that Brackpool had already met with at least one potential investor regarding the sale. The $2 billion price tag set by The Stronach Group, however, may prove to be a significant obstacle. Land and physical improvements tied to the tracks could be valued at more than $2 billion, but that valuation would not hold if the properties continued to operate as horse racing venues. The Stronach Group is neither confirming nor denying any of these discussions, but reports suggest the company is investigating all available options. Industry insiders think that The Stronach Group is considering how to continue its long-term commitment to horse racing in the face of financial and regulatory pressures.

The Stronach Group has maintained that Santa Anita Park is not officially for sale. However, sources suggest that should a sale occur, the prospective buyer would likely continue racing operations at least in the short term. No further details have been disclosed regarding the identity of interested buyers or the timeline for potential transactions.

The report by the Los Angeles Times identifies the wider economic issues threatening California horse racing. Unlike other jurisdictions, California does not allow the racing industry to enhance purse amounts through gaming subsidies, thereby putting a strain on racetracks and horsemen. Last month’s shutdown of Golden Gate Fields in Northern California has further added to the fray, shutting down an integral state racing circuit and reducing opportunities for trainers, jockeys, and owners alike.

Since time in memorial, the industry experts have commented on the declining attendance, decreasing betting handle, and regulatory challenges that weigh heavily on the uncertain future of California racing. This raises yet another question about the viability of the sport in the State: Will Santa Anita Park be sold?

The uncertainty is not confined to California. The Stronach Group’s commitment to racing in South Florida also appears to be wavering. The company has actively pursued legislative approval to separate its casino operations from horse racing, a move that could have significant consequences for Gulfstream Park. If decoupling is approved, Gulfstream’s continued operation beyond 2028 remains uncertain. If the effort fails, the track could shut down much sooner, creating potential ripple effects throughout the industry.

Gulfstream is an American horse-racing staple going back in time; the Pegasus World Cup and the Florida Derby are two of the major events hosted there. Any disruption to the activities here would likely create a domino effect, cascading down to fancy trainers, jockeys, and racing aficionados who depend on the racetrack’s year-round schedule.

The Stronach Group has not directly addressed or denied the particulars as reported by the Los Angeles Times; nonetheless, the company issued a statement acknowledging the financial burdens facing both horse racing in California and the broader industry.

Association of Racing Commissioners International president Jeff Jacobs said, “The economic times for racing in California are tough. It is a difficult problem to solve. We continue to explore possible solutions, and at this point, we are in talks with various stakeholders about the best way forward. Those talks are continuing.”

The response which the company has given was complex and signified that the management is being proposed to work on various steps to address the economic barriers facing the industry.

The aura of speculation shines large over the horse-racing community as negotiations continue behind the curtains about the fate of two of the most important tracks in the equestrian world. If the sale of Santa Anita and Gulfstream Park does go through, it might significantly reshape the American horse-racing landscape.

As of this moment, no definitive decision has yet been arrived at- A legal and financial uncertainty; in other words, we have financial problems at the racetracks facing a market in continuance of change. The discussion would have a bearing on the future of the sport in terms of racing dates, jobs for the stakeholders, and the economy of the general industry.

For now, industry stakeholders, horsemen, and racing enthusiasts have been left waiting and watching to see how the situation unfolds. The next few months may be very critical for the future of horse racing in California and beyond, whether the sale happens or alternative solutions show up.