Odds On Racing - Harness Racing

Franchise Possible for New York TB Tracks

August 20, 2007

Capital Play Inc., one of four firms seeking New York State's thoroughbred racing contract, will host a public forum at 11 a.m. Thursday at Saratoga Hotel & Conference Center, 534 Broadway Saratoga, New York.

Ten of the firm's top executives and business partners will outline franchise plans for Saratoga Race Course, Belmont Park and Aqueduct.

Capital's team includes Victoria Racing Club, which runs the prestigious Melbourne Cup; Mohegan Sun casino, Extell Development Co., Blue Chip Farms, Plainfield Asset Management, LLC and CIBC World Markets.

Australia-based Capital Play has a roughly $1.8 billion business proposal that calls for $700 million worth of track improvements, $650 million at Belmont and Aqueduct and $50 million at Saratoga.

Its bid includes a $1 billion plan to build separate hotels at Belmont and Aqueduct. The firm hopes to market Aqueduct toward a younger crowd, while making Belmont attractive to a more mature clientele.

CEO Karl O'Farrell said about 5 million people visit Australia's racetracks each year, which represents about 25 percent of the country's population. Capital Play's marketing strategy is geared toward young women, by making tracks a fun place to go.

"Then, of course, men follow," he said.

He'll be joined at Thursday's event by Victoria Racing Club Chairman Rodney Fitzroy, Mohegan Sun President and CEO Mitchell Grossinger Etess, Extell Executive Vice President of Strategic Planning Marc Shaw, Blue Chip Farms CEO Neal Brickman, Plainfield Asset's founder and Chief Investment Officer Max Holmes, CIBC's Managing Director Jacques Cornet and Capital Play officials John Schreck, Paul Brettell and Jim Colquhoun.

Capital Play is challenging New York Racing Association, whose franchise expires on Dec. 31, along with two other firms - Excelsior Racing Associates and Empire Racing Associates.

New York Gov. Eliot Spitzer is reviewing proposals and has pledged to make a recommendation to the state Legislature by Sept. 4, one day after the Saratoga meet ends. Spitzer's franchise choice is subject to legislative approval, the same as any bill.

Capital Play has also proposed building a $30 million horse training facility in the Capital Region, but has not identified a site.