Pimlico, Laurel Auction Postponed to Jan. 21

From the Bloodhorse:

A Delaware bankruptcy judge Jan. 5 agreed to postpone Magna Entertainment Corp.'s sale of two horse racing tracks in Maryland and rejected a bid by the former track owners to lock up slot machine gambling rights at one site. Magna attorney Brian Rosen told Judge Mary Walrath that an auction of the assets of the Maryland Jockey Club, including Laurel Park and Pimlico Race Course, was being postponed from Jan. 8 to Jan. 21. The postponement came after attorneys for Maryland argued in a court filing Monday that Magna has not complied with an agreement promising that all bidders for the Maryland assets would be required to keep the Preakness Stakes (gr. I) at Pimlico, the second horse race in the Triple Crown, in Maryland.

 Apparently, Magna's potential bidders haven't formally agreed to keep the Preakness in Maryland to the state's satisfaction yet, and the state's attorneys are concerned.  As well, the Francis failed in its bid to gain any proceeds on any eventual gaming revenues from Pimlico or Laurel.

The last point stemmed from the 2002 profit-sharing deal that the DeFrancis family (via Maryland Jockey Club) and Magna made over future gaming.  Now, that's basically moot with Cordish's Maryland Live! casino project fully approved and moving forward in Anne Arundel. 

That deal never made much sense to me from Magna's financial perspective, and it intertwined gaming and Maryland horse racing from that point to some Marylanders.  That didn't help the cause of a successful gaming launch in the state, as the racing industry spiraled downwards between 2002 and 2009.    

Meanwhile, the Jockey Club is behind the rear-guard, petition effort to get a referendum up to block the Cordish casino in Anne Arundel County.  Right now, I think the prospect of that project stopping is remote.