Pimlico Race Course and Laurel Park dropped in value last year according to a Securities and Exchange Commission filing this week.
The filing by bankrupt owner Magna Entertainment Corp. said that the company’s audit committee approved a $136 million write-down in the value of the company’s assets including the Maryland Jockey Club (which operates Laurel and Pimlico for Magna), Golden Gate Fields, Lone Star Park and The Meadows.
The properties “experienced lower average daily attendance and decreased wagering activity compared to previous years,” the filing said. “In addition, the 2009 business plans for these operations reflected reductions in estimated future cash flows based on lower expectations for growth and profitability resulting primarily from the significant downturn in the U.S. economy.”
In its bankruptcy filings, Magna has not assigned a dollar value to each of its assets up for auction, but the news that they have dropped in value could affect the offers. Do you think this news could attract people looking for a bargain or steer potential track owners away?