Pimlico Race Course - Preakness Stakes Faces Uncertain Future Due To Bankruptcy
The 134th Preakness Stakes happens this weekend. Enjoy it. It may be the last one we see at Pimlico Race Course which given the bankruptcy filing of the controlling entity.
Horse racing in general has lost much of the luster that surrounded the sport. That being said, there is still the big three races known as the Triple Derby. It starts with the Kentucky Derby. Next up is the Preakness States. The final race is the Belmont Stakes. You have to win all three races to take the Triple Crown and that may prove a problem starting in 2010. Why? The parent company that owns Pimlico and the Preakness is already in bankruptcy.
Magna Entertainment, Inc., filed for bankruptcy protection in March 2009. Why should you care? This is the entity that owns the rights to Pimlico and the Preakness among other assets. The bankruptcy filing is in the form of a Chapter 11, which essentially means the company is trying to rearrange its assets so that it can come out of the bankruptcy as a profitable, functioning entity. Alas, that was the plan.
It is now apparent that Magna Entertainment has doubts about the viability of horse racing at Pimlico. Reports were rampant and have now been confirmed that the City of Baltimore and state politicians are working to find buyers for the track, race rights and surrounding grounds. The problem, of course, is who is in position to make such a purchase in this economy?
The future is very unclear. Magna Entertainment is one of the biggest track owners in the world. It has already decided to auction off the iconic Sana Anita track in California. There is no bet that the same won’t happen to the Preakness. Does it mean the Preakness could go away? It is highly unlikely. The race will occur next year and in future years. The question is what track it will be run at and whether it will still be considered a part of the Triple Crown.