GOLDEN GLIMPSES #55 GOLDEN GLIMPSES #55 SANTA ANITA PLANS TO INVEST IN RACING, FOR NOW
Ripples of alarm surfaced on the backstretch some time ago, when word came down that new blood might one day be pumping from the heart that feeds life into Santa Anita, one of the most storied racing venues on the face of the earth.
"I hear they're going to sell Santa Anita and race only at Hollywood Park," said one alarmist.
Well, it's not time to panic yet, but Santa Anita is entertaining the possibility of taking on investors, which could alter its future direction.
But take it from the man who knows, Santa Anita Chairman of the Board William C. Baker, it could be a few furlongs down the road before that happens. For the present, Santa Anita, steeped in rich tradition for more than six decades, intends to continue to do what it does best: present world-class racing.
Baker, a 63-year-old graduate of the University of Texas Law School, holds more titles than the Boston Celtics and New York Yankees combined. But he yields a gracious, grass-roots style that would instantly ingratiate him on any social strata. He has deep appreciation for the thoroughbred, the sport, and values that have stood the test of time.
Don't call him Mister. Don't even call him William. Call him Bill.
Any plan to race solely at Hollywood Park raises only one question from horsemen and fans alike: what would become of Santa Anita? After a one-on-one session with Baker, there was little doubt racing will continue, at least for the immediate future.
"I think it's important to have a clear understanding of what is transpiring and that we not be confused," Baker began. "The company and the board of directors determined the need for bringing in additional capital to broaden the company's future and horizons, in terms of horse racing, as well as other business opportunities.
"Because of that, we entered into a strategic alliance with Colony Capital, a Los Angeles real estate company. Effectively, it was going to put roughly $150 million into our company, for 45 percent of the ultimate equity, without control of the company. One of the things it provided for was that the board would consider other proposals, should they come in. And, we would expect they would.
"This was a non-change of control with Colony, despite what the newspapers may have said. The Koll-Apollo proposal, on the other hand, provided for a complete change of control. I won't get into the merits and demerits of the respective proposals, but if you really analyze each of them, the Koll-Apollo proposal, as initially made, didn't work.
"The board very carefully considered the various prospects, as well as their willingness to enter into a change of control transaction. And any time you do such a transaction, it could be looked at as a sale.
"But, as a part of the original Colony agreement, the company was under a no-shop, no-solicitation, no-discussion arrangement, except on proposals that came in. When we were entering the Colony deal, the stock was trading at $13, and the Colony deal was made at $15. With the passage of time, through the recognition of the value of this pared-share structure or otherwise, the stock ran to where it's $28 today. I think that's reflective of the value of the pared-share structure.
"With that recognition, it is highly unlikely our shareholders would approve a $15 deal. With that in mind, Colony and Santa Anita agreed to drop the no-shop, no-discussion deal, so as to make sure our shareholders gave everybody the right to come in, take a look, and see if there were other suitors out there."
Baker acknowledged there had been a discussion by Koll-Apollo, and a statement from Hollywood Park Chairman R.D. Hubbard, that if they were to prevail, live racing would be offered only at Hollywood Park. "He (Hubbard) announced that at his annual meeting," Baker said.
"It's the goal of this management, and the current board of directors, to maintain racing at Santa Anita, and to build our racing franchise. I don't know that there will be a 'pending sale.' We may do a merger, but as a factor, we would be interested in having a partner or a new alliance that would be committed to the continuation of racing.
"Now, as to whether you could stipulate that would go on forever, you can't. Our community, Arcadia, has to want racing to stay at Santa Anita, too. We're not interested in selling the track, or the Arcadia assets, and it is certainly the aim of management and this board of directors to not only maintain racing at Santa Anita. but to have it grow.
"That's why we repainted the place. We spent a quarter of a million dollars at Clockers' Corner. We just spent a quarter of a million dollars in the start of redoing the Chandelier Room, not to mention the money spent on the turf course. And the wind got to the roof, which we're going to have to redo at a cost of a quarter of a million dollars. We'll spend $3 million in improvements this year.
"It is certainly not within our contemplation to do anything but to proliferate racing in Arcadia. I frankly think that the thoroughbred industry is having its problems these days, so I'm sure there will be some consolidation. But this sport is built on history and tradition, and you don't develop growth by closing down the sources of that tradition.
"I think it would be a major step backward for thoroughbred racing nationally, and certainly in Southern California, if we didn't continue to race at Santa Anita."
GOLDEN PICKS
ACE EAGLE -- Made debut on off-track and was bogged down on inside, but showed good speed to mid-stretch. Should graduate promptly.
AMBIVALENT -- Tons the best in San Fernando, but victim of horrendous trip, beaten less than length. Gets the money next time.
CLASSIC CREDENTIAL -- Illinois-bred son of Skywalker didn't get rolling till late in 6 1/2-furlong debut. Will appreciate a distance of ground.
KRAVIS -- Son of Mt. Livermore from Bill Shoemaker barn broke maiden in turf marathon like he has a future on the grass.
PEACE PRIZE -- In tight and took up while rallying along hedge in U.S. debut. Deserves another chance versus allowance turf routers.
THE HOMESTRETCH: Santa Anita brass wouldn't comment officially, but Sen. Ken Maddy's filing of legislation trying to prevent Nevada from receiving simulcast signals from California tracks has about as much chance of reaching the winners' circle as Ricks Natural Star did in the Breeders' Cup Turf . . . "Nothing significant" happened at a meeting Friday in Las Vegas to discuss the simulcast stalemate, Santa Anita President Cliff Goodrich reported, adding: "We're keeping lines of communication open and hope to work it out." . . . The $1 exacta is back. "Listening to comments from our patrons, we decided to return to the $1 minimum," said Goodrich.
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