Harnesslink News Room 11:22 AM 08-Aug-2007 NZST
Capital Play, Inc. today submitted its bid to operate Saratoga Racecourse, Belmont Park and Aqueduct racetracks in New York State as well as the Video Lottery Terminal (VLT) Racing at Belmont Park and Aqueduct racetracks, showcasing the team’s increased strength and unparalleled partnerships in its $1.8 billion guarantee to the State of New York
Since its presentation to the State on April 11, Capital Play, in line with the requirements and requests of the State, has added partners that strengthen its standing as the “Best in the World for New York.”
“The addition of the Victoria Racing Club, Mohegan Sun and Extell Development Company, to our already strong financial partners of Plainfield Asset Management and CIBC, along with Blue Chip Farms, makes the Capital Play team not only the best choice for the future of New York racing but for the whole of its economy,” said Karl O’Farrell, Founder and CEO of Capital Play.
“We believe with these partners our bid is the strongest in all areas and we look forward to working with the Governor and the Legislature in delivering on our promise to revitalize the racing industry.”
The Victoria Racing Club (VRC), operators of one of the world’s best thoroughbred racing tracks, will provide unparalleled racing management experience and expertise to Capital Play.
Established in 1864, the VRC has successfully developed the Flemington racetrack into a world-class racing venue with attendances at the Melbourne Cup Carnival having increased by more than 140% since 1999.
With the sponsorships of 75 corporate partners, the VRC has doubled its revenues at the Flemington track, dramatically increasing the financial returns from both racing and non-racing activities, and providing first-class entertainment and wagering opportunities, whilst maintaining the highest integrity in all its dealings and activities.
It currently conducts 69 group and listed races (equivalent to a graded race in the US).
In addition to its many notable successes at Flemington racecourse, the VRC hosts the world-famous Melbourne Cup.
The Melbourne Cup is a truly international event, and this year 48 entries from a wide range of countries, including the United States, Canada, France, England, Ireland, Japan, Hong Kong, and United Arab Emirates were received for the race.
The minimum prize money paid by the VRC for standard Saturday races is $64,300 (AU $75,000).
In 2006, the Melbourne Cup Carnival injected $419 million into the Victorian state economy and attracted more than 420,000 fans, which included over 90,000 out-of-state tourists.
Watched by 700 million people in 120 countries, the Melbourne Cup was seen by more viewers than the Super Bowl and has become known as the “race that stops the nation.”
Building on the economic development potential of the Melbourne Cup Carnival the VRC launched the Melbourne Cup Business Network in May 2005, to develop and assist networking and business opportunities between Australian and international businesses focused around the excitement and atmosphere of one of the World’s most prestigious race.
“The New York Racing franchise is one of the most important in the world and we are pleased to be joining Capital Play to assist them in delivering a renaissance of racing in New York, positioning it where it should be on the Global Stage,” said Rod Fitzroy, Chairman of the VRC.
The Mohegan Tribal Gaming Authority (MTGA) will develop and operate the VLT business of the Capital Play bid.
MTGA operates two of the most successful casinos in the United States.
The Mohegan Sun in Connecticut is the most profitable casino on the east coast. Mohegan Sun has the second highest revenues per machine in the East at $414 per day per machine.
With over 6,000 slot machines and 300 table games, Mohegan Sun is a complete entertainment destination with over 3 million square feet, a 10,000 seat arena, meeting and convention space, over 40 retail outlets, and 1,200 room luxury hotel.
The sister property, Mohegan Sun at Pocono Downs, has the highest machine win per day in the East at $438 per day per machine, substantially higher than all the casinos in Atlantic City, Florida, or Las Vegas.
The Mohegan Sun at Pocono Downs became the first and most successful commercial gaming and racing in Pennsylvania.
Upon completion of its most recent expansion, it will have approximately 2,500 slot machines, three fine dining restaurants, a 300 seat buffet, a quick serve dining area, retail shopping, and two night life venues.
“Mohegan Sun has extensive experience in bringing the best entertainment and ancillary benefits to gaming,” said Mitchell Grossinger Etess, CEO of Mohegan Sun.
“We are pleased to be a part of the Capital Play bid and know that our combined strengths represent the best opportunity to turn around the racing industry and enhance its economic benefits to New York State.”
Extell Development Company is a nationally acclaimed real estate developer of residential, office, retail and hospitality properties.
The organization, founded and chaired by Gary Barnett, is distinguished by innovative thinking, cutting edge design, a dedication to excellence and a commitment to public private partnerships.
Extell’s growing portfolio totals approximately 20,000,000 square feet of development projects.
Extell’s notable national projects include the Intercontinental Hotel in Boston, the Insurance Exchange Building in Chicago and The Brickell in Miami.
In New York, its headquarters, Extell’s recent projects include the W Hotel in Times Square, The Orion in the Theater District, Ariel East and West Towers on the Upper West Side, and The Avery and The Rushmore within Riverside South a world class planned community.
“Capital Play has put together a tremendous team to bring about change for New York,” said Marc Shaw, Executive Vice President of Extell.
“We believe that our development expertise is key to creating the infrastructure that will fuel an economic resurgence so very much needed here, providing additional benefits to the racing franchise as well as every single New Yorker.”
Capital Play Inc. again submitted three financial options and showcased its $250 million in guaranteed equity from Plainfield Asset Management and $550 million in debt financing from CIBC.
The Capital Play Inc. bid structure (not including funding committed for real estate developments) is as follows:
Proposal 1 - $1.81 Billion – no upfront payment
$50 Million in Annual Lease Payments (Worth $1 Billion adjusted for inflation) $700 million for Track and Facility improvements including VLTs $110 Million to Pay Off Pension Liabilities
Proposal 2 - $1.5 Billion – upfront payment of $250m
$250 Million Upfront Lease Payment $22 Million in Annual Lease Payments (Worth $440 Million adjusted for inflation) $700 million for Track and Facility improvements including VLTs $110 Million to Pay Off Pension Liabilities
Proposal 3 - $730 Million – upfront payment of $100m with VLTs only at Aqueduct
$100 Million Upfront Payment $22 Million in Annual Lease Payments (Worth $200 Million adjusted for inflation) $320 million for Track and Facility improvements including VLTs $110 Million to Pay Off Pension Liabilities
Led by Karl O'Farrell, Capital Play, Inc. is a New York State corporation formed to bid on and secure the rights to operate the New York thoroughbred racing franchise.
Last year, it submitted the highest bid to the Ad Hoc Committee on the Future of Racing. It again submitted the highest bid in April, worth more than $1.8 billion.
Capital Play's mission is to operate the three thoroughbred racetracks in New York -- Saratoga Race Course, Belmont Park, and Aqueduct racetracks -- and a VLT casino at Aqueduct and Belmont Park if approved by the Legislature.
Its mission includes a commitment to reinforcing the rich heritage of New York State's thoroughbred racing and breeding, bringing together the "Best in the World" model to reinvigorate the economic and financial contribution of this industry in New York State.
Capital Play will reemploy as many existing NYRA executives, managers, supervisors and employees as it reasonably can.
The human resource and selection expertise of the Capital Play team will be charged with conducting a transparent and rigorous internal selection process to ensure that leaders throughout the organization at NYRA possess the necessary skills, experience and motivation for executing a range of change initiatives that must be implemented.
With its addition of the VRC, Mohegan Sun and Extell Development Company, Capital Play has truly presented “The Best in the World for New York”.
