Stronach Race Plan Targets Business Model

Would each of the owners of 12 horses that would compete in a $12 million race be willing to put up $1 million to not only participate but share in all the revenue available from the day's program? It appears one racing company would like the answer.

In a welcome message Jan. 12 on the first day of the Thoroughbred Owner Conference at Gulfstream Park, Frank Stronach, honorary chairman of The Stronach Group, floated the concept of what he called the "Pegasus World Championship," the name of which references the large statue at Gulfstream. The idea, he said is to grab the attention of the media and also experiment with racing's business model.

"The basic idea is how can racing compete with other great sports?" Stronach said. "We've got to make things exciting, things the press will write about. We want to tell people that love horse racing that we say, 'Look. We want to establish a new business.' We would lease Gulfstream for one day and call it a new business."

Stronach said his company would create the race and model, "and sit down with prospective shareholders and go into detail. A very interesting part of it is the owners would participate in all the winnings—handle, media rights, and sponsorship money. In the final analysis, we don't think it would cost that much. Hopefully one day purses could be $20 million or $30 million."

After his presentation, Stronach said he has no intention of competing with the Breeders' Cup World Championships and Dubai World Cup (UAE-I). He said the proposed race probably would be held in January to avoid conflicts.

Stronach also said he believes there are racehorse and prominent stallion owners who may be interested in hearing more about the concept.

"It's the first I've heard of it," said Breeders' Cup chief operating officer Bob Elliston, who was on hand for the Thoroughbred Owner Conference. "But Frank Stronach has put a lot of money into the business; you'd be hard-pressed to find anyone who has put that cumulative amount of capital into the business.

"I'm excited he continues to put his ideas forward. The devil is in the details, but I'd love to hear about new capital and ways to get eyes on the sport."

Earlier in his comments, Stronach discussed the realities of horse and racetrack ownership and said he plans to ensure their future.

"Our racetracks are in great areas where land prices are enormously high," said Stronach, whose company owns and operates six tracks including Gulfstream in Florida, Laurel Park and Pimlico Race Course in Maryland, and Santa Anita Park in California. "We look down the road and hope to sit down with the horse community so these places stay as racetracks.

"We have to be aware the system doesn't function anymore. We have to look after the customer because of all the competition (from other forms of gambling)."