Frank Stronach Suggests Putting Tracks Into a Trust

While he's currently on the outside looking in when it comes to the operations of track owner The Stronach Group, as the founder of that company, Frank Stronach outlined April 23 a plan that would protect tracks as a going concern.

To a standing-room-only crowd in an Arcadia, Calif., hotel conference room April 23, Stronach outlined a vision for putting racetracks he had purchased into a trust for the racing industry so they can remain racetracks.

"I want to put those racetracks into a trust, run by its stakeholders," Stronach said. "What does that mean? It would mean that they could never be developed. Yes, we can build some hotels, we can build some condos, but not so it impedes the racing. It should complement the racing."

Stronach called the meeting by placing an ad in the April 21 edition of the Los Angeles Times called "An Open Letter from Frank Stronach to All Horse Lovers in the State of California." In the letter he said he would speak at the Embassy Suites Arcadia Hotel in Arcadia "about the future of horse racing in California."

A multiple Eclipse Award-winning owner-breeder who has invested millions of dollars in track ownership through a company that became The Stronach Group, Frank Stronach is the founder of the company but currently is only an honorary chairman. His daughter, Belinda Stronach, serves as chairman and president of The Stronach Group.

Frank Stronach has filed a lawsuit in Canada accusing his daughter of mismanagement of TSG since she took the helm more than two years ago. In response, Belinda Stronach has filed a countersuit.

Belinda Stronach Responds to Father's Ontario Lawsuit

Frank Stronach's presentation Tuesday evening came on the heels of equine safety issues at the current Santa Anita Park meeting. Santa Anita is one of The Stronach Group's flagship tracks. Many trainers, owners, and others who work in the California racing industry were among more than 200 people who showed up to hear what Frank Stronach had to say.

He spoke for about a half-hour before opening the meeting up for questions. He covered a wide range of topics, from how he first built his many businesses to how he bought racetracks and rebuilt Gulfstream Park in Florida. 

William DeBurgh, a bloodstock agent and owner, sat next to Stronach and also spoke briefly.

"I've made my life out of horses, and I'm here because I have huge respect for Frank," DeBurgh said. "One of the greatest problems we have in horse racing is no certainty for the future. Without certainty, we cannot plan for the long-term. As a consequence, we have not been able to make the changes or put in place the resources to support our trainers and to make racing as safe as possible.

"He is passionate about securing the future of the industry and the future of all the people who depend on this industry. He has a vision and a proposal for all of the racetracks that he owns to be put in a trust and managed by the stakeholders of the industry for the benefit of the industry."

The questions from the audience also covered many topics. Stronach several times emphasized his desire to keep the racetracks, including Santa Anita, from being developed.

"I want to make a commitment that (the tracks) must stay racing forever," Stronach said.

Upon a question from trainer Paula Capestro about the lack of horses in California, Stronach replied, "What you have here in California, 5% of the trainers may get 80% of the purse money. That's something wrong. The money's got to spread. The rich guys can afford to go to Kentucky and buy a million-dollar horse. We've got to change the breeding program here in California. We as a track have got to make sure the horses are not that expensive. It's up to us, the racetrack, to make sure the people make a living."

After about an hour of questions and answers, Stronach brought the meeting to a close by saying, "I think we've answered a lot of questions. Thank you for coming. I'm behind you, and I think we'll get it done."