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USA: Stronach pitches $12m contest to help save racing
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USA: Stronach pitches $12m contest to help save racing

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Frank Stronach at Tattersalls

Frank Stronach: “one day purses could be $20 million or $30 million”

  PICTURE: Edward Whitaker (racingpost.com/photos)  

 By Stuart Riley 4:45PM 13 JAN 2016 

USA: Leading racing figure Frank Stronach has proposed creating a $12m race, which would be the richest in the world, in a bid to fix what he believes is racing’s biggest problem – its broken business model.

The Canadian business tycoon introduced his idea for the ‘Pegasus World Championships’ among a call to arms to the sport to up its game in the face of increased gambling and media competition and what he believes is a dysfunctional system.

“We have to be aware the system doesn’t function anymore,” he said. “We have to look after the customer because of all the competition [from other forms of gambling].”

Stronach, whose company owns and operates six tracks including Gulfstream, Pimlico and Santa Anita, added: “Our racetracks are in great areas where land prices are enormously high. We look down the road and hope to sit down with the horse community so these places stay as racetracks.”

‘We don’t think it would cost that much’

Stronach’s Casino Royale-style proposal is for 12 owners to each put up $1m for a share in all the revenue generated by the ‘Pegasus World Championships’, which would be run in January to avoid a clash with the Breeders’ Cup and the Dubai World Cup Carnival – which currently host the world’s two richest races.

“The basic idea is how can racing compete with other great sports?” Stronach said speaking at the Thoroughbred Owner Conference at Gulfstream Park.

“We’ve got to make things exciting, things the press will write about. We want to tell people that love horseracing that we say, ‘Look. We want to establish a new business.’ We would lease Gulfstream for one day and call it a new business.”

The conditions of the race are yet to be established but Stronach plans to “sit down with prospective shareholders and go into detail.”

He added: “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.”

 

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