Churchill Downs to buy California track

LOUISVILLE, Ky. -- Churchill Downs is buying Hollywood Park race track for $140 million, giving the famed horse racing operator a foothold on both coasts as well as the track where the Kentucky Derby is run each year.

The purchase of the southern California track follows Churchill Downs' purchase of Calder Racecourse in Miami for $86 million.

"We are thrilled at the prospect of expanding our racing operations from coast to coast," said Thomas Meeker, Churchill Downs' president and chief executive.

Hollywood Park officials said the deal would generate money for its expanding gambling interests.

Under the deal, Churchill Downs will acquire 237 of Hollywood Park's 378 acres, which includes the Inglewood, Calif., track, other real estate around the track and a casino. Hollywood Park will lease the casino, a California card club, from Churchill Downs for $3 million per year.

The deal is subject to approval by the California Horse Racing Board, and is expected to close in the third quarter of this year.

Hollywood Park officials said some money from the sale will be used to develop its hotel and riverboat casino in Indiana, scheduled to open next year upstream from Louisville. Hollywood Park also will seek to develop the remaining 141 acres it will own at near the track, or field offers from potential buyers.

"This transaction is a major step toward the attainment of our corporate objective of focusing on the growth of our gaming businesses," said R.D. Hubbard, Hollywood Park's chief executive officer.

The deal with Churchill Downs also will ensure continued live racing at Hollywood Park, he said.

Churchill Downs has racing and simulcast wagering operations at Ellis Park in Henderson, Hoosier Park in Anderson, Ind., as well as a minority interest in Kentucky Downs in Franklin. It also holds interests in various other racing services companies. Churchill Downs, home of the Kentucky Derby, is the company's flagship operation.

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