Preakness is Bankrupt, Moving From Maryland
Tuesday, June 30th, 2009
Trouble in the economy has rolled over into the horse racing community. The 134 year old Preakness Stakes is in jeopardy of being sold and possibly moved out of state. The owners of the racetrack were forced to file for bankruptcy recently. The Preakness Stakes is the second leg of the Triple Crown and a source of pride for the city of Baltimore. This year's race was one by Rachel Alexandra - a filly - and put Mind That Bird out of the running for the Triple Crown. The announcement of the bankruptcy filing by Magna Entertainment Corporation put a little damper on the celebrations. Horse industry people and regular citizens began to wonder what would happen with the Preakness States.
Maryland officials are tying to ensure that the Preakness Stakes keep their home. The horse industry has a long heritage in the region and a strong economic impact. Government officials are moving to pass legislation that would give the state control over the Preakness Stakes and force the race to stay in Maryland.
The Preakness is no longer in its glory days but it still has its place in history and in the racing community. The race draws over 100,000 visitors each year and they pump around $5 million into the economy. Gambling on the Preakness generates even more income to the state.
Horse racing is one of the strongest sporting factors of the economy in Maryland and it represents almost 80% of the sporting revenues. The industry produces thousands of jobs which also provides a strong impact for the economy of Maryland.
Racing fans and government officials are all hoping to work out a scenario that will keep the Preakness in its current home and still work out the finances for the Magna Entertainment Corporation to help it recover from Chapter 11 Bankruptcy.
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