Rosecroft Raceway is staffed and ready for its simulcast of the Kentucky Derby on Saturday, despite the Maryland Racing Commission's decision to suspend its signal for out-of-state thoroughbred races.
The commission voted 6-2 on Tuesday to revoke the Fort Washington harness track's rights after learning Rosecroft had defaulted on money owed to the Maryland Jockey Club, breeders and horsemen for the simulcast signal.
The money was part of the $5.9 annual payment set forth in a 15-year revenue-sharing agreement in 2006, said Alan Foreman, general counsel for the Maryland Thoroughbred Horsemen's Association. Foreman said the payments have stalled since January.
Kelley Rogers, president of Cloverleaf Enterprises, which owns Rosecroft, filed a motion in Prince George's County Circuit Court to stay the commission's ruling until a procedural hearing can be held, said Lisa Watts, vice president of operations at Rosecroft.
Watts said Rosecroft had been granted a stay on Wednesday based on conditions, which she couldn't detail at the time. The court's ruling couldn't be confirmed by press time.
Rogers argued at Tuesday's meeting that Rosecroft can't afford the $5.9 million payment. Rosecroft has a handle of about $69 million; it was $100 million when the deal was made, Watts said.
He said he would pay the group $2 million for the year, which the groups rejected on basis of the agreement.
"This is a very sick harness industry, trying to feed off the sick thoroughbred industry," Foreman said, adding that thoroughbred betting is down 25 percent in the state. "It's very hard to squeeze money from a lemon."
Foreman and other industry representatives pushed the commission to pull Rosecroft's signal at midnight Tuesday when it became clear that Rogers was not going to make payment "whether he had another 48 minutes or another 48 hours," he said.
Rogers intends to sever the agreement entirely through the court, Watts said.
Rosecroft suspended its live harness racing in June due to high costs, but plans to start again in 2010 after slots are operating in the state. The track runs simulcasting year-round, except for three days when Rosecroft is closed, Watts said. Rosecroft also runs twice-monthly non-wagering qualifying races and the Sire Stakes program beginning in July.
Watts said Rosecroft revenues will plummet further without the simulcasts.