Fair Grounds Co-Owner Sells to Rival Race Track

Owners of Jefferson Downs in suburban Kenner have agreed to pay $14.7 million for controlling interest in the Fair Grounds, the nation’s third-oldest thoroughbred track.

Louis Roussell III, majority Fair Grounds owner, said the deal included a commitment to excellence and $1.47 million in up-front money from the Krantz family of Jefferson Downs for purchase of his share in the 118-year-old Fair Grounds.

Of the nation’s thoroughbred tracks, only Saratoga and Pimlico are older. The legendary Black Gold won his first race at the Fair Grounds in 1923 and his last race in 1928. Roussell bought control of the Fair Grounds from his father four years ago when the elder Roussell, in a dispute with the Louisiana Legislature over tax incentives, threatened to turn the Fair Grounds into condominiums and parking lots.

The younger Roussell put $18 million into improvements at the Fair Grounds, renovating the grandstands and completely reworking the backstretch.

Attendance and betting handle were off dramatically at the track this season, although figures from off-track betting parlors improved the picture substantially--a 12.35% increase in attendance over last season and a 5.26% increase in total handle to a daily average of $1,478,504.

“Maybe someone else can take over the track and do a better job than I did,” Roussell said, one of the reasons he gave for selling.

Competition with the less prestigious Jefferson Downs for off-track betting parlor sites figured in his decision, he said. The OTB parlors are owned by the tracks and are included in the sale, Roussell said.

For the first time, the off-track betting handle exceeded betting at the Fair Grounds’ windows this year.

Roussell said that training is his first love and that he intends to develop another Risen Star, winner of last year’s Preakness and Belmont. Risen Star, who won the Preakness and Belmont after losing the 1989 Kentucky Derby, then was syndicated and retired to stud by co-owners Roussell and Ronnie Lamarque.

Roussell said the Krantz family is paying $70 a share for the 54% of Fair Grounds stock he owns and controls.