Hollywood Park Approves Purchase of Track in Kansas
Hollywood Park announced that its directors have approved in principle the acquisition of the Woodlands, a Kansas City, Kan., thoroughbred and greyhound racetrack that is 60% owned by Hollywood Park’s chairman, R.D. Hubbard.
The facility has been promoted as a likely site for casino-style gambling. The state Senate has approved legislation to allow Kansas racetracks to hold such gambling; the legislation moves to the House in January and, if approved, will go to the voters for a referendum in November, 1994.
The price is $20 million--$5 million in cash and the rest in Hollywood Park stock, according to a statement that Hollywood Park released Thursday. The Inglewood-based company did not announce how much debt, if any, will be assumed in the transaction, and company officers did not return phone calls for comment.
The purchase price is based on the Woodlands’ value as a racetrack alone, according to Hollywood Park’s statement. The agreement stipulates that the price will rise--by an unspecified amount--if Kansas authorizes casino games there, the statement said.
Hubbard, already Hollywood Park’s largest individual shareholder with 14% of the stock, would see his stake increase through the Woodlands deal.
Hollywood Park stock dropped $1.75 a share, to $28, in trading Thursday.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
