THOROUGHBRED RACING / BILL CHRISTINE : Hubbard Plans to Purchase Turf Paradise

Unsuccessful in acquiring two race tracks in Maryland last month, Hollywood Park had better luck in Arizona, as Chairman R.D. Hubbard announced Wednesday that the Inglewood track has signed a letter of intent to buy Turf Paradise in suburban Phoenix.

Speaking from Phoenix, Turf Paradise Chairman Robert Walker confirmed the deal, which will involve an exchange of stock worth $33 million to the Arizona track’s 1,700 shareholders.

When the transaction is completed next month, Hollywood Park will receive 2.6 million shares in Turf Paradise and the Turf Paradise shareholders will get 1.4 million newly issued shares in Hollywood Park. The Walker family is Turf Paradise’s largest investor, owning 48% of the shares, and Walker said that under the terms of the deal, he will acquire 3.6% of the Hollywood Park stock, which will make him one of that track’s largest investors. About one-third of the Hollywood Park stock is currently owned by Hubbard, Harry Ornest and John Brunetti.

Since Hubbard became chairman of Hollywood Park in 1991, he and the track have aggressively sought other gambling-related opportunities. Hubbard’s strategy has been to pursue tracks in areas that might be receptive to casino gaming. Contrary to the opinions of some racing industry leaders, Hubbard believes that race betting and casino gambling are compatible.

Hubbard’s recent ventures include:

--Trying to buy the Pimlico and Laurel tracks in Maryland. This Hollywood Park deal collapsed at the 11th hour. Ownership there would have provided Hubbard with an opportunity to enter the newly created racing market in Virginia, where the owners of Pimlico and Laurel have applied for a license to build a track.

--Building a card-playing club at Hollywood Park. The club’s opening has been delayed because the state rejected a Hubbard appointee, Ed Allred, who would have run the casino under a lease arrangement.

--Joining with Hollywood Park’s shareholders in becoming a minority partner in a new track in the Dallas-Ft. Worth area. Hubbard and Hollywood Park dropped out, but Hubbard Enterprises, the Hollywood chairman’s private company, landed a management contract for the Texas track.

--Exploring an investment in a new track in suburban Seattle. Concluding that the track would not be financially sound, Hubbard withdrew.

This year, Hollywood Park will go ahead with a plan to buy the Woodlands, which races horses and greyhounds in Kansas City, Kan. Since opening in 1990, the Woodlands, with Hubbard as a 60% investor, has accrued a debt of about $50 million, but Hubbard believes that the tracks can capitalize on casino gambling if the state legalizes it. A recent state-wide poll, commissioned by the Kansas tracks, showed that 63% would vote in favor of casinos if the question were on a ballot.

Besides a stake of about 18% in Hollywood Park, Hubbard also is a majority owner of Ruidoso Downs in New Mexico and owns the Multnomah Kennel Club, a greyhound track in Portland, Ore. There were unconfirmed reports Wednesday that Lonnie Powell, president of Multnomah, might be moving to Turf Paradise as general manager.

Regarding Hollywood Park’s imminent purchase of Turf Paradise, Hubbard said: “This acquisition meets our strategy of national expansion through racing and other gambling opportunities that offer excellent value and significant upside potential. Turf Paradise is situated in a highly favorable demographic market and owns real estate (275 acres) with strong potential for other uses. We also believe that the legislative climate in Arizona may well offer the opportunity for other forms of gaming in the next two to three years.”

Turf Paradise is a 38-year-old operation that has rid itself of a $2-million debt since Walker took over in 1988. Running a mix of mostly thoroughbreds with quarter horses and Arabians, Turf Paradise operated 177 days in 1992-93, from October through May, and showed earnings of $1.2 million, which accounted for its first stock dividend since 1977.

The track, which draws on-track crowds that average 3,700, either runs or leases 35 off-track betting sites in Arizona and offers its races to out-of-state facilities at a lower commission than most tracks. Offering 13 races on a recent Monday, when many tracks were closed, Turf Paradise generated a handle of $660,000 just through New York City’s off-track betting network.

The horses the bettors see are mostly cheap, except when California trainers ship in for stakes races. Regardless of the quality, Turf Paradise horses run inordinately fast times, and the rock-hard racing strip has arguably been called the fastest in the world. Zany Tactics, a California invader, set a world record for six furlongs with a time of 1:06 4/5 in 1977, and Honor The Hero, a 6-year-old gelding who has been unsuccessful at larger tracks, matched the record while winning last year’s $100,000 Phoenix Gold Cup.

Walker, 60, had no racing background when he took over at Turf Paradise. “We’ve tried to run this track like I would any of the companies I’ve owned,” he said. “Rather than follow what a lot of other tracks have done, we’ve listened to what our fans wanted, and tried to give it to them.”

This has resulted in plenty of betting opportunities, including a bet known as the twin trifecta, and a semimonthly $1 breakfast buffet that gives fans the chance to meet trainers and jockeys. Turf Paradise might also be the only track in the country that doesn’t have a daily program. Entries are drawn three days before races, a day earlier than other tracks, and this gives the Daily Racing Form, which moved its Los Angeles operation to Phoneix last year, the time to include all of the program information in its publication.

Horse Racing Notes

Wekiva Springs, one of California’s most promising 3-year-olds, will miss the San Rafael Stakes at Santa Anita on March 6 because of a cracked hoof and the colt is also questionable for the San Felipe Stakes on March 20. “We’re in a day-to-day situation with him,” trainer Bob Hess Jr. said. “It’s a small crack, near the back of the right front foot. The chances of patching it are slim and none, so we’ll have to clean it out and have it grow back. This is an unfortunate injury because of the timing.” The plan for Wekiva Springs had been to run in one of the prep races, followed by the Santa Anita Derby on April 9 and the Kentucky Derby on May 7. Wekiva Springs has run four times and is on a three-race winning streak, including the Santa Catalina Stakes on Jan. 22.

Chuck Taliaferro, a successful trainer of both quarter horses and thoroughbreds, died Wednesday at his home near Oklahoma City, Okla. Taliaferro, 60, learned that he had cancer of the throat last summer.