Racetrack Owner Switches Chiefs

Jim McAlpine, once credited by Frank Stronach as the executive who revived his then-struggling auto-parts company, has been replaced as chief executive of Magna Entertainment Corp., the Canadian-based company that owns Santa Anita and 12 other North American racetracks.

Magna announced Tuesday that Thomas Hodgson, a former executive with several companies in Canada and the United Kingdom, has taken over, with McAlpine moving on to a post as Magna’s vice chairman for corporate development.

For Magna Entertainment, a spinoff of Magna International Inc., the worldwide auto-parts company, Hodgson becomes the fifth chief executive since 1999. Stronach paid $126 million to acquire Santa Anita, his first track, in December 1998.

McAlpine led the company for four years. He had held various posts with Magna International, including chief financial officer and vice chairman.

It was McAlpine who was hard-pressed to find a bright side when he discussed Magna Entertainment with market analysts during a recent teleconference. The company lost $95 million last year, bringing its losses to $215 million since 2002. Its long-term debt is $241 million. McAlpine said that Magna “may not be able to fully implement our plan.”

That plan, as once outlined by Stronach, is “to be the world’s leading electronic media wagering and entertainment company.”

After Hodgson’s appointment, Stronach said in a statement: “Magna remains committed to its strong vision and leadership position in the horse-racing industry. Tom brings a very strong financial background to Magna Entertainment. At this point in our development, we need to focus on financial and operating discipline at many of our operations.”

Since September, Hodgson had been a board member of Magna International Developments, a real estate holding company and the parent of Magna Entertainment. Before that, Hodgson was president of the Strategic Analysis Corp.

Voters in Broward County, Fla., meanwhile, approved a measure that will permit slot machines at Gulfstream Park, Magna’s track near Miami, and three other parimutuel locations. In neighboring Dade County, a similar measure was defeated. In other states, racetracks have used alternative gambling to increase attendance and offer the higher purses that usually improve the quality of racing.

Magna, which spent $20 million on slot-machine measures last year, also is trying to get slots legalized in Maryland, where among its tracks is Pimlico, host of the Preakness, the middle leg of racing’s Triple Crown series.