Sign of Things To Come?

Magna Entertainment Corp., which operates Pimlico racetrack among other ventures, has filed for bankruptcy according to the Associated Press. Apparently, the company has been unable to obtain new financing while supporting its existing debt.

The company is based in Aurora, Ontario and owns race tracks around the country, including the Palm Meadows Training Center, where Michael Matz makes his winter headquarters. Business is to continue as usual at all Magna-owned operations while this restructuring is taking place.

Apparently there is some kind of in-house deal in the works. It seems as if the real- estate arm of Magna, MI Developments, is going to buy some of the racetrack company's assets, thereby reducing its own debt. According to the AP report, Magna Entertainment has between $500 million and $1 billion in liabilities and more than $1 billion in assets.

MI Developments said it would offer Magna a six month loan so that business can continue while the details are being worked out. That six months conveniently covers the Preakness so, on the surface, nothing will have changed for this year's Triple Crown.

Two things comes to mind. The first is how very much tracks like Pimlico and Churchill Downs are totally dependent on about one week of racing a year to make enough money to remain in existence. And the second, of course, is how very fragile that existence is. Economic woes notwithstanding, thousands will converge on the Derby and the Preakness as they always have. But clearly, staying alive, in between Triple Crown events is becoming more and more precarious.

As I've said before, this would be a great time for a racing hero to emerge from the pack on the first Saturday in May.