47
EXHIBIT 99
[Churchill Downs Logo]
Contacts for Hollywood Park Inc.: Mike Finnegan
President and Chief Executive Officer of Realty Investment Group Inc.
or R.D. Hubbard
Chief Executive Officer of Hollywood Park Inc.
(949) 752-4841
Contact for Churchill Downs Incorporated: Karl Schmitt
Senior Vice President, Communications
(502) 636-4594/(502) 551-1395
or Chantelle Kammerdiener
Investor Relations Manager
(502) 636-4415/(502) 266-8731
KENTUCKYDERBY.COM
CHURCHILL DOWNS COMPLETES ACQUISITION
OF HOLLYWOOD PARK RACETRACK
LOUISVILLE, KY. (Sept. 10, 1999) - Churchill Downs Incorporated (Nasdaq: CHDN)
("Churchill Downs") and Hollywood Park Inc. (NYSE: HPK) announced today that
they have completed the transaction in which Churchill Downs purchased the
Hollywood Park Race Track and the Hollywood Park Casino, including approximately
240 acres of land at the track site in Inglewood, Calif.
Under the terms of the agreement, Churchill Downs paid $140 million in
cash for the assets and has granted Hollywood Park Inc. a 10-year lease on the
Hollywood Park Casino, a California card club, at a lease rate of $3 million per
year with one 10-year renewal option and an adjustment to the rent during the
renewal period. Plans for the transaction were initially announced in May 1999.
Eual Wyatt will continue to serve as vice president and general manager
for Hollywood Park Race Track. Additionally, Churchill Downs recently announced
that racing industry veteran Allen Gutterman will oversee Hollywood Park's
marketing efforts. Don Robbins will step into a new role as a consultant for the
track in the areas of governmental and racing affairs.
"The completion of the Hollywood Park Race Track purchase is a
milestone for our Company," said Thomas H. Meeker, president and chief executive
officer for Churchill Downs. "We are excited to now be a part of the excellent
West Coast racing circuit and to begin integration of this historic racetrack
into our existing operations. The addition of Hollywood Park's simulcast program
will be essential to our efforts as we continue to build a comprehensive
simulcast network."
- MORE -
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Churchill Downs Incorporated
700 Central Avenue
Louisville, KY 40208
(502) 636-4400
FAX: (502) 636-4430
Address:
www.kentuckyderby.com
48
Churchill Downs Incorporated Completes Acquisition
Page 2
SEPTEMBER 10, 1999
R.D. Hubbard, chief executive officer of Hollywood Park Inc., said, "We
are pleased to have completed the sale of the Hollywood Park Race Track to
Churchill Downs as we continue to focus on the development of our gaming
businesses. Churchill Downs is a leader in the racing industry, which will
ensure the continuation of live racing at Hollywood Park for the foreseeable
future."
Churchill Downs Incorporated, headquartered in Louisville, Ky., is one
of the world's leading horse racing companies. Its flagship operation, Churchill
Downs racetrack, is home of the Kentucky Derby and will host its 126th running
on May 6, 2000. The Company has additional racing and simulcast-wagering
operations in Kentucky, Indiana and Florida and interests in various racing
services companies. Churchill Downs Incorporated can be found on the Internet at
KENTUCKYDERBY.COM.
Hollywood Park Inc. is a diversified gaming company that owns and
operates eight casinos (four with hotels) in Nevada, Mississippi, Louisiana and
Argentina; owns a card club casino and, via the transaction with Churchill Downs
Incorporated, leases a second card club casino, both in the Los Angeles
metropolitan area; and owns and operates a racing facility in Arizona. Hollywood
Park Inc. is also in the developmental stages of the Belterra Resort and Casino,
a riverboat gaming casino on the Ohio River in Indiana (located in Switzerland
County, Ind., 35 miles from Cincinnati) and has announced its intentions to seek
the 15th and final gaming license to be issued in Louisiana (at a site in Lake
Charles, La.). In connection with the sale of the Hollywood Park Race Track,
Hollywood Park Inc. relocated its corporate offices to Glendale, Calif.
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS MADE BY CHURCHILL DOWNS
INCORPORATED AND PURSUANT TO THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995. THE READER IS CAUTIONED THAT SUCH
FORWARD-LOOKING STATEMENTS INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE
ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE PRESENTLY ESTIMATED AMOUNTS. THESE
RISKS AND UNCERTAINTIES INCLUDE: THE CONTINUED ABILITY OF THE COMPANY TO
EFFECTIVELY COMPETE FOR THE COUNTRY'S TOP HORSES AND TRAINERS NECESSARY TO FIELD
HIGH-QUALITY HORSE RACING; THE CONTINUED ABILITY OF THE COMPANY TO GROW ITS
SHARE OF THE INTERSTATE SIMULCAST MARKET; A SUBSTANTIAL CHANGE IN REGULATIONS
AFFECTING OUR GAMING ACTIVITIES; A SUBSTANTIAL CHANGE IN ALLOCATION OF LIVE
RACING DAYS; THE IMPACT OF COMPETITION FROM ALTERNATIVE GAMING (INCLUDING
LOTTERIES AND LAND-BASED, RIVERBOAT AND CRUISE SHIP CASINOS) AND OTHER SPORTS
AND ENTERTAINMENT OPTIONS IN THOSE MARKETS IN WHICH THE COMPANY OPERATES; A
DECREASE IN RIVERBOAT ADMISSIONS REVENUE FROM THE COMPANY'S INDIANA OPERATIONS;
YEAR 2000 COMPUTER ISSUES; AND THE COMPANY'S SUCCESS IN ITS PURSUIT OF STRATEGIC
INITIATIVES DESIGNED TO GENERATE ADDITIONAL REVENUES.
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 PROVIDES A "SAFE HARBOR"
FOR FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING INFORMATION INVOLVES IMPORTANT
RISKS AND UNCERTAINTIES THAT COULD SIGNIFICANTLY AFFECT FUTURE RESULTS AND,
ACCORDINGLY, SUCH RESULTS MAY DIFFER FROM THOSE EXPRESSED IN FORWARD-LOOKING
STATEMENTS MADE BY OR ON BEHALF OF HOLLYWOOD PARK, INCLUDING STATEMENTS RELATED
TO THE OPTION TO SELL PROPERTY TO MARVIN DAVIS, OR THE SALES OF PROPERTY FOR NON
SPORTS USE. FOR MORE INFORMATION ON THE POTENTIAL FACTORS THAT COULD AFFECT THE
COMPANY'S FINANCIAL RESULTS, REVIEW THE COMPANY'S FILINGS WITH THE SECURITIES
AND EXCHANGE COMMISSION, INCLUDING THE COMPANY'S ANNUAL REPORT ON FORM 10-K AND
THE COMPANY'S OTHER FILINGS WITH THE SEC.