Current through Register Vol. 48, No. 39, March 25, 2024
An applicant for a Class A license must disclose with regard
to its financial plan the financial projections for the development period and
each of the first five racing years, with separate schedules based upon the
number of racing days and types of pari-mutuel betting the applicant requires
to break even and the optimum number of racing and types of betting applicant
seeks each year. The commission will utilize financial projections in deciding
whether to issue Class A licenses. Neither acceptance of a license application
nor issuance of a license shall bind the commission as to matters within its
discretion, including, but not limited to, assignment of racing days and
designation of types of permissible pari-mutuel pools. The disclosure must
include:
A. the following assumptions
and support for them:
(1) average daily
attendance;
(2) average daily per
capita handle and average bet;
(3)
retainage;
(4) admissions to track,
including ticket prices and free admissions;
(5) parking volume, fees, and
revenues;
(6) concessions, gift
shop, and program sales;
(7) cost
of purses;
(8) pari-mutuel
expense;
(9) state taxes;
(10) real estate taxes;
(11) breeder fund;
(12) payroll;
(13) operating supplies and
services;
(14) utilities;
(15) repairs and maintenance;
(16) insurance;
(17) travel expense;
(18) membership expense;
(19) security expense;
(20) legal and audit expense;
(21) debt service; and
(22) federal taxes;
B. the following profit and loss elements:
(1) total revenue, including projected
revenues from retainage and breakage, admissions, parking, and concessions,
gift, and program operations;
(2)
total operating expenses, including anticipated expenses for:
(a) purses;
(b) pari-mutuel;
(c) sales tax;
(d) breakage to state;
(e) real estate tax;
(f) admissions tax;
(g) breeder fund;
(h) special assessments;
(i) cost of concession goods, gifts, and
programs;
(j) advertising and
promotion;
(k) payroll;
(l) operating supplies and service;
(m) maintenance and repairs;
(n) insurance;
(o) security;
(p) legal and audit; and
(q) federal and state income taxes;
and
(3) nonoperating
expenses, including anticipated expenses for debt service, facility
depreciation and identification of method used, and equipment depreciation and
identification of method used;
C. projected cash flow, including assessment
of:
(1) income, including equity
contributions, debt contributions, interest income, operating revenue;
and
(2) disbursements, including
land, improvements, equipment, debt service, operating expense, organizational
expense; and
D.
projected balance sheets as of the end of the development period and each of
the five racing years setting forth:
(1)
current, fixed, and other noncurrent assets;
(2) current and long-term liabilities;
and
(3) capital accounts;
The applicant must also disclose an accountant's review
report of the financial projections.
Statutory Authority: MS s
240.23
