Forwafded messnge . .

From Bruce Ema-m --

Dale Thu, May 9. 2019 212 02' PM
Subject From Bruce Berenno . Please give to the Comptroller

To WALMSA--

Please acknowledge receipt oithis email.

Mr. Comptroller,

lam forwarding you a letter on behalf of the Solicitor of Baltimore City as I was asked to

do. This letter relates to the conversation that we had this afternoon. Copies ofthis letter will
also be forwarded to the Governor and his senior staff, as well as to the legislator presiding
officers. Respectfully, my client who is working with Baltimore City and I sincerely hope that
you act and fully concerning this matter.

Respectfully, thank you very much.

Bruce

Office of Bruce Befeano
[91 Duke ofGloucestef Street

Annaiolls MD 2140]

CITY OF BALTIMORE

DEPARTMENT OF LAW
ANDRE M. DAVIS, CITY SOLICITOR
100 N. HOLLIDAY STREET
SUITE 101, CITY HALL
BALTIMORE, MD 21202

BERNARD C. “JACK” YOUNG
Mayor

May 8, 2019
The Honorable Peter Franchot
Comptroller of Maryland
80 Calvert Street
Annapolis, Maryland 21401
Re: Reliability of Stronach Group Attendance and Financial Data
Dear Comptroller Franchot:
The twelve-day meet at Pimlico Race Course, culminating with the Preakness Stakes,
produces significant economic benefit and tax revenue for the State of Maryland. Additionally,
it is critical to the financial well-being of horseracing in Maryland.
In recent weeks, however, serious questions have arisen about The Stronach Group’s
stewardship of the Preakness. Almost 7,000 seats in the north grandstand at Pimlico were closed
for this year’s race solely due to TSG’s failure to perform basic maintenance.
Additionally, Maryland Racing Commission documents raise significant questions
relating to attendance and revenue at the Preakness meet – which, therefore, may impact state tax
collections.
In 2017, The Stronach Group announced that Preakness attendance hit a record of
140,327 and reported that Black Eyed Susan Day attendance was 50,339 – more than 190,000
attendees for just these two days. However, the 2017 Maryland Racing Commission annual
report (the most recent available) states that total attendance for the entire twelve-day meet was
121,402. The announced attendance was 57% more than the number the Commission reported.
Additionally, the financial information provided to the Commission by The Stronach
Group concerning gate receipts strains credulity. In its most recent available report from 2017,
Pimlico Racing Association, Inc. – the Stronach subsidiary responsible for Pimlico – reported
that revenue from admission sales was $4,058,715. As noted above, in 2017, TSG announced
that attendance for the Preakness and Black Eyed Susan totaled 190,666, and the Commission
reported that total Pimlico meet attendance was 121,402.

 The Honorable Peter Franchot
Comptroller of Maryland
Page 2 of 2
May 8, 2019

Using the Stronach-announced attendance numbers for just two days – not the entire meet
– would result in an average ticket price of $21.29. The Commission-reported meet total
produces an average ticket price of $33.43. Neither of these figures is credible given that they
are far less than the least expensive ticket available on the day when most tickets are sold. For
example, in 2017, an infield ticket cost between $60 and $100 – and up to $120 with the Mug
Club – depending on when it was purchased.
Most disturbing, however, is that it is not possible to determine what the actual numbers
are based on the data The Stronach Group provides to the Maryland Racing Commission. It has
provided financial information from two companies: Pimlico Racing Association, Inc. and
Laurel Racing Association Limited Partnership. Stronach receives more than $50 million in
taxpayer funds annually for renovations and purses, and is required by law to annually provide
financial information related to every one of its companies connected with Maryland racing.
An exhibit in the lawsuits between various members of the Stronach family identifies 176
entities that make up The Stronach Group. A minimum of 14 clearly are connected with
Maryland – having Maryland, Laurel or Pimlico in their names. The State of Maryland is owed
complete financial data from each of these companies – as well as others that are not as easily
identified – in addition to other TSG companies that have a financial relationship with Maryland
racing. As currently reported, TSG’s numbers simply do not add up, and the state cannot be
confident that its huge investment of taxpayer dollars is being protected.
Given the enormous state taxpayer subsidies provided to The Stronach Group, the serious
questions raised by dubious attendance and financial data, and TSG’s failure to maintain Pimlico
where it is required, by law, to run the Preakness, the citizens of Maryland deserve stronger
oversight from the Maryland Racing Commission and the rest of our state government. I can
assure you that the City of Baltimore and our legislative delegation will continue to redouble our
efforts. And I am hopeful that you will agree that this matter is worthy of your attention and
leadership.
Sincerely yours,

Andre M. Davis
City Solicitor
AMD/
cc: Senator Craig Zucker, Senate Chair, Joint Audit Committee
Delegate Shelly Hettleman, House Chair, Joint Audit Committee