As we approach the Kentucky Derby, I have been thinking about how those “sky boxes” and executive suites justify the billion dollar price tags of public arenas and stadiums? The answer may come from one of the oldest public sporting facilities n the US of A … the Kentucky Derby. The race is run at Churchill Downs, located on Central Avenue in south Louisville, Kentucky, Churchill Downs Incorporated owns and operates the racetrack.
From 2001 to 2005, Churchill Downs underwent a $121 million renovation. Of course 79 luxury suites were added along with “The Mansion,” an improved clubhouse described by one fan at Yelp as a “cathedral.” where tickets range from $7,000 to $12,500. The Mansion, remniscent of the tradition of Mansions during the era of the plantations, is only open on Kentucky Oaks and Derby day. where the billionaire owners of Derby horses could sip $1000 mint julips. The new design has been somewhat controversial since the new suites block full view of the track’s histric twin spires from most angles.[3] The tips of the spires are still the highest parts of the facility, albeit just barely now. Reminds me of Paul Allen’s wanting to build two 24 story buildings on the shore of Lale Union to block the rest of Seattle’s view of the lake!
Back in Kentucky, Churchill Downs deducts the costs of partying that honors the billionaire horse owners. The IRS, however, decided that only one-half of those expenses are deductible under the rule that only half of entertainment expenses can be deducted as ordinary and necessary business expenses. In the meantime, the Courier-Journal reports that ” Churchill Downs Inc. (CHDN) has been able to boost its Kentucky Derby Week profits by $15.3 million in the past five years by charging thousands of dollars for the right to buy tickets – and charging hundreds, if not thousands, more for the tickets themselves. The exact amount the company makes from its signature event remains a closely guarded secret, but a pie chart shown last year to investors gives some estimations of where those profits – before accounting for taxes and other factors – come from. And a Courier-Journal computer-assisted examination helps put percentages on those estimates.”
Recently, Kentucky has discussed making gambling legal statewide, but Churchill Downs Inc. said late Friday the world renowned Kentucky Derby is at risk if it doesn’t get to own and operate any Louisville casino’
READMORE about how the Derby helps immigrants from Mexico become US citizens!
The rich aren’t totally against government. They’re for government when it gives them subsidies and monopolies.