LOUISVILLE, Ky. (WDRB) – Louisville-based Churchill Downs Inc. is delaying its planned $300 million expansion of its iconic Louisville racetrack as it copes with the sudden impact of the COVID-19 pandemic on its gaming and horse-racing properties.
“It really makes sense, from a cash perspective, to hold onto the funds for now,” Churchill Downs CEO Bill Cartstanjen said on the company’s quarterly earnings call Thursday.
Churchill Downs said in October that it would add permanent seating the First Turn area of the track at 700 Central Avenue, as well as a hotel and a facility offering slot-like historical horse racing machines. The project had been targeted for 2021, but the company did not give a new date.
He said the move is merely a delay -- not a cancellation -- of the project and reflects uncertainty about when the U.S. economy will rebound from the coronavirus, including issues such as the development of a vaccine for the virus.
Kentucky Derby 2020: 'We've got four months to figure this out'
Meanwhile, Carstanjen said Churchill Downs still plans to run the Kentucky Oaks and Derby over Labor Day weekend with fans present.
“Sept. 5 is still four months away. A lot can happen in our country and I expect that it will,” Carstanjen said. “We will adjust and respond to whatever the circumstances and will work tirelessly with state and local officials to develop any and all necessary protocols and procedures to make our event a safe and responsible spectator event.”
The Derby normally attracts 150,000 people to the racetrack, and most are packed in tight quarters. Gov. Andy Beshear's emergency order issued in March prohibits gatherings of 10 or more people.
Asked to elaborate on how the event might change, Carstanjen said he didn't want to comment on "hypothetical" scenarios.
"There is still going to be social distancing issues; there is still going to be other processes and protocols we are going to expect companies to follow, and our customers to follow, in order to hold a safe event," Carstanjen said. "… What those protocols will ultimately be, we will have to see."
He added: "Whatever is capable of being done in this country in four months, whatever can be done, whatever is the maximum acceptable processes and protocols, that’s where we will be. That’s what we will be offering."
Carstanjen added that fewer Derby and Oaks ticket holders requested refunds than he expected, though he did not give figures. The company offered refunds for directly purchased tickets, and the window to request refunds closed April 24.
"There is still a great deal of excitement in our community and among our customers, from wherever they come from," he said. "I think there is an expectation on their part that we'll work through whatever challenges are necessary to offer them the experience that's as close as possible to what they'd expect."
