MANILA Jockey Club, Inc. agreed in principle to lease its horseracing facilities to Hapi Jockey Club, Inc. amid the listed company’s plan to cease its horseracing operations.
Hapi Jockey Club, a corporation organized by horse owners, is a grantee of a legislative franchise for horseracing and intends to conduct such in the leased facilities.
Under Republic Act No. 11649, Hapi Jockey Club was granted a 25-year franchise to construct, operate and maintain racetracks for horse racing in the provinces of Batangas, Laguna, and Cavite.
Its franchise was formally approved and signed into law by then President Rodrigo R. Duterte on March 8, 2022 and officially took effect on March 29.
Meanwhile, the specific terms and conditions of the lease are still to be determined and subject to the approval of the board of directors of each company and relevant government regulators, the company said.
“The company shall disclose the specific terms and conditions of the lease as soon as the definitive agreements have been executed by the parties.”
On Aug. 24, Manila Jockey Club disclosed that its board of directors approved the decision not to pursue an application to extend or renew its legislative franchise that will expire on Oct. 23.
The company stated its plan of ceasing its horseracing operations and pivoting to “more stable revenue streams.”
Manila Jockey Club said that it would focus on rental income, interest income, and the sale or lease of existing horseracing facilities and equipment.
In the second quarter, the company earned P1.47 billion from property sales which helped it swing back to profitability.
Manila Jockey Club operates a racetrack located in Cavite and engages in holding horse races there with bettings both directly or indirectly by means of mechanical, electric, and computerized totalizator.
On the stock exchange on Monday, Manila Jockey Club shares closed unchanged at P1.40 apiece. — Justine Irish D. Tabile