The National Football League’s Chicago Bears franchise recently announced on September 29 it signed a purchase and sale agreement with Churchill Downs Inc. to acquire Arlington International Race Course in Arlington Heights, Illinois for $197.2 million, according to a Securities and Exchange Commission filing.
The last race of the 94th season at the fabled racetrack was run on Saturday, September 25. Churchill Downs announced earlier this year it will sell the 326-acre property. Besides the Chicago Bears, an investor group with racing connections also expressed interest. Churchill Downs did not ask racing regulators for 2022 race dates and did not apply for a casino license, despite lobbying the Illinois legislature for a license for years. Race dates for next year were awarded to Hawthorne Race Course and FanDuel Sportsbook and Horse Racing.
A few hours before the final racing program started, Arlington sent an e-mail to its distribution list, titled, “A Fond Farewell”. It read, “Don’t be sad it’s over. Be glad it happened,” the message spun the track’s impending demise.
Observers said Churchill Downs wants to minimize competition at its Rivers Casino in Des Plaines, located less than 15 miles from the racetrack. Churchill Downs officials said they can make more money at Rivers since they no longer will have to pay for racing purses. Rivers generated $288.3 million, more than one-third of the state’s casino revenue in 2021, and $65.5 million, nearly half of the state’s $137.4 million in gaming tax receipts, from January through August.
Chicago Mayor Lori Lightfoot expressed hope the team would resume negotiations with the city. She said, “As a mayor, as a Bears fan, I’m going to continue to do what I can to keep them here in the city of Chicago, and I don’t think that door has closed by any means, but I also need to make sure that first and foremost I’m doing what’s best for the taxpayers of the city. The Bears cut a deal with former Mayor Richard Daley 20-plus years ago. It’s clearly a deal they don’t believe now works for them, but I’ve got to know what their specific issues are, and they have to come to the table.”
Bears President and Chief Executive Officer Ted Phillips said, “We are excited to have executed a purchase and sale agreement for the Arlington Park property. We are grateful to Churchill Downs Incorporated for their efforts to reach this point. We also appreciate the support of Mayor Tom Hayes and the Village of Arlington Heights. Finalizing the PSA was the critical next step in continuing our exploration of the property and its potential. Much work remains to be completed, including working closely with the Village of Arlington Heights and surrounding communities, before we can close on this transaction. Our goal is to chart a path forward that allows our team to thrive on the field, Chicagoland to prosper from this endeavor and the Bears organization to be ensured a strong future. We will never stop working toward delivering Bears fans the very best experience. We will continue to provide updates on our progress at the appropriate time.”
Churchill Downs Chief Executive Officer Bill Carstanjen stated, “This has been an extraordinarily competitive bid process. Congratulations to the Chicago Bears for their professionalism and perseverance. It is clear they are committed to an exciting vision for their team and their fans. We wish them the greatest success and are excited for the opportunity this brings to the Village of Arlington Heights and the future economic development of this unique property.”
Arlington Heights Mayor Tom Hayes added, “My goal for any redevelopment has always been to put this prime piece of real estate to its highest and best use, and I can’t think of a higher and better use than this one. There is a long way to go as we begin this journey, and many issues for the community to discuss, but the Village is committed to working with the Bears organization and all stakeholders to explore this opportunity for Arlington Heights and the northwest suburban region.”
It’s no secret that the Bears organization has had issues with the Chicago Park District, which manages Soldier Field, over upkeep and improvements, especially regarding developing a sportsbook at the stadium. The Bears announced in June that BetRivers would be the team’s official sportsbook partner and that Rivers Casino would be its official casino partner through a deal with Rush Street Interactive.
The Bears’ lease at Soldier Field runs through 2033. However, according to the Chicago Tribune, the team could break the contract in 2026 for an estimated $84 million.
As a result of closing Arlington, officials said 237 employees will be laid off. At its peak the racetrack employed more than 1,000 workers. Many of the workers are part time and seasonal and others work for horse owners full time. Typically, at the end of the season, Arlington workers move on to other tracks, but many have no idea what they’ll do next spring if Arlington permanently closes.
Officials at Hawthorne Race Course in Stickney said they can accommodate workers, trainers and horses from Arlington. They plan to invest $400 million in a racino opening in 2022. However, Hawthorne’s season will shift between harness and thoroughbred racing, with three months of alternating downtime, which could make it difficult for many to stay.
Churchill Downs was the subject of scorn at the recent meeting of the Illinois Racing Board, where commissioner Alan Henry said closing Arlington “would be yet another bloody stain on the hands of CDI.” He added, “Honor your roots. Protect your brand. Rescue the Illinois racing industry and the thousands they employ by passing the torch to a worthy steward who will work toward a renewal of racing at Arlington Park in 2023. And by doing that, regain some measure of respect within the horse racing universe. It’s not too late to make it right. Save this racetrack.”
Henry said Churchill Downs should pay horse owners the $800,000 it’s projected to earn the rest of this year from off-track and advanced deposit betting, which Henry said is dedicated by law to purses.
Arlington opened in 1927 and burned down in 1985. A new grandstand with an iconic cantilevered roof was built, which Architectural Digest said was one of the most beautiful in the world.
