Hawthorne Eyes April Racing, Continues Search For Racino Suitor

Hawthorne Race Course officials expressed optimism to Illinois Racing Board (IRB) officials on Wednesday that they can conduct thoroughbred racing at their south Chicago suburban track this year.

Track officials, including President and CEO Tim Carey, testified to the state agency they remain committed to horse racing in Illinois and continue to look for a suitor who would partner in building a $400 million racino in Stickney. Hawthorne was declared “preliminary suitable” by the Illinois Gaming Board to build the racino in July 2020, but has long struggled to secure financing after initial demolition work was performed more than five years ago.

Hawthorne secured a $16 million loan last week to begin repaying creditors and use as operating capital over the next three months. The track had its harness racing license suspended by the IRB in late January after finding Hawthorne failed “to provide documentation demonstrating its financial integrity.” That contributed to its filing for Chapter 11 on Feb. 27.

Walking through the process

Carey was flanked at the dais by Hawthorne legal counsel Barry Chatz and Getzler Heinrich & Associates Senior Managing Director David Campbell, who is serving as Hawthorne’s financial advisor.

Chatz and Campbell answered most of the board’s questions about how the Chapter 11 reorganization process works. Chatz confirmed the track had retained $8 million of the available funds “to utilize for the purpose of facilitating recapitalization [and] sale of the business and maintain the operations going forward for the thoroughbred season and throughout the future.”

Chatz added that a creditors committee had been formed and Hawthorne is “working tirelessly as well to make sure all the horsemen will be paid with respect to their arrears.” Chatz did not specify a figure owed and expressed hope the thoroughbred horsemen would be paid before the end of next week.

Tony Simone of the Illinois Harness Horsemen Association (IHHA), whose group was moved down the pecking order of creditors by the bankruptcy judge last week, said his group is owed $2.5 million between the $1.2 million worth of bounced checks and $1.3 million currently frozen in accounts during public comment. In later testimony, Simone was not optimistic there would be a harness season at Hawthorne come November.

Carey offers thoughts

A fourth-generation owner of Hawthorne Race Course, Carey has often spoken of bearing the responsibility of keeping horse racing in Illinois and, more specifically, the Chicago area. Hawthorne Race Course is the only track in the area following Churchill Downs Incorporated’s decision to cease racing at Arlington Park after the 2021 season and the company’s sale of the land to the Chicago Bears completed in 2023.

In the few times he did testify to the board, Carey was measured in his tone but also spoke resolutely in wanting to continue horse racing.

“The easiest thing we could do right now is just literally take a bid and sell the property,” Carey said. “As a family business, we’ve chosen not to do that. We’ve chosen to put our money in, so that we can go through this process. And we believe because of [Chatz and Campbell] and the advice we’re getting that we can come out of this thing the right way and continue horse racing. That’s the intent.”

Hawthorne submitted an amended race schedule to the IRB that removed six dates and listed April 19 for its opening day. The track is in the process of being turned over from harness to thoroughbred racing, with completion expected early next week.

Illinois Thoroughbred Horsemen Association (ITHA) said it supported the decision, while noting “vacating these dates is not optimal.” ITHA President Chris Block said six weeks was an optimal amount of time for the horses to be ready, but called all this “unchartered waters.” He expressed confidence in his horsemen, saying, “I’m sure they’ll use their best judgment to try and prepare for the 19th.”

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