Hubbard Sends Proxy Fight to Stockholders

The fight for control of Hollywood Park moved to the next stage Thursday when R.D. Hubbard, owner of race tracks in Kansas and New Mexico, sent an eight-page letter to stockholders calling for the removal of Marje Everett as chief executive officer.

Hubbard’s mailing came hours after filing a joint proxy and consent statement with the Securities and Exchange Commission, as required by law.

In the letter Hubbard said: “Through a combination of what I believe to be mismanagement and bad judgment, Mrs. Everett has permitted Hollywood Park to decline into the second tier of racetracks from its former position of greatness.”

Hubbard spent four pages attacking Everett’s performance at Hollywood Park. He identified the following as problems caused by Everett:

--The construction of the $40-million Pavilion of the Stars which “(is) so poorly designed . . . that people couldn’t see the races and no one wanted to go there.”

--The failure to gain zoning approvals at Los Alamitos that would have allowed them to sell the land at a great profit. Los Alamitos ended up as a $4.7-million book loss with an additional $18 million lost in expenses.

--A pre-tax loss of $9.4 million in 1989 compared to a pre-tax income of $9.5 million in 1982.

--A stockholder equity loss of $1.7 million at the end of 1989 from a $30.8-million profit in 1984.

--Failure to sell or develop excess real estate.

--Mismanagement of concessions whereby Hollywood Park’s profit is 12% compared to Santa Anita’s 23%.

--Failure to run the 1987 Breeders’ Cup in a “professional way . . . resulting in interminable lines at betting windows and concession stands and traffic jams so bad that at least one trophy presenter was unable to reach the track.”

Hubbard also outlined his plan should he gain control of the track. Among his suggestions were:

--To sell or develop the excess real estate.

--Promote inter-track wagering to include simulcast racing between Hollywood Park and Santa Anita.

--Return the track to a one-mile course. It is currently 1 1/8 miles.

--Close the Pavilion of the Stars except for special occasions and simulcast racing.

Harris Diamond, a spokesman for Hollywood Park, issued a rebuttal: “Mr. Hubbard has tried to take the track private before and he’s clearly trying to do that again without spending any money.

“The (operating) board has recently stated it should maximize value by selling the track and Mr. Hubbard should either join into that or purchase it (the track). What Mr. Hubbard has not told the shareholders is that under Marje Everett, the track has had a tremendous turnaround. It increased its dividends from 15 cents to 20 cents. Its operating numbers are positive as compared to a loss in the past and it has reduced debt from $100 million to $45 million.”

A stockholder meeting is scheduled for Jan. 28.