11 CSR 45-51.100 - Disclosure of Financial Plan

PURPOSE: The purpose of this rule is to set forth the requirements for disclosure of financial plan for Class A licenses.

(1) The applicant for a Class A license must disclose its financial projections for the development period and for the conducting of the race meets.

(2) Separate schedules based on the number of racing days and the types of pari-mutuel wagering must be included.

(3) The disclosure must include:

(A) A projection of the type and length of race meeting anticipated;

(B) The applicant's requirements for breaking even, including the optimum number of racing days, for each meet anticipated and the anticipated type of betting;

(C) The following assumptions and the support for them for the first five (5) years of racing (Provide assumptions and support for both live on-track racing and simulcast racing.):

1. Average daily handle;

2. Average daily attendance; and

3. Per capita wager;

(D) Provide financial projections regarding the operation at the end of the development period and each of the first five (5) years of racing setting forth the following elements, including assumptions and support for them. (Provide separate schedules for live on-track racing and simulcast racing and a combined schedule of both.):

1. Revenues-

A. Retainage;

B. Breakage;

C. Outstanding tickets;

D. Admission;

E. Parking;

F. Program sales;

G. Concession (food and beverage);

H. Interest; and

I. Other (specify);

2. Racing expenses-

A. Purses;

B. Breeders awards;

C. Breakage;

D. Outstanding tickets;

E. Pari-mutuel tax; and

3. Operation expenses-

A. Marketing;

B. Legal;

C. Audit;

D. Insurance (property);

E. Insurance (liability);

F. Insurance (other);

G. Repair and maintenance;

H. Printing (program);

I. Printing (other);

J. Consulting fees;

K. Membership;

L. Equipment rental;

M. Totalizer rental;

N. Travel and entertainment;

O. Utilities and telephone;

P. Operating supplies and services;

Q. Salary and wages;

R. Payroll taxes and employee benefits;

S. Sales tax;

T. Admission tax;

U. Property tax;

V. Waste removal;

W. Interest;

X. Drug testing;

Y. MHRC license fees; and

Z. Other (specify); and

4. Nonoperating expenses, including anticipated expenses for-

A. Debt service;

B. Facility depreciation, including the identification of method used; and

C. Equipment depreciation, including the identification of the method used;

(E) Projected cash flow including assessments of:

1. Income, including:

A. Equity contributions;

B. Debt contributions;

C. Interest income; and

D. Operating revenue; and

2. Disbursements, including:

A. Land;

B. Improvements;

C. Equipment;

D. Debt service;

E. Operating expense; and

F. Organizational expense; and

(F) Project balance sheets as of the end of the development period and for the requested race meets setting forth-

1. Current fixed and other noncurrent assets;

2. Current and long-term liabilities; and

3. Capital accounts.

(4) The applicant must also disclose an accountant's report of the financial projections.

(5) The commission will utilize financial projections in deciding whether to issue Class A licenses. Neither acceptance of a license application nor issuance of a license shall bind the commission as to matters within its discretion, including, but not limited to, assignment of racing days and design of types of permissible pari-mutuel pools.

Notes

11 CSR 45-51.100

AUTHORITY: section 313.580, RSMo 1986.* This rule originally filed as 12 CSR 5011.100. Original rule filed June 17, 1986, effective Oct. 27, 1986. Amended: Filed June 6, 1989, effective Aug. 24, 1989. Moved to 11 CSR 45-51.100, effective Aug. 28, 1995.

AUTHORITY: section 313.580, RSMo 1986.* This rule originally filed as 12 CSR 5011.100. Original rule filed June 17, 1986, effective Oct. 27, 1986. Amended: Filed June 6, 1989, effective Aug. 24, 1989. Moved to 11 CSR 45-51.100, effective Aug. 28, 1995.