A REAL HORSE TRADE; CHURCHILL DOWNS BUYS HOLLYWOOD PARK.

Byline: Kevin Modesti Daily News Staff Writer

In a development hailed by both companies as good for Los Angeles horse racing, Hollywood Park was purchased by Churchill Downs on Thursday, making the 61-year-old ``Track of the Lakes and Flowers'' the western outpost in the Kentucky Derby host's growing empire.

The agreement - the subject of negotiations made public a month ago - calls for Churchill Downs Inc. to pay $140 million for the Hollywood Park racetrack and casino and most of the surrounding real estate.

The casino will be leased back to Hollywood Park Inc. for $3 million a year. Hollywood Park said it will sell or build on the 138 acres it retains of the 378-acre property next door to the Forum.

The purchase, expected to close in August, will mean the departure of freewheeling Hollywood Park chairman R.D. Hubbard, who seized control of the track in a 1991 proxy battle, replaced by the button-down corporate style of Churchill Downs president and CEO Thomas Meeker, a former Marine Corps officer.

It will give Hollywood Park Inc. - which is in for a name change - more money to pursue its shift from the racing business to the casino business.

``We were interested, in addition to (the purchase price), in assuring that racing was going to continue and be viable here,'' Hubbard said a few hours after the agreement was signed at 6 a.m. Thursday. ``And I can assure you that with Churchill Downs, that is going to happen.

``They are definitely building the best racing company in the country. There are going to be a lot of changes in racing in the next century, and Churchill Downs is going to be leading the way.''

Although the Louisville, Ky., track is best known for the Kentucky Derby's old-fashioned charm, its mission in the 1990s has been to acquire other tracks to add to its simulcast wagering network.

Churchill Downs operates the Hoosier Park harness track near Indianapolis, and in the past year has purchased Kentucky's Ellis Park and Miami's Calder Race Course.

The catch phrase at Thursday's press conference was ``integrated simulcast product,'' a fancy way to say one television program presenting action from several racetracks, the kind of show that proponents of in-home betting envision.

``We think we can make it (simulcasting) markedly better,'' said Meeker, who estimated the value of the national simulcasting market at $8 million.

``This is good for racing. And I think it's going to be great for Hollywood Park,'' Meeker said, promising, ``We are a racing company.''

Meeker said changes in the Inglewood facility are planned, but wouldn't offer details.

Interested observers said they were happy about the purchase, which means both major L.A.-area thoroughbred tracks have new owners, Santa Anita having been bought in December by Frank Stronach's Magna International.

``Churchill Downs is probably the best racetrack operator that's interested in the future of racing,'' said John Van de Kamp, president of Thoroughbred Owners of California.

``I think it's great news,'' trainer Richard Mandella said of the purchase. ``If Century 21 bought it, we'd be nervous. But Churchill Downs has grandiose ideas and wants to take hold of the racing market. I think it's great that Churchill Downs thinks enough of Hollywood Park to make it part of that.''

Hubbard, 63, said he told employees Thursday, ``It's time for a change.''

A Kansas-born glass manufacturer who got into racing as an owner and breeder, Hubbard stirred controversy early in his eight years in charge of Hollywood Park, angering many horsemen by pushing Friday-night racing, expanding simulcasting and opening the trackside casino.

But most acknowledge now that Hubbard revitalized Hollywood Park after years of decay, and cited his role in the formation of the National Thoroughbred Racing Association as a major contribution to the sport.

``The (Thoroughbred Owners of California) board expressed its gratitude to R.D. Hubbard for the job he did here in trying to break the mold of California racing,'' Van de Kamp said. ``I think he kept it interesting, lively.''

Hubbard said the failure of his attempt to build an NFL stadium on Hollywood Park property did not contribute to his willingness to sell. Smiling, he indicated he hasn't given up hope.

``We still have 140 acres we're interested in doing something with,'' he said.

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Photo

PHOTO Churchill Downs CEO Thomas Meeker, right, and Hollywood Park chairman R.D. Hubbard field questions.

Damian Dovarganes/Associated Press