Financial Viability of Turf Paradise Questioned Amid Subsidy-Backed Profits
By T. D. Thornton
Arizona Racing Commission Grants Conditional Permit to Turf Paradise Amid Financial Uncertainties
Phoenix, AZ – In a move that underscores the ongoing financial challenges faced by Turf Paradise, the Arizona Racing Commission (AZRC) has granted the racetrack a conditional three-year racing permit, highlighting concerns over its financial viability. The decision, made on July 11, comes after an independent audit revealed that the track has been operating at a net loss for the past three years, once federal and state COVID-19 subsidies are excluded.
Sean Tanner, a certified public accountant with Keegan Linscott & Associates, shared the troubling financial projections with the AZRC during a Thursday meeting. According to Tanner, Turf Paradise is expected to continue incurring losses for at least the next three years, raising questions about its long-term sustainability. "A business cannot operate with recurring losses year after year," Tanner remarked, pointing out that the track is projecting losses through 2026.
The conditional permit is contingent upon the AZRC’s approval of a final report from the auditor, along with mandatory annual reviews of the track’s financials. This decision reflects the commission’s concerns but also allows Turf Paradise to continue operations under close scrutiny.
Turf Paradise’s financial struggles are part of a larger narrative of disputes between the Arizona racing community, the commission, and the track’s controversial owner, Jerry Simms. Simms, who took over the track in 2000, has been at the center of numerous legal and operational battles, contributing to the track’s tumultuous history.
Despite reporting positive net income for 2021, 2022, and 2023, Tanner clarified that these figures were significantly bolstered by COVID relief funds, totaling approximately $24 million. Without these subsidies, the track faced substantial losses, casting doubt on its financial health moving forward.
However, Tanner also noted potential relief from non-recurring annual expenses, including litigation costs and HISA assessments, which could improve the track’s financial outlook. Moreover, Simms has historically provided financial support to Turf Paradise, a commitment he reaffirmed during the meeting.
Simms’s intervention during Tanner’s testimony to prevent the disclosure of his personal finances added a dramatic twist to the proceedings, underscoring the complex dynamics at play. Despite these challenges, Simms expressed confidence in the track’s future, emphasizing his willingness to continue supporting Turf Paradise financially.
The AZRC’s decision to grant a conditional permit reflects a cautious optimism, balancing the need for regulatory oversight with the desire to preserve Arizona’s lone remaining commercial racetrack. As Turf Paradise prepares for its upcoming season, the racing community watches closely, hoping for a turnaround that will secure the track’s future in the face of significant financial headwinds.