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Anecdotal Findings <br />Although none of the facilities provide an ideal model of the intended Washington State <br />facility,there appear to be a number of "truths"about horse park finances and <br />managementthat were derived from our interview process: <br />*The quality of managementis critical to financial success of the facility. <br />*Managementmust be entrepreneurially,rather than bureaucratically spirited. <br />*The critical managerialgoal is to capture show dates. <br />*The major sources of revenue are:stall rentals,facility or ring rents,bedding <br />sales,parking,concessions,and RV facilities. <br />*It is important that procurement be done through private sector processes,rather <br />than through state or municipal processes. <br />*The vast majorityof facilities are public/private padnerships. <br />*Estimatesof profitability are consistently about one in twelvefacilities.Hence, <br />the vast majority of facilities are subsidized. <br />*Public sector subsidies are typically in the range of 15%-25%of costs,although <br />some range as high as 45%.They are justified on a basis of economic impact <br />and/or "spillover benefits,"secondary economic benefits that accrue to the <br />location or region. <br />*A facility cannot make capital and interest payments and even dream of breaking <br />even. <br />*The vast majority of facilities have associated foundations to raise private sector <br />funding for capital or to subsidize operations. <br />*Private sector fund raising is far more difficult and far less successful than one <br />would imagine. <br />*It is better to concentrate fund raising on individuals rather than on foundations. <br />*Launches usually run 5-8 years behind initially expected schedules. <br />*Profitable facilities have typically had the same managing director for more than <br />eight years. <br />21