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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 />management that were derived from our interview process: <br />The quality of management is apical to financial success of the facility. <br />Management must be entrepreneurtally, rather than bureaucratically spirited. <br />The critical managerial goal is to capture show dates. <br />d The major sources -of revenue are: stall rentals, facility or ring rents, bedding <br />sales, parking, concessions, and RV faculties. <br />♦ It is important that procurement be done through private sector processes, rather <br />than through state or municipal processes. <br />t, The vast -majority of facilities are public/private partnerships. <br />0 Estimates of profitability are consistently about one in twelve facilities. Hence, <br />the vast majority of facilities are subsidized. <br />Public seetor subsidies are typically in the range of 15%-25% of costs, although <br />some range as high as 46%. They are justified on a basis of economic impact <br />andlor "spillover benefits," secondafy 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 />0 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 />0 Profitable facilities have typically had the some managing director for more than <br />eight years. <br />21 <br />