Cliff Williams, Contributor

From what I can gather, the principals of Caymanas Entertainment Limited (CEL) have now been formally advised as to why the negotiations with the Ministry of Finance for the proposed lease and operation of the local racing plant is at an end.

Obviously, I am not privy to the details of the financial aspect of the negotiations, but my sketchy understanding of the issue is that the potential investors subsequently readjusted their initial position which has now put the competitive bid at a disadvantage.

Disappointment

The Government negotiators found this unacceptable and the reasons have been communicated in great detail to the directors of CEL.

Given the level of expenditure consumed in the bidding process with the provision of different and, in some cases upgraded financial guarantees, the principals of CEL must be extremely disappointed with the outcome.

Although I have not examined the cash flow projection of the potential investors but on the basis of thecurrent performance of the promoting company, as I have said many times in the past in these columns, I am not so sure that operation of this racetrack is the best available investment option given the level of capital outlay required initially.

It would seem to me that only an unlikely doubling of net profit at the end of say year two of operation could justify the magnitude of the investment.

I am no expert in these financial investment matters, but it would seem to me that given the level of competition, legal and otherwise, in the operating environment there would be no easy path to profitability in any reasonable time.

Still, I am only expressing my opinion from the viewpoint of marketing knowledge.

Truth be told, I have nothing but respect and admiration for the type of entrepre-neurship required to take on an investment of this magnitude, so complicated and fraught with uncertainty in terms of the voluntary input that breeders and owners would have to make to sustain the industry's commercial viability.

With divestment now held in abeyance, indefinitely it would appear, the current board of directors of Caymanas Track Limited will be happy to welcome the opportunity to get their plans for the full scale upgrading of the facility in train.

In fact, chairman William Chin See would wish to be given immediate permission to install an elevator to make access to the third floor easy for the more venerable amongst us.

Going forward

Chin See has a number of developmental plans as a strategy for the upgrading of the plant, and even has some resources identified for the purpose.

In the meantime, while we await the official announcement of the plans for the future of the industry, speculation and rumours abound as what is likely to materialise going forward.

Incidentally, it is now being suggested that a former high-profile vice-president and racing secretary is likely to return and that, at this point, may very well be more than a rumour.