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LOUISVILLE, Ky. (WHAS11) -- In a stunning move announced Wednesday, Churchill Downs is shutting down its new entertainment division meaning the end of music events like HullabaLOU. Churchill says in this economy it is too difficult to make money at upscale entertainment events. Nearly 80,000 people attended Churchill Entertainment Group events and while officials say those events received high marks, the bottom line doesn't lie.
CDE lost over $5 million just during HullabaLOU Music Festival. University of Louisville Equine Business Director Rich Wilcke believes these figures are more than the group bargained for. "I think they were prepared to lose a million and a half, or two million to build that over time. I think when they ended up losing $5 million then it becomes too expensive a project," said Wilckw.
Churchill Downs Incorporated founded Churchill Down Entertainment Group in 2009 to bring in large scale, live entertainment events. While the events developed, the profits didn't. Officials point to the poor economy, unemployment figures, and hot weather during HullabaLOU as reasons for the lack of success. “It's a loss for us, but we certainly understand the financial implications that Churchill Downs went through, the cost they went through. It's a big undertaking, a great event. It was just the perfect storm for them. Tough economic time, hot weather led to lower attendance than they anticipated," said Wood.
Regardless, Wood says he wouldn't have put on HullabaLOU any other way. "I think their strategy was dead on. They brought in the right acts and for the type of entertainment they brought in, they clearly had to start big," added Wood.
In addition, CDE Executive Vice President Steve Sexton has resigned. The following is a statement from him:
"I am proud of the CDE team and what we accomplished, and I have enjoyed my tenure at both Arlington Park Race Course and at Churchill Downs Racetrack during my nine years with CDI.
I was fortunate to lead superb teams at each venue, overseeing six record-setting Kentucky Derbys, two Breeders' Cups, and the $121 million renovation of Churchill Downs Racetrack. I am looking forward to expanding my career in a new direction."
