Magna President Resigns; Stronach Takes the Helm

Magna Entertainment Corp. announced Monday that it is replacing its president and chief executive for the second time in less than a year.

Mark Feldman has resigned because the company is consolidating its operations in Toronto and he was not willing to relocate. He retains a seat on the Magna Entertainment board of directors and will continue serving as a television, marketing, and Internet consultant.

Frank Stronach, MEC's founder and chairman, will serve as interim president and CEO.

"It is clear that Mr. Stronach should work closely with the executive team during these early years of developing the company's operations," Feldman said. "In this regard, it makes sense to operate the business from Toronto."

MEC's other key executives, Don Amos who is chief operating officer and Graham Orr who is chief financial officer, live in Toronto.
Feldman replaced Jerry Campbell as president and CEO on Aug. 7. Campbell was hired as president and CEO when the company went public last March, then resigned five months later because MEC was consolidating its management team in Los Angeles. Campbell said at the time he didn't want to move from his home in Michigan and wanted to stay involved with Great Lakes Downs racetrack, which he founded.

Since Feldman was hired, a consultant and two officers have left or been replaced. Richard Goldberg, a consultant hired at the same time as Feldman and former executive with DirectTV, left MEC in the fall. Lonny Powell, former president of Santa Anita and vice president of racing operations, resigned Oct. 6. Powell reportedly was retained as a consultant. On Nov. 6, chief financial officer David Mitchell resigned and was immediately replaced by Orr.

In Nasdaq trading Monday, MEC closed up 19 cents or 3.7% to $5.25 on volume of 26,900 shares. The company is a racetrack conglomerate that owns and operates seven racetracks.