Frank Stronach sues his daughter over family assets
A family feud that tore apart one of Canada’s richest families has been settled by splitting the company that owns some of America’s most famous racetracks.
Frank Stronach and daughter Belinda Stronach said Thursday they have ended a long and public battle for control of the family business. Belinda will get control of the Stronach Group’s thoroughbred racing and gaming businesses, which include Santa Anita Park and Gulfstream Park, plus related real estate.
Frank Stronach and his wife, Elfriede Stronach, will get full ownership of a thoroughbred stallion and breeding business, including Stronach Stables, and farming operations in Florida, Kentucky and Ontario. They will no longer have any interest in Stronach Group.
In October 2018, Frank Stronach sued Belinda and others, including Stronach Group CEO Alon Ossip, for C$520 million (US$393 million), claiming mismanagement of the family fortune.
Belinda Stronach, a former politician who briefly ran Magna International Inc., rejected the claims of mismanagement. She said she was trying to prevent her father from pursuing “idiosyncratic and often unprofitable projects” that threatened the family fortune.
Neither Stronach has any current involvement with the operations of Aurora, Ontario-based Magna, Canada’s largest car-parts maker.
“I am pleased that my father will be able to focus on an agricultural business and related projects that are his passion. The settlement will allow The Stronach Group to continue building successful companies with quality jobs that contribute to the community,” Belinda Stronach said in a statement.
After a few years of working as a machinist in Austria, Frank Stronach arrived in Canada in the early 1950s with a few hundred dollars in his pocket and built Magna into a company with revenue of $28.7 billion and net income of U$1.1 billion by 2011 -- the year he stepped down as chairman.