Ohio, US-based Cedar Fair Entertainment has announced plans to potentially sell a selection of its amusement parks and to cut its dividend in a bid to reduce debt during the economic downturn.

Potential sales ride on its Worlds of Fun park in Kansas City, Missouri, and Valleyfair in Shakopee, Minnesota, as well as its Great America entertainment park in Santa Clara, California, to the San Francisco 49ers football team for use as a stadium parking site.

In addition, the entertainment company aims to reduce its debt by US$200m (£145m) over the next three fiscal years by cutting its quarterly payout from 48 to 25 cents (35 to 18 pence) a share, which is expected to be declared in the second quarter of 2009.

“Although Cedar Fair has continued to report solid earnings and cash flows with some of the best operating margins among regional amusement parks, the board of directors is taking this action in order to retain additional cash flow to deliver the company over the next several years,” explained CEO Dick Kinzel.

“The current macro environment requires us to balance the distribution of excess cash flow to our unit holders with the company’s strategic objective of strengthening our balance sheet.”

The operator currently owns and operates 11 amusement parks, six outdoor water parks, one indoor water park and five hotels.