NYRA getting ducks in row..
 

The New York Racing Association on Wednesday cleared two major hurdles in its bid to get out of bankruptcy and continue running Saratoga Race Course, Belmont Park, and Aqueduct.

A United States Bankruptcy Court approved NYRA’s disclosure statement, detailing its reorganization plan, which now goes to creditors for their approval.

Also, the Internal Revenue Service announced that it was lowering its claim against NYRA from $1.6-billion to no more than $25-million. The final settlement could be anywhere from $2-million to $15-million.

http://www.thoroughbredtimes.com/news/printable.aspx

Great that the organizations cited are being reasonable with the NYRA. It sure seems the NYRA should control the 3 tracks as well. There has always been room for negotiation about the casino part of the deal. And maybe the NYCOTB can be eliminated in the process and replaced with a sane business.

Nice projections done by NYRA(without an opinion by an accounting firm?).

$275 a VLT machine is realistic for 2009, then in 3 years, 2012 they are up to $503 per machine? Based on what? How many Racinos do that number?
Ballpark they say the slots will go up by 80% from 2009 to 2012?

Now the good part
If you take out the "projected" VLT revenue for each year NYRA's racing operations are as follows: All #'s rounded for simplicity.

2009 Net revenue $120M Total Expenses $164M a loss of Approx $44M

2010 Net revenue $124M Total Expenses $173M a loss of Approx $49M

2011 Net revenue $129M Total Expenses $177M a loss of Approx $48M

2012 Net revenue $130M Total Expenses $182M a loss of Approx $52M
The above Net revenue was determined by removing the VLT revenue listed on the disclosure statement projections that NYRA made(see page 45 of disclosure statement-or page 51 of the 69 page pdf attachment)
Perhaps this is a simplistic look and I would appreciate any others opinions on the above.

Financing--Well since they relinquish the right to any of the Building and Land there are no assets to secure financing for future loans, aka Another Albany Bailout.

The above were all made based on the opening of the VLT's on Jan 1st 2009, knowing NY construction projects, good luck.

Based on the above, Stronachs operations might be par for the course?

Good Luck to the taxpayers of NY State, I think they deserve better.

Do you honestly believe the U.S. Bankruptcy Court would approve the NYRA proposal if the numbers were in fact even close to what you've drawn up in your numerical hypothesis?

One could more easily suggest that you made up the above numbers and I for one would love to see them. However, assuming they are correct you are, of course, leaving out one major thing....and it goes hand in hand with your comments.

Those are the expected expenses based upon the " projected " slot revenues, which you conveniently took out, and would obviously be much lower, mostly because purses are based on slot revenues, should they not acheive the numbers you claim as projected and also claim are impossible.

NYRA is not in business to make money.. There is zero need or drive to do anything other then run racing in a reasonable manner and take care of all the cronies that support them.This model has lead to wide spread corruption and abuses in the past. I see no reason to believe the past is not a strong indication of the future.

I think creating reasonable proforma Financial Statements for an operation without VLT's would take a lot more than your quick math.

Without knowing all the underlying expense assumptions aassociated with VLT revenue, you can't just pull revenue out and expect it to mean anything.

Do your Net Loss #'s still include the tax/surcharge or whatever it is called they had projected paying the State and City for VLT revenue?

Where can you get those FS?

I made the #'s up and then I list the page of the disclosure form that they are on?
OK

I didnt conveniently leave anything out. I posted simple revenue and B/L #'s from racing operations, that were listed on the pages of the disclosure statement, I mentioned in my previous post. However, for argument sake, you can say that if slots dont perform to the numbers the purse expense will be less, but on a propotional basis, yet the loss will still be a staggering number.

I am tied up with a work project today and this weekend but when I get a chance I will try and post some projected racing numbers without the slots as a revenue source and also as a projection for the purse expense. They will be estimates.
Of course anyone else can post them too if they have the report and i will be glad to read them.

Just have the Bruno act to contend with.

The taxpayers of NY deserve whatever they get for electing such a fine group of politicians

According to Fred LeBrun's Times-Union exclusive, Bruno is going to have to be satisfied with a new NYRA Board of Trustees (which was going to happen anyway). Whether Bruno is going to have pay back Tim Smith, Jeff Perle and the Aussies that may have been lining his pockets wasn't covered.

Are you in the running for a spot on the new board?

I am not.. However, should Charlie Hayward step aside once things all get ironed out, as has been long rumored, then Lou Raffetto becomes a fabulous option to join NYRA's operational side in the executive suite. If NYRA emerges out the other side with Raffetto and Hal Handel on the team, combined with existing stalwarts Dunker, Heffernan, Palumbo, Tierney, et al, it will be in a great position to implement whatever executions are required to fulfill everyone's aspirations for NY racing.

It's getting to look allot like Christmas now.

Nonsensical discussion. To have this type of discussion, here, in this type of forum is ludicrous. You are right when you say "perhaps this is a simplistic look" -- it is, and one thing you certainly cannot cannot use in this type of discussion is simplicity. It's not mathematical and it's not linear. It's multi-dimensional.

Be that as it may, this is not a NYRA issue. For the critics, of course it's a NYRA issue. The link doesn't work now so I am not looking at the report, but I don't think one has to in order to see what your mindset is.

Anyway, I don't know what #'s are feasible so I am not sure I believe these #'s myself. I know I didn't believe Richard Bomze when he said the Mdn Specials would be going to $80k. As a matter of fact, besides not being true, I thought there was downside in saying it or believing it. Just like this discussion.

You cannot compare what might happen at Aqueduct (and eventually Belmont) to Monticello. Same thing with Gulfstream (turning out to be a disaster). Tell me about Yonkers though, I would be interested in seeing those #'s, but I think Aqueduct would have far stronger #'s than Yonkers.

If one would want to look at this situation effectively, the last thing you would do is try to be simplistic.

Eric

Unless of course you had an agenda.

If it isnt a NYRA issue than what is it? It is from NYRA's Disclosure Statement.
It is NYRA's projections, again with no CPA or GAAP rules applied.

I have no agenda, nor any financial gain from whomever controls NY racing. I grew up on it, I still watch it but instead of from NY I watch from California. I still have relatives in NY who are affected by the tax payers burden. I have the opionion that the current mangagement, the ones who were put in after the Big Brother watch, still cant run what might be the best racing.

Here are the 2008 Projections, these are prior to any slots coming in.

Gross Racing Revenue $272,730,000
Ancillary Property Sale $15,000,000
Gross revenue $287,730,000

Less:
Stakes and Purses $114,264,000
other Stat. payments $12,847,000
TOTAL NET REV $160,619,000


Expenses
Racing $9,682,000
Facilities $45,423,000
Security $11,742,000
Customer Service $9,255,000
Adv and Promo $11,403,000
Administration $50,940,000
TOTAL Oper Exp $138,445,000

Pension $4,100,000
Depec. $301,000
Pymnt under Lease $15,300,000
Interest $2,111,000
Total Non Op Exp $21,812,000

Total Expenses $160,257,000

Income before Tax $362,000

So NYRA projects to be in the black for 2008 and make $362K. Fine.

Except if they didnt have the one time gain of the sale of the property at Aqueduct they lose $14.7M from racing operations. This is the company that just emerges from bankruptcy and still gets its butt kicked?

Are purses too big?
Is $50M in Admin expenses too much?

As for the numbers at Yonkers, I dont know them off hand. I do know purses have steadily gone down since the casino opened about a year ago. I have a friend who races horses there and I have followed it abit. Also, Yonkers went from 12 races a night to 10 a night. Part of the problem at Yonkers is the handle barely gets over $1M for the trots on 10 races a night.

You know what? I guess it is that simple then and you have it all figured out. What's up next? Eliminating the deficit and balancing the budget for the United States?

Based upon your NYRA analysis here, I figure you should have country's problems solved by sometime on Sunday.

"Agenda" may not be the right word. However, being that you completely ignore all other aspects of this complex situation -- other than NYRA, and you've made your feelings very clear on that one single component -- I am sure you can understand why some might say you have an "agenda".

Eric

I am only pointing out what seems to be part of the problem that needs to be addressed to make NY racing both survive and maintain its status as one of the best places to race.

We had what turned out to be a Franchise bidding fiasco that was dragged on by lies, politics, Albany, or whatever people want to blame. It still hasnt been settled and in less than a month fans/bettors, employees, and horsemen still dont know whats going on.

NY has had slots approved years ago and still hasnt reaped any benifit from them, if there is to be a benefit(see Gulfstream fiasco)

I thought forum boards, in this case a horse racing forum, were supposed to be about the industry. We post ideas, complaints, compliments, etc.
Part of the NY racing future is who is best suited to run it. Based on what all of the parties have shown me, including NYRA, I dont think anyone is "ideally" qualified. Whether it be financially, or as in the case of some of the reports I read earlier in the process of selecting the franchisee, morally competent.
But somebody has to run it.

When I saw the financials some things stood out to me as not looking good. The slots projections for one(way too big an increase in projected machine wins), and the Operating expenses for another. Do you really think it takes $138M to run a race track that for 6.5 months is at Aqueduct where 2,000 to 3,000 show up? There must be some very nice salaries at NYRA based on those numbers.

Just curious, if not the financials, what should, if anything, be discussed about the situation?

Good grief, see Blood-Horse update 12/3 on NYRA and the trolls fighting for control of the bridge.

Bruno still throwing punches. This AM news, (TV10) reported if no resolution is completed by Jan 1, Bruno wants a Temp board assigned to run the Track until a final decision is reached.

I just got off the phone with Senator Bruno's office expressing my concern regarding the Senate's handling of the NYRA franchise issues. I think that yesterday's press conference was Senator Bruno's latest in his adoption of the adage that the "best defense is a good offense." His recent mailer was a similar pre-emptive attempt to blame the Governor in the event that a deal that meets his satisfaction is not struck.

I think Senator Bruno knows - and my comments to his Director of District Relations as an owner, breeder and resident of Saratoga Springs would not dispel this notion - that his consitutents and those in the racing industry will blame Senator Bruno if a franchise deal with NYRA in place is not completed in a timely fashion. If ever anyone was inclined to call a government official and voice your concern about an issue impacting you, now is the time to do it. He's feeling the heat, and those of us in the racing industry need to keep the heat on. His Senate office number is (518) 455-3191. Be reasonable (no screaming) and I think our voice might actually be heard.

Just called his office....politely offered to them the opinion that on this particular issue Senator Bruno is being be seen by many as being part of the problem as opposed to part of the solution...suggested to them that the political feud with Spitzer should not be allowed/used to hurt the many people in the NY thoroughbred industry...was asked to provide my name and number (which I gave) and was told that my comments would be passed on to Senator Bruno

No more Payson Dave, now Lobbyist Dave

Don't lobbyist get paid.......usually real well....just deposit my earnings to my on-line wagering account...

No paper trails is the 1st commandment of the lobbyist handbook

For the record, Joe Bruno's son is one of Albany's top lobbyists.

Perhaps these politicians, if no deal has been reached by the weekend, might spare a thought for the children and parents of the Belmont Child Care Association-whose Christmas party is on Saturday at Anna House.

If no deal is reached by Friday-I presume that Breeders' Cup when they have their Board meeting will yet again delay the awarding of the 2009 event to Belmont. Or maybe both Sha Tin and Sam Houston will again start claiming that they are the favourites to get it

Who would have thought?

http://www.thoroughbredtimes.com/nat...-question.aspx
NYRA President Charles Hayward said the case is nothing more than a dispute over accounting practices.

“This has been an issue for almost ten years,” he said.

He compared the situation to NYRA’s recent dispute with the Internal Revenue Service, which said NYRA owed the government $1.6-billion. In that case, the IRS used all handle, on- and off-track, before winnings are paid out to calculate NYRA’s income.

NYRA successfully argued that it should only be taxed on net income. The IRS has set a cap on its NYRA claim at no more than $25-million, and the final settlement could be $15-million or less.

Likewise, the state has recommended that NYRA change its accounting practices but has not demanded that it do so, Hayward said. He said he believes NYRA would prevail if the case ever went to court.

“We’ve had a fundamental disagreement over how the calculation’s arrived at,” he said. “We’ve gotten legal support from counsel, we’ve gotten accounting firm support. We just think that’s the way to do it. So do our lawyers. So do our accountants.”

Good rule of thumb.....if you read it in the NY Post it is BS.

Unfortunately most newspapers lack credibility today. The NY Times editorial of 11/24 on New York's OTBS is proof of that

This situation is a little different than the NY Times editorial. The newspapers are reporting on an audit by the state comptroller. The NY Post writer was lazy and did not get a response from NYRA as other publications did such as the Albany Times Union.

http://www.timesunion.com/ASPStories...E&LinkFrom=RSS

If you want a good laugh read the final paragraph from the above link.

The last paragraph is pretty amusing.

The article also shows what a non-piece of news this story is.....unless you're the NY Post.

I agree with Ray Casey about putting an end to the competition between the OTB's and NYRA.

The next racing franchise operator should manage each of the six statewide OTB corporations.

That's the best way to end the competition.

show them puppies for your answer. Afterall, I'm a NYRA employee and I'll be out of a job soon according to you. Cheer me up, sweet "lad"

The politicians in NY have shown their utter disdain for all the top quality horesmen in the industry. The entire racing industry has been insulted by their actions and racing should stop in NY on Jan. 1 if there is no signed agreement. The extension should be thrown back in their faces. That's the emotional response.

Rationally, the NY horsemen have been very dignified throughout this entire embarrassement.

Word has it Carole Stone won't be making many more statements from her once vaulted perch on the Oversight Board.