UPDATE: State meets obligation to NYRA; Legislature OK's advance
 

N.Y. lawmakers back casino plan
By Matt Hegarty, DRF

A coalition of Republican lawmakers in New York on Tuesday urged the state's Democratic leaders to support legislation that would seek to name an operator for a long-stalled casino at Aqueduct racetrack within the next two months. Three Republican senators - Marty Golden of Brooklyn, Roy McDonald of Saratoga, and Betty Little of Queensbury - appeared on Tuesday with Assemblyman Tony Jordan of Jackson to call attention to a bill introduced by Golden on March 23. The bill would reserve the selection of the casino operator to the state's Democratic leaders but require that bids be evaluated by a third-party accounting firm and that public hearings be held before the final selection.

Currently, Gov. David Paterson, Assembly Speaker Sheldon Silver, and the temporary president of the Senate, Malcolm Smith, have the sole power to select the casino operator. Earlier this year, the state's Democratic leadership selected Aqueduct Entertainment Group, a sprawling, politically connected partnership, to operate the casino. The selection fell apart after the state's lottery division contended it could not issue a license to several of the group's principals amid inquiries being conducted by the state's inspector general.

Bailout bill includes money for NYRA and life for NYC OTB
April 13, 2010 at 5:03 pm by James M. Odato

The Assembly is considering a bill crafted by the Paterson administration that would give $17 million in borrowed funds to the New York Racing Association. The measure is aimed at keeping New York City Off-Track Betting Corp. in business by restructuring statutory payments made to operators of race tracks in New York. NYC OTB would pay such tracks 15 percent less. As a result, lobbyists for harness tracks in particular are trying to kill or amend the bill, which may be pretty easy because Senate votes are not at all assured. “I’ve got a harness track in my district,” said Sen. Thomas Libous, R-Binghamton. “Why should I vote for it?”

Harness track proponents are trying to get something in return for losing 15 percent in payments, such as longer hours of operations for VLT parlors or authorization for video table games. NYRA, which had already been suffering cash flow problems that resulted in threats of suspending racing, would get a spin-up of funds that it had been expecting from a video lottery terminal facility that has been planned for Aqueduct, one of the three tracks NYRA runs. Since the Aqueduct facility has not been built, and NYRA was supposed to get revenues from it starting last year, the state would help the association out by letting NYRA receive money now that it would have to pay back later to whoever runs the Aqueduct racino.

The $17 million is coming from $250 million the state would raise by issuing bonds for the Aqueduct project. The $250 million has been promised to the operator of the racino and is supposed to be used to build the VLT facility. Assembly Racing & Wagering Committee Chairman Gary Pretlow, D-Mount Vernon, said the bill is getting reviewed and he is unsure if it will be passed.

Listen Albany
 

Go with a Vegas operator or risk continued misery. Beg MGM/Mirage, Harrah's, or Las Vegas Sands to step up and be your partner. Proven companies with the capital, infrastructure, and marketing knowledge to make this a success.

New York OTB effort falls apart
By Matt Hegarty

Efforts to pass legislation providing short-term rescues for New York City Off-Track Betting Corporation and the New York Racing Association collapsed on Wednesday afternoon, according to officials involved in the effort, resurrecting the possibility that the OTB company would shut down as early as Monday.

Legislators pulled their support for the bill because of concerns raised by unionized mutuel clerks over the size of severance and pension packages being offered to workers who are expected to be terminated as part of an overall restructuring of the OTB company, according to the officials.

The draft of the legislation included statutory changes that would have reduced OTB's payments to the Thoroughbred and harness racing industries by 15 percent across-the-board, according to officials. In addition, the bill would have advanced approximately $17 million to the New York Racing Association to address what the association has said is a pressing need for cash prior to the late-July start of its Saratoga meet in upstate New York.

"We're disappointed," said Charles Hayward, the chief executive officer of NYRA, who spent Tuesday and Wednesday in meetings with legislative staffers and officials of OTB to hammer out the plan. "We're going to continue to work with political leaders to find a solution to our problem, but we were hoping we could work all this out together with OTB. I don't know if that's possible right now."

OTB officials had threatened to shut down the company's parlors and account-wagering operations as early as April 11. The corporation's board, however, suspended the plan last Friday, citing the belief that the legislature would address the company's short-term problems with legislation this week. Under the vote to suspend the closing, the board said that the company would shut down "no later" than the close of business on Apr. 18, a Sunday.

As of Wednesday afternoon, the New York legislature was scheduled to recess until Monday, although Gov. Paterson had indicated over the past several days that he may force the legislature to remain in session throughout the week to address problems associated with a $9 billion budget gap. New York's total budget in fiscal year 2009 was $78.2 billion.

David Vermillion, a spokesperson for OTB, said late on Wednesday that "executives are communicating with the board to provide updates and determine what the next steps may be."

Gov. Paterson released a statement late Wednesday saying he believed OTB would shut down Monday.

"The Board of Directors of NYCOTB resolved to cease operations no later than close of business April 18, absent action by the legislature to solve the corporation's immediate cash-flow problem by making adjustments to payments to the industry," the statement read. "Given that stakeholder disagreement prevented this legislative action, I expect the board will carry out its planned shutdown as reflected in its resolution."

New York City OTB filed for Chapter 9 bankruptcy earlier this year. Company officials support a restructuring that would entail the firing of half of the company's workers, the closure of two-thirds of its 60-plus parlors, and the installation of betting kiosks in bars and restaurants. The legislation being considered this week would have been a short-term tool to address cash-flow problems while the overall restructuring is worked out, according to officials.

New York's Thoroughbred racing industry - including tracks, horsemen, and breeders - receives approximately $160,000 a day from New York City OTB, an amount that would have been cut to approximately $135,000 a day under the proposed legislation. Hayward said that NYRA and the breeders had decided to accept the cut as a way to "keep OTB afloat" and because of the assurances that NYRA would receive the $17 million advance to keep it operating without big cutbacks until Saratoga, when the company begins to operate at a cash-positive rate.

Under agreements that NYRA reached with the state that allowed the association to emerge from bankruptcy in 2008, the state agreed to fund any cash shortfalls in NYRA's budget if a slot-machine casino at Aqueduct had not opened by March 2009. The legislation that fell apart on Wednesday would have provided the advance from funds that NYRA would receive from the casino once it begins operating, according to Hayward.

Anyone think OTB will be closed on 4/19? This is so fn tired.. OTB isn't closing NYRA isn't running out of money and all the sabre rattling is just silly. I imagine OTB will announce on 4/16 that they will continue to operate because they feel a deal with the State in pending. SHOCKER

The cuts should come from OTB overhead.

So rather than cut a deal that they may not like the unions decided it would be better if all their members were terminated? Like Freddy I dont believe OTB will be closing. It is disturbing that a detail like severance pay for worthless mutual clerks can hold up an entire industry.

[quote=Cannon Shell;636190]That's not really fair.

If you bang on the bulletproof glass hard enough, they will usually punch a ticket for you. Although the level of service makes you well aware that they do not appreciate annoying patrons interrupting their daydreams.

NYRA to scale back schedule?
 

http://www.nydailynews.com/sports/mo...as_demise.html

Operating with a rapidly dwindling bankroll, the New York Racing Association could be out of money by the time the horses cross the wire in the Belmont.

"We need some financial relief from the state or we will not be able to run a full Belmont meet," Charles E. Hayward, president and CEO of the NYRA, said Sunday. "Everyone knows what's at stake and we're trying to reach a good solution."

whither Toga?
 

should I be cancelling plans for upstate?

Make plans for the Shore?

will Carolina be available at the shore (jersey of course)

I'm hoping this is just "sky is falling" journalist by the Daily News.

Will you be talking about this on the show today Steve?

Talk to Freddy, he has the exclusive rights for Monmouth.

Today will be devoted to the weekend recap, but I'll touch on the situation briefly as part of the overall Triple Crown story. Will certainly give it the time it needs during the week.

The state continues to completely fail to live up to any of its' promises, and NYC OTB continues to be allowed to threaten the existence of racing in NY.

You may be able to go to Belmont on June 5th and actually have an enjoyable day without the hordes of people.

While the lack of a triple crown bid certainly hurts NYRA quite a bit, let's be frank about what is really going on right now. NYRA has to make these threats in order to get NY's incompetent politicians off their azzes and to live up to the agreement they made to NYRA. No one should blame NYRA here, they would be fine if they were getting the money they are owed by NYCOTB.

As usual, the NY Legislature will wait to the last minute and then get NYRA enough money to keep operating.

Belmont Stakes day should be a real pleasant day at the racetrack and the Belmont Stakes itself will likely be an excellent betting race, a managable crowd, and a lot less morons clogging up the machines and windows.

These aren't threats at this point. They're facts. The Association will run out of money, period, unless the state lives up to its' commitments. Albany's allowance for NYC OTB's ineptitude and selfishness, and the state's long-running inability to follow through on the VLT deal has created this situation, and NYRA is not playing some brinksmanship game. They're stating the reality.

I don't doubt that for a second, Steve. But we both know that the legislature won't do anything until the last second and there is little chance that they will let NYRA run out of money.

I do agree that it is sad that NYRA has to resort to grovelling to get these morons to live up to their obligations. The silver lining in the clouds may be that as NYCOTB continues to fight the legislature and fail to provide them will the real financials, they may just overplay their hand enough to get the legislature to hand over their operations to NYRA. Though, I know that may be a little too wishful as I doubt these legislators will give up their patronage machine easily.

We all hope NYRA gets what has been promised..That being said they aren't going to run out of money, they aren't going to close, and NYC OTB will continue to exchangely what it has been. You are talking about completely insignificant money and the State will evidentually even if is 1 sec before every check bounced make good.

There aren't going to be VLT's at Aqueduct in 2011 and most likely not till a 6/1/2012 if at all.

How about a 2011 calender as follows:

1/1/11 thru 1/15/11 CLOSED
1/16 thru 4/15 Fri- Sun There aren't any horses anyway save Hedge Fund
4/16 thru 7/15 thurs- Sun Full fields and run 10 races a day
7/16 thru 9/15 Tues- Sun Obviously SPA is a big earn
9/16 thri 12/31 Thurs- Sun

No G3's more then 100k
Most G2's 150 none more the 200k
Make the Met, Cigar 600k, The Belmont a Million
All other G1's 300k MAX most 200k

Increase overnite purses by 20% across the board

Maybe then the state will take NYRA serious and more importantly NYRA will be able to support itself and not have to beg. And I realize NYRA deserves everything that they were promised, but deserving it and actually getting it are completely different.

This is insane. Our politicians are fighting over who gets what piece of the big fat VLT pie. Meanwhile the pie is getting cold, it's been sitting around for years, the govt. wants to keep NYCOTB going, in all of it's wasteful and incompetent glory, while they let the cash cow starve to death. No slots. No money. But they still fight over who's gonna get the money. The cow might starve before anything gets done.

Belmont and out.

http://www.bloodhorse.com/horse-raci...belmont-stakes

http://www.bloodhorse.com/horse-raci...m_medium=email

Paterson says he expects the Legislature to approve a $17 million loan to keep the New York Racing Association afloat. Its cash flow is hurt by delays in getting video lottery terminals built and operating at Aqueduct.

Paterson to push for $17M loan for NYRA
By Matt Hegarty

New York Gov. David Paterson said on Tuesday that his office would push for passage of legislation that would loan the New York Racing Association $17 million to address the association's financial difficulties. Paterson made the comment during a press conference on Tuesday after being asked if NYRA would run out of money prior to the opening of its meet at Saratoga Race Course in Saratoga Springs on July 24.

"That's not going to happen," Paterson said. "We have a plan to loan NYRA, in the short term, money to get through Saratoga and we're working on a long-term plan to help beyond that."

NYRA officials did not immediately return phone calls on Tuesday afternoon, but on Monday, Charles Hayward, the president of the association, said that he was scheduled to meet with officials in Paterson's office on proposals for the loan. During the press conference, Paterson said he expected the legislature to approve a $17 million loan to the association, but he did not provide specifics on how the loan would be structured. NYRA has been seeking that amount under previous legislative efforts that have fallen short, in part because of legal complications that restrict how the state can loan money.

monmouth will be crazy..if this does happen

I have been wondering why the NY Post has not been more accurate with the NYRA situation considering they have Ed Fountaine on staff. After reading this, it appears that if Fountaine has spoken to the editors and/or reporters it has fallen on deaf ears. Here is Fountaine's take in todays NY Post:

http://www.nypost.com/p/sports/horse...mlliEOAIrUsF8H

A breath of fresh air after all the bullshiat coming from the NY papers.

zzzzzzzzzzzzzzzzzzzzz

Is this news? Since there's probably very little chance that the tracks or OTB will close, why must we be subjected to all this posturing? It really can't be this hard to run a track and show a profit. Then again, with all this BS, there's apparently a need to convey that it is. We get it: not only do we get to play the horses but we also get to feel xtra special since the state pols are so involved in our sport. :rolleyes:

Why are there no 'special interest' groups whose sole function is to expose 'crooked' pols? Not like the resources aren't there. Now, THIS is something that would be very easy in NY (and elsewhere). As soon as they '**** up', get them the **** out of there. Maybe something might get done that way.

As a result of the 2008 franchise process, NYRA is now a not-for-profit corporation instead of a quasi-state entity. Knowing that in Albany there will inevitably be some price to pay (i.e., lower long-term OTB payments to the racing industry) for the "loan" that NYRA is now seeking, why is NYRA even dealing with the legislature for these funds?

I can't imagine who else would loan into this situation.

Assuming they go cash-flow positive once Saratoga starts, we're only talking about a relatively brief period of time (and modest amount of $$) to get to July 23. And the amount we're talking about is chump change for the people sitting on the NYRA Board of Trustees.

Maybe, but that is a tough precedent to set given that everyone elses long term plan seems to involve screwing NYRA.

I would doubt that they immediately go into a cash flow positive position once Saratoga starts. It is my understanding that the vast amounts of money to be paid to tracks from the various outlets doesn't always come in a timely fashion. Not to mention the cash outlay they must incur in setting up shop there.

As for the Board, it would quite possibly be illegal for Board members to inject that kind of cash into a non-profit and like pmac said a terrible presendent wuld be set. It would be used as "proof" that NYRA is just a bunch of rich guys looking for a state "bailout".

Because the state made the commitment to provide any short-term funding support if the AQU VLT parlor was not up and running by September of last year. The bridge funding will be recouped by the state out of VLT revenues. There is no special pound of flesh involved in this. The state put the onus on itself.

NYRA isn't 'seeking' this funding out of some surprise shortfall they didn't anticipate. This was going to happen if the VLT's weren't in place... EVERYONE knew that. If the mainstream media had a clue and reported the story accurately, no one would question why the transaction is necessary.

With most financially-challenged not-for-profits, if the Board is committed to the mission of the entity, the members of the Board are usually the ones that make the financial commitments necessary to keep the entity afloat. I know that it would bad precedent to look the other way at the State's failure to abide by its commitments, but a shut-down in this environment would be catastrophic. Is that worse than people thinking that those sitting on the NYRA Board are well-off (which they are)?

It isn't posturing. It's a compliance with state and federal law.

LOL. According to the pols ths mission of NYRA is first and foremost to create revenue for the state. I doubt anyone would be willing to pony up for that.

We all know "contractual obligations" mean little to the corrupt politicians in Albany. My point is that, rather than relying on the state to come up with the money (whether the state is legally obliged to pay NYRA the money is really irrelevant at this point in time), aren't there other ways of getting the needed short-term funds? It's scary to think that the hopes of the NY racing industry are totally dependent upon Patterson, Sampson and Silver agreeing to do anything, no matter how simple.

But what do the members of the NYRA Board of Trustees see the mission as being? I doubt Phipps sees the mission of NYRA to create revenue for the state.