Albany ups power play; State, Legislature, NYRA announce mgmt. deal

[Kasept]

State withholds NYRA casino payments and threatens racing franchise
By Matt Hegarty

Citing a "continued failure to act in the best interest of racing" by the New York Racing Association, state racing regulators said Tuesday that they had instructed the state lottery to immediately suspend payments NYRA receives from a casino at Aqueduct racetrack and that they were exploring the revocation of NYRA's racing franchise.

[cmorioles]

These politicians in NY have no shame.

[Kasept]

Originally Posted by cmorioles

These politicians in NY have no shame.

None.. As foreshadowed a couple of weeks ago, Cuomo and henchmen continue to position themselves to take everything. Very sad. Meanwhile, the industry remains silent while the 30% of national handle for which NYRA accounts, hangs in the balance. The 'best interest' of racing invocation is comical. NYRA quit their land claim as part of the franchise renewal in an effort to avoid a protracted legal battle that might have included a shutdown. That wasn't in the best interest of racing? Every move from Albany is an intrusive, expensive burden on anyone that has an interest in the sport. They won't be happy until they destroy it.

[pointman]

Incredible, what a bunch of lying thieves that adorn the statehouse in Albany. Amazing that it doesn't bother these crooks that two of their own have been convicted of corruption in the last few weeks alone. There will be more to come. They all need to be thrown out!

If the standard is ethics and acting in the best interest of taxpayers, the entire NY Legislature should immediately be locked up as the biggest offenders. Shame on Sabini for signing off on this scam.

[goodcopy]

Originally Posted by Kasept

None.. As foreshadowed a couple of weeks ago, Cuomo and henchmen continue to position themselves to take everything. Very sad. Meanwhile, the industry remains silent while the 30% of national handle for which NYRA accounts, hangs in the balance. The 'best interest' of racing invocation is comical. NYRA quit their land claim as part of the franchise renewal in an effort to avoid a protracted legal battle that might have included a shutdown. That wasn't in the best interest of racing? Every move from Albany is an intrusive, expensive burden on anyone that has an interest in the sport. They won't be happy until they destroy it.

I wish we could leave out all public money,levies,taxes,support systems and make thoroughbred racing entirely privately funded and privately profitable
Long term I can't think of any state ran programme or oversight,controlled process that politicians have ran that has not ultimately ruined or made far less profitable.
Why can't the stuarts of our sport run it the same way they made millions in privet business?

[10 pnt move up]

It was only a matter of time before legislatures removed the expensive horse part of the equation so they could get more money, no shock. NYRA just gave them a reason.

[cmorioles]

Originally Posted by 10 pnt move up

It was only a matter of time before legislatures removed the expensive horse part of the equation so they could get more money, no shock. NYRA just gave them a reason.

NYRA didn't give them a reason. They were going to find a reason no matter what was really happening. The funny thing is the NYRWB was supposed to know about the takeout reduction too, but they are being let off scot-free. If it wasn't that, it would have been jockey weight-gate or maitre d' gate or something else stupid. I'm not saying the takeout mistake was as minor as those, but in the grand scheme of things the amount was trivial.

[GenuineRisk]

Originally Posted by goodcopy

I wish we could leave out all public money,levies,taxes,support systems and make thoroughbred racing entirely privately funded and privately profitable
Long term I can't think of any state ran programme or oversight,controlled process that politicians have ran that has not ultimately ruined or made far less profitable.
Why can't the stuarts of our sport run it the same way they made millions in privet business?

Sure, let's do that. And the first thing that will happen is the tracks will get bought up by real estate developers and torn up.

[joeydb]

Originally Posted by GenuineRisk

Sure, let's do that. And the first thing that will happen is the tracks will get bought up by real estate developers and torn up.

That's true. Garden State Park, where I used to go often, is long gone, replaced by what South Jersey needed more of: strip malls.

[hud8118]

Please correct me if I am wrong but...

1. The NY State Legislature is the one who wanted (forced) the 1% increase from 25% to 26%. Wasn't NYRA opposed to the 1% increase?

2. One role of the Franchise Oversight Board has been to "monitor and enforce compliance with definitive documents that compromise the franchise agrement" and to "review and make recommendations concerning accounting, internal control systems..." also to "review such franchised corporation's revenue and expenditure policies" also to "review such franchise corporation's compliance with the laws, rules and regulations."

WE ALL KNOW THE LEGISLATURE IS JUST A MONEY GRABBING ORGANIZATION WHICH IS UNCONCERNED WITH THE GOOD OF HORSE RACING, AND THE OVERSIGHT BOARD SHOULD BE TAKING AT LEAST 50% OF THE HEAT/BLAME ON THIS AND THOSE MEMBERS SHOULD BE CANNED.

[goodcopy]

Originally Posted by GenuineRisk

Sure, let's do that. And the first thing that will happen is the tracks will get bought up by real estate developers and torn up.

Come on man,I said make it profitable!

[parsixfarms]

A whole lot of government CYA going on. Here's the section from the RWB's interim report (pp. 17-18), as it pertains to the oversight provided by the Franchise Oversight Board:

The FOB has five part-time members serving without compensation. The FOB has no fulltime staff but has a Division of Budget employee serving as its secretary. As a practical matter, the FOB operates as a global overseer with a limited budget that relies heavily on NYRA’s representations, supported by NYRA’s employees, consultants and auditors. Realistically, with its limited resources, the FOB was in no position to review or enforce compliance with thedetailed takeout provisions of Chapter 115.

[Antitrust32]

The Gov seems like a pathetic excuse for a human being.

[Powderfinger]

Aqueduct should have put a synthetic surface on that inner track years ago, to show that they were trying.

[hud8118]

"NYRA desperately needs a major overhaul," said state Comptroller Thomas DiNapoli, whose auditors uncovered the takeout overcharges. "Reorganizing the board is a step in the right direction."

I thought it was a horse player, not the auditors, who uncovered the failure to cut back the 1%. If so, just another example of the state pols trying to mislead and take credit for something they didn't do - or am I wrong on this?

Read more: http://www.bloodhorse.com/horse-raci...#ixzz1veoOoUSG

Semantics. The horseplayer who uncovered it did not have any way of taking corrective action. He thought "pointing it out" to NYRA would be enough. The NYS Dept. of Audit and Control was the REGULATORY governmental agency that actually brought the error to light, and caused the snowball to start rolling downhill.

I don't think the state deserves any "credit" for this at all. The NY State Racing and Wagering Board, the Franchise Oversight Board, and the NY State Dept. of Taxation and Finance all failed miserably in protecting the wagering public's interest in what went on here (not to mention NYRA's own auditors). Audit and Control at least saved their face somewhat.

[Calzone Lord]

I have no idea what any of this means.

The more people and politicians involved -- the worse off horse racing has to be.

It shouldn't take much to competently conduct horse racing.

You've got a whole bunch of people with fancy formal educations who dress up in suits and have to look important because they went to school for something else -- and that's not good enough? Now you need politicians and people appointed by politicians ... to conduct horse racing? It's freaking horse racing.

[Kasept]

NYRA STATEMENT – WEDNESDAY MAY 16

ELMONT, N.Y. – The New York Racing Association, Inc. (NYRA) Board of Directors exercised its business judgment as a private, not-for-profit corporation to appoint a President and Secretary. These appointments were made to stay in compliance with NYRA’s Bylaws, Article VII, Section 7.01. NYRA’s Board acted to insure that there was professional management in place to operate a complex business which has a significant economic impact on New York State. The NYRA Board has a fiduciary obligation to exercise its business judgment to protect the best interests of racing and the income stream that pari-mutuel wagering provides to the state.

On May 1, 2012 Racing and Wagering Board Chairman John Sabini sent a letter to the NYRA Board of Directors, which stated “…it is imperative that you provide an interim operational plan to the Board, especially who will be performing functions as Chief Executive Officer and Counsel.” This letter contained no indication of any concerns or limitations with respect to these appointments. The NYRA Board acted to name a President and Secretary without any knowledge of any concerns by either the Franchise Oversight Board or the Racing and Wagering Board.

Furthermore, neither the Racing and Wagering Board nor the Franchise Oversight Board has authority over the naming of officers by the NYRA Board of Directors.

The suggestion in the May 15, 2012 letter from Chairman Sabini and Chairman Megna that the NYRA Board and other NYRA executives have a potential role in the improper take-out investigation, thereby making the NYRA Board’s action inappropriate, is flawed. This reasoning would effectively paralyze the corporation based on innuendo. The Inspector General’s investigation is ongoing and there should not be a rush to judgment until a final report is issued, and due process is provided.

[Kasept]

Quite something..

On May 1, NYRA is instructed -- implored in fact -- to name new executives to replace Hayward and Keogh...

Then 2 weeks later are admonished and threatened when they do so.

Anyone still confused by what's going on here?

[Riot]

Can NY racing survive this? All of Albany seems out to get them.