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

[parsixfarms]

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?

[pmacdaddy]

Originally Posted by parsixfarms

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.

[parsixfarms]

Originally Posted by pmacdaddy

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.

[pmacdaddy]

Originally Posted by parsixfarms

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.

[Cannon Shell]

Originally Posted by parsixfarms

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.

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".

[parsixfarms]

Originally Posted by Cannon Shell

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".

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)?

[Cannon Shell]

Originally Posted by parsixfarms

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)?

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.

[parsixfarms]

Originally Posted by Cannon Shell

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.

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.

[Kasept]

Originally Posted by parsixfarms

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?

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.

[parsixfarms]

Originally Posted by Kasept

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 happening.

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.

[freddymo]

Originally Posted by Kasept

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.

So NYRA told the State in advance that there plan for operating in 08-10 would fail to be cash flow positive and as such the state said don't worry about it you keep losing money and will fund it because you told us so..Is that the way it happened if so the idiots polictians that said that they would bankroll a flawed business should be arrested.

Come on first NYRA is getting money and the horrendous publicity they continue to spew is madding.. HI fans and gamblers we are going out of business after are biggest purse day of the year and if you want to deposit money in your NYRA account please dail 1800 BIG AVLT. How the heck do you run a business promoting its life and joy in one breathe and telling your fans and customers its dying on the other. Why are the publizing all this negative stuff with such vigor? I really hope NYRA gets to operate and be successful!! This stuff just is foolish

[Cannon Shell]

Originally Posted by freddymo

So NYRA told the State in advance that there plan for operating in 08-10 would fail to be cash flow positive and as such the state said don't worry about it you keep losing money and will fund it because you told us so..Is that the way it happened if so the idiots polictians that said that they would bankroll a flawed business should be arrested.

Come on first NYRA is getting money and the horrendous publicity they continue to spew is madding.. HI fans and gamblers we are going out of business after are biggest purse day of the year and if you want to deposit money in your NYRA account please dail 1800 BIG AVLT. How the heck do you run a business promoting its life and joy in one breathe and telling your fans and customers its dying on the other. Why are the publizing all this negative stuff with such vigor? I really hope NYRA gets to operate and be successful!! This stuff just is foolish

Freddy the flaw is the states control over NYRA's ability to proceed with its VLT plans for 9 years and its harrassment and politically motivated campaign against it over the last 7 years. The other flaw is the state run entity NYCOTB failing to pay NYRA the money it legally owes them. If NYRA could simply sue NYCOTB and/or shut off the signal to them that problem would have been solved years ago. The state made the deal with its eyes wide open. What exactly is NYRA supposed to do? Say things are peachy?

[freddymo]

The thought that NYRA is any different than other sadly underfunded and ignored State obligations is flawed.. I want NYRA to succeed I dont want them to fail. I want great racing in NY but that isnt the point. I understand your points and agree NYRA is in a bad place. You still need to be able to run a product on its on merits and not on the possiblity of VLT's.
BTW I find it interesting that 2 of the most successful african american businessmen in the world are 2 of the 5 potential bidders. You think it is going to be easy for any of these potential bidders to get 400 mil to the State in a snap. What happens if the ecnomy takes another shiit in 9 months and the process continues to be delayed.. NYRA just keeps on coming to the State?

[Cannon Shell]

Originally Posted by freddymo

The thought that NYRA is any different than other sadly underfunded and ignored State obligations is flawed.. I want NYRA to succeed I dont want them to fail. I want great racing in NY but that isn't the point. I understand your points and agree NYRA is in a bad place. You still need to be able to run a product on its on merits and not on the possibility of VLT's.
BTW I find it interesting that 2 of the most successful african american businessmen in the world are 2 of the 5 potential bidders. You think it is going to be easy for any of these potential bidders to get 400 mil to the State in a snap. What happens if the ecnomy takes another shiit in 9 months and the process continues to be delayed.. NYRA just keeps on coming to the State?

That isnt true. NYRA has provided tremendous revenue streams to the state and deeded them 1 billion dollars worth of land. That makes them a whole lot different.

Despite the evidence to the contrary you and many others refuse to see that VLT's ARE are a piece of it's "merits". The state passed a law in 2001 allowing specific business to have these things. NYRA is one of those businesses. It's competition (both in state and out of state) has VLT's. That makes it a valid issue. And you cant just ignore the fact that NYCOTB refuses to pay. That is a significant amount of money to lose.

[freddymo]

Originally Posted by Cannon Shell

That isnt true. NYRA has provided tremendous revenue streams to the state and deeded them 1 billion dollars worth of land. That makes them a whole lot different.

Despite the evidence to the contrary you and many others refuse to see that VLT's ARE are a piece of it's "merits". The state passed a law in 2001 allowing specific business to have these things. NYRA is one of those businesses. It's competition (both in state and out of state) has VLT's. That makes it a valid issue. And you cant just ignore the fact that NYCOTB refuses to pay. That is a significant amount of money to lose.

2001 is forever ago. You have to let this go quoting 2001 laws that have not been implemented is crazy. The world has changed so much since what was passed in 2001. What good is saying abortion is legal if nobody got one for 10 years because of one thing or another?

BTW NYRA didnt give the government a PENNY gamblers did all NYRA did was oversee the transfer from pocket A to pocket B... Giving them a bunch of credit for there horrible operations 9 years ago is invalid.. The current guys have been ok but lets not forget just how sorted NYRA PAST is!

[pointman]

Originally Posted by freddymo

The thought that NYRA is any different than other sadly underfunded and ignored State obligations is flawed.. I want NYRA to succeed I dont want them to fail. I want great racing in NY but that isnt the point. I understand your points and agree NYRA is in a bad place. You still need to be able to run a product on its on merits and not on the possiblity of VLT's.
BTW I find it interesting that 2 of the most successful african american businessmen in the world are 2 of the 5 potential bidders. You think it is going to be easy for any of these potential bidders to get 400 mil to the State in a snap. What happens if the ecnomy takes another shiit in 9 months and the process continues to be delayed.. NYRA just keeps on coming to the State?

If NYRA was being paid by OTB they would not be asking for this money, they are only asking for the amount of money owed to them by OTB which indicates to me that NYRA can be self sufficient. As Chuck pointed out, NYRA would ordinarily just cut off the signal to NYC OTB, but they can't under NY State law

As for your other point, I haven't heard Yonkers or Saratoga harness asking for any money from the State and they make a fraction of what NYRA does off of betting pools. I seriously doubt that NYRA will need anything from the State once the casino is running, it is hard to believe that a casino will fail in Ozone Park, New York.

[freddymo]

Originally Posted by pointman

If NYRA was being paid by OTB they would not be asking for this money, they are only asking for the amount of money owed to them by OTB which indicates to me that NYRA can be self sufficient. As Chuck pointed out, NYRA would ordinarily just cut off the signal to NYC OTB, but they can't under NY State law

As for your other point, I haven't heard Yonkers or Saratoga harness asking for any money from the State and they make a fraction of what NYRA does off of betting pools. I seriously doubt that NYRA will need anything from the State once the casino is running, it is hard to believe that a casino will fail in Ozone Park, New York.

So you repping that NYRA's business model without VLT's is viable? You are right Ozone Park will support people getting wied out very well. Again I would love NYRA to do well. I wished they ripped out 75 dates and concentrated the purse money but they were beaten to the punch. Sunday's card is unbettable even if MP wasnt running a terrific card.