Finally, under pressure, there is action

San Jose, Costa Rica

While the bill, prepared in the tradition of New York politics so hastily that Aqueduct was misspelled, passed on Wednesday in Albany will resolve much, including the uninterrupted continuation of racing in New York for a quarter century, just as much is left unresolved, specifically the issue of a merger of NYRA and New York City OTB and a decision on the operator of the long-delayed video lottery gaming facility at Aqueduct.

What the new, 190-page racing law does do is this:

It extends NYRA’s franchise until December 31, 2033 and turns it into a not-for-profit corporation rather than a non-profit entity, but includes a provision authorizing the state comptroller with power to audit its books. As a not-for-profit, NYRA will also come more directly under the oversight of the state attorney general’s office.

It includes higher percentage payouts from VLT revenues to the state’s other tracks that run casinos, a provision sought by harness tracks that claim they are losing money under the state’s current VLT revenue sharing arrangements. [Imagine that.]

It creates a 25-member board, down from the current 28 members with NYRA appointing 14 and the state 11 members, seven by the governor and one each on the recommendation of the off-track betting community, breeders, horsemen and the state AFL-CIO. [Horsemen and breeders, fine … the others have no business on the board.] Two members -- selected by the Assembly speaker and Senate majority leader -- will serve on the executive board. Current NYRA board Chairman Steven Duncker would face a term limit: the bill says he cannot serve more than four years. [Imagine that! Albany politicians imposing term limits. Sets a good example for another bit of legislation.]

The law includes a formula by which NYRA will pay an annual franchise fee to the state by April 5 every year. It also creates local advisory boards from the communities surrounding the three tracks that will have some input in matters such as future real estate development plans. NYRA must meet with the local boards, whose members include area politicians, at least twice yearly. [More political junk.]

The bill also calls for NYRA entering into simulcasting deals with the OTBs so the OTBs can enjoy the same price that NYRA does for simulcasting. The bill does not, however, let the OTBs opt out of simulcasting NYRA races, as was being sought. [That would be like McDonald’s opting out of hamburgers. Get real.]

A series of “performance standards’’ is being imposed on NYRA, which will have to meet certain benchmarks relating to number of New York-bred races, jockey and equine safety, backstretch conditions, and handle and [despite the fact that they are meaningless] attendance figures. The standards will be reviewed every four years by the state, and NYRA could lose its franchise for failing to meet the conditions. However, language inserted into the final legislation says NYRA must “use its best efforts’’ to meet the standards, suggesting some wiggle room in the mandate.

Since NYRA gives up its claim to ownership of the land at Aqueduct, Belmont and Saratoga, it now has no assets against which to borrow, the legislation says the state’s economic development agency can float bonds on NYRA’s behalf – thereby securing lower interest rates for future construction.

The state breeding fund will get 1.5 percent of VLT revenues by the third year of operation while purses will get 7.5 percent by year three. Three percent of VLT revenues after payouts will go to general racing operations and four percent will go to track upgrades.

“This plan really came together in the last two days through the diligent efforts of State government: in particular, Speaker Silver and his staff were tireless in their efforts to make this significant piece of legislation a reality. We especially appreciate the tremendous work of the Governor and his staff as well as the Senate Majority leader and his staff,” said Duncker, who warned on Monday that there was a real possibility that racing at Aqueduct would be suspended today. “This legislation contains the key components for us to emerge from bankruptcy and to improve upon what is already the best racing in the world.”

NYRA will seek Bankruptcy Court approval of the Settlement Agreement with the State, and confirmation of NYRA's Chapter 11 plan. Confirmation of the Chapter 11 plan currently is scheduled for March 5. NYRA has accepted a short-term franchise extension through March 6, 2008, which will allow NYRA to achieve the Settlement Agreement with the State and confirm the bankruptcy plan.

“This a great day for Thoroughbred racing in New York and for all the people involved with the State’s vital Thoroughbred industry,” NYRA President Charles Hayward said. “I especially want to thank and acknowledge all the NYRA employees who worked so hard to put on the best racing in the country, despite the uncertainties and distractions of this process. We all deeply appreciate the efforts of our franchise working group, made up of NYRA trustees and senior management, who worked tirelessly and with tremendous commitment to secure this positive outcome.”


It has certainly been a long, strange journey for NYRA and everyone involved in the racing industry in New York. Even yesterday, with the end in sight, we were provided with an illustration of the political garbage strewn in the path of common sense.

Unquestionably, the dumbest statement of the day: Republican Assemblyman Robert Barra of Long Island, who voted against the measure because it doesn’t include putting video-lottery terminals at Belmont: “The community wants it very badly. They want it for a total revitalization. They want it to be Saratoga south.”

Yeah, right.

Aqueduct, Feb. 14

Race 2: What’s Your Point
Race 4: Ophite
Race 5: Road Not Traveled