New York Franchise Award Recommendation May Come Nov. 21

[samyn on the green]

Spitzer is trying to cut Bruno out of the deal and stop all kickbacks to those not in his cabal. Bruno is trying to get his boys somehow involved with the slots. NYRA is OK running the racing, as there is little interest in racing operations, however the slots are cherished as a cash cow. There will be much activity over the next year or so as Bruno and the Spitzer Cabal fight it out over the slot loot.

Spitzer and Bruno represent different groups. Borderline criminal groups like Magna, Churchill Downs, or Excelsior Slots. The media can not just print the truth about this slot/racing situation. The public could not handle the fact that its government representatives are entirely corrupt. The media that is relied upon to inform can not just state that elected officials actively steal tax dollars and funnel them to their business associates. However this whole situation with Spitzer or Bruno is more corrupt than what drug dealers or Cosa Nostra operations do.

Luckily with the internet we do not need to be misinformed by the media. We can speak freely and honestly about this situation. Do not at one time embarrass yourself and suggest that Bruno or Spitzer have the best interest of the masses or racing at heart. Their main priority is to continue to grow the revenue streams for their associates. I don't understand this reasoning at all. Where has it ever been proven that multiple "Indian chiefs" are preferable to a sole entity running the show?

This kind of thinking is what led to the creation of the OTB system in New York State (packed full of unnecessary Indian Chiefs in the form of political patronage), and we all know by now how FANTASTICALLY that organization has been operated....

[aaron]

I don't understand this reasoning at all. Where has it ever been proven that multiple "Indian chiefs" are preferable to a sole entity running the show?

This kind of thinking is what led to the creation of the OTB system in New York State (packed full of unnecessary Indian Chiefs in the form of political patronage), and we all know by now how FANTASTICALLY that organization has been operated....
PA-
What led led to the creation of the OTB system was NYRA's indifference to running the OTB's when they had the chance.

[Indulto]

http://www.nytimes.com/2007/09/13/nyregion/13racing.html?ref=nyregion (http://www.nytimes.com/2007/09/13/nyregion/13racing.html?ref=nyregion)
Governor’s Plan on Horse Racing Draws Criticism From Republicans
By NICHOLAS CONFESSORE

… Jeffrey Gordon, a spokesman for the governor, said the Senate should present a specific alternative to Mr. Spitzer’s plan rather than “vague statements.” He added, “The governor believes that diluting the responsibility for racing among multiple operators and placing the future of New York racing into the hands of for-profit companies would not be in the best interests of New York’s horse racing industry.”

… Paul Bowlinger, the executive vice president of the Association of Racing Commissioners International, said that those fees should have gone to the State Racing and Wagering Board to bolster its own oversight efforts. The board is a member of Mr. Bowlinger’s organization.

… Bennett Liebman, the coordinator of the Program on Racing and Gaming Law at Albany Law School, was highly critical at the committee meeting of the integrity review that had been conducted by the state inspector general, a Spitzer appointee.

… But Mr. Liebman — whose program has in the past been partly financed by grants from the Senate Republican majority — was less skeptical of Mr. Spitzer’s plan for the franchise, saying that it was not necessarily a bad idea to split the franchise into its racing and video-lottery components.

“And once you’ve done that, I would think that the choice of N.Y.R.A. to run racing is a reasonable decision,” he said. “N.Y.R.A., whether it’s due to skill or serendipity, does have, on the whole, the top racing in the country.”http://www.newsday.com/news/local/state/ny-strace135372080sep13,0,7381470.story (http://www.newsday.com/news/local/state/ny-strace135372080sep13,0,7381470.story)
Video lottery terminals seen as Belmont savior
BY JAMES T. MADORE

… "If there's ever been a location ... where VLTs will not adversely affect the local community it is Belmont," said Bennett Liebman, coordinator of the racing and wagering law program at Albany Law School, which has received grants from Senate Republicans.

"It will be helpful for jobs ... [and] the tracks have a ton of capital needs. Belmont is no longer beautiful Belmont," he said. "If you want to improve the tracks, they are going to need massive amounts of money and they are going to need the funds from VLTs at Belmont."

... "We believe that the governor's recommendation to award the racing franchise to a newly constituted NYRA - as the best operator of racing in New York State - while seeking an experienced gaming operator to operate the VLT facility offers the best opportunity available" to bolster racing in the face of declining track attendance, said budget director Paul Francis.

Senators from both sides of the aisle agreed during a committee meeting in the capital. ...

[Indulto]

http://weblogs.newsday.com/news/local/longisland/politics/blog/eliot_spitzer/ (http://weblogs.newsday.com/news/local/longisland/politics/blog/eliot_spitzer/)

SPIN CYCLE September 11, 2007

... Racing maven slams Spitzer IG report, key decision looms

Among New York horse-racing insiders, an unusual published piece is making the rounds in anticipation of a crucial selection of a private franchise to run the tracks. It is a lively skewering of an official report published in June by state Inspector General Kristine Hamann on the integrity of bidders for the state’s track franchise.

… The full text of Liebman's cult classic -- not your typical law review article -- is available here (http://www.albanylaw.edu/media/user/glc/inspector_general.pdf).

Hamann, an appointee of Gov. Eliot Spitzer, has drawn pressure and barbs of late from the GOP-controlled Senate over her office's aborted "Choppergate" probe and its internal investigation of allegations that Spitzer energy adviser Steve Mitnick improperly threatened a member of the Public Service Commission with loss of her post. Mitnick left the job after he was interviewed by the IG's office.If the link labeled “here” doesn’t work, try:

http://www.albanylaw.edu/media/user/glc/inspector_general.pdf (http://www.albanylaw.edu/media/user/glc/inspector_general.pdf)

[Indulto]

http://www.timesunion.com/AspStories/story.asp?storyID=622393&category=REGION&newsdate=9/16/2007 (http://www.timesunion.com/AspStories/story.asp?storyID=622393&category=REGION&newsdate=9/16/2007)
Warts and all, NYRA's the obvious choice to run horse racing
By FRED LeBRUN

… Say what you will about its past integrity issues, arrogance, lack of transparency, bankruptcies and lack of accountability … Yet New York has the best horse racing in the nation.

… Past and even current performance shows NYRA is a flawed outfit that needs strict and transparent monitoring, outside accountability, an ethics cop, performance benchmarks and an entirely new board of directors.

... new appointments to the revamped and downsized NYRA board … a thorny issue, including who should do the appointing. The horse and racing industries need solid representation, and so does government. But we need new blood and disinterested candidates from outside horse racing's incestuous circle. We also need the sun to shine on the operation of NYRA, that is, scrutiny by the press and public.

… Senate Leader Joe Bruno has said he's looking for a return for all the bidders, not just NYRA. What that means exactly, Joe hasn't spelled out, but it certainly has torqued up the lobbying and spending.

… mystery … who or what will direct traffic when the demands of horse racing run into the profit-taking of gambling.

And finally, a moment to reflect on how reprehensible the selection process has been for this racing franchise. What a bad joke. It stank from the beginning as a done deal, while bidders spent millions for "integrity reviews," that have gotten panned mightily and don't seem to have influenced a thing.

In the end, the decisions were made behind closed doors anyway, with little explanation for them.Let's hear it for the Times Union -- warts and all. ;)

[Indulto]

http://www.nysun.com/article/62769 (http://www.nysun.com/article/62769)
Spitzer at the Clubhouse Turn
By JACOB GERSHMAN September 17, 2007

… Private bidders competing for the state racing franchise are lining up against Mr. Getnick, alleging that he parlayed his position as an independent, court-appointed monitor of NYRA into a lucrative business relationship.

Along the way, critics say, Mr. Getnick evolved from being a neutral compliance officer, hired by a federal court to ensure NYRA complied with its deferred prosecution agreement, into a booster, playing an instrumental role in securing support for NYRA from the Spitzer administration and derailing the bids of those who seek to privatize racing.

… Why did Mr. Getnick not make public the fact that in 1993, NYRA trustees sought the opinion of counsel regarding the legality of dipping into Horsemen's Account funds — money belonging to owners and training from their deposits and purse winnings — to pay for operating expenses?

… NYRA apparently ignored the advice of counsel for more than a decade and drained more than $13 million from the horsemen's pot would seem to invite inquiry.

… Was Mr. Getnick concerned about protecting NYRA from potential criminal liability when he urged it to sign a controversial simulcast contract with Television Games Network, which filled the horsemen's coffers?http://www.newsday.com/news/local/politics/ny-lijani175378610sep17,0,6745738.story (http://www.newsday.com/news/local/politics/ny-lijani175378610sep17,0,6745738.story)
Minor parties key in races for major-party players
By Dan Janison

… HORSE SENSE: In the battle over the future of Belmont, Aqueduct and Saratoga racetracks, Senate Majority Leader Joseph Bruno's camp has lobbed criticism at the role of lawyer Neil Getnick, who's made a career of helping to crack down on private-sector fraud. Getnick was appointed in federal court to monitor the New York Racing Association when the organization faced criminal charges. As of July 25, his firm was retained as its integrity counsel. Bruno's crew, wary of NYRA's recent selection by Gov. Eliot Spitzer to run the tracks, opposed a recent effort to keep Getnick on as monitor. Getnick tells Newsday: "NYRA is right where it should be. It has reformed itself and it has committed itself to stay on the path of reform, and to bring the rest of the industry along with it. The sad fact is that those very good things that NYRA has done and which NYRA stands for is what upsets so many people. I am not at all concerned about partisan political attacks," he added. "But I am concerned that we be very careful to preserve the future working relationship between NYRA and the [state] Racing and Wagering Board. ... I'd ask everyone who's playing politics with this to remember this is a very important state asset. Let's preserve it and make it work for our citizens."

[Indulto]

http://www.drf.com/news/article/88606.html (http://www.drf.com/news/article/88606.html)
Charges dismissed against NYRA scale clerks
By MATT HEGARTY

… Racing officials have said since the indictment was released that investigators in the case may not have taken into account the procedures used by clerks of scales to adjust weights for additional material and equipment when riders weigh-in after a race

… In New York and many other jurisdictions, riders do not carry their helmets or safety vests to the scale prior to a race, but must carry the equipment to the scales following a race. Accordingly, many clerks of scales subtract the estimated weight of that equipment and any material that is kicked up by the track before recording the official weigh-in number.

… Lee also said that NYRA has replaced the scales at all three of its racetracks. The scales now display the weight on a digital readout and those weights are recorded on a computer.

"The one thing you can say about this case is that it did spur us to create more stringent procedures in the jockeys' room, and that we did learn something from this," Lee said.

Although Spitzer brought the case against the jockeys, the prosecution's case was argued by John Prizzia, the assistant attorney general under new Attorney General Andrew Cuomo. In the summer of 2006, just prior to Spitzer beginning his successful campaign for governor, his office refiled the case, which had the effect of pushing the trial back until after the gubernatorial vote.

Greenberg and DerOhannesian claimed that Spitzer's ambitions to run for governor and NYRA's legal problems at the time played a part in the pursuit of the case. Both said that their clients were contemplating legal action against the state and NYRA to recover financial losses.http://www.nytimes.com/2007/09/18/sports/othersports/18racing.html?ref=othersports (http://www.nytimes.com/2007/09/18/sports/othersports/18racing.html?ref=othersports)
Two Former Scales Clerks for NYRA Are Cleared
By BILL FINLEY

… “I’m very bitter,” Baeza said yesterday. “You have to realize that these people took three years of my life and deprived me of making a living. I was so embarrassed when they handcuffed me and put me in a jail cell. Never in my life had I gone through anything like that. I was humiliated, and it was all over something where I did nothing wrong.”

… Peter Karches, then a co-chairman of the NYRA board, acknowledged he was the one who tipped off Spitzer’s office about a possible problem with the jockeys. Karches died in 2006.

… “They were in a battle with competing groups to retain their franchise and they had to do something to show everyone what a good job they were doing going after people who might have been breaking rules,” DerOhannesian said. “You take that and a careless investigation, and those are the factors that caused Braulio to lose three years off his life.”

Sclafani said he intended to take legal action against the state and NYRA.I suspect this will bolster both Liebman's call to eliminate many existing board members and Getnick critics' case against the integrity monitoring contract.

I think NYRA will find it's education very expensive and I'll be very surprised if the Republican Senate majority is ever threatened during a Spitzer administration.

[Indulto]

http://www.newsday.com/news/local/nassau/ny-lirace0919,0,1155525.story?coll=ny-rightrail-flashy (http://www.newsday.com/news/local/nassau/ny-lirace0919,0,1155525.story?coll=ny-rightrail-flashy)
Shunned Belmont bidders question choice
BY BART JONES

One company helps run the Melbourne Cup in Australia, a thoroughbred race that attracts 700 million TV viewers across 120 countries -- more than double the 300 million who watch the Super Bowl.

Another company manages the Kentucky Derby, America's premier horse race. Neither can understand how Gov. Eliot Spitzer could recommend the financially troubled New York Racing Association (NYRA), which also has a history of corruption, to run the state's horse racing industry over them.

… Spitzer and NYRA defend his NYRA recommendation, saying the entity has overcome a rough past and is now poised to become a leader in the industry when it comes to integrity, profitability and community service.

"We have been operating the best racing in the country," NYRA spokesman John Lee said. "We are not trying to dislodge the Kentucky Derby as America's most beloved horse race. But day in and day out New York is the center of North American racing."

He said NYRA's corruption scandal "was a difficult, painful process (but) we've come out as really now the industry leader in racing integrity" and with a forward-looking business model they hope to implement.

… the Belmont Stakes, the 102-old race which has been run by NYRA since 1955, "is one of the jewels of the Triple Crown and many people compare it favorably to the Kentucky Derby and the Preakness. Often it is referred to as the test of the champion."http://www.thoroughbredtimes.com/national-news/2007/September/18/Hearings-will-examine-New-York-racing-franchise.aspx (http://www.thoroughbredtimes.com/national-news/2007/September/18/Hearings-will-examine-New-York-racing-franchise.aspx)
Hearings will examine New York racing franchise

The New York Senate's standing committee on Racing, Gaming, and Wagering will conduct three public hearings to examine the future of the state racing franchise, which operates Aqueduct, Belmont Park, and Saratoga Race Course.

"It is very important that an appropriate business model for the management of the State Racing Franchise is developed as soon as possible to ensure that New York has the strongest racing in the world," Senator Bill Larkin (R-Cornwall-on-Hudson) said. "We need to have the most effective plan and the best racing to advance the best interests of fans and the industry."http://news.bloodhorse.com/viewstory.asp?id=40855 (http://news.bloodhorse.com/viewstory.asp?id=40855)
More Franchise Hearings Scheduled in New York
by Tom Precious

… During the first session Sept. 27, officials will review Gov. Eliot Spitzer’s recently proposed memorandum of understanding in which the New York Racing Association would be awarded a 30-year extension to its exclusive franchise, held since 1955, to operate Aqueduct, Belmont Park, and Saratoga.

… Another hearing, to be held during the first week of October, will consider various matters involving the franchise and its impact on towns near Belmont. Several ideas have been floated involving Belmont, including eventually locating a video lottery terminal casino there and renovating it to be able to handle winter racing.

The final hearing, to be held during the second week of October, will take testimony involving the best business model for the franchise. NYRA and state officials have said the longstanding model under which NYRA has operated does not work; no one has yet to settle on a new plan.

… The Senate will invite representatives from the four bidding groups—NYRA, Empire Racing Associates, Excelsior Racing Associates, and Capital Play—to appear at the third.http://www.drf.com/news/article/88651.html (http://www.drf.com/news/article/88651.html)
More N.Y. franchise panel talks
By MATT HEGARTY

… The scheduling of the three hearings indicates that members of the Senate remain unsupportive of a recent agreement reached between Gov. Eliot Spitzer and NYRA to extend the association's franchise by 30 years.

… Last week, the committee held its first hearing on the franchise in the state capital of Albany. At that hearing, members of the committee, including Larkin, expressed dissatisfaction with the agreement to extend the franchise.

According to a release from Larkin's office, the first of the three new hearings, … , will focus on the agreement between Spitzer and NYRA, as well as "explore the economic and regulatory issues related to his recommendation."

The second hearing, … , will focus on the impact of any franchise award on the communities surrounding Belmont, according to the release. Although slot machines are prohibited at Belmont, some community groups in Elmont and bidders for the franchise have been pushing for machines there as part of the franchise award.

The third hearing, … , will give all four bidders for the franchise … an opportunity to present their plans to the committee.Is it possible that State pride and tradition will ultimately resolve this issue?

[Indulto]

http://www.timesunion.com/AspStories/story.asp?storyID=623129&category=OPINION&newsdate=9/19/2007 (http://www.timesunion.com/AspStories/story.asp?storyID=623129&category=OPINION&newsdate=9/19/2007)
LETTER TO THE EDITOR

Politicians only winners in horse racing decision

… the horse racing industry is about to become a big time loser in this process, as are the taxpayers in this state, who paid for the ad hoc committee last year, not to mention the lost revenues from the VLTs.

… the bidders are also losers at this time.

They have all invested hefty sums to submit bids twice, and still seem to be facing shifting requirements. The only winners in the entire process seem to be the politicians, who have received hefty donations from the bidders.

… It is time … to put aside their petty differences and address the needs of the racing industry and the taxpayers. It would also help our confidence in the process if they returned the political donations of all the bidders in the process.http://www.villagevoice.com/news/0738,rayman,77837,2.html (http://www.villagevoice.com/news/0738,rayman,77837,2.html)
Playing the Ponies
A corporate watchdog's horse comes in
by Graham Rayman

… "NYRA must ensure that the reform process is continued and expanded upon," Getnick tells the Voice. "It was in that context that NYRA retained us nearly two years after our federal monitorship ended. . . . It makes no sense to make progress and then abandon it."

… "Since Getnick has been involved with NYRA, his relationship has evolved from independent monitor to business partner," says David Vermillion, a spokesman for Empire Racing, one of the three other groups competing with NYRA for the racing franchise. "Getnick has worked aggressively on behalf of NYRA to help retain the franchise, and he stands to profit greatly from its success."

… The law firm Weil, Gotshal & Manges has already earned more than $1 million in fees from NYRA's bankruptcy case, and has another million-dollar bill pending, court records show.

Those records also show that the firm has assigned no fewer than six partners—billing at up to $890 per hour—to the bankruptcy case, along with 14 associates (up to $560 per hour) and 15 clerks (up to $225 per hour).

… In the state inspector general's report that looked so positively on NYRA, there was a less positive section on Empire that was written by another firm that employed a former Getnick attorney and whose president sits on a board with Getnick. Vermillion alleges that Getnick "masqueraded" as an independent third party in meetings with the state inspector general, thereby "corrupting" the investigation.

… Officials with Empire have threatened to file a lawsuit over the report. But last week Spitzer dismissed those charges as "specious" and denied that the inspector general's report had any bearing on the choice of NYRA.

… NYRA used the sole-source exemption for the Getnick contract, but the board concluded there were other vendors who could have performed the same work.

"It is not a sole-source contract," says Racing and Wagering Board spokesman Daniel Toomey. "We believe the contract must be competitively bid."

[Indulto]

http://www.newsday.com/news/local/politics/ny-lijani245387856sep24,0,2350233.story (http://www.newsday.com/news/local/politics/ny-lijani245387856sep24,0,2350233.story)
Spitzer driving a fine line on immigration
BY DAN JANISON

… DARK HORSE: As described in a June inspector general's report, a would-be head of the New York Racing Association blew his own appointment in 2004 by telling integrity monitor Neil Getnick of a plan to take the tracks private. The prospective CEO also reportedly told Getnick and another person "that he had recently played golf with Senate Majority Leader Joseph Bruno" and "he and Bruno thought it would be a good idea to continue the [Getnick] monitorship past its planned termination date in mid-2005." Getnick blew the whistle when he deemed this an improper back-room move. Nobody's betting Bruno's colleagues will grill the majority leader in upcoming Senate hearings on racing.

[Spendabuck85]

http://www.capitalnews9.com/content/politics/?SecID=285&ArID=221590

Senators hear reasoning behind Governor's NYRA choice
"NYRA's sole focus is on New York horse racing - a clear benefit to the state," said Empire State Development Corporation Chairman Patrick Foye

Senator Little said, "If someone else were to get the contract, certainly NYRA's going to sue over them, and they're in bankruptcy, and bankruptcy believes they own the track

[Ron]

Seat applications for the Saratoga meet were due with payment by the end of October last year. They're not taking them until this is resolved, of course. I don't get how this can go down to the wire. Haven't they had 50 years to work this out?

[Indulto]

http://news.bloodhorse.com/viewstory.asp?id=41004 (http://news.bloodhorse.com/viewstory.asp?id=41004)
Spitzer Aides: NYRA Right Choice for Franchise
by Tom Precious

The Spitzer administration has defended its recommendation that the New York Racing Association run the state’s Thoroughbred racing franchise, characterizing its competitors as having financial problems, conflicts of interest, or more desire to operate gambling ventures over racing.

… Excelsior Racing Associates has withdrawn from the bidding process because of a lack of support by the Assembly to permit video lottery terminal casinos at Aqueduct and Belmont.

… Jeff Perlee of Empire Racing Associates, later dismissed the claims as “a smokescreen,’’ saying he was convinced Excelsior Racing’s gambling and real estate partners are still working behind the scenes for a role at Aqueduct and Belmont.

… Foye said there were concerns about the financial health of MEC, which has been selling tracks, along with antitrust concerns about giving a franchise to a company so heavily involved in the simulcast business.

… Senate Republicans, however, have raised the prospect that a state board that now oversees NYRA’s finances will step in and run NYRA--as is permitted under state law--if the franchise issue is not settled this year.http://www.bizjournals.com/albany/stories/2007/09/24/daily30.html (http://www.bizjournals.com/albany/stories/2007/09/24/daily30.html)
State projections meet skepticism during horse racing hearing
by Adam Sichko The Business Review

… "I think there's something wrong. Maybe there's not -- but I want somebody to explain it to me," Sen. William Larkin, chairman of the committee, said a few days before the hearing.

… One question covered in the hearing was why will the franchise last 30 years? In an interview, Larkin remarked that "if I was one of the bidders, I'd be calling my lawyers."

… Also discussed was whether changes would be made to Spitzer's proposal to give the franchise to NYRA. Larkin described the proposal as "fluid," short on detail and in need of "some tightening up." State officials repeatedly said they would be happy to work with the Legislature to address its concerns, particularly involving transparency and disclosure.

… State officials currently have no plans to expand video gambling beyond Aqueduct, but Larkin said it would be a "golden opportunity for the people of the state of New York to be reimbursed for the debt they've carried for years and years."

"Are you telling the people of Nassau County that they have no say in what happens in their life?" Larkin asked. "That's not very democratic."http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--racingfranchise0927sep27,0,7186166.story (http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--racingfranchise0927sep27,0,7186166.story)
Senate questions Spitzer, NYRA over racing future
By MICHAEL GORMLEY

… Republican senators echoed the concerns of NYRA's three competitors: "They say NYRA was there and the fix is in," said Republican Sen. William Larkin.

"'How can (NYRA) keep losing money and expect us to have faith in you?' That's what my members are saying," said Larkin, chairman of the Senate racing committee reviewing the franchise to run Aqueduct, Belmont and Saratoga thoroughbred tracks. "For me, NYRA hasn't shown that it's fiscally responsible."

… Larkin said another Senate hearing in October will question all the competitors.

… Spitzer officials told senators that it's better to avoid a lengthy lawsuit that could shut down racing for 2008.

"Racing in January in the state must not go dark," said Pat Foye, a top Spitzer economic development aide.

… Spitzer's recommendation to the Legislature includes $75 million from the state to bail NYRA out of bankruptcy court and pay off local taxes, $136 million in forgiven debt NYRA owes the state, and accountability measures. In exchange, NYRA abandons its claim on the tracks worth as much as $2 billion.

… "The question is: what are getting in return for this?" Larkin said.http://www.drf.com/news/article/88941.html (http://www.drf.com/news/article/88941.html)
Officials defend NYRA extension
By MATT HEGARTY

… During the hearing, the committee chairman, Sen. Bill Larkin, a Republican, continued to push for the legalization of slot machines at Belmont Park in Elmont, N.Y. Larkin said at the conclusion of the hearing that officials in Spitzer's administration should meet with senate leaders and local government officials in Elmont as their first priority in the ongoing process to award the franchise.

… Gov. Spitzer's representatives said at the hearing that the administration supported slot machines at Belmont, but that they had proceeded with the agreement with NYRA under the assumption that the machines would not be legalized because of a perceived lack of support in the legislature.

… The community of Elmont "has not indicated to me that they don't want them," Larkin said, citing support for the machines to reduce property taxes and contribute to school funding. "This is a golden opportunity for the people of New York."

… Foye said during the hearing that one of the bidders, Excelsior Racing Associates, had indicated that they were not interested in the franchise unless slot machines were legalized at Belmont Park. Larkin disputed that view, saying, "That's not what I'm hearing."

… The state legislature is scheduled to return to session on Oct. 22. Larkin and State Senator Betty Little, a Republican, urged the officials from Spitzer's administration to submit draft legislation to the Senate before that date. Foye said that it was Spitzer's plan to have the draft legislation ready when the senate returns to session.

[highnote]

… Foye said there were concerns about the financial health of MEC, which has been selling tracks...

Are there also concerns about the financial health of NYRA?

Seems to me that once the franchise is awarded and slots are operational a lot of these concerns about financial health are not going to be concerns.

[Indulto]

Are there also concerns about the financial health of NYRA?

Seems to me that once the franchise is awarded and slots are operational a lot of these concerns about financial health are not going to be concerns.http://news.bloodhorse.com/viewstory.asp?id=41004 (http://news.bloodhorse.com/viewstory.asp?id=41004)
Spitzer Aides: NYRA Right Choice for Franchise
by Tom Precious

... Empire Racing’s Perlee questioned how the Spitzer administration could criticize MEC for its drop in stock-market prices the past couple years as one of the factors in not choosing Empire Racing.

“They criticized Empire because one of our partner’s stock price is down, and yet they went on to recommend an entity that itself is bankrupt,’’ Perlee said of NYRA. “So, I think there are a lot of holes in the logic.’’I always assume people will read the entire articles. I only include portions of greatest interest to me since links become unusable over time. In this series, my focus was on Larkin's comments and attitude.

New laws would be required for any bidder to succeed. A case may yet be proven that the Pataki administration (which included Perlee at one time) was the greatest impediment to NYRA's financial health. IMO it's a good thing the Republicans are challenging the recommendation. I just wish they didn't come off as so anti-Spitzer and pro-Empire in the process.

[Indulto]

I urge all interested parties to read the ENTIRE two-page article for appropriate context:

http://www.nytimes.com/2007/09/30/nyregion/30racing.html?ref=nyregion (http://www.nytimes.com/2007/09/30/nyregion/30racing.html?ref=nyregion)
Ex-Monitor of Horse Racing Interviewed in Bruno Inquiry
By NICHOLAS CONFESSORE

… Empire executives say that the inspector general’s report was unfair because some of its findings were based on interviews with Mr. Getnick and other people with connections to competing bidders for the franchise. Mr. Smith was never interviewed by investigators preparing the report.

… In an interview, Mr. Getnick defended the contract and wondered why Senate Republicans had not invited him to testify on the matter.

… But Mr. Smith said he described for Mr. Getnick a “conceptual” discussion intended simply to frame and debate options for saving the franchise. “All I was really pushing was that there be a very high-level, thoughtful review of N.Y.R.A.’s structural problems,” Mr. Smith said. He said the golf game with Mr. Bruno had been arranged by Mr. Duncker and that he had attended because, believing he would be the association’s chief executive, he wanted to make a good impression on legislative leaders.

... In an interview, Mr. Hayward said he believed the plan described by Mr. Smith was improper. “I think their goal was to get the franchise for a few million dollars, flip it, and sell it for a lot of money,” he said.

Mr. Smith rejected that characterization. “This was meant to be an intellectually honest, policy-driven debate,” he said.

… Mr. Smith continues to be an investor in Empire, and defends the Friends of New York Racing.

“To say that from Day 1 this was a stalking horse for Empire Racing — that’s just not true,” he said.
Getnick/Hayward/Spitzer/not-for-profit/Democrat-supported

vs.

Smith/Perlee/Bruno/for-profit/Republican-supported?

It may not have started that way, but thats where it seems to be now.

Who do you believe and why?

[highnote]

I wonder how many journalists are working on books about this saga?

[the little guy]

Glad you posted that NY Times piece. I found it very interesting.

[Indulto]

Glad you posted that NY Times piece. I found it very interesting.Every once in a while, the light shines in the right places.

[Indulto]

http://timesunion.com/AspStories/story.asp?storyID=626168&category=FRONTPG&BCCode=HOME&newsdate=9/30/2007 (http://timesunion.com/AspStories/story.asp?storyID=626168&category=FRONTPG&BCCode=HOME&newsdate=9/30/2007)
From 'Day One' to damage control
Spitzer took reins as reformer, but controversies show few signs of abating
By RICK KARLIN

… after being beat up in the press for much of the summer over the Troopergate scandal, Spitzer was taking some solace from the second report to find no laws had been broken when his aides gathered travel information on Senate Majority Leader Joseph L. Bruno.

Then he announced a new plan to make it easier for people to get driver's licenses. Republican lawmakers realized move would allow illegal immigrants to get licenses, too.

… Republican county clerks, including those in Rensselaer and Saratoga counties, said they wouldn't process the new license applications. Assembly Republicans said they would sue Spitzer if he didn't rescind the policy.

… Hostilities may really come to a head on Oct. 22 when the Legislature is tentatively scheduled to go back in session.

… Despite the tumult around him, Spitzer has quietly forged ahead with plans to try to get the Senate, which Republicans hold by a 33-29 seat margin, into Democratic hands in 2008.

During the last few weeks, he's talked with former Syracuse University and Atlanta Falcons football star, lawyer, author and TV host Tim Green about challenging Republican Sen. John DeFrancisco in the Syracuse area.

And observers have noted that one Republican senator, John Bonacic of Mt. Hope, appeared last month at a Spitzer fundraiser, leading to speculation that the governor would try to get him to switch parties. Additionally, pollsters are said to be hard at work in the Rochester area where another potentially vulnerable Republican, Joe Robach, who used to be a Democrat, may face a heavy challenge.As Lou Christie once sang:
"I'll try every trick in the book
With every step that you take, everywhere that you look ..."

http://www.preterhuman.net/texts/lyrics_and_music_related/unsorted_lyrics/im_gonna_make_you_mine.txt

BTW is "Day One" some kind of new New York-ism?

[freddymo]

I think it's safe to say that Spitzer will have to yield on NYRA(protectors of the people) soon. Spitzer will give it away for a chip that is more socially and polictically important then a bunch of horseman. I figure he throws in the towel about a year into his term.

[Indulto]

http://news.bloodhorse.com/viewstory.asp?id=41091 (http://news.bloodhorse.com/viewstory.asp?id=41091)

Belmont Park-Area Residents Have Say on Franchise
by Karen M. Johnson

… Community leaders were very vocal about NYRA not playing an active role in the neighboring communities …

… NYRA is failing to maintain its outside grounds at Belmont, which stretches along a commercial and residential area on Hempstead Turnpike.

… “Our voices in Elmont haven’t been heard,” New York state Assemblyman Thomas Alfano said. “I had no impact in the (memorandum of understanding). NYRA in the past has not been a partner with our community. It’s ‘don’t call us, we’ll call you.’ And they never call and hide behind those iron gates on Hempstead Turnpike.

… Thomas R. Suozzi, Nassau County’s executive, said he would welcome VLTs to Belmont Park. Suozzi also said if VLTs were legalized, the state should strongly consider Nassau County Off-Track Betting Corp. as the operator because of its business acumen, which has had a favorable impact on Nassau County’s economy.http://www.antonnews.com/threevillagetimes/2007/09/28/opinion/
Belmont Hasn't Been Good Neighbor
By Assemblyman Tom Alfano

… The facts are Belmont Racetrack has not been a good neighbor at all. Can NYRA look the community in the eye with a straight face and say that they keep their grounds up and in good shape? Can they say they keep a good appearance in the community? Are the shrubs pruned, gates painted, the grass cut and the barns painted?

The answer is "no" to all of the above. They can not look Elmont in the face anymore and claim that they do. These very simple things are a respect issue to Elmont. The NYRA has not shown the community the respect it deserves.I wonder to what extent locals attend/support the racetrack and whether racetrack employees and customers are welcomed by local businesses.

The track hardly seems to be any part of most residents' lives there the way it is at Saratoga.

When I last attended in the ‘70s, it was parkway to track and then right back onto the parkway. I don’t remember even seeing Elmont. But Belmont sure was a beautiful place to be in the summer after it re-opened.

I guess OTB keeps its lawns mowed and watered. Apparently, one's grass had better be greener than one's money on Long Island. But maybe that's not a bad thing. ;)

[PaceAdvantage]

Yeah, I couldn't get enough of this line, so I feel it deserves to be reposted in isolation for everyone to enjoy:

Thomas R. Suozzi, Nassau County’s executive, said he would welcome VLTs to Belmont Park. Suozzi also said if VLTs were legalized, the state should strongly consider Nassau County Off-Track Betting Corp. as the operator because of its business acumen, which has had a favorable impact on Nassau County’s economy.I hope Suozzi had his back turned to the audience when he uttered this line. I don't think any human being could be that capable of keeping a straight face while uttering the text I have highlighted in large bold lettering.

[Indulto]

Kingston, NY is a small city about 90 miles North of New York City and 50 miles South of Albany. Besides having some posters here as residents, it has a newspaper with one gutsy, take-no-prisoners editorial writer.

http://www.dailyfreeman.com/site/news.cfm?newsid=18863866&BRD=1769&PAG=461&dept_id=82701&rfi=6 (http://www.dailyfreeman.com/site/news.cfm?newsid=18863866&BRD=1769&PAG=461&dept_id=82701&rfi=6)
Victim of self-delusion
EDITORIAL 10/02/2007

… Stripped to its basics, Joe Bruno is crying about being held accountable for his legal, but indefensible, misuse of state resources. He apparently believes if he cries loudly enough for long enough about how injured he is by the terrible abuse of power by which a truthful public record of his sleazy travels was gathered, we all might think he is a victim. Thus will the sinking fortunes of his dwindling majority of Republican apparatchiks in the Senate be pulled up by relentlessly pulling down on Spitzer.

He's a victim all right - a victim of self-delusion.

… We got news for you, pal. It ain't all about you.

It's about governing the Empire State to make this a better place to live, work, raise a family and do business.

Stop it. Just stop it.

You are - how can we put this politely? - making an ass of yourself and your compliant band of fellow Republican senators, enablers all.

[Indulto]

http://www.drf.com/news/article/89048.html (http://www.drf.com/news/article/89048.html)
Support grows for Belmont slot machines
By MATT HEGARTY

… the legislative wrangling over how to award the franchise and to whom has emboldened slot-machine supporters to begin lobbying aggressively for the machines.

… any bill would have to ... include revenue allocation for the communities surrounding the track to be politically viable.

… Currently, two racetrack casinos, among the eight that are operating in New York, contribute slot-machine revenue to local communities: Yonkers Raceway and Saratoga Racecourse.

… many legislators and supporters of slot machines see the franchise issue as a critical opportunity to make their case, since legislation will have to be passed anyway to award the franchise.

… though Silver is still opposed, the opportunity is open for supporters to make a case.

"The conference of the assembly majority would have to be convinced that it made sense," Weiller said.It should be interesting to see if Silver has the talent and capacity for obstructionism to match Bruno's. ;)

[Indulto]

http://www.thoroughbredtimes.com/national-news/2007/October/03/Community-groups-call-Belmont-nightmare-neighbor.aspx (http://www.thoroughbredtimes.com/national-news/2007/October/03/Community-groups-call-Belmont-nightmare-neighbor.aspx)
Community groups call Belmont 'nightmare neighbor'
by Paul Post

… Hayward said Belmont is not to blame for the surrounding area’s empty storefronts and economic decline.

“We provide the same economic relief there that we do in Saratoga, with property taxes and admissions tax,” he said. “There are certainly some improvements we can make with relations with the community.

“If this hearing results in the opening of better lines of communication that’s great. But I think some people have unrealistic expectations about what NYRA can do for the community. It’s a two-way street.”

He said that one local development official that had lodged several complaints had never visited Belmont. In Saratoga, NYRA is invited to meet with the chamber of commerce and local hotel representatives on ways to improve the racing meet’s business climate. No one has reached out to NYRA in that way near Belmont, he said.

Hayward blamed part of the problem on the fact that Elmont is a relatively small community, with no elected officials, in the much larger Town of Hempstead. In Elmont, there is no mayor or similar leader with which to establish a dialogue, he said.

[jillybeans]

You can bet your last dollar that Empire and/or Churchill Downs won't be considered.

[Indulto]

http://www.saratogian.com/site/news.cfm?newsid=18881884&BRD=1169&PAG=461&dept_id=602469&rfi=6 (http://www.saratogian.com/site/news.cfm?newsid=18881884&BRD=1169&PAG=461&dept_id=602469&rfi=6)
NYRA: No deal, no racing
By PAUL POST, The Saratogian

... Racing law says that a state Oversight Board, created to monitor NYRA's business operations, would replace NYRA's board of directors if there's no agreement by Dec. 31. There's an assumption, perhaps mistaken, that NYRA's management would be kept in place to run day-to-day racing. "Why exactly would I want to do that?" Hayward said. He said NYRA has no intention to let the state use its tracks to run racing.

… Hayward said the bankruptcy court might decide to rule on the land issue if no agreement is reached. "If the judge decided that we owned the land, we could take a mortgage on this property tomorrow," Hayward said. "That's not what we want to do." But he made it clear that NYRA will protect its interests if its hand is forced. "We would have to defend our rights," he said.

[highnote]

If NYRA plays the bankruptcy card, what is to stop the state from not granting NYRA a license to stage pari-mutuel events?

[Nacumi]

http://www.nypost.com/seven/10042007/news/regionalnews/corruption_panel_probes_gov_in.htm

[garyoz]

This gets more ridiculous everyday, New York Racing has become a volleyball. The issue has moved beyond the franchise renewal/award and is part of the Spitzer/Bruno Show. As things are falling, looks like no way NYRA won't keep the franchise. In order to issue the bonds they are threatening to, NYRA would have to come out of bankruptcy. At least creditors would get paid.

The land itself has enough value to issue bonds, and interest could be paid out of the proceeds for a period of time if they weren't granted the racing license. But, that's all hypothetical. Never come to that.

[Indulto]

http://www.liherald.com/site/news.cfm?newsid=18884990&BRD=1601&PAG=461&dept_id=477736&rfi=6 (http://www.liherald.com/site/news.cfm?newsid=18884990&BRD=1601&PAG=461&dept_id=477736&rfi=6)
A sit-down with the boss
Perhaps Belmont Park will be a good neighbor to Elmont after all.
By Brian Zanzonico

Assemblyman Tom Alfano and four local civic leaders took a tour of Belmont Park as guests of New York Racing Association President Charles Hayward on Sept. 26, and their get-together concluded with a meeting with Hayward that was described as a positive exchange of ideas.

…"This is a new NYRA management team," said Joyce Stowe, president of the Tudor Manor Civic Association. "They recognize that we should be included in the development of the track. They never did that before. NYRA never reached out to the Elmont community."

… Hayward listened to the community's requests, which included NYRA's taking better care of Belmont's often litter-strewn perimeter and repainting the fencing, and other ideas for the park, the biggest of which is the construction of a hotel on the premises.

Alfano's chief of staff, Scott Cushing, said that by the time the civic leaders left the grounds after the meeting, a crew was giving a fresh coat of paint to the fence that rings the century-old track. The call for a hotel on park grounds is hardly a consensus among residents - most agree that improving the park's aesthetics should be the first priority …

… "Without VLTs, the track won't draw anywhere near what it should," Nicolosi said. "This tour brought to light the fact that we have one of the best tracks in the country in the heart of Elmont. The key is to bring people here."

Some residents disagree, however, arguing that a hotel and video gaming would only invite criminal activity, including prostitution. "I'd have to study it," Alfano said.

… Nicolosi, one of the biggest critics of NYRA's relationship with the community, said he has a new-found respect for the organization. "I see now the attitude of the people working there now," he said.

[garyoz]

The "truth" about troopergate in the Village Voice, Spitzer, Bruno & Andy Cuomo. Of course truth and the village voice is an oxymoron, but still an interesting read for the Pro-Spitzer spin. The Voice is far to the left of even the NY Times and hates all things moderate--the Voice is saying the voters want Spitzer to "move-on." Sounds familiar. Guess this would include moving on to the NYRA franchise.

http://www.villagevoice.com/news/0740,barrett,77958,2.html

[Indulto]

The "truth" about troopergate in the Village Voice, Spitzer, Bruno & Andy Cuomo. Of course truth and the village voice is an oxymoron, but still an interesting read for the Pro-Spitzer spin. The Voice is far to the left of even the NY Times and hates all things moderate--the Voice is saying the voters want Spitzer to "move-on." Sounds familiar. Guess this would include moving on to the NYRA franchise.

http://www.villagevoice.com/news/0740,barrett,77958,2.html
GO,
Fascinating commentary on Troopergate and Cuomo. Are there any portions, specifically, that you feel aren't reasonable or believable? Your oxymoron reference IMO would be more applicable to the Post. From the article:... Just as there's no sign that Bruno, whose senate majority has shrunk to two seats, will let his Spitzer jihad go, so too with the hyperventilating New York Post, whose favorite state political party is facing an Armageddon of sorts in the 2008 senate elections. The Paper of Rancor—which has printed such sourceless front-page fantasies as a breathless account of Spitzer aides meeting in dark limousines parked on the side of the road in the dead of night to avoid detection by investigators—buried Soares's findings behind another loopy Brady Bunch sex spoof.Sources for the author's account appeared to be in abundant supply. ;)

[Indulto]

The Village Voice speaks again:

http://www.villagevoice.com/news/0741,barrett,78029,2.html/full (http://www.villagevoice.com/news/0741,barrett,78029,2.html/full)
The Bruno Files: Exploring the Record of the State Senate Leader Calling for a Spitzer Probe
The immaculate record of the state senate leader calling for investigations of Eliot Spitzer
by Wayne Barrett

… While it's common for elected officials to dip into their campaign committees for an occasional personal meal or other perk, the filings for Bruno's three committees suggest that he may never pick up his own tab.

... It's not at all uncommon for multiple meals to be billed for the same day, or for the committee to cover virtually an entire week of dinners (including the weekend), usually in restaurants near the capitol and his home. It is possible that some of these meals are for staff, but one committee has no full-time staff, and it's the one with $38,000 in restaurant billings alone.

In addition, the committees have spent an astounding $18,225 at the track, including expenses virtually every other day during the 36-day summer season at Saratoga, where horseman Bruno reigns as a local potentate.The really interesting portion of the article deals with how the Republican Senate majority is maintained through redistricting.

[Indulto]

http://www.ad-hoc-news.de/Aktie/12718193/News/13658379/NETWORK.html
NETWORK NEWS
Churchill Downs Incorporated Withdraws from Empire Racing Associates' Bid for New York Racing Franchise

“When our Company took a position in Empire Racing in August 2006, we were joining a very diverse, accomplished, resourceful and highly motivated group of business partners, including New York horsemen, whose common goal was creating a framework that would ensure the success of New York horse racing,” said Robert L. Evans, president and chief executive officer of Churchill Downs Incorporated. “Since that time, the make-up of Empire Racing has changed significantly, and the bidding and selection process is now undefined. We continue to believe that Thoroughbred racing’s success in the United States requires that New York racing be economically viable.”http://www.bizjournals.com/albany/stories/2007/10/08/daily26.html (http://www.bizjournals.com/albany/stories/2007/10/08/daily26.html)
State senate wraps up horse racing hearings
The Business Review (Albany) - by Adam Sichko

… "We've got less than three months to get this done and keep racing going, and if we don't, racing can't continue," said NYRA president Charles Hayward.

Sen. William Larkin, Republican chairman of the committee, challenged that notion. He raised the prospect of having the state racing and wagering oversight board take over the tracks.

In a previous interview, Hayward discredited that option as impractical and unrealistic, noting that all five board members have other jobs.

"To tell people, 'We're going to close the door and turn out the lights,' if you ever do that, you've kissed racing goodbye," Larkin told Hayward.

… In his testimony, Hayward said his remarks weren't "a scare tactic" but an honest assessment of what the future holds.

[Spendabuck85]

Senate panel raps Spitzer's NYRA deal
Association warns racing could shut down Jan. 1

http://timesunion.com/AspStories/story.asp?storyID=628890&category=&BCCode=&newsdate=10/10/2007

[Indulto]

Senate panel raps Spitzer's NYRA deal
Association warns racing could shut down Jan. 1

http://timesunion.com/AspStories/story.asp?storyID=628890&category=&BCCode=&newsdate=10/10/2007

From the article:… NYRA Chairman Steve Duncker said his nonprofit's board has a fiduciary duty not to allow the assets to transfer to the state until the ownership issue is resolved. He and other NYRA officials said the model under which NYRA operates dooms it to financial losses.

… Excelsior officials, led by William Mulrow, revealed that the group would not bid again for the right to run video slot machines unless Spitzer and the Legislature agreed to allow a casino at Belmont Raceway as well as Aqueduct.

The group’s development leader, Richard D. Bronson, also stunned the crowd by announcing that casino developer Richard Fields had dropped out of the Excelsior team to concentrate on his Suffolk Downs horse track in Boston, Mass.

Bronson said casino operator Steve Wynn’s experience in developing gaming halls would help the state maximize revenues by creating excitement at Belmont.

[Indulto]

http://www.drf.com/drfNewsArticle.do?NID=89309
Racing may shut down Jan. 1, NYRA warns
By MATT HEGARTY

… During the hearing Wednesday, NYRA was consistently criticized by the three Republican committee members in attendance. Two of them, Thomas Libous and Joseph Griffo, left after questioning NYRA, which was the second company to make a presentation. The chairman, Larkin, and the ranking Democrat, John Sabini - who has indicated he supports the Spitzer recommendation - remained to hear the presentations by Empire and Capital Play.

… Later Wednesday, after the hearing had concluded, Churchill Downs Inc. and Magna Entertainment Corp., which each purchased a $250,000 stake in Empire in 2006, said that they had withdrawn from Empire. Churchill and Magna were among several high-profile racing companies that joined the Empire bid last year, a group that also included Delaware North Companies, Scientific Games, and Woodbine Entertainment Group.

In addition, Marylou Whitney, the New York socialite and horse owner, said late on Wednesday that she was also divesting her shares in Empire. In a statement, Whitney said that Empire "has evolved into an entity with a vastly different look and feel, one that I no longer recognize."

… Empire officials who appeared at the hearing Wednesday did not make reference to any pending changes to their partnership. The officials did tell the committee that their management teams would be available to run the racetracks as interim operators if the oversight board takes over the tracks.

[Indulto]

http://money.cnn.com/news/newsfeeds/articles/prnewswire/TO20810102007-1.htm (http://money.cnn.com/news/newsfeeds/articles/prnewswire/TO20810102007-1.htm)
Magna Entertainment Corp. Announces Withdrawal from Empire Racing Associates, LLC

… MEC joined the coalition of entities that formed Empire Racing because it believes that thoroughbred horse racing in New York is an integral part of an important industry both in New York and throughout the country.

… Unfortunately, Empire Racing's bid has been rebuffed at two important stages in the process and the process has progressed in a manner which MEC does not see leading to a successful outcome for Empire Racing.

MEC hopes that thoroughbred racing in New York will be extremely successful in the future, regardless of the final outcome of the franchise bidding process.

[Indulto]

http://news.bloodhorse.com/viewstory.asp?id=41253&source=rss (http://news.bloodhorse.com/viewstory.asp?id=41253&source=rss)
Magna, Churchill Withdraw From Empire Racing
by Tom Precious

… The pull-out came hours after it was revealed Empire was in negotiations with Australian-based Capital Play to merge their bids for the franchise to run Aqueduct, Belmont and Saratoga racetracks.

… Empire chief Jeff Perlee said that the Spitzer administration said it did not recommend Empire for the bid, in part, because of possible antitrust and other concerns involving Magna and Churchill Downs.

Perlee said Empire has a “duty’’ to listen to those concerns by the Spitzer administration and said the changes to Empire's composition reflects those concerns. “This can only make us stronger going forward in the competition,’’ Perlee said.

... Lawmakers also raised concerns about how the state’s off-track betting corporations will fit into the future of racing in New York. “They do 75 percent of the business and we treat them like stepchildren,’’ Larkin said.

Duncker said New York is unique among states in that NYRA faces competition from six in-state OTB corporations, something that wasn’t envisioned when the original NYRA franchise was awarded in 1955.

“If the OTB structure is fixed, NYRA will make money,’’ he said. But no plan has yet to address how OTBs fit into the picture.

… Later in the day, Marylou Whitney said she has resigned as honorary chairwoman of Empire Racing Associates.

… Whitney did not endorse another specific group, but said it is time "for the brighest minds in the industry and in government to overcome the politically charged atmosphere that exists to do what is best for racing in New York.''The (F)ONYR (A)ssociation (T)erminater lady just sang.

It's all over but the crying.

I can't wait to hear the "New York Post" spin one more for the "griper." ;)

[Indulto]

http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--racingfranchise1010oct10,0,6207701.story (http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--racingfranchise1010oct10,0,6207701.story)
Senate pulls reins on Spitzer's NYRA plan
By MICHAEL GORMLEY

… Also competing is Excelsior Racing Associates, which includes developer Richard Fields and casino developer Steve Wynn.Was Gormley actually at the hearing? If so, how did he miss Bronson’s announcement regarding Fields?… Empire's Perlee also cited a public statement by a previous NYRA official who agreed in 1983 that the tracks would be owned by the state if NYRA received an extension of the franchise back then.

"It puts the lie to NYRA's threat to interrupt racing,"Perlee said. "NYRA is a creation of the state of New York. It is not a private company ... the governor and Legislature should no more be intimidated by the threats and bluffs of NYRA than by the Thruway Authority."

"How many times do they expect taxpayers to fall for this?" Perlee asked senators.Maybe he was too busy listening to Perlee. ;)

[Indulto]

http://www.thoroughbredtimes.com/national-news/2007/October/10/Churchill-withdraws-from-Empire-Racing.aspx (http://www.thoroughbredtimes.com/national-news/2007/October/10/Churchill-withdraws-from-Empire-Racing.aspx)
Churchill, Magna withdraw from Empire Racing
by Jeff Lowe

… The gaming operation Delaware North Companies also bowed out of the Empire Racing structure.

The defections came by mutual agreement, according to Empire Racing Chief Executive Officer Jeff Perlee, and followed testimony from officials representing New York Governor Eliot Spitzer to a state Senate committee that explained why Empire Racing did not receive Spitzer’s recommendation to operate the franchise.

… “[Representatives of Spitzer] specifically and publicly stated that the presence of Churchill and Magna on the Empire team, and more specifically possible anti-trust issues that might raise, were the reason they chose not to recommend Empire,” Perlee said. “Throughout this process all of our members have had the understanding that if the presence of any one is identified as a detriment to the success of the rest, that we would take the appropriate steps.”

Questions from Delaware North related to projected revenue from video lottery terminals also affected Empire Racing’s status in Spitzer’s assessment.

“[Churchill, Delaware North, and Magna] return their shares back to the core of the horsemen and breeders who founded the company and the other entities involved,” Perlee said.

… Woodbine Entertainment Group, Scientific Games Holding Co., and SL Green Realty Corp. remain partners in Empire Racing, Perlee said.

“There are no hard feelings,” Perlee said. “When those concerns had been articulated in a public forum by a decision maker, it’s incumbent to take action because this competition is still very much alive.”Will Delaware North now enter the VLT Franchise competition against its former partners?

[garyoz]

Will Delaware North now enter the VLT Franchise competition against its former partners?[/font]

They could. A very well connected New York-based company (Buffalo) with a reasonable track record at Finger Lakes. Saw in the NY Times today that Spitzer is going to pour another $850 million into Buffalo infrastructure (a lost cause). Helping a Buffalo company wouldn't be a stretch

[Indulto]

http://www.drf.com/news/article/89338.html (http://www.drf.com/news/article/89338.html)
Plan would cut NYRA's share of slot cash
By MATT HEGARTY

… Steve Casscles, counsel to Larkin, said Thursday that Larkin was concerned that the Spitzer proposal was too generous to NYRA and did not give the casino operator enough money.

… Casscles said the revenue percentage for the casino operator would not attract high-profile casino companies to bid for the Aqueduct contract. In addition, Casscles said the percentage allotted to NYRA amounted to a "subsidy for a money-losing business."

"What's the point of giving a subsidy to a company that is taking $20 million from the taxpayers each year?" Casscles said, in reference to recent financial losses for NYRA, which filed for bankruptcy late last year. "They'll just keep losing money."

… "You had two groups telling us that they wouldn't bid because the rates are too low," Casscles said. "Everyone keeps telling us that you need to build a nice place to get people to bet, and these rates won't attract the capital that would result in nice places."

… Asked why NYRA did not deserve a subsidy when the other tracks use slot-machine revenue to support their money-losing racing operations, Casscles said that the Spitzer proposal presented a different scenario by granting the racing license to one operation and the slot-machine license to another operation.

The NYRA casino licensee "would be subsidizing an operator that they can't control," Casscles said. "It creates a conflict there."Which VLT operator do Sen. Larkin and Mr. Casscles prefer?

[Indulto]

A previously quoted column was updated:

http://timesunion.com/AspStories/story.asp?storyID=629111&category=FRONTPG&BCCode=HOME&newsdate=10/11/2007 (http://timesunion.com/AspStories/story.asp?storyID=629111&category=FRONTPG&BCCode=HOME&newsdate=10/11/2007)
Senate blasts Spitzer's NYRA plan
Governor's choice to operate state's racing franchise runs into strong opposition at Capitol
By JAMES M. ODATO

… Capital Play team member Mitchell Etess, Mohegan Sun's president, said Spitzer's plan to split up the racing and video slots franchises won't work, while Jeff Perlee, the leader of Empire Racing, said NYRA is a "ward of the state" and shouldn't be allowed to hold the tracks hostage. He said he is mystified as to why the state has allowed NYRA to "hijack the franchise" and why the Spitzer administration dropped its attempts to get NYRA's bankruptcy case thrown out of court.

He declined to confirm or deny that Empire is behind a complaint being probed by the State Investigations Commission about the franchise process. Empire has publicly claimed that Excelsior and NYRA have improperly colluded. I assume Mr Odato's “he” is Mr. Perlee; not Mr. Etess..

Looking back at all the negative posturing against NYRA -- and it is legion -- no other NYRA detractor IMO has been as vituperous in his/her commentary, nor as consistent in applying negative spin regarding NYRA’s role in developments during the course of the franchise renewal process.

It seemed to go beyond what one might be expected from even cutthroat business competition and makes me wonder what other parties standing in the “Emperor’s” way might be subjected to. Is it therefore any surprise that the IG report was so detailed with respect to Empire’s flaws?

I suppose it would have to be to counter the anticipated barrage of gar-BAGE presaged in the spinmeister's pre-report mirage. ;)

To be fair, I don’t remember any disparagement of NYRA personnel, individually, and questions directed at Mr. Getnick were not inappropriate in light of his remuneration. Interestingly, Mr. Hayward’s quoted remarks regarding Mr. Smith did not extend to Mr. Perlee. I wonder if that was pre-franchise–award tongue-biting? :lol:

[highnote]

Here is one thought and one question on NY racing and slots:

1.

Maybe the quasi-public-governmental model is the best. NY state could step in and own the place, and then hire non-governmental employees to run it.

With the revenue from slots, good managers could be hired at competitive salaries -- managers who love racing. A non-compensated committee could still oversee strategy with the state taking a laissez faire approach.

The state could build and own the slot palace and put the construction out to competitive bid. Then a request for proposal could be issued to try to find a partner to run the slots palace for X number of years. This way there is no cost of construction for the slots palace by the company running the slots. The state would bear the cost.

The company running the slots palace would only have marketing, labor and miscellaneous expenses. If they can't make the numbers work, then they lose the contract and a new RFP is issued.

The slots contract should be short term -- maybe 5 years. Long enough for a good profit to be made, but not so long that the company becomes entrenched. There needs to be lots of bids near the end of each term with each bidder having a realistic chance.

A portion of the slot revenue could go to subsidize purses, a portion for the company that manages the slot palace, a portion to NYRA managers and employees, and a portion to NY State.

Seems to me, in order for this issue to get resolved there are going to have to be compromises all around. If this issue is decided in a lopsided manner, the losers are going to fight and drag this out. There is too much money at stake. Too many people want a piece of the pie. Those who want a piece will not stand for someone getting too big of a piece.

A way has to be found to give everyone a "deserving" piece of the pie.

---------

2.

Let's say NYRA shuts down racing on Jan 1. Let's say they are not awarded the franchise. Let's say they file bankruptcy and it is decided they own the land.

They still can't afford to run racing there without slots. What if no slots agreement can be reached?

Will NYRA sell AQU/BEL/SAR? If so, who gets the money from the land sale?

Who owns the land. NYRA? Who is NYRA? It's run by a committee that doesn't receive compensation. If the committee does not receive compensation then what happens to the money from a sale?

[Indulto]

http://www.newsday.com/news/local/ny-linyra1014,0,2605161.story (http://www.newsday.com/news/local/ny-linyra1014,0,2605161.story)
NYRA head says he welcomes the challenge
BY BART JONES

… As others in the industry demand change in the way the state operates its tracks and electronic gambling, Hayward, 56, finds himself defending the status quo. He believes the state should operate horse tracks, not "Las Vegas"-style entertainment conglomerates that want to bring in hotels, restaurants and nightclubs.

... Hayward said he believes part of the reason for NYRA's strained relationship with Elmont is that, under state law, NYRA reports to Albany -- and not local planning boards. ...And while many residents say they are looking to Belmont to help revitalize rundown areas such as Hempstead Turnpike, Hayward said that is not NYRA's primary mission under the law.

… He plans to spruce up the place. He said the "rickety old white gates" on the Cross Island Parkway entrances were typical of a look that "doesn't say this is world-class racing."

… Hayward said NYRA's move into bankruptcy proceedings was "inevitable." When NYRA was created in 1955, racetracks were the only legal spot to place bets in New York State. There were no OTBs, no simulcasts, no casinos, no lotteries.

Today, all those wagering opportunities drag down racetrack revenues. NYRA gets 10 cents on every dollar for every "live bet" at a track, but 2.5 cents on bets placed off-track.

He says VLTs -- or video lottery terminals -- might then be a "quick fix" to return racing to profitability. Spitzer wants 4,500 to be placed at Aqueduct, although he did not recommend them for Belmont, ...

However, Hayward and others say they sensed a desire at the Oct. 1 hearing among most residents for VLTs at Belmont. Hayward says it's not out of the question.

… Not all agree with Hayward's contention that NYRA was doomed to financial failure. Three private companies bidding for the new franchise insist they could do much better.

Bennett Liebman, an Albany Law School professor and racing expert, said he agreed with Hayward -- in part. "The economic model certainly hasn't been the best," he said. Still, he added, the agency "held its own" financially in the mid- to late 1990s with the same model.

[Indulto]

http://timesunion.com/AspStories/story.asp?storyID=630147&category=FRONTPG&BCCode=HOME&newsdate=10/15/2007 (http://timesunion.com/AspStories/story.asp?storyID=630147&category=FRONTPG&BCCode=HOME&newsdate=10/15/2007)
by jochnowitz and Odato
8-page conspiracy theory

The State Investigations Commission recently received eight pages of allegations outlining a giant conspiracy by the Spitzer administration to make sure the New York Racing Association and Excelsior Racing Associates got the rights to run betting and gambling at Aqueduct, Belmont and Saratoga.

The missive echoes the cries of collusion between NYRA and Excelsior and unfair treatment by the state already made by Empire Racing Associates CEO Jeff Perlee. But Empire spokesman Robert Bellafiore said his client, its lawyers and consultants wrote no complaint and sent no document to the SIC.

… Several people in the racing industry who have reviewed or been briefed on the complaint, a copy of which was obtained by the Times Union, view it as "a Hail Mary pass" from a desperate Empire, calling it "ridiculous" and full of inaccuracies.

… NYRA and integrity counsel Neil Getnick were less generous after getting a look at the letter. Getnick said the complaint casts a harsh light on federal prosecutors, a U.S. District Court judge and the state comptroller's office, which originally chose his firm in a competitive bid for the monitorship of NYRA. "It's a classic example of the Big Lie," he said.

NYRA Chairman Steve Duncker called the memo a "pack of outright lies" that "appears to be the last desperate attempt of a dying entity."

[Indulto]

Smith to GOP: 'Get to work'
By: Philip Newman

Democratic members of the New York State Legislature rallied at City Hall Thursday to urge Republicans to show up Oct. 22 in Albany for a special legislative session to "forget political difference" and "conduct the state's business."

State Sen. Malcolm Smith (D-St. Albans), the Senate minority leader, presided at the rally, which was called in response to what he said was a threat by some GOP members to boycott the special session. "Whenever we talk about unemployment in this state or the plight of some of our poor, there are always some who stand on the sidelines and say, 'Get a job,' " Smith said.

"Well, Joe Bruno has a job and we say to him, 'Get to work.'"Sounds like the standoff in Texas not too long ago where the Democrats went into hiding out of state to avoid being redistricted. The Governor had to go round them up. Could happen again.

http://www.drf.com/news/article/89460.html (http://www.drf.com/news/article/89460.html)
Six want to run Aqueduct casino
By MATT HEGARTY

… The six companies include Finger Lakes’s owner Delaware North, in partnership with Saratoga Gaming and Raceway; Foxwoods Development Company, the owner of Foxwoods casino in Connecticut; Greenwood Racing, the owner of Philadelphia Park and a casino at that track; Mohegan Sun, the owner of a casino of the same name in Connecticut; the Seneca Gaming Corporation, which owns and operates two New York casinos on Native American lands; and the Shinnecock Indian Nation, in partnership with Gateway Casino Resorts.

… Delaware North was previously a partner in Empire Racing Associates, a group bidding for the rights to operate both the tracks and the casino. Delaware North dropped out of Empire last week.

Mohegan Sun is still a partner in Capital Play, another bidding group, and the release from Spitzer’s administration said that the expression by Mohegan Sun was being made with the "consent and support of Capital Play."I’d make Delaware North the ML favorite.

[Indulto]

http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--racingfranchise1016oct16,0,960232.story (http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--racingfranchise1016oct16,0,960232.story)
Senate: State agency should run NY racing, pick operators
By MICHAEL GORMLEY

… The Senate plan would create a "public-private partnership" including horse owners, breeders and others in the industry. It would be called the state Racing, Gaming and Equine Sports Development Corp.

… "This Senate proposal facilitates the ability of the best operators of racing and gaming in the country to partner with each other to advance the best interests of racing, raise money for state education, and create true tourist destinations to bolster our state's economy," said Senate racing committee chairman William Larkin.

… "Until today, we had not heard anything from the Senate," Larrabee said. "The governor made a recommendation on Sept. 4 and today, on Oct. 16, is the first we're hearing from the Senate."

Larrabee agreed the oversight committee would be charged with continuing racing if there is no franchise awarded by Dec. 31, when the franchise NYRA has held since 1955 expires.

"We fully believe there will be a seamless transition," Larrabee said.http://news.bloodhorse.com/viewstory.asp?id=41373 (http://news.bloodhorse.com/viewstory.asp?id=41373)
State Corporation Would Select Franchise Operators
by Tom Precious

… The Bruno plan envisions creating the new corporation, whose members would include the current members of the NYRA Oversight Board, which was created several years ago to monitor NYRA’s finances and operations. The oversight board is dominated by Republican appointees; its chairwoman, Carole Stone, is an appointee of former Gov. George Pataki.

In time, the Bruno proposal envisions turning the board of the corporation over to representatives of horse owners and breeders, along with representatives of racing, gambling, and real-estate development companies. In all, it would have 11 members.

Besides picking the franchise winners, the board would have new oversight duties over the next holder of the franchise, according to a Senate document.

… The plan further calls for the corporation to explore a new model to improve the long-criticized relationships between racetracks and off-track betting corporations. It offers no specific proposal for merging OTB corporations and tracks.

[Indulto]

http://cityroom.blogs.nytimes.com/2007/10/16/new-york-senate-unveils-a-horse-racing-plan/ (http://cityroom.blogs.nytimes.com/2007/10/16/new-york-senate-unveils-a-horse-racing-plan/)
New York Senate Leader Unveils a Horse Racing Plan
By Danny Hakim

… The Republican plan called for the creation of what would be, at least at first, a Republican-controlled public authority overseeing racing, video slot machines and everything else associated with the tracks.

… Mr. Bruno’s new proposed authority would be run by the five members of an existing racing oversight board consisting, at the moment, of three Pataki appointees, one Bruno appointee and one appointee of Sheldon Silver, a Democrat and Assembly speaker. That would mean that Republican appointees would control the authority while it selected among private bidders — along with N.Y.R.A. — to run racing and gambling operations for the next decade or more.

… Mr. Silver was first out of the gate from the Democratic side with a reaction, saying that the Senate plan had “no details” and “no clear vision” and “no substance.”

But other than that…http://timesunion.com/AspStories/story.asp?storyID=630527&category=&BCCode=&newsdate=10/16/2007 (http://timesunion.com/AspStories/story.asp?storyID=630527&category=&BCCode=&newsdate=10/16/2007)
Senate proposes new racing authority
Republicans counter Spitzer's plan
By JAMES M. ODATO

… All bidders that have been trying to gain the franchise since last year would still be eligible to get all or part of the franchise, Bruno said.

The Senate plan conflicts with Gov. Eliot Spitzer's franchise selection process, which has been done largely behind closed doors.

… Bruno flatly rejected the governor's idea.

"We are not going to do that, pure and simple," Bruno said.

… "We were briefed prior to the news conference this morning," said Spitzer aide Paul Larrabee said. ``The governor has long said he would like to see racing continue . . . We're always open to talking with the Legislature."

… Jeff Perlee, leader of Empire Racing Associates, one of the bidding coalitions, said Bruno's proposal makes sense and could result in a swift decision on the future of the franchise. He said he prefers it to some of the unilateral initiatives Spitzer has advanced this year.

"We know the status quo has failed," Perlee said. "So as taxpayers look beyond NYRA, this approach provides stronger public oversight and more efficient day to day business management of the operation."http://www.drf.com/news/article/89462.html (http://www.drf.com/news/article/89462.html)
Bruno wants state board to award franchise
By MATT HEGARTY

The operation of New York's three largest racetracks and the proposed casinos at Aqueduct and Belmont should be auctioned off under the oversight of an 11-member state corporation, state Senate Majority Leader Joseph Bruno said on Tuesday.

… During a press conference on Tuesday morning, Bruno said that Spitzer's recommendation ignored the expertise and "creativity" of the companies behind three other partnerships that have made presentations on their plans for the franchise. Under the new state board - which would be called the Racing, Gaming, and Equine Sports Development Corp. - those companies would be free to bid on any part of the franchise.

"You've got the best brains in the whole world" seeking the franchise, Bruno said. "This concept utilizes those brains."

… "I believe more in competition, in the creativity of not having a monopoly," Bruno said. "We've had a monopoly in New York, and it hasn't worked. It doesn't work."

… Bruno also said that the corporation would explore the consolidation of the racing franchise with the state's six offtrack betting corporations, which are owned by counties in New York and provide revenue to their localities. Discussions involving consolidation have taken place "casually" between Bruno and the New York City Off-Track Betting Corp., Bruno said.

… Bruno said that he expects the Senate to make compromises, but he contended that his proposal made the "most sense" for New York.

... I haven't heard anybody say it can't work, that it won't work."

[PaceAdvantage]

Is this guy kidding? Yeah, this Bruno plan not only sounds crystal clear, but is bound to be much more efficient and problem free than just granting the franchise to one entity....:rolleyes:

Seamless transition my ass.....

[Indulto]

http://www.reuters.com/article/bondsNews/idUSN1621407020071016 (http://www.reuters.com/article/bondsNews/idUSN1621407020071016)
NY Senate unveils racetrack plan, gov. prefers his

… Bruno said his new corporation could hire companies that "have demonstrated excellence in all aspects of racing and gaming, ..."

But Bruno wants it run by the New York Racing Association's oversight body, and most of its members are Republicans.

That and other aspects of Bruno's plan found little favor with Democratic Assembly Speaker Sheldon Silver.

… Though the Senate will return to session on Oct. 22, the Democratic-led Assembly has not decided if it will join it.

… Bruno told Albany reporters Belmont should also get slots, adding the New York Racing Association could run all the tracks, with Saratoga turned into a not-for-profit.

Asked if part of Aqueduct might be developed with middle-income homes, he replied: "There are no decisions between the governing entities as to how to go forward with Aqueduct, other than we've agreed with the Assembly that you're going to keep racing at Aqueduct."

… On Tuesday, Spitzer added a seventh, last-minute bidder to the list, Penn National Gaming.http://www.thoroughbredtimes.com/national-news/2007/October/16/New-York-Senate-calls-for-state-agency-to-pick-franchise-operator.aspx (http://www.thoroughbredtimes.com/national-news/2007/October/16/New-York-Senate-calls-for-state-agency-to-pick-franchise-operator.aspx)
New York Senate calls for state agency to pick franchise operator
by Paul Post

... NYRA’s current franchise expires ... only 76 days from now, but Bruno said he believes the new racing group can be organized and select racetrack and gaming operators before then.

... However, NYRA claims that it owns the tracks and President Charles Hayward has said NYRA will not let the state take over.

“That’s not the right attitude,” Bruno said. “What I’ve talked about is what’s best for the people of this state, not for half-a-dozen people who own horses or want to control everything. We need an attitude adjustment here in New York state.”

… Bruno, in effect, seems to be calling NYRA’s bluff.

“I don’t for a second believe the board of directors at NYRA is going to let racing stop in New York state,” he said. “If they think they can, well then let ’em try.”

Bruno said he believes the Democratic-controlled Assembly, Spitzer, and various racing industry stakeholders will all support the Senate plan.

… In addition to racing, gaming and real estate, separate bids also would be awarded for marketing/promotion and tote operations/integration under the Senate proposal. Bruno said NYRA still could wind up getting the racing part of the franchise. The proposal makes it possible for each bidder to get at least one component of the overall business model.http://www.northcountrygazette.org/news/2007/10/16/ny_racetracks/ (http://www.northcountrygazette.org/news/2007/10/16/ny_racetracks/)
Politicos Clash Over Operations of NY Racetracks

… Spitzer said “We have begun our review of their plan and we will be discussing it with the legislature and with the New York Racing Association (NYRA). The plan appears to raise as many questions as it answers, including which entities would actually operate racing and the VLT facility at Aqueduct. I continue to believe that the proposal to give the racing franchise to a newly reconstituted NYRA, while selecting an experienced gaming operator to run the VLT facility at Aqueduct, offers by far the best solution for stability and growth of the racing industry in New York State”.

Assembly Speaker Sheldon Silver (D-Manhattan said that the Senate Majority’s plan provides no details and no clear vision.

“The Senate plan is all politics and no substance”, Silver said. “It is an attempt to permanently install appointees of the former Governor and Senator Bruno to determine the future of racing in New York State. This plan jeopardizes one of our state’s most important and vital industries, and would have a devastating impact on thoroughbred racing workers and the communities in which racing venues are located.

Silver said the plan includes an expansion of VLTs, which is not supported by the Assembly Majority.http://www.saratogian.com/site/news.cfm?newsid=18924317&BRD=1169&PAG=461&dept_id=602469&rfi=6 (http://www.saratogian.com/site/news.cfm?newsid=18924317&BRD=1169&PAG=461&dept_id=602469&rfi=6)
Bruno calls for racing authority
By PAUL POST

… A Senate racing proposal might force a showdown over who owns the state's racetracks that Gov. Eliot Spitzer has sought to avoid.

… Last fall, when running for governor, Spitzer said he wouldn't let NYRA use its track ownership claim as leverage for retaining the franchise it's held since 1955. Last month, however, he worked out a deal to keep NYRA running the tracks for another 30 years. In return, NYRA would relinquish its track ownership to the state.

Spitzer believes the tracks, valued at more than $1 billion, belong to the state but didn't want to risk a negative court ruling.

The new entity … would operate similar to the state thruway and bridge authorities. Bruno, in the past, has been critical of the way such bodies function with unchecked powers, but said that new legislation provides for more openness and transparency.

… By dividing it up into five areas, each firm might get a share of the pie and NYRA could continue running one or more tracks. … In addition, community advisory boards would be formed to guide operations at each track.

… Under Bruno's plan, the Oversight Board would form the nucleus of the new racing authority board, whose members would represent horse owners and breeders along with racing, gaming and development industry representatives. However, Oversight Board Chair Carol Stone was former Gov. George E. Pataki's budget director, and three other Oversight members were appointed by either Pataki or Bruno.

… Bruno said he doesn't believe the board's political makeup should be a stumbling block to resolving the franchise issue.

… The Senate plan sets no length on the contracts firms would get for running racing and gaming.

"Some of it gets to be a business deal," Bruno said. "Hopefully business decisions will be made."http://www.nysun.com/article/64732 (http://www.nysun.com/article/64732)
GOP Pressures Spitzer Over Racing Plan
By JACOB GERSHMAN

… Republicans said they could strike a deal with the governor and the Assembly, despite the current poisonous atmosphere between the Senate and the executive chamber.

"Some people think he's willing to negotiate with us," the Republican chairman of the Senate's racing committee, William Larkin, said in an interview, referring to the governor. "They feel we have to get something done and work together."

[Indulto]

http://timesunion.com/AspStories/story.asp?storyID=630745&category=CAPITOL&BCCode=HOME&newsdate=10/17/2007 (http://timesunion.com/AspStories/story.asp?storyID=630745&category=CAPITOL&BCCode=HOME&newsdate=10/17/2007)
Racing pick nears gridlock
Republicans seek public authority, idea draws critics as deadline nears
By JAMES M. ODATO

… The move could confound and delay a selection process that already has gone on for more than 18 months and is now coming down to the wire.

… By law, the five-member panel already is authorized to take over the tracks. NYRA's bankruptcy judge could block that, however, while mulling a ruling on NYRA's claim that it owns the three tracks.

The Legislature also could buy time by giving NYRA an extension.

"It's like the Temptations song; it's a 'Ball of Confusion,' " said Albany Law School racing law specialist Bennett Liebman.

Under Bruno's plan, the state would take possession of the tracks, even though the real estate is tied up in litigation.

… Spitzer said he talk it over with NYRA and lawmakers, but said he still believes his arrangement "offers by far the best solution for stability and growth of the racing industry."

… The plan drew criticism from NYRA and from some of NYRA's critics. They said it appears to take the franchise decision away from the Legislature and governor while setting up a public authority likely to be saddled with conflicts of interest.

"I'm not sure this would fly," said Liebman. The plan, he said, "seems to be a hesitant and limited attempt to change the administration of racing."

… The Senate may pass legislation continuing details on the plan as soon as Monday, Bruno said.

Bruno said the authority could choose to break up the franchise, allowing NYRA, for instance, to run Saratoga while other groups control the two downstate tracks.The Senate Republican plan appears to mirror a recent Empire proposal. Is it just me -- or does anybody else here get the impression that this “idea” is nothing more than a blatant attempt to put money in the pockets of NYRA’s for-profit competition?

Isn't there any concern among NYRA's customers that it lacks a mandate to preserve the quality of the racing product?

Is there enough Republican support in the Senate for former Empire partner Delaware North that they would approve the Spitzer plan if it awarded the VLT franchise to that current competent operator of New York racinos?

[Indulto]

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-10-17T191922Z_01_N17325374_RTRIDST_0_NEWYORKING-RACING.XML (http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-10-17T191922Z_01_N17325374_RTRIDST_0_NEWYORKING-RACING.XML)
NY Gov: Racetracks to stay open even without a deal

… New York Gov. Eliot Spitzer on Wednesday pledged to keep the horses running even if he fails to get the legislature to select a new track manager and hire a company to start a casino by a year-end deadline.

… The Democratic governor wants the now-overhauled New York Racing Association to keep running the tracks -- but had companies bid on running or owning video lottery terminals at Aqueduct Racetrack, in New York City's borough of Queens.

… Only Aqueduct has a winter season. Asked if racing would shutdown if the year-end deadline were missed, Spitzer, who spoke to reporters after a conference hosted by The New School, replied that lawyers were studying the issues. He added: "I will make sure that does not happen, it's a great industry that's generated a lot of jobs."

… But the track battle -- begun under former Republican Gov. George Pataki -- might not be resolved during the senate's special session starting on Oct. 22.

… Because Bruno has only a three-seat majority, some political analysts expect the impasse to last until after the November elections -- and perhaps beyond them if the voters do not decisively change the legislature's membership.

Even if a track deal is reached this year, the state might not get any share of the casino revenues until 2009 or later. But it must enact a new and balanced budget by March 2008, which means closing at least a $4 billion deficit.

… Asked how his clash with Bruno affects his ability to govern, Spitzer replied: "It'll have a real effect. I went to Albany to change the system."

Later, he stressed he was not about to soften his "hard-charging" style. "Anyone who doesn't expect some sparks, some pushing and shoving, doesn't understand reform. If it isn't always pretty, so be it." …

[Indulto]

http://www.ny1.com/ny1/content/index.jsp?stid=1&aid=74731 (http://www.ny1.com/ny1/content/index.jsp?stid=1&aid=74731)
Bloomberg Threatens Closure Of OTB
By Michael Scotto

… Bloomberg made the suggestion Thursday after it was reported that OTB could go broke. The problem, the mayor says, is not that OTB doesn't make a profit, but that the state takes nearly all of the gambling business' money.

According to the mayor's office, last fiscal year, OTB made $125 million in profit off a billion dollars in sales. But most of that money went to Albany to bail out the state's struggling horse racing industry. The city was left with just $19 million.

… OTB has long been a problem for the city. When Rudolph Giuliani was mayor, he vowed to privatize it. That never happened.

... The mayor points out that closing OTB, which the city could essentially do by not funding it, would hurt 1,500 workers.

… State Senate Majority Leader Joseph Bruno wants to combine OTB with the state's horse racing businesses. Meanwhile, the governor's office is not ruling out a change, saying in a statement "Governor Spitzer is open to a discussion that modifies the fundamental structure of the OTBs and its formula."

Bloomberg, who doesn't think the city should be in the racing business to begin with, is open to suggestions – as long as though suggestions don't leave the city without its shirt.http://www.queenscourier.com/articles/2007/10/18/news/headline_stories/news06.txt (http://www.queenscourier.com/articles/2007/10/18/news/headline_stories/news06.txt)
Aqueduct plan thrown for a loop
BY VICTOR G. MIMONI

… Despite a lack of clarity as to whether the winner would have to build the facility or lease it from the state, two groups dropped out of the running and seven groups have submitted proposals …

… None of that seems to matter to Mayor Michael R. Bloomberg or Assembly Speaker Sheldon Silver. Both have expressed nearly identical and implacable opposition to casinos within New York City. Both suggested that in urban areas where casino gambling exists, “If you walk around” within a short distance of the casinos, the evidence shows that they are bad for the community.

Saying that he has “always thought that gambling tends to be regressive,” Bloomberg declared he has, “not exactly been in favor of using it as an economic development model. It doesn't seem to work."

Silver said, "I don't believe the benefits of casino gambling in a city like New York will outweigh the social ills it creates."

… “I am unalterably opposed to (VLTs) which are no better than ‘video crack’” said Senator Frank Padavan, adding “the idea of a full-blown casino in Queens is repugnant.”http://www.timesunion.com/AspStories/story.asp?storyID=631098&category=OPINION&newsdate=10/18/2007 (http://www.timesunion.com/AspStories/story.asp?storyID=631098&category=OPINION&newsdate=10/18/2007)
Come now, Mr. Bruno
EDITORIAL Thursday, October 18, 2007

… in the poisoned political climate that prevails at the Capitol, Mr. Bruno absolutely has to have his way.

So here he is, insisting that a selection process that's already dragged on for 18 months start anew. Mr. Bruno wants to create yet another public authority to decide who'll get the racing and gambling action. As for the details of his proposed Racing, Gaming and Equine Sports Development Corporation, what's most relevant is that it would cut out his nemesis, the governor.

… Most brazen of all, though, is Mr. Bruno's contention that a public authority offers the appropriate business model to operate such a critical industry in New York, especially upstate. How can someone who occupies such a central position in state government be so sanguine about public authorities?

New York already has 708 of them, and few, if any, stand out as business models. Inefficiency and lack of accountability are closer to the truth. Conflicts of interest would be almost inevitable for a public authority overseeing racing and a board that would include representatives of breeders, horse owners and franchise holders.

[Indulto]

http://ap.google.com/article/ALeqM5j9dFE_uKfAiV9QcqwdnxxXQUV34gD8SC3L680 (http://ap.google.com/article/ALeqM5j9dFE_uKfAiV9QcqwdnxxXQUV34gD8SC3L680)
All Bets May Be Off for New York OTB
By SARA KUGLER

… The New York City Off-Track Betting Corp. operates more than 60 branches throughout the city where gamblers gather to bet on the day's races. Bettors place an average of 1.6 million wagers per day, totaling more than $1 billion in bets per year, according to NYCOTB.

… "The state uses it as a cash cow, and the city has been subsidizing the state, and we are not going to continue to do that, I can just tell you," Bloomberg told reporters.

… The betting operation's financial troubles are notorious in New York, where former Mayor Rudy Giuliani famously proclaimed it the only bookie around that loses money.

… Between 1997 and 2001, the city received an average of $11 million from OTB. That number fell to just $1 million in 2002, and the city got no money in 2003 and 2005, the report said.

The city is supposed to get money from NYCOTB based on the amount it takes in from surcharges on winnings, as well as income left over after NYCOTB has taken care of its financial obligations.

The problem, say Bloomberg and others, is that those obligations — mostly payments required by state law — are absorbing more and more money, leaving little or none for the city.

Over the years, there have been attempts to change the law and reduce the amount of money going to the state, but those efforts haven't gone anywhere.

… Paul Larrabee, a spokesman for Gov. Eliot Spitzer, said the governor "is open to a discussion during which the fundamental structure of the OTBs and its formula are modified. We don't believe it should lose money either."

… There are also statewide implications, particularly for New York Racing, which depends on NYCOTB for a chunk of its operating income.http://www.switched.com/2007/10/18/off-track-horse-betting-comes-to-cell-phones/ (http://www.switched.com/2007/10/18/off-track-horse-betting-comes-to-cell-phones/)
Off-Track Horse Betting Comes to Cell Phones
by Tim Stevens

If you live in New York -- anywhere in New York -- chances are you're no more than a few miles away from the ubiquitous OTB, or Off Track Betting. It's the place horse racing junkies go when they want to lose some money but can't get to the track. Now, it seems, gamblers may be able to lose some money wherever they are, thanks to a mobile application called mWager. Gamblers can already place bets from the New York Racing Association website, but assuming it is approved by the New York Racing and Wagering Board, mWager would let anyone do the same from their mobile phone. …http://www.newsday.com/news/local/state/ny-stnyra185419168oct18,0,407096.story (http://www.newsday.com/news/local/state/ny-stnyra185419168oct18,0,407096.story)
Cell phones may soon be used to bet on horse races
BY MELISSA MANSFIELD

… "This technology will allow NYRA to offer our customers the ultimate in wagering privacy, accessibility and convenience," John Ryan, senior vice president at NYRA, which handles more than $1.7 billion annually in New York State-based wagers, said yesterday.

Users would register with NYRA's Internet-based wagering system, and then be e-mailed or text-messaged a link to download mWager from the software company, Sona Mobile.

Any mobile communications device equipped with Windows Mobile can use the software. Ryan believes the application will appeal to different generations of fans, as more people use hand-held devices.

… To prevent fraudulent use, or if the device is lost or stolen, passwords and PIN numbers will be used to ensure the authenticity of the person making the bets.

… The Coalition Against Gambling in New York opposes the proposed expansion.

"We shouldn't be making it any easier for people to make bets," said chairman Joel Rose. He said that for those with a gambling addiction, enabling betting by cell phone would be "like putting a bar on every corner" for alcoholics.

[highnote]

So Spitzer wants NYRA to run AQU/BEL and SAR racing.

Bruno wants a state authority to run racing.

This just shows you how screwed up things are.

Normally, it's the Democrats who want the state to run things. And it's the Republicans who want to privitize everything.

Now it's just the opposite.

No way this franchise business is settled by the end of the year. There are only 10 weeks left.

[Indulto]

http://www.nypost.com/seven/10192007/news/regionalnews/mike_warns__ill_put_otb_out_to.htm (http://www.nypost.com/seven/10192007/news/regionalnews/mike_warns__ill_put_otb_out_to.htm)
MIKE WARNS: I'LL PUT OTB OUT TO PASTURE
By DAVID SEIFMAN and SAM GOLDSMITH

… According to figures supplied by the mayor's office, OTB earned $250 million in fiscal 2007 on bets of $1.04 billion.

With operating expenses of $125 million, the agency had $125 million left to distribute to the racing industry, the state and the city.

But the state-mandated formula required it to fork over $134 million, resulting in a $9 million deficit.

… Mayoral aides pointed out that while the city took in $19 million from surcharges on bets at OTB parlors, $97 million went to "rescue NYRA [the New York Racing Association] and the New York racing industry from its monetary failures and allow the state to take credit for benefiting local horse breeders."

Assemblyman Gary Pretlow (D-Westchester), chairman of the Committee on Racing and Wagering, said it's unlikely Bloomberg would make good on his threat.

"I think it's a bargaining position," Pretlow said.

… Mayoral aides conceded it would require an act of the Legislature to close OTB.

But they also said the city couldn't be compelled to keep operating or pouring money into it. Pretlow recommended that a single entity run all the state's racetracks and OTBs, an idea that's been floated before and has gone nowhere. …http://timesunion.com/AspStories/story.asp?storyID=631409&category=REGIONOTHER&BCCode=&newsdate=10/19/2007 (http://timesunion.com/AspStories/story.asp?storyID=631409&category=REGIONOTHER&BCCode=&newsdate=10/19/2007)
Bruno plan means no finish line in sight for racing mess
By Fred LeBrun

… Bruno knows full well this notion of his is dead on arrival.

… Since the creation of any authority needs both houses of the Legislature and the governor on board, you may as well cart it off to the graveyard.

… A far better idea is one that's been floating around for a while downtown: Create a new state oversight agency to govern the state lottery, casinos, racetracks and OTB. In the process, the state's Racing and Wagering Board would be eliminated, as would the Division of the Lottery. OTBs, which have killed the racetracks, would get a badly needed new business model. A complete revision of the racing and wagering law would be needed. And of course, legislative approval.

… There are those who think the state has a valid claim for the racetrack properties, if not already, at least when the franchise runs out, even though NYRA owns the deeds. But a number of very smart lawyers in both the attorney general's office and governor's office have delved into this issue extensively, and it's clear that if the state thought there was a compelling case, the bankruptcy judge in Manhattan would be the first to hear about it. As far as we know, he hasn't.

[Spendabuck85]

Woodbine Entertainment Group, the operator of Woodbine Racecourse and an adjacent casino outside of Toronto, has withdrawn from Empire Racing Associates, one of the four partnerships that has expressed an interest in running the franchise held by the New York Racing Association, Woodbine announced on Friday
Woodbine is the fourth major partner in Empire to withdraw from the group within the past two weeks. Earlier, Churchill Downs Inc., Magna Entertainment Corp., and Delaware North Gaming and Entertainment also dropped out of the company. Also, this summer, the New York Thoroughbred Horsemen's Association withdrew from the partnership.
http://www.drf.com/news/article/89617.html

[Indulto]

http://www.nypost.com/seven/10202007/news/regionalnews/neigh_sayer_mike.htm (http://www.nypost.com/seven/10202007/news/regionalnews/neigh_sayer_mike.htm)
NEIGH-SAYER MIKE

… A day after threatening to shut down OTB if Albany doesn't give the city a bigger revenue cut, Mayor Bloomberg wondered whether the horse-racing industry is on its last legs.

"What the state's trying to do at Aqueduct and Belmont is put in video-lottery terminals because these tracks can't get enough people to come watch the horses," he said yesterday on WABC radio.Perhaps the mayor
Is not aware
That OTB means
Never having to be there. ;)

http://www.nypost.com/seven/10212007/news/columnists/public_ervice_pays_top_council.htm (http://www.nypost.com/seven/10212007/news/columnists/public_ervice_pays_top_council.htm)
PUBLIC $ERVICE PAYS TOP COUNCIL EARNER
By David Seifman

… The city's Off-Track Betting Corp. has entered a $110 million liability on its books to account for the cost of future health benefits for its 1,500 employees.

… But the city won't be on the hook if OTB shuts down, a possibility raised for the first time last week by Mayor Bloomberg to spur Albany to change an onerous revenue-sharing formula.

"… we would like to do the right thing for all OTB employees, but we do not have any legal responsibility to cover OTB liabilities," said mayoral spokesman John Gallagher.http://www.nypost.com/seven/10222007/postopinion/editorials/otb__off_track_again.htm (http://www.nypost.com/seven/10222007/postopinion/editorials/otb__off_track_again.htm)
OTB: OFF TRACK AGAIN

… It may be that Bloomberg is simply engaging in a bit of political brinksmanship with Albany. If so, it's justified.

Certainly, there's no denying that OTB signed a bad deal with the state four years ago, in which it was forced to turn over an untenable share of its proceeds in return for the right to handle night-time thoroughbred racing.

… But if the agency can't pay its bills - and can't provide revenues to the city - who needs it?

… Back in 1994, OTB was drowning in red ink. Then the Giuliani team cut costs, closed money-losing parlors, streamlined the operation and trimmed excess fat.

Guess what? The agency's financial picture brightened.

Giuliani later tried to sell off OTB, but state lawmakers beholden to unions blocked him.

… Back in 2001, three private firms vied to buy it; bidding started at $250 million, plus a percentage of future profits.

But that was before the state deal, when OTB was in a more tenable condition.

Obviously, any future sale would be contingent on renegotiating OTB's arrangement with the state. If terms can be changed to give the agency a decent shot at a profit, it should be sold. …http://www.bookmakersreview.com/c/News/19-10-2007_New_arrests_for_internet_betting_in_the_Unite d_States/
..."While the New York Racing and Wagering Board is discussing the approval of mWager, a new software application that allows users to place bets on horse races from their cell phones, six people in nearby Rockland County have been arrested for organizing an illegal gambling network that placed sports bets through an offshore wireroom."

A year-long investigation by local and state police revealed that the Rockland bookmakers paid a wireroom in a foreign country (probably Costa Rica) a fee of $25 to $50 for each bet placed and then kept the winnings on the player's bet or paid off the player.The article also quoted a web gambling consultant who claimed that more people are gambling on-line since UIGEA, but with greater risk.

[Ron]

I can't believe that we are close to entering November and they're not really talking about this. Currently the Senate is trying to block Spitzer's illegal immigrant driver's license plan.
How many people will be out of jobs on Jan 1st? You say screw the Big A but people still need to eat.

[Indulto]

I can't believe that we are close to entering November and they're not really talking about this. Currently the Senate is trying to block Spitzer's illegal immigrant driver's license plan.
How many people will be out of jobs on Jan 1st? You say screw the Big A but people still need to eat.http://hotjobs.yahoo.com/careers-56859-The_New_York_Racing_Association (http://hotjobs.yahoo.com/careers-56859-The_New_York_Racing_Association)
The New York Racing Association Jobs and Profile

… NYRA is the cornerstone of New York's Thoroughbred racing industry, which provides 17,000 jobs and $1.4 billion in annual impact on the New York State economy. Last year, NYRA's Belmont Park and Saratoga Race Course were ranked first and second, respectively, among all North American racetracks in average daily purse distribution. NYRA is a non-profit, non-dividend paying corporation governed by a Board of Trustees, whose members, by law, receive no compensation or dividends.http://www.drf.com/news/article/89677.html (http://www.drf.com/news/article/89677.html)
Anxious time for Big A opener
By DAVID GRENING

… Now, as the NYRA prepares to open Aqueduct on Wednesday, the enthusiasm that permeated the beginning of the Belmont meet has turned to trepidation as the franchise issue continues to be debated. Meanwhile, a frustrated NYRA president Charlie Hayward has begun sounding the alarm that, barring a favorable resolution to NYRA, there could be a stoppage of racing come Jan. 1.

"The things that we control we're working really hard at," said Hayward, who mentioned several cosmetic improvements to the Big A designed to enhance the ontrack experience. "It's just those other things that are making things very murky. I wish I had a clearer view of where this road is taking us. There's still that enthusiasm, but the [sense] of the unknown keeps you up a little later at night than it might otherwise have." http://www.drf.com/news/article/89676.html (http://www.drf.com/news/article/89676.html)
N.Y. looks at OTB changes
By MATT HEGARTY

... New York has six offtrack betting companies that are owned by the counties in which they are located. The model has long been criticized by racing officials as being inefficient, but the political strength of the OTBs has been an impediment to change.

The offtrack betting companies are required to distribute much of their revenue to the racing industry, the state, and the counties under an extremely complex matrix of laws. In 2006, according to the annual report by the New York City offtrack company, those payments were $115 million.

Four years ago, state legislators passed a bill that allowed offtrack betting companies to import unlimited nighttime Thoroughbred simulcasts in exchange for imposing a 0.39 percent tax on the companies to fund the New York State Racing and Wagering Board. In 2005, that tax was raised to 0.5 percent, and since then, New York City Off-Track Betting managers have complained that the fee - $5.3 million in 2006 on handle of $1.06 billion and revenue of approximately $218 million, according to the 2006 report - has put an unfair burden on the company.

[Indulto]

http://news.bloodhorse.com/viewstory.asp?id=41592 (http://news.bloodhorse.com/viewstory.asp?id=41592)
Belmont Fall Meet Posts Significant Gains
… On-track handle soared by 12.18% over last year’s Belmont Park Fall total, from $30,557,666 with a daily average of $925,990, to $34,280,261 with a daily average of $1,038,796. The 2007 Belmont Park Fall races were bet enthusiastically at simulcast sites as well, as all-sources wagering rose 3.67% from $334,147,227 last fall to $346,423,312 this fall. Daily average all-sources handle was $10,497,676, up from $10,125,674.

… Attendance figures also bucked national trends by registering significant gains—up 8.05% to 165,045 for the 33-day meet, compared with 152,743 for last year’s corresponding 33-day meet.

“We are pleased with our increase in purses, handle and attendance as we continue to outperform the industry. We look forward to a strong Aqueduct meet with the 12% increase in purses and a strong stakes program,” said a Belmont spokesman in a written release.http://www.thoroughbredtimes.com/national-news/2007/October/25/Belmont-Park-fall-meet-post-significant-gains.aspx (http://www.thoroughbredtimes.com/national-news/2007/October/25/Belmont-Park-fall-meet-post-significant-gains.aspx)
Belmont Park fall meet posts significant gains

… Gross purses for the meet were $21,719,940, a 11.81% increase compared with last year’s $19,425,186. Daily average was $658,180, compared with $588,642 in 2006.

… “We are pleased with our increase in purses, handle, and attendance as we continue to outperform the industry,” said Charles Hayward, New York Racing Association president and chief executive officer. “We look forward to a strong Aqueduct meet with the 12% increase in purses and a strong stakes program.”I had to chuckle. Both articles had the same title based on the same press release, but apparently somebody ar B-H doesn’t know who Hayward is.

http://www.chron.com/disp/story.mpl/ap/fn/5242306.html (http://www.chron.com/disp/story.mpl/ap/fn/5242306.html)
NY Racing Association Files Ch 11 Plan
The Associated Press

… According to the Chapter 11 plan, NYRA will give the state all net revenue it receives annually from racing operations as a franchise fee.

The Chapter 11 plan provides that New York State will choose, in consultation with NYRA, a gaming entity to run video lottery terminals at Aqueduct, in the New York City borough of Queens. With funds received from the gaming entity, the state will provide NYRA up to $75 million that it can use to repay creditors.

The state will also forgive debt NYRA now owes, provided the gaming entity is willing to reimburse the state for such forgiven obligations.

The bankruptcy court is scheduled to consider approval of the Chapter 11 plan disclosure statement on Nov. 20. The document summarizes the Chapter 11 plan in plain language and must be approved by the court before the plan can be sent to creditors for a vote.http://sports.espn.go.com/sports/horse/news/story?id=3077929 (http://sports.espn.go.com/sports/horse/news/story?id=3077929)
NYRA files reorganization plan
By Matt Hegarty

… The reorganization plan would also require NYRA to drop a lawsuit against the state in which it contended that the administration of former Gov. George Pataki interfered with the approval process to start construction on a casino at Aqueduct that has been approved for 4,500 slot machines. Slot machines were legalized at Aqueduct by legislation in 2001, but the casino has not yet been built.

In addition, as part of the reorganization, the state would have to drop its motion to dismiss NYRA's bankruptcy. The state filed the motion early this year.

According to the plan, NYRA would transfer the deeds of the racetracks to the state on the date in which the plan is accepted by the court. Officials in the Spitzer administration have said that they believed the state had a legitimate case to claim title to the land, but that they wanted to avoid litigation over the matter. I’m wondering if the suit against the State explains why Hayward has not been as outspoken with regard to Perlee as he appeared to have been with Smith.

[Indulto]

http://www.saratogian.com/site/news.cfm?newsid=18957574&BRD=1169&PAG=461&dept_id=602469&rfi=6 (http://www.saratogian.com/site/news.cfm?newsid=18957574&BRD=1169&PAG=461&dept_id=602469&rfi=6)
Shrinking Empire still pressing for franchise
By PAUL POST

… earlier this month, three key partners left Empire's once-broad coalition of racing and gaming interests, … and the firm's board of directors has shrunk from 15 to eight members.

… Some people view Empire's recent downsizing as its disintegration.

"No," Perlee insisted. "We're being responsive. You have to be responsive to what the decision-makers are saying."

… Last week, when unveiling his proposal, Bruno wouldn't throw his support behind any one bidder. Empire, at least publicly, has never been first on anyone's list, but by staying in the fray and reinventing itself as needed, has stayed very much alive as a franchise contender.

"What's absolutely required is new management," Perlee said.

Empire Vice President Dennis Brida, of Saratoga Springs, is Empire's choice to lead day-to-day racing operations, with Perlee also playing a significant role. Brida is former executive director of New York Thoroughbred Breeders and former president of the New York Thoroughbred Horsemen's Association.

Perlee's management experience speaks for itself.

"Racing is somewhat complicated, but I was the head of a $4 billion operation," he said, smiling. "It's not as complex as the New York Lottery."

… "What we learned was that perhaps we added too much and we were stepping on our strength (horsemen)," Perlee said.

… Six of Empire's eight remaining board members are thoroughbred owners, …

… Empire has demonstrated an uncanny knack for changing in response to racing's political realities. Early on, it developed a plan catering to Spitzer's publicly stated goals of high quality racing, integrity and using equine events to foster upstate economic development. While holding true to such plans, Empire now finds itself backing Bruno and questioning Spitzer's agreement with NYRA.

… How much more can Empire adapt before the racing deadline expires?

Its biggest challenge might be convincing state leaders that its recent transformation is truly a change for the better.This article makes me wonder if the only purpose of Empire's continued existence is to provide Bruno with a tool for obstructing the franchise renewal process. Wasn't a criticism of NYRA's board of directors that it was comprised predominantly of thoroughbred owners?

http://www.libn.com/article.htm?articleID=40381 (http://www.libn.com/article.htm?articleID=40381)
Betting on a Revival
By David Winzelberg

… As Belmont goes, so goes Elmont, locals say, and in the last 20 years, things haven’t gone well for either. A steady decline in track attendance that began in the 1980s has coincided with – and contributed to – Elmont’s economic slide.

… Wal-Mart is interested in building a store on property across from the track ...

[Indulto]

http://www.newsday.com/news/local/ny-liyonk1028,0,5881973.story (http://www.newsday.com/news/local/ny-liyonk1028,0,5881973.story)
Video gambling no sure bet for revitalization
BY BART JONES

… the Yonkers "racino" experience suggests that VLTs may not inspire the community makeover Elmont hopes for. While the machines have pumped millions into local schools, created hundreds of jobs and spruced up a decaying raceway with a $250-million renovation, they have done little so far to boost the neighborhood surrounding the track.

… the VLTs have not performed exactly as raceway officials hoped. They initially projected a profit of $350 per machine per day. The actual figure has been as low as $188 a day and now is about $230 .a day.

… While residents hail the education money, some are not excited about increased traffic near the raceway. About 80,000 people visit Empire City each week, most of them driving.

… Amicone contended that problems the city feared such as increased traffic, crime and litter have not materialized.

He added that Empire City may have a greater economic impact on the surrounding community if the complex grows so it gets nearer to the street and gamblers spill out. Right now, it is separated from the closest city street -- Yonkers Avenue -- by several hundred yards' worth of parking lot.

That could also be a consideration if VLTs ever come to Belmont, where the grounds cover 430 acres, much more than Yonkers' 98. Belmont is also separated from nearby streets by sprawling parking lots and a wrought-iron fence.http://www.nydailynews.com/news/2007/10/28/2007-10-28_mayor_calls_for_probe_as_news_reveals_co.html (http://www.nydailynews.com/news/2007/10/28/2007-10-28_mayor_calls_for_probe_as_news_reveals_co.html)
Mayor calls for probe as News reveals contacts by ex-aide
BY GREG SMITH

Mayor Bloomberg's former lobbyist tried to influence the mayor's top deputies for powerful clients - including ... George Steinbrenner's son-in-law - within days of leaving City Hall in apparent violation of the law, a Daily News investigation has found.

… The six-month News probe found Piscitelli lobbied on pending legislation that would affect at least five of his clients: the Rochester Institute of Technology, the Bankers Association of New York, a racetrack partnership called Excelsior Racing Association, a taxi company and the League of American Theaters and Producers.

… In response to The News' investigation, Bloomberg press secretary Stu Loeser said the matter would be referred to the city Conflicts of Interest Board.

… On Feb. 21, Piscitelli e-mailed Angela Sun, senior policy adviser to Daniel Doctoroff, the deputy mayor for economic development, on a topic extremely relevant to one of his clients - the future status of the Aqueduct, Belmont and Saratoga horse tracks.

... At the time, Piscitelli had been hired by Excelsior Racing Association, a partnership that included George Steinbrenner son-in-law Steve Swindal, which had bid to take over the state's three publicly owned horse tracks: Aqueduct, Belmont and Saratoga.

Excelsior had received approval from former Gov. George Pataki, but by January Gov. Spitzer was rumored to be considering scrapping the selection process and starting over. Excelsior was pressing hard to stay in the running and reached out through Piscitelli to get Bloomberg on its side.

In his Feb. 21 e-mail, Piscitelli told Doctoroff's aide, Sun, that Spitzer soon would announce "the beginning of a new process re racing franchise."

He then reminded her that an outside committee that day had recommended accepting Pataki's final report on taking over the horse tracks, without mentioning that the final report picked his client, Excelsior.There was no explanation of how his contacts with city employees may have influenced state decision makers.

[alysheba88]

This is all about Bruno and always has been. Hasnt everyone figured this out by now?

[Indulto]

This is all about Bruno and always has been. Hasnt everyone figured this out by now?Apparently not. Have you heard of any recall petition drives among his constituency which includes Saratoga? If racing were being conducted at SAR when the franchise expired, the issue would be settled by now. It seems to me that Spitzer needs to find a way that shutting down NYRA in January would impact SAR equally with AQU.

The administration should also be working on ways of legitimately expanding or disempowering the board Bruno expects to take control in the absence of an agreement. It's incredible that a single representative elected by a small segment of voters has the power to impact them all.

Of course, NYRA's customers could resolve the issue themselves by being fair-weather friends. All they'd need to do is boycott AQU until an agreement is reached. It would be an opportunity to practice the restraint that would be forced on them should the track shutdown in January. ;)

[Indulto]

http://www.saratogian.com/site/news.cfm?newsid=18968842&BRD=1169&PAG=461&dept_id=602469&rfi=6 (http://www.saratogian.com/site/news.cfm?newsid=18968842&BRD=1169&PAG=461&dept_id=602469&rfi=6)
Forum: What if racing stops?
By PAUL POST, The Saratogian

Museum event slated for Thursday evening

… There's a growing concern among many industry leaders about what might happen if a decision isn't reached on time.

… Some observers believe racing could go dark if a resolution isn't reached soon. Panelists will discuss what this could mean for the industry and Saratoga County, whose economy relies heavily on the six-week Saratoga meet.

"It's a real concern," said Hall of Fame trainer Nick Zito, who will participate via conference call.

… Other panelists are trainer H. James Bond of Saratoga Springs; Christopher Dragone, New York Breeders Inc. executive director; former Saratoga County Planning Director Larry Benton, who prepared a study on the local track's economic impact; and a New York Thoroughbred Horsemen's Association representative.

The forum has been coordinated by Saratogian racing columnist Mike Veitch, who will moderate the discussion with museum Communications Director Mike Kane.

… The entire region would suffer a major economic setback if racing goes dark for an extended period of time.http://timesunion.com/AspStories/story.asp?storyID=634504&category=SARATOGA&BCCode=&newsdate=10/30/2007 (http://timesunion.com/AspStories/story.asp?storyID=634504&category=SARATOGA&BCCode=&newsdate=10/30/2007)
Racing's future in state to be discussed
Those who work in the industry will address track operation issues
By DENNIS YUSKO

SARATOGA SPRINGS -- Horsemen, trainers and breeders will discuss the future of horse racing in the state and how political uncertainty is affecting their industry at 7 p.m. Thursday in the National Museum of Racing and Hall of Fame.

The free panel discussion and question-and-answer session marks the first time those who work in racing will speak publicly about the state's efforts to award a new franchise to run Saratoga, Belmont and Aqueduct racetracks.

… "We're looking at this as a public service to allow people to come in and talk about a pretty hot subject these days," museum spokesman Mike Kane said. "This doesn't involve anybody who is competing for the franchise, and the museum doesn't take any sides in this at all."Maybe it's the horsemen that will force the issue -- and apply pressure on Bruno -- considering that the Concerned Citizens of Saratoga endorsed NYRA at the end of the SAR meet.

[Indulto]

http://www.thoroughbredtimes.com/national-news/2007/October/30/Panel-on-future-of-New-York-racing-to-feature-Zito.aspx (http://www.thoroughbredtimes.com/national-news/2007/October/30/Panel-on-future-of-New-York-racing-to-feature-Zito.aspx)
Panel on future of New York racing to feature Zito
by Paul Post

… There is a growing concern among industry leaders that state officials will not reach a franchise agreement before New York Racing Association’s contract expires on December 31, prompting an interruption in racing.

… Zito has taken a public stance in support of NYRA, saying that its challengers do not have the experience or resources needed to run racing. Critics ask why the state would even consider keeping NYRA in place given its history of legal and financial problems. The non-profit entity is currently in bankruptcy.

“It’s a fair question, because they have made mistakes,” Zito said. “But they definitely have a better team in play now. If I had any concerns about NYRA, I would speak my mind.

“They’re the best choice.”http://news.bloodhorse.com/viewstory.asp?id=41760 (http://news.bloodhorse.com/viewstory.asp?id=41760)
Officials From NYRA, Other Tracks in Region to Meet
by Blood-Horse Staff

The New York Racing Association has invited representatives of racetracks in Delaware, New Jersey, and Pennsylvania to a meeting Oct. 31 to discuss topics of mutual interest.

… Executives from Delaware Park, Meadowlands and Monmouth Park, and Philadelphia Park Casino & Racetrack will meet with NYRA officials to discuss simulcast scheduling, stakes schedules, racing dates, and other topics impacting Thoroughbred racing in general and the region’s racetracks in particular.

“Although there are areas of healthy competition among the region’s racetracks, we all face many of the same challenges and concerns,” Hayward said in a statement. “We know these challenges can be met more effectively with better communication and cooperation among the neighboring racetrack operators.

[Indulto]

http://www.saratogian.com/site/news.cfm?newsid=18976621&BRD=1169&PAG=461&dept_id=602469&rfi=6 (http://www.saratogian.com/site/news.cfm?newsid=18976621&BRD=1169&PAG=461&dept_id=602469&rfi=6)
IRS: NYRA owes $1.6B
By PAUL POST

… But NYRA has filed a formal objection, saying it owes the government about 1 percent of that figure. Also, it says the IRS has never tried to collect the types of taxes it's now seeking.

The U.S. Bankruptcy Court for the Southern District of New York has scheduled a hearing for 10 a.m. Friday to establish procedures in the matter.

"It's entirely new," said Brian Ross, NYRA's attorney. "It looks as if the IRS is trying to change the way taxes are established, not just with respect to horse racing, but with respect to the entire gaming industry. We have never been assessed any of these taxes previously."


If the IRS prevails, racetracks throughout the country could suffer a major blow, because a great deal more of their income would be subject to taxation, making this a landmark case for the entire industry.

… the IRS says NYRA should not have taken deductions for property tax payments because NYRA's ownership of the tracks was not established and because the state asserts that NYRA is an instrument of the state.

… "NYRA believes that it's true liability to the IRS is less than one percent of the amount claimed," Ross wrote on NYRA's behalf. Ross is with the New York law firm Weil, Gotshal & Manges LLP.http://racing.bloodhorse.com/viewstory.asp?id=41790 (http://racing.bloodhorse.com/viewstory.asp?id=41790)
Spitzer Report Hints at Possible Belmont Casino
by Tom Precious

… The administration’s mid-year financial report said the state is expecting total revenues from video lottery terminal revenue-sharing at racetrack casinos to grow to $644 million in 2009 and to $850 million in 2010. Those figures, the report said, reflect “the expected opening of the Aqueduct facility in 2009/10 and the Belmont facility in 2010/11.’’

… Asked why the administration is still counting on Belmont VLT revenues when Spitzer did not recommend a Belmont casino, a spokesman for the governor said the revenue was included in a previous financial plan by the state.

“So, the decision was made not to take it out yet,’’ said Jeffrey Gordon, a Spitzer spokesman. He called the Belmont accounting “a placeholder’’ for the future.

“We figure as we’re negotiating the racing issue that we decided not to take it out. If it doesn’t happen, we have plenty of time to take it out,’’ he said of the revenue the state is now expecting to flow from a Belmont casino in 2010 or 2011.http://www.drf.com/news/article/89975.html (http://www.drf.com/news/article/89975.html)
Mid-Atlantic tracks discuss teamwork
By MATT HEGARTY

… The officials included representatives from the New York Racing Association, which runs Aqueduct, Belmont, and Saratoga; the New Jersey Sports and Exposition Authority, which owns and operates Monmouth Park and the Meadowlands; Philadelphia Park in Pennsylvania; and Delaware Park. Those tracks frequently draw on the same horse populations for their races.

… a main topic of discussion was better communication between the tracks' racing departments so that stakes races with similar conditions are not held on the same dates.

… In addition, the tracks discussed creating a wager that would link races between the tracks during the spring and summer, when Belmont, Delaware, Monmouth, and Philadelphia all run live race meets. The multi-leg bet would be modeled along the lines of the Magna Pick 5, which gives bettors the opportunity to wager in five races in one hour held at tracks owned by Magna Entertainment Corp.

On the marketing side, the tracks discussed holding handicapping tournaments between teams of players based at each track, along with the creation of a racing day that would pit statebred horses from each state against each other, Hayward said.

… "People in the racing industry don't root for each other, and we don't talk enough," Hayward said. "If we can get two or three good ideas out of these meetings, it will be worth it."

[Ron]

That could be the straw that breaks the camel's back. Now the IRS wants their cut.

[highnote]

… the IRS says NYRA should not have taken deductions for property tax payments because NYRA's ownership of the tracks was not established and because the state asserts that NYRA is an instrument of the state.


If that is the case, then NY State owes NYRA a big fat tax refund for 30 years of property tax payments!

That ought to be enough to buy some political favors.

[Premier Turf Club]

If the IRS prevails, racetracks throughout the country could suffer a major blow, because a great deal more of their income would be subject to taxation, making this a landmark case for the entire industry.

The IRS' premise is that handle should be taxed, not takeout. In other words, if you make a $100 wager the IRS says NYRA should pay ~28% tax on that $100 even though the $28 far exceeds their cut of the wager.

I don't expect them to win as every racetrack, ADW, casino would go out of business immediately.

[jillybeans]

No one else seems to pay taxes on horse racing these days so the IRS minus well go after the tracks....

[Indulto]

http://timesunion.com/AspStories/story.asp?storyID=635429&category=&BCCode=&newsdate=11/1/2007 (http://timesunion.com/AspStories/story.asp?storyID=635429&category=&BCCode=&newsdate=11/1/2007)
Pick a winner, horsemen urge state
Industry's future, upstate economy put in jeopardy by inaction, panelists say
By DENNIS YUSKO

… Get it together, state leaders. The health of horse racing, the city and thousands of workers depend on it.

That was the message from horsemen meeting Thursday at the National Museum of Racing and Hall of Fame, where they led a panel discussion about the future of horse racing.

… The shrinking timeline and political uncertainty is causing anxiety for horsemen, who are afraid racing in the state could grind to a halt in 2008 if state leaders don't agree on a new contract for running the track.

"We need our leaders to lead,'' Rick Violette, a trainer and president of the New York Thoroughbred Horseman's Association, told about 200 people in attendance. "If doors don't open, there will be thousands of horses without a place to train or race, and that is not acceptable.''

… Winter racing is most in danger at this point, said Violette, who added that he was optimistic about Saratoga racing going forward.

… Spitzer's racing proposal calls for the state to get clear title to the franchise's three race tracks. Because state-owned properties are generally tax exempt, school and city officials are worried that tax revenues from Saratoga Race Course could be lost if New York becomes its owner.http://www.saratogian.com/site/news.cfm?newsid=18982224&BRD=1169&PAG=461&dept_id=602469&rfi=6 (http://www.saratogian.com/site/news.cfm?newsid=18982224&BRD=1169&PAG=461&dept_id=602469&rfi=6)
Experts: Get racing deal done
By PAUL POST

… Some breeders and owners, fearful of a racing shutdown, have already left or made plans to take their business elsewhere, while others remain optimistic that an agreement will be reached.

"Whatever's decided in the next two months in Albany is going to impact everybody in this room for the rest of their lives," said Chris Dragone, New York Thoroughbred Breeders Inc. executive director. "Horse racing has got to come first and not politics."

… despite their oftentimes bitter differences, staff for Spitzer and Bruno are negotiating. "It's encouraging," Violette said. "When major interests start talking, things can happen. Hopefully, they continue to do so." He expressed confidence that a deal can be struck before| Dec. 31, but others were less certain.

… Afterward, NYRA President and CEO Charles Hayward said he doesn't share Violette's optimism for a quick franchise settlement. "The emergency deadline is already past," he said. "We're losing horses already. Racing is being disrupted today."

[Indulto]

http://www.thoroughbredtimes.com/national-news/2007/November/02/Aqueduct-horsemen-would-be-most-affected-by-New-York-shutdown.aspx (http://www.thoroughbredtimes.com/national-news/2007/November/02/Aqueduct-horsemen-would-be-most-affected-by-New-York-shutdown.aspx)
Aqueduct horsemen would be most affected by New York shutdown
by Paul Post

… Most large, more successful stables head to Florida in winter, giving smaller horsemen with less expensive horses a chance to make a living. These are the ones who can least afford a racing interruption, Violette said, adding that the Saratoga Race Course meet does not start until late July.

“If anything, Saratoga is pretty protected,” he said. “There would be a lynching before something happened to Saratoga. The imminent problem is January 1. I’m actually confident that something will happen before then. They’re not going to cripple an industry that’s so vital to the state. We need our leaders to lead.”

… “That’s just absolutely terrifying to a breeder,” said Chris Dragone, executive director of New York Thoroughbred Breeders Inc. “They have to make plans six months out. If they start seeing hiccups in the Aqueduct program, they‘re going to start finding other places to go.”

Some horsemen have already left and might not come back. Pennsylvania, for example, is offering higher purses now made possible by gaming machine revenues. New York passed legislation six years ago for video lottery terminals at Aqueduct, but a facility still has not been built.

… Under terms of a proposed agreement between Spitzer and NYRA, horsemen would get less than what was called for in a previous contract. NYRA had a management agreement with MGM Mirage to run Aqueduct’s racino, but MGM withdrew earlier this year.

The previous deal called for horsemen to get 7.25% to 7.5% of VLT revenues during the first five years and up to 10% beyond that. Now, they would get 6.5% of the net with a cap on future years’ revenues.

“It’s okay that the VLT people come in and make money,” Violette said. “They’re in business. But we’re not pioneers. Other states have been doing it for a long time. Horsemen (in New York) are not getting what they do in other parts of the country.”

At the same time, he acknowledged that less favorable terms might have to be accepted to keep things moving forward.

[Indulto]

http://news.bloodhorse.com/viewstory.asp?id=41898 (http://news.bloodhorse.com/viewstory.asp?id=41898)Bruno: All Parties Want New York Franchise Resolved
by Tom Precious

… In a rare moment of praise for the administration of Gov. Eliot Spitzer, Senate Majority Leader Joseph Bruno said Nov. 5 Senate Republicans and aides to the governor have been holding regular and constructive negotiations on the future of the franchise ...

… “We’re trying to get it done,’’ Bruno said of the franchise talks.

… When asked if the Spitzer administration has been holding firm to its NYRA recommendation, Bruno said: “No, no. no. I think that they’re open. They’re realistic. They understand that this is not going to happen the way they presented it. And, I give him credit for the people around him. They’re very open and they’re communicating in a more realistic way.’’

… “We can get that done if everybody really wants to do a deal because there’s enough interest and enough players, there’s enough success, the market is big enough,’’ he said of a franchise that would involve more than just NYRA.

When asked if his state authority idea is still on the table, Bruno said: “I’m not going to get into a lot of the details because that’s kind of what we’re talking about, as to how you go forward, but my bottom line is that we’re talking and having some productive discussions.’’http://www.newsday.com/news/local/longisland/ny-lirace06,0,2345691.story?coll=ny_home_rail_headlin es (http://www.newsday.com/news/local/longisland/ny-lirace06,0,2345691.story?coll=ny_home_rail_headlin es)
NYRA warns race tracks could be closed in dispute
BY BART JONES

… Hayward said NYRA would fight any attempt to place another entity in charge of racing -- because NYRA owns the land where the three tracks are located. Hayward estimated the land's market value at at least $1 billion.

He said NYRA would not voluntarily give up its claim to the land, or let another entity take over racing on it without NYRA receiving compensation.

... Some independent racing experts said that NYRA's claim to the land and its warning that racing may shut down on Jan. 1 are not entirely empty threats. Bennett Leibman, an Albany Law School professor and racing expert, said technically NYRA might have the capability to assert its land claim and block the oversight board from taking over.

Still, he added, he doubts that politically a shutdown could happen. "Closing off racing could potentially be a very risky political strategy" because of the backlash, he said.

[NYPlayer]

You left out the part about the sword of Damocles. I liked that line the best.

[highnote]

So Bruno wants a state agency to run NYRA and Spitzer wants a private entity to run it.

Go figure. Usually, it is Republicans who want smaller government through privitizations and it is Democrats who want to expand government.

Like I said. Go figure. :confused:

[Indulto]

You left out the part about the sword of Damocles. I liked that line the best.I've already given O'Farrell more exposure than he deserves, but I love his line that the way to increase attendance is by attracting more women to the track so that men will follow. It always makes me chuckle to envision an increase in fondle rather than handle. ;)

[NYPlayer]

I've already given O'Farrell more exposure than he deserves, but I love his line that the way to increase attendance is by attracting more women to the track so that men will follow. It always makes me chuckle to envision an increase in fondle rather than handle. ;)

I think it was O'farrell's group that wants to put a nightclub there. If that ever happens, some of us are going to think we've died and gone to heaven. With the variety of emotionally charged characters that usually come to the track mixing with the hip, sensual night crowd, it'll be a veritable orgy of pure pleasure.

And I'm sure you'd be able find what your looking for - whatever your preference. :kiss:

[Indulto]

Nobody says it better than Paul Moran! :ThmbUp:

http://paulmoranattheraces.blogspot.com/ (http://paulmoranattheraces.blogspot.com/)
Wednesday, November 7, 2007
. . .
Progress in NY franchise talks? Well, maybe

… Most – all – of what Bruno has offered to this point has been nonsense and if he is sticking to his guns this may more of the standard rhetorical flatulence. It is far too early for those accustomed to watching what passes for leadership at work in Albany to become optimistic. Anything could happen, most of it frightening.

Bruno said that the issue could be settled by Thanksgiving. While this may be no more than the blowing of more smoke or the setting of the table for accusations that the governor is the obstructionist for having opposed Bruno’s thoroughly flawed and ill conceived plan, hope springs eternal. Or not.http://paulmoranattheraces.blogspot.com/2007/11/typical-political-behavior-just-say-no.html (http://paulmoranattheraces.blogspot.com/2007/11/typical-political-behavior-just-say-no.html)
Sunday, November 4, 2007

Typical political behavior: Just say no!

… The legislature’s failure to extend the franchise triggers resumption of the dispute over ownership of the real estate at Aqueduct, Belmont and Saratoga, a longstanding bone of contention disposed of in the agreement between NYRA and the governor but sabotaged by the Republican leadership in the senate. That agreement, in its original form, may be in need of refinement, but it is the only positive step this process has seen in almost three years of rhetorical acrobatics and political subterfuge.

… Moving forward to fine tune the memorandum of understanding between the governor and NYRA would, at this point, appear to be the proverbial no brainer, but no brainer in the New York legislature is a contradiction of terms.

... There are issues facing the people of New York far more important than the racing franchise – revival of the crumbling upstate economy, education, guns, taxes, immigration, crime, global dumbing, pressing one to speak English – but political celebrity and acrimonious posturing have overwhelmed the concept of public service in New York.

… Before horsemen, breeders, owners, horseplayers and tens of thousands of others dependent upon the sensible conduct of racing in New York for either livelihood or diversion march on Albany carrying torches, might it be possible to step away from typical political behavior long enough to actually accomplish something that departs from the self-serving agenda of ego-driven elected officials?

[Indulto]

http://www.thoroughbredtimes.com/national-news/2007/November/08/Bailey-says-Belmont-needs-to-emulate-Las-Vegas.aspx (http://www.thoroughbredtimes.com/national-news/2007/November/08/Bailey-says-Belmont-needs-to-emulate-Las-Vegas.aspx)
Bailey says Belmont needs to emulate Las Vegas
by Paul Post

… Despite rumors to the contrary, Excelsior is still actively seeking the franchise, even with the departure of key members such as the New York Yankees’ Steinbrenner family and high-profile casino developer Richard T. Fields.

“We’re still as strong as anybody else, but there’s got to be gaming at Belmont and an entertainment destination there,” Bailey said. “It doesn’t make any sense for us if Belmont Park is not on the table.”

Putting video lottery terminals at Aqueduct alone will not generate enough revenue to support racing, he said.

… VLTs have been installed at roughly a half-dozen harness tracks throughout New York state, and in almost every case wagering has fallen short of projected revenues.

Other tracks around the country have experienced similar problems such Delaware Park and Gulfstream Park, ...

… Earlier this week, state Senate Majority Leader Joseph L. Bruno said he expects a franchise announcement to be made by Thanksgiving.

Bailey said Excelsior still wants to run racing and gaming, but that it would accept the gaming side alone while having someone else, such as NYRA, control the racing product.

“Excelsior has always extended an olive branch to work with NYRA,” he said. “That has not been a problem. It would be more difficult to split it up. I’m not saying it can’t be done.”http://news.bloodhorse.com/viewstory.asp?id=41943 (http://news.bloodhorse.com/viewstory.asp?id=41943)
Plan May Split Control of NY Tracks
by Tom Precious

… a plan is kicking around in Albany to split the three tracks among different entities.

… It is unclear whether the idea of splitting up the tracks is something being promoted just by Bruno and some of the remaining NYRA competitors, or if it has been embraced by the Spitzer administration. A spokesman for the governor declined comment.

… Going back to a pre-1955 model would again pit Aqueduct, Belmont, and Saratoga against each other in competition for such things as purses, best horses and stakes races in an era where the industry is already facing a battle with casinos, Internet sites and other forms of betting. Industry officials and those in the state Legislature believe NYRA would block any effort to split up the franchise.

… NYRA has a major stick over the state: bankruptcy court. If a deal is made in Albany that is unsatisfactory to the NYRA board, it is likely NYRA will simply go back to the federal bankruptcy court judge in Manhattan overseeing its case and let him decide such major issues as who owns the racetracks – decisions that could affect the overall franchise debate.

[NYPlayer]

"...Bruno recently told The Blood-Horse that “productive’’ talks were under way with the Spitzer administration that could lead to a deal by Thanksgiving. He said he believes the governor has moved away from his idea of awarding the racing side of the franchise exclusively to NYRA because he realizes the Senate will not approve that plan."

[PaceAdvantage]

"...Bruno recently told The Blood-Horse that “productive’’ talks were under way with the Spitzer administration that could lead to a deal by Thanksgiving. He said he believes the governor has moved away from his idea of awarding the racing side of the franchise exclusively to NYRA because he realizes the Senate will not approve that plan."Wow....I just don't get it....this makes absolutely no sense....

NYRA is good enough to get control of the PREMIER track in the state (Saratoga) under Bruno's very own plan, yet they aren't good enough to continue running Belmont and Aqueduct? WTF? Seriously, WTF, WTF, WTF???

Bruno really thinks three different chefs running NY racing is better than one? Now we can have infighting among the three tracks regarding racing dates and all the other shit that goes along with having too many cooks in the kitchen?

Bruno should be silenced on this matter. It's obvious what he is trying to do and why he is trying to do it, and it won't benefit the player or the racing industry in NY once single bit.

I wish there was some way for my voice to be heard in this process. All this wrangling by Bruno just makes me sick. Has anyone heard Bruno explain how having three different organizations in NY will improve the racing experience for the fan, the trainer or the owner?

Why was Bruno content to snuggle up to NYRA all those years when they were supposedly such a corrupt and terrible organization? Bruno was their biggest fan and supporter during the 90s.

This whole thing smells like horseshit to me. Sorry for my bluntness, but this man is screwing around with way too many people's livelihood for my tastes. This whole thing could have been resolved weeks ago, except for Bruno's ego getting in the way.

And not to take this thing in too political of a direction, but I thought the country as a whole hated Republicans at the moment....so how is Bruno still so powerful in Albany? :lol:

[Indulto]

... NYRA is good enough to get control of the PREMIER track in the state (Saratoga) under Bruno's very own plan, yet they aren't good enough to continue running Belmont and Aqueduct? WTF? Seriously, WTF, WTF, WTF???

Bruno really thinks three different chefs running NY racing is better than one? Now we can have infighting among the three tracks regarding racing dates and all the other shit that goes along with having too many cooks in the kitchen?

Bruno should be silenced on this matter. It's obvious what he is trying to do and why he is trying to do it, and it won't benefit the player or the racing industry in NY once single bit.

I wish there was some way for my voice to be heard in this process. All this wrangling by Bruno just makes me sick. Has anyone heard Bruno explain how having three different organizations in NY will improve the racing experience for the fan, the trainer or the owner?

Why was Bruno content to snuggle up to NYRA all those years when they were supposedly such a corrupt and terrible organization? Bruno was their biggest fan and supporter during the 90s.

This whole thing smells like horseshit to me. Sorry for my bluntness, but this man is screwing around with way too many people's livelihood for my tastes. This whole thing could have been resolved weeks ago, except for Bruno's ego getting in the way.What took you so long?

[PaceAdvantage]

What took you so long?I was under the mistaken impression, earlier on, that Bruno was merely posturing to save face, nothing more.

[Indulto]

http://sports.espn.go.com/sports/horse/columns/story?columnist=moran_paul&id=3102600 (http://sports.espn.go.com/sports/horse/columns/story?columnist=moran_paul&id=3102600)
New York racing's long winter
By Paul Moran

… Once inside, Aqueduct is not a bad place to go to the races, compensating with utility what it lacks in charm. … On a typical winter afternoon, the crowd gathered on the second floor of the clubhouse looks like Queens Central Booking on a Friday night.

There are seats in the grandstand that have not been occupied by a human since the 1985 Breeders' Cup, places in the building left dark and walled off to what little public remains.

… Either the politicians who hold sport's future in uncertain hands will somehow fashion a sensible plan for the conduct of racing beyond December 31, when the franchise held for 55 years by the New York Racing Association expires, or racing comes to a grinding halt, an alternative so chilling that is somehow perfect in the middle of an Aqueduct winter.

The rhetoric is deafening, sometimes astonishing and frequently contradictory. The sport, its practitioners and patrons are prisoner to the process.

… In the end, whatever and whenever that may be, there will be part of Aqueduct that will become a casino, or racino in the current lexicon, with too much neon and 4,500 video lottery terminals that will relieve people of money that they have not yet paid in taxes. This, at day's end, is the at the heart this process, something that has almost nothing to do with racing other than providing money for purses and breeder awards. The biggest story in racing is about slot machines. Sad.

[aaron]

Paul Moran, along with John Pricci make more sense than all the political and assorted phonies trying to get the franchise.

[Indulto]

http://www.newsday.com/news/opinion/ny-opour115454630nov11,0,1408412.story (http://www.newsday.com/news/opinion/ny-opour115454630nov11,0,1408412.story)
New York should keep horse racing going strong
BY DOROTHY OURS

… From the 1927 Yankees to the Macy's Thanksgiving Day Parade to Niagara Falls, New York stands for epic. Taipei 101 Tower is now the world's tallest man-made structure, but people still flock to the top of the Empire State Building. It has cachet. So does, and so should, thoroughbred racing in the Empire State.

… Within New York City's crowded borders, Aqueduct's 192-acre largely open space, where Hall of Fame champion Kelso won four of his five gleaming Jockey Club Gold Cups may have become a placeholder for more common but lucrative pursuits. A convention center and golf course, anyone?

… Beautiful Belmont, built for enormous crowds, also draws the right cast of characters to create memorable events. Last month Belmont hosted its annual Breeders' Cup Challenge Day, with more than $2.5 million in prize money for its equine stars, plus a folding-chair giveaway for the fans. Admission costs far less than for a movie - and each race is its own unique story.

… Imagining Saratoga's future, the fable about a goose laying golden eggs comes to mind. Our challenge: Keep her healthy! This gal doesn't need major surgery.

… Anyone who thinks that thoroughbred racing belongs to a past era hasn't spent a day at the track. A glorious past - the immortal Man o' War ran 18 of his 21 races at New York tracks - coexists with modern spirit. New York has racing worthy of its epic place on the world stage.

Will our leaders honor its past, present and potential? Let's bet on it.

[NYPlayer]

http://sports.espn.go.com/sports/horse/columns/story?columnist=moran_paul&id=3102600 (http://sports.espn.go.com/sports/horse/columns/story?columnist=moran_paul&id=3102600)
[/color]

Casinos are good. They're profitable. People with money to spend - serious money, go to casinos. With the right managment company guiding the busisness, the new NY racinos will entice some big spenders, and I would wager that in addition to the new casino attractions, these people will bet some on the horses. If the new company had the foresight and innovative spirit to add some new Hong Kong style wagers like the triple trio, racing in NY could realize a new surge in betting handle.

[Indulto]

Casinos are good. They're profitable. People with money to spend - serious money, go to casinos. With the right managment company guiding the busisness, the new NY racinos will entice some big spenders, and I would wager that in addition to the new casino attractions, these people will bet some on the horses. If the new company had the foresight and innovative spirit to add some new Hong Kong style wagers like the triple trio, racing in NY could realize a new surge in betting handle.NYP,
Your optimism leaves me speechless. Excuse me while I attach my MP3 player:

With apologies to the Beach Boys,
To the tune of “I can hear Music:”

* * *

This isn’t the way
Anyone dreamed it would be
The franchise award
Should have happened by now

NYRA never had slots of its own
Maybe that’s why it needed a loan

I can hear Joey
I can hear Jeffrey
The sounds of obstruction, baby
Screeches in my ears

Stalked by FONYR,
Hounded by Empire
Pinstriped by Excelsior, baby
Just to run VLTs.

* * *

Closing the track
Ships the horses away
They might not be back
To run another day

NYRA won’t budge, they’re ready for siege
Here come’s the Judge, there’ll be no reprieve

I can hear Joey
I can hear Jeffrey
The smell of money, baby
Justifies my fears

Scripted by Timmy
Accused by Elli
Delayed by Georgie, baby
Just to profit from slots.

* * *

Higher Purses
For cheaper horses to run
Ignoring our curses
Slots are the new source of fun

Strip searches at Yonkers, no seats at Gulfstream
Delaware’s gone bonkers, Philly Park’s a scream

I can hear Joey
I can hear Jeffrey
The sight of casinos, baby
For the rest of my years

Plundered by Kenny
Exploited by Terry
Bottomed out under Barry, baby
Buried in Albany

[NYPlayer]

NYP,
Your optimism leaves me speechless. Excuse me while I attach my MP3 player:

With apologies to the Beach Boys,
To the tune of “I can hear Music:”



Well, I think NYRA and their supporters are going to have to face the music sometime.

While your singing Indulto, you might want to checkout what's been happening at Mountaineer gaming. This is a company that has Casino and racetrack combo plants in a few markets and is expanding,ironically, by building new racetracks. They've had postive net earnings for the past several years.

[Indulto]

Well, I think NYRA and their supporters are going to have to face the music sometime. :lol: While your singing Indulto, you might want to checkout what's been happening at Mountaineer gaming. This is a company that has Casino and racetrack combo plants in a few markets and is expanding,ironically, by building new racetracks. They've had postive net earnings for the past several years.Now that my throat is clear, I'm happy to acknowledge that there are many markets that would benefit from Mountaineer Gaming's approach. Aqueduct may well be a good fit in winter, but I doubt BEL or SAR would be anytime.

I'm perfectly content to ignore AQU during the inner track meet and I'm guessing that OTB will get plenty of handle on FL and CA when NYRA goes into hibernation.

[Indulto]

http://www.timesunion.com/AspStories/story.asp?storyID=639195&category=OPINION&newsdate=11/15/2007 (http://www.timesunion.com/AspStories/story.asp?storyID=639195&category=OPINION&newsdate=11/15/2007)
State's political tug of war puts thoroughbred racing industry in jeopardy
Letter to the Editor

We are thoroughbred owners, breeders, trainers, veterinarians and horsemen in general who are concerned about an industry that is in serious jeopardy -- thoroughbred racing in New York.

… Whether someone in the Legislature believes it or not, this is a new NYRA.

… It seems that very few people in Albany are worried about the thousands of jobs that will be lost if racing is halted.

… If this ever happens, don't blame it on NYRA. Rather, look at yourselves and ask why the delay.

… Furthermore, biddings have gone by and still NYRA is the only organization willing to carry on with the best racing in the country. Most of the bidders were really interested in the gambling aspects of the franchise.

On the current agreement, the land in question also could be at last solved in favor of the state. So what is it that stops the state Senate from approving this plan, aside from political differences?

… We urge the state Senate to please reconsider their position, and put an end to this matter.

[Indulto]

http://www.reuters.com/article/bondsNews/idUSN1530417920071115 (http://www.reuters.com/article/bondsNews/idUSN1530417920071115)
UPDATE 1-NYC mayor: Off Track Betting Corp might be shut

… New York City's Off-Track Betting Corporation, which was launched in 1970 to generate revenue for both the city and the state, will likely run out of cash by June and should plan to stop taking bets, Mayor Michael Bloomberg said on Thursday.

Bloomberg said taxpayers should not fund a "questionable endeavor."

… The future of New York state's horse-racing industry is in doubt because the New York Racing Association filed for bankruptcy last year, and its franchise granted by the state ends this year.

… In addition to creating a means of generating public revenue, off-track betting was established to "combat organized crime's hold on gambling by providing a legal alternative and to help New York state's racing industry," according to the OTB's Web site.

The city's wagering corporation should be part of the dialogue with the state about horse racing's future, Bloomberg, an independent, said.

"I have always had reservations about city government being involved in gambling," he said. "But it is entirely wrong for the city to lose taxpayer money funding such a questionable endeavor."

[Indulto]

http://www.thoroughbredtimes.com/national-news/2007/November/15/Capital-Play-ad-takes-NYRA-to-task.aspx (http://www.thoroughbredtimes.com/national-news/2007/November/15/Capital-Play-ad-takes-NYRA-to-task.aspx)
Capital Play ad takes NYRA to task
by Paul Post

… “NYRA has been running a pretty strong propaganda campaign, using a lot of scare tactics threatening to close the tracks,” spokesman Hank Sheinkopf said. “We don’t think that racing is going to end on December 31. If anything, it’s going to be a shift in management. We don’t think that people are going to lose jobs.”

Signals coming out of Albany indicate that a franchise announcement might be made by Thanksgiving, one week from today. Sheinkopf defended the ad campaign’s timing. “It’s never too late to expose the truth,” he said.

NYRA President and Chief Executive Officer Charles Hayward declined comment.

“It’s so inflammatory and incorrect, it doesn’t merit a response,” he said.

… The ads are part of a $250,000 Capital Play media campaign put together by Sheinkopf’s New York City public relations firm, Sheinkopf Communications, which has worked on numerous Democratic Party campaigns including former President Bill Clinton’s 1996 re-election.

… “There are conversations and those are always a good thing,” said Paul Larrabee, Spitzer’s spokesman. “It clearly will be part of a legislative process. In order to advance the issue and award a new franchise the Senate, Assembly and governor will have to agree.”

… The million-dollar question is whether they can do it by year’s end.

[Indulto]

http://www.forbes.com/feeds/ap/2007/11/15/ap4345358.html (http://www.forbes.com/feeds/ap/2007/11/15/ap4345358.html)
NY Racing Group's Ch 11 Plan Criticized
Associated Press

… The New York Racing Association's bankruptcy disclosure statement has come under fire from creditors who claim the document fails to provide adequate information about how much they will be paid.

The unsecured creditors committee in NYRA's bankruptcy case and the Pension Benefit Guaranty Corp. … filed objections this week with the U.S. Bankruptcy Court in Manhattan, urging the court not to sign off on the document as it's currently written.

… The unsecured creditors committee criticized the disclosure statement for failing to examine what will happen to creditors' financial recovery if the state fails to enact legislation that will be necessary for the $75 million to be handed over.

… Separately, the Pension Benefit Guaranty Corp. complained that the disclosure statement fails to inform creditors that it will owe its five pension plans $31.5 million as of the end of the year.

[Indulto]

http://www.drf.com/news/article/90357.html (http://www.drf.com/news/article/90357.html)
New York City OTB may close next summer, mayor says
By MATT HEGARTY

… "Years of state legislative schemes that favored racing interests over NYCOTB, at the expense of essential city services, have forced the city into a financially untenable situation in which city taxpayers are, in effect, asked to subsidize the state racing industry," Bloomberg said.

New York City OTB is the single largest bet-taker in the U.S., handling more than $1 billion in 2006. The fees it pays to the New York racing industry based on its handle account for a significant share of revenues for state racetracks, although that share, as a percentage of revenue, is declining markedly with the advent of subsidies from slot machines.

… The Boston Consulting study said that the state legislature should consider a merger of the OTB company with the New York Racing Association, …

… Tinkering with the fee schedules to satisfy one OTB company would likely lead to an overhaul of the entire system, as the fees apply to all six of New York's OTB companies, which are owned by counties.

… Bloomberg said in his statement that the fee unfairly imposed a burden on NYCOTB, in part because it taxed the company's handle, rather than its revenue.Sounds like the disposition of the latest IRS case against NYRA could impact the city as well.

[Indulto]

http://paulmoranattheraces.blogspot.com/2007/11/mike-on-otb-pull-plug.html (http://paulmoranattheraces.blogspot.com/2007/11/mike-on-otb-pull-plug.html)
Mike on OTB: Pull the plug
By Paul Moran… The racing industry provides the product and New York City’s OTB corporation, essentially a jobs program, is unique in its inability to operate a legal gambling enterprise profitably. Most agree, however, that restructure rather than decapitation is the ultimate solution and have long supported a merger of NYCOTB and the racing franchise with the latter taking control of operations.http://www.chron.com/disp/story.mpl/ap/fn/5305463.html (http://www.chron.com/disp/story.mpl/ap/fn/5305463.html)
NYC Mayor Asks for OTB Shutdown Plan
By SARA KUGLER

The billionaire mayor, who isn't particularly fond of gambling, said there was still a chance OTB could stay open.

… He said he spoke with Senate Majority Leader Joseph Bruno and Assembly Speaker Sheldon Silver to let them know of his plans to let OTB wither _ unless the state Legislature can rescue it.

… "I understand Mayor Bloomberg's frustration with New York City Off-Track Betting, and it is appropriate that the future of OTBs, particularly New York City OTB, be part of the discussion of the future of racing in New York state," Bruno said in a statement Thursday.

The current state thoroughbred racing franchise expires Dec. 31, and Bruno said state leaders should work to resolve these issues before then.

… Asked how a shutdown of the betting locations would effect the New York Racing Association, which receives some OTB revenue, spokesman John Lee said: "We'd rather not find out."

He said that there would likely be an increase in wagering at the track, but added that closing OTB would alienate the many bettors who have grown to favor off-track sites.I wonder how many would start using NYRA accounts.

http://www.thoroughbredtimes.com/national-news/2007/November/15/Financial-crisis-could-shut-down-NYC-OTB.aspx (http://www.thoroughbredtimes.com/national-news/2007/November/15/Financial-crisis-could-shut-down-NYC-OTB.aspx)
Financial crisis could shut down NYC OTB

… Bloomberg said a review of NYC OTB’s budgetary projections for the next fiscal year show that the corporation could run out of money by June 2008. The situation led OTB President Raymond Casey to come up with a plan to shut down wagering operations, including the closure of branches, which will be presented to the organization’s board of directors.

“I agree with Mayor Bloomberg that NYC OTB cannot expect the city, particularly in tenuous economic times, to subsidize the operations of the corporation,” NYC OTB board chairman David Cornstein said. “I will review the plan presented by President Casey and, along with the other board members, will determine the appropriate course of action.”

Bloomberg has asked that the proposed shutdown take into account NYC OTB’s approximately 1,500 employees, whose jobs would be threatened. Potential options could include severance packages funded by NYC OTB or the reassignment of employees into the city’s workforce.
http://www.nytimes.com/2007/11/16/nyregion/16otb.html?ref=nyregion (http://www.nytimes.com/2007/11/16/nyregion/16otb.html?ref=nyregion)
Without a Cash Infusion, the City’s OTB May End
By DIANE CARDWELL

… Mr. Bloomberg said he had briefed the Assembly speaker, Sheldon Silver, and the Senate majority leader, Joseph L. Bruno, on his willingness to let the gambling business close. Both men indicated through spokesmen that they would weigh the options, along with the larger issues facing the racing industry.

... Paul Larrabee, a spokesman for Mr. Spitzer, declined to comment specifically yesterday on the possible shutdown of the city’s OTB corporation, one of several around the state that broadcast races from thoroughbred racetracks. But he noted that the state received $15 million a year in revenue from city OTB parlors, revenue that he said depended on the tracks’ continuing to operate.

[samyn on the green]

I do not think the city is serious about closing OTB. These press releases are meant to set the stage for NYC OTB to get the NYRA signal for free.
Early in 2007, the Boston Consulting Group, which had been retained by the city to produce a report on the financial health of NYCOTB, released a report that said the racing industry's share of OTB's revenue should be cut because racetracks in the state were flush with money from slot machines, which were legalized in 2001 at every racetrack in New York except Belmont Park and Saratoga.
OTB wants to compete with NYRA and it also wants its product for next to nothing. This is like me buying a lot of hotdogs from Nathans and setting up shop with a cart in front of the store in Coney Island and selling the Frankfurters for less than Nathans themselves. Then complaining that when Nathans wanted a fair market price for their Frankfurters that our Nathans cart in front of Nathans was subsidizing the Frankfurter industry by selling so many of their products.
"Years of state legislative schemes that favored racing interests over NYCOTB, at the expense of essential city services, have forced the city into a financially untenable situation in which city taxpayers are, in effect, asked to subsidize the state racing industry," Bloomberg said.

[Indulto]

http://www.nypost.com/seven/11162007/postopinion/editorials/otb__r_i_p____please_118440.htm (http://www.nypost.com/seven/11162007/postopinion/editorials/otb__r_i_p____please_118440.htm)
OTB, R.I.P. - PLEASE

… In the best of worlds, once Albany re-negotiates, the city could simply sell the whole operation. The private sector, after all, is where such activity rightly belongs.That's what all bookies say. ;)

http://paulmoranattheraces.blogspot.com/2007/11/sound-of-opportunity-knocking.html (http://paulmoranattheraces.blogspot.com/2007/11/sound-of-opportunity-knocking.html)
The sound of opportunity knocking
By Paul Moran
… Since its inception in the early 1970s, the structure of what is the nation’s oldest OTB system has been distinguished by its inept design, which has been from the beginning doomed to collapse upon itself.

… If common sense prevails, New York City’s OTB operation will end up in the hands of the franchise holder or the private sector. Either will work but the first choice is most judicious, even inspired. New York City OTB actually realized about $125 million in profit last year on $1 billion in handle before making mandatory payments to the state. That payment must be eliminated in the interest of finding a new operator and if that operator also holds the racing franchise and shares in video lottery terminal profits, the resultant financial stability of racing in New York would spawn a virtual renaissance.http://paulmoranattheraces.blogspot.com/2007/11/saturday-notes.html (http://paulmoranattheraces.blogspot.com/2007/11/saturday-notes.html)
Saturday notes
By Paul Moran
… Nothing that has been so steeped for so long in political patronage simply goes away and the city realized a considerable sum of money from the six percent surcharge levied on winnings, an odious tax but nevertheless profitable. OTB also charges payment of the surcharge against expenses, a neat little bookkeeping maneuver. Michael Bloomberg is mayor of New York, not dictator and part of his stance is rooted in his opposition to gambling.

… It would also seem logical with telephone and Internet account wagering legal in this state that the next owner of NYCOTB would close the betting shops that are not restaurant-based. This is not rocket science.http://www.nydailynews.com/sports/more_sports/2007/11/18/2007-11-18_the_day_at_the_races-2.html (http://www.nydailynews.com/sports/more_sports/2007/11/18/2007-11-18_the_day_at_the_races-2.html)
The Day at the Races
BY JERRY BOSSERT

… Over the years NYCOTB has been mismanaged - whether it be by a former failed head coach of the New York football Giants in Allie Sherman, or a political appointee who pled guilty to stealing from a fellow OTB employee in Hazel Dukes.

It's been a haven for political patronage positions since it was created in 1970, and is currently run by former Mayor Giuliani's cousin Ray Casey.

… Bloomberg should not look to blame Albany or the racing industry, but rather the current NYCOTB administration.

Four years ago NYCOTB officials begged and pleaded to get nighttime thoroughbred simulcasting, figuring it would be a home run - but they were seriously wrong.

They negotiated a deal where they would be allowed to show nighttime races from Penn National, Mountaineer or some other second-rate track; in exchange, they would pay a subsidy to the New York harness tracks whether they were racing or not and also would pay the cost of funding the State Racing and Wagering Board regulatory services.

The scheme failed miserably and now is costing NYCOTB plenty.

… With the New York Racing Association franchise set to expire at the end of the year and NYCOTB potentially about to close, the mayor should promote a merger with whomever gets the franchise.

Since NYCOTB was created, no other state in the nation that runs an OTB system has followed New York's dysfunctional model because it doesn't work. Weren’t the other state OTBs eager for that deal as well?

[highnote]

Two things struck me as I read this post:

Michael Bloomberg is mayor of New York, not dictator and part of his stance is rooted in his opposition to gambling.

Talk about a hypocrit. Bloomberg is one of the biggest suppliers of data to one of the biggest gambling industries in the world. Are betting on futures any less of a gamble than betting on a maiden race? It depends on who is doing the betting. He just lost my vote for president.

Oppostion to gambling. What a bunch of hypocritical horse shit.

It's been a haven for political patronage positions since it was created in 1970, and is currently run by former Mayor Giuliani's cousin Ray Casey.

Rudy, you disappoint me. You just lost my vote for president.

I watched Michael Moore's latest movie "Sicko". The one thing that struck me is that we already have so many social programs -- police, fire, etc. After watching that movie I think we should privatize the police and fire departments. They should be run as for profit enterprises. If I have a fire at my house I can call the fire department of my choice -- or I can pay the first one that gets there.

And if I can't pay then they don't have to put out the fire in my house. That seems fair. Why should someone with little money get services that they can't afford? Right? If person "A" has a big mansion shouldn't they pay more to the fire department to put out the fire at their house than a little fire at person "B"'s little house?

My point. NYRA and OTB should be run as private enterprises. They should be sold to the highest bidder. Plain and simple.

That would go a long way toward getting the politicians out of the business of gambling. Sure there will be many problems. But there are always problems. They can be dealt with.

It is a huge mistake to let the state run NYRA. That is recipe for political corruption if I ever saw one.

I hope I am alive in 30 years when the franchise expires again and NY gets to take back the land. If you think it's valuable now, wait and see what it's worth in 30 years. If you think there is a big power struggle going on now, it will be nothing compared to the fireworks in 30 years.

[Indulto]

... Talk about a hypocrit. Bloomberg is one of the biggest suppliers of data to one of the biggest gambling industries in the world. Are betting on futures any less of a gamble than betting on a maiden race? It depends on who is doing the betting. He just lost my vote for president.

Oppostion to gambling. What a bunch of hypocritical horse shit.

... Rudy, you disappoint me. You just lost my vote for president.

I watched Michael Moore's latest movie "Sicko". The one thing that struck me is that we already have so many social programs -- police, fire, etc. After watching that movie I think we should privatize the police and fire departments. They should be run as for profit enterprises. If I have a fire at my house I can call the fire department of my choice -- or I can pay the first one that gets there.

And if I can't pay then they don't have to put out the fire in my house. That seems fair. Why should someone with little money get services that they can't afford? Right? If person "A" has a big mansion shouldn't they pay more to the fire department to put out the fire at their house than a little fire at person "B"'s little house?

My point. NYRA and OTB should be run as private enterprises. They should be sold to the highest bidder. Plain and simple.

That would go a long way toward getting the politicians out of the business of gambling. Sure there will be many problems. But there are always problems. They can be dealt with.

It is a huge mistake to let the state run NYRA. That is recipe for political corruption if I ever saw one.

I hope I am alive in 30 years when the franchise expires again and NY gets to take back the land. If you think it's valuable now, wait and see what it's worth in 30 years. If you think there is a big power struggle going on now, it will be nothing compared to the fireworks in 30 years.Wow, talk about an explosive response. ;)

Was the bolded proposition a conservative or progressive idea? I always wondered whether the wealthy received fire and police protection disproportionate to their financial contribution. Now I wonder whether whales warrant subsidy proportionate to their financial participation. :D

I don't think there is a preferred model for operating racetracks in all situations. The NY racing franchise would not be the political football it is if SAR and BEL didn't constitute a Mecca for horseplayers/racing fans nationwide.
The ATRAB segment last week with Paul Moran discussed the imminent closure of SAR in the '70s. Without NYRA, SAR would have gone the way of BM and probably HOL.

You and I have argued previously about whether racing should be run as an investment market or an entertainment business. Perhaps you're right about tracks everywhere else (except DMR?), but IMO the best that racing has to offer belongs to the fans, and all other tracks benefit from NY's willingness to support and promote racing's traditions first, and MAXIMUM profitability second.

[highnote]

Was the bolded proposition a conservative or progressive idea?

A lot of people don't like the idea of socialized medicine or social security. So why is the idea of a social service agency like a police force or fire department a good idea?

Why shouldn't they be privatized?



The ATRAB segment last week with Paul Moran discussed the imminent closure of SAR in the '70s. Without NYRA, SAR would have gone the way of BM and probably HOL.

Life would still go on without SAR.

You and I have argued previously about whether racing should be run as an investment market or an entertainment business. Perhaps you're right about tracks everywhere else (except DMR?), but IMO the best that racing has to offer belongs to the fans, and all other tracks benefit from NY's willingness to support and promote racing's traditions first, and MAXIMUM profitability second.


If racing belongs to the fans, let the fans pay for it. Why should the government be in the entertainment business?

I have a lot of traditions, too. I don't expect the state to pay for them. Tradition has nothing to do with it. Maximum profitability should come first. The state's role should be to help create an environment where maximum profitability can be achieved for the largest number of people. It should not be to control racing so that political appointments be made and favors given.

If the state runs NYRA kiss innovation goodbye.

Having the state run NYRA is an expansion of government. I'm all for a leaner government. Why not privatize everything?

I think other tracks would benefit a heluva lot more if NY racing ceased. All the money that is bet in NY would flow elsewhere. I'm sure CD and MEC would be happy if there were no NY racing. Not to mention all the smaller racetracks.

[Indulto]

... Life would still go on without SAR.But why should it?If racing belongs to the fans, let the fans pay for it. Why should the government be in the entertainment business?Do you feel the same way about the Performing Arts Theater?
I have a lot of traditions, too. I don't expect the state to pay for them. Tradition has nothing to do with it. Maximum profitability should come first. The state's role should be to help create an environment where maximum profitability can be achieved for the largest number of people. It should not be to control racing so that political appointments be made and favors given.I agree with the bolded portion.If the state runs NYRA kiss innovation goodbye.

Having the state run NYRA is an expansion of government. I'm all for a leaner government. Why not privatize everything?Why does greed corrupt the free-market process?I think other tracks would benefit a heluva lot more if NY racing ceased. All the money that is bet in NY would flow elsewhere. I'm sure CD and MEC would be happy if there were no NY racing. Not to mention all the smaller racetracks.Is that your proposal to put racing out its misery or yours? ;)

[highnote]

Quote:
Originally Posted by swetyejohn
... Life would still go on without SAR.

But why should it?


Why shouldn't it?


Quote:
If racing belongs to the fans, let the fans pay for it. Why should the government be in the entertainment business?

Do you feel the same way about the Performing Arts Theater?


Who said I have a feeling about gov being in entertainment biz? I just ask the questions?



Why does greed corrupt the free-market process?

Does it?


Quote:
I think other tracks would benefit a heluva lot more if NY racing ceased. All the money that is bet in NY would flow elsewhere. I'm sure CD and MEC would be happy if there were no NY racing. Not to mention all the smaller racetracks.

Is that your proposal to put racing out its misery or yours?

Mine :D

[Indulto]

http://www.crainsnewyork.com/apps/pbcs.dll/article?AID=/20071118/FREE/71118006/1008 (http://www.crainsnewyork.com/apps/pbcs.dll/article?AID=/20071118/FREE/71118006/1008)
Further trials ahead for Spitzer's agenda
By: Erik Engquist

… Next month will be telling. The New York Racing Association's authorization to operate the state's horse-racing franchise expires at year's end, and the Legislature is expected to convene in mid-December to renew NYRA's deal or pick another operator. The governor wants to keep NYRA, but Mr. Bruno has other ideas.

"They're going to resolve it, because they have to resolve it," says political strategist Hank Sheinkopf, who represents one of NYRA's competitors.

Unlike the horse-racing matter, the governor's legislative goals lack the pressure of a deadline and will be harder to achieve now than in the spring, …

… Mr. Spitzer and Mr. Bruno no longer speak. Even when they were meeting publicly in the governor's conference room six months ago, disharmony was evident. ..

… "The Republican senators and the governor have no interest in accommodating one another," Mr. Sanders notes. "There's a fierce atmosphere, and that's not going to evaporate anytime soon."

… Some observers believe that Mr. Bruno will soften his stance in order to achieve results that vulnerable Republican senators can present to voters next year, when the GOP's two-seat majority in the chamber will be in jeopardy.

"The real personal animus is palpable, but in Albany, political self-interest usually trumps other things," says Mr. Sanders. "It's not enough for Joe Bruno to say, `The governor has failed.' That's not enough of a message to carry throughout the year into the very critical elections of 2008."

Others predict that Mr. Bruno will continue to stymie the governor.

"Bruno is convinced that because of Spitzer's current lack of credibility, Albany gridlock is at least as likely be blamed on Spitzer as on the Senate," says one Democratic lobbyist.

… "It's going to be an uphill battle in the Legislature with his entire agenda," says Ms. Haight.

GOVERNOR’S PRIORITIES
--RENEW horse-racing franchise
--REFORM campaign finance
--REVISE Wicks Law
--BAN junk food from schools
--PASS power plant siting lawWhat compromises are likely other than a) duration of the renewal b) VLTs at BEL, and c) who gets the VLT franchise(s)? Delaware North seems like the only bidder that might be acceptable to both, but what happens if there's a second VLT franchise to award?

By what dates would owners who would ship elsewhere if AQU were shut down need to make their decision (assuming it would depend on destination and stable size), or have stalls already been allocated at GP, SA, FG, etc.?

[Indulto]

http://timesunion.com/AspStories/story.asp?storyID=640524&category=FRONTPG&BCCode=HOME&newsdate=11/20/2007 (http://timesunion.com/AspStories/story.asp?storyID=640524&category=FRONTPG&BCCode=HOME&newsdate=11/20/2007)
NYRA status muddies future
Franchise negotiations between state leaders drag on, jeopardizing the winter horse racing meet
By JAMES M. ODATO

… Private negotiations with the Senate in recent weeks have failed to resolve differences. With just six weeks left in the New York Racing Association's franchise … , horse owners and trainers are beginning to consider transferring horses to out-of-state tracks.

Rick Violette, president of the New York Horsemen's Association, called an emergency board meeting today to discuss options because of the uncertainty.

"Staffs of the governor's office and Sen. Bruno are talking, and that's great news," he said. "It needs to be fast-tracked."

… Spitzer spokesman Errol A. Cockfield Jr. said the governor has examined the bids and is nearly done, "but will not reach a decision about which group to recommend until there is more clarity about the outcome of ongoing discussions with the Legislature about the future of the NYRA franchise."

… NYRA President Charles Hayward said Monday the bankruptcy judge would likely want to control those assets should NYRA lose the franchise, raising the possibility that no one would get to run the tracks while he deliberated.http://paulmoranattheraces.blogspot.com/2007/11/fixing-otb-in-new-york-city-before.html (http://paulmoranattheraces.blogspot.com/2007/11/fixing-otb-in-new-york-city-before.html)
Fixing OTB in New York City before happy hour
By Paul Moran
… Bloomberg is inclined to rail against the things to which he objects – smoking, junk food and, alas, gambling and it is more likely that his personal opposition to gambling more than any other factor is behind the shutdown threat he issued last week.

Perhaps the sight of a clutch of people standing outside an OTB parlor, smoking cigarettes and eating fast-food burgers -- actually exercising the right of personal choice -- moved Bloomberg to threaten closure of the city’s staggering OTB enterprise, …

… Yet, it would take all of an afternoon to right this ship.

Here’s how. …You'll have to read the article to find out. ;)

[Indulto]

http://www.drf.com/news/article/90474.html (http://www.drf.com/news/article/90474.html)
Court rules for NYRA
By MATT HEGARTY

A U.S. Bankruptcy Court judge on Tuesday dismissed a petition by a creditor of the New York Racing Association, allowing the association to pursue an amended reorganization plan, ...

… On Tuesday, NYRA presented an amended reorganization plan to address concerns from creditors, the Internal Revenue Service, and the Pension Benefit Guaranty Corporation.

… Plainfield Special Situations Master Fund is wholly owned by the investment firm of Plainfield Asset Management, which is a partner in Capital Play Pty, one of the companies trying to take over the franchise. The company, initially set up by Australian bookmakers, purchased a $1,495 debt held by Wyoming Downs against NYRA in order to bring its petition to the court.

… In its motion, Plainfield argued that NYRA's reorganization plan was "completely illusory" because of its reliance on legislative approval. The attorneys maintained that because the plan is opposed by Bruno, NYRA's franchise would not be renewed.

"Under the circumstances, the creditors of this estate, not to mention the State and its horse racing industry, are entitled to consider a viable alternative to NYRA's empty proposal," the petition said.

In court papers, NYRA argued that Plainfield did not have standing to make the motion because NYRA's debt to Wyoming Downs had subsequently evolved into a credit to NYRA because of accounting practices governing simulcast wagering and settlements. NYRA also maintained that Plainfield would be unable to implement a better plan for creditors and that the plan would undo the progress made by the state in negotiations with NYRA to settle the franchise issue.Good ol' Capital Offense. I womder if Bruno signed off on their using his name?

[Indulto]

http://www.saratogian.com/site/news.cfm?newsid=19048893&BRD=1169&PAG=461&dept_id=602469&rfi=6 (http://www.saratogian.com/site/news.cfm?newsid=19048893&BRD=1169&PAG=461&dept_id=602469&rfi=6)
Horsemen looking for new home
By PAUL POST

… Horsemen have begun contacting other East Coast racetracks in case New York's franchise isn't settled and horses have to be shipped out-of-state.

… There's a strong possibility that racing might be interrupted, and without a franchise, it's uncertain if the 2,300 horses at the downstate tracks will be able to stay there and train.

"We probably have a three-week window right now," said Rick Violette, president of the 5,000 member New York Thoroughbred Horsemen's Association, whose board met in emergency session on Tuesday.

… Philadelphia Park's stalls are jam-packed making Delaware Park the next best place to go, but it only has 800 stalls so the remaining 1,500 horses might be headed anywhere from Ocala, Fla. to Oaklawn Park in Hot Springs, Ark.

… It would cost anywhere from $600 to $1,000 per animal to move New York's 2,300 horses elsewhere. If that happens, some horsemen might not want to come back, which could seriously diminish New York's racing product if it resumes following a stoppage.

"That's the danger," Violette said. "If people have to bite the bullet, there's no question that any portion of them might stay put for a while."

Delaware Park isn't currently racing, so horses stabled there would have to be shipped to Philadelphia Park or Laurel Park in Maryland. One owner, upset by New York's unresolved situation, took six horses and went to Florida this week where he already has some horses stabled.http://www.saratogian.com/site/news.cfm?newsid=19048895&BRD=1169&PAG=461&dept_id=602469&rfi=6 (http://www.saratogian.com/site/news.cfm?newsid=19048895&BRD=1169&PAG=461&dept_id=602469&rfi=6)
NYRA's bankruptcy plan draws criticism
By PAUL POST

… "While owing at least $95 million in pension funds and operating at a $4.7 million deficit for the month of October, NYRA has decided to spend the taxpayers' hard-earned money on high-priced lawyers to try and once again get themselves out of trouble," Capital Play spokesman Hank Sheinkopf said.

But President and CEO Charles Hayward defended the non-profit firm's plan and said NYRA made $14.6 million in August during the Saratoga meet when a new on-track record for handle ($123 million) was set.

"All debtors are getting 100 percent of the monies owed them," he said. "That is very important to the Saratoga community and to all of our creditors."


Hayward said that Belmont Park handle, purses and attendance were all up this year over 2006 figures, in contrast to declining nationwide trends. Despite such increases, operating losses during September and October totaled $6.1 million.

… "We only get 2 percent of the money wagered at OTB (Off Track Betting)," he said. "We'll never be fully profitable until racing law is rewritten. We're taking some aggressive steps to improve profits."http://news.bloodhorse.com/viewstory.asp?id=42144&source=rss (http://news.bloodhorse.com/viewstory.asp?id=42144&source=rss)
NYRA Outlines Finances in Documents
by Tom Precious

The New York Racing Association is proposing to keep 17.5 acres of land adjacent to Aqueduct after it gives up it land claims to the state of New York, according to amendments filed to its Chapter 11 bankruptcy reorganization.

NYRA would then sell the land to unknown developers for a projected $15 million, according to the court papers filed this week with a federal bankruptcy judge in Manhattan. The documents do not say if NYRA has identified a possible purchaser nor the intended use of the “ancillary property’’ at the track.

… The future of the franchise is still very much in doubt. The Spitzer administration has recommended NYRA continue racing at Aqueduct, Belmont and Saratoga, while the Republican-led Senate has so far publicly said it will not back that idea, and instead believes more industry players should be involved in running Thoroughbred racing in New York.

… In the court filing, NYRA projects its total handle to grow by 1.5 percent annually between 2006 and 2012. It is projecting a $30 million in purses increases in the first year of the VLT operation at Aqueduct. It anticipates the 4,500 VLT machines will have an average win per machine of $275 in 2009 growing to $503 by 2012.

[Indulto]

http://www.saratogian.com/site/news.cfm?newsid=19032805&BRD=1169&PAG=461&dept_id=602469&rfi=6 (http://www.saratogian.com/site/news.cfm?newsid=19032805&BRD=1169&PAG=461&dept_id=602469&rfi=6)
Television ad blasts NYRA
By PAUL POST, The Saratogian 11/16/2007

… State Senate Majority Leader Joseph L. Bruno has said a franchise announcement could be made before Thanksgiving.Gobble, gobble.

http://www.nydailynews.com/sports/more_sports/2007/11/22/2007-11-22_the_day_at_the_races-2.html (http://www.nydailynews.com/sports/more_sports/2007/11/22/2007-11-22_the_day_at_the_races-2.html)
The Day at the Races
BY JERRY BOSSERT

… With less than six weeks left until the New York Racing Association's franchise expires, there still has been no action taken by Albany to solve the racing crisis. "Discussions are continuing," said Scott Reif, spokesperson for New York State Senate Majority leader Joe Bruno. "We continue to believe our approach is the right one." Bruno's plan would establish a state board to evaluate bids for each of the three NYRA tracks and a casino at Aqueduct. Meanwhile, Governor Spitzer's plan, which is already endorsed by the state assembly, would let the NYRA run racing for the next 30 years in exchange for the land the three tracks sit upon, avoiding a long legal battle with the NYRA over who actually owns the land. More obstruction aimed at NYRA's destruction?

http://timesunion.com/AspStories/story.asp?storyID=641250&category=FRONTPG&BCCode=HOME&newsdate=11/22/2007 (http://timesunion.com/AspStories/story.asp?storyID=641250&category=FRONTPG&BCCode=HOME&newsdate=11/22/2007)
Work force could be cut
Spitzer says it's possible some state vacancies won't be filled as he cites uneasiness about economy, budget deficit
By James M. Odato

… Spitzer, in the interview, also said he has yet to resolve the state racing franchise issue, although he said he is determined to work out an agreement with the Legislature before New York Racing Association's franchise to operate the Saratoga, Aqueduct and Belmont Park tracks expires Dec. 31.

"It is one of the issues I look forward to working with my colleagues on in the next few weeks. There is a Dec. 31 deadline that is real."

He would not speculate on what will happen on New Year's Day if the franchise question is unresolved. NYRA, favored by Spitzer to continue operating the tracks, is in bankruptcy court but is competing for the franchise. It has maintained that it owns the tracks and that it could shut down racing if it doesn't get the franchise.Never was so much owed by so few to so many. ;)

Happy Thanksgiving to my fellow followers of this folly.
Indulto

[Indulto]

From the “good horse racing websites” thread:
... And there is a link to the John Pricci's site http://www.horseraceinsider.com (http://www.horseraceinsider.com/).Thanks, SJ.
I wasn’t aware of Pricci’s blog which, like Moran’s, will now be a daily stop for me. The following entry appeared shortly after Spitzer’s decision to retain NYRA was announced:

http://www.horseraceinsider.com/blog.php/John-Pricci/P30/ (http://www.horseraceinsider.com/blog.php/John-Pricci/P30/)
Saturday, September 08, 2007
Bruno Playing Politics With Future of New York Racing

… Bruno is using his power to usurp what’s in the best interests of New York racing even while he insists he’s a big fan and has the health of the local industry uppermost in his thoughts.

… Somebody has to stop this madness. But everyone’s scared to death of a man many have called the most powerful in the state.

… What this is all about for Bruno is getting his players a place at the trough.

… What’s the real agenda here? For all intents and purposes, this has the appearance of a covert state takeover, so that, what; Bruno‘s associates can later gain a foothold through some kind of future “compromise?”
Racing needs more autonomy not more control. It can’t get anything done now.

…. Another state agency? That’s just what New York needs. We’re doing so good in this state now that corporations wait in line to leave.

… For its part the NYRA is getting what it deserves. From the time Kenny Noe Jr. took over the reins--then left two steps ahead of delayed prosecution--the NYRA has been kowtowing to Bruno.

… If Bruno feels that Spitzer’s Memorandum of Understanding with NYRA went too far, was too one-sided, he’s not alone in that.

But deal with that issue. Put in safeguards guarding against future abuses by the franchisees. Write legislation guaranteeing that the quality of New York racing be preserved and enhanced through an equitable split of gaming revenue. ...Problem is, Bruno isn’t listening to voices like Pricci, Moran, Crist, LeBrun, or Toner. One can only hope he isn't listening to voices no one else can hear.:bang:

[Indulto]

http://www.nytimes.com/2007/11/24/opinion/24sat3.html?hp (http://www.nytimes.com/2007/11/24/opinion/24sat3.html?hp)
New York’s Gambling Dens
Editorial
… The only big question here is whether the loss of Off-Track Betting could hurt New York’s beleaguered horse racing industry. The tracks and horse breeders would surely lose revenue if the Internet or some other method failed to replace the present system. And quite a few politicians would lose control over quite a few patronage jobs. But these are tired, inefficient operations that gain no charm with the passing years.

Mr. Bloomberg’s timing could not be better. State officials are trying to determine how to redo the racing industry and its betting franchises by the end of this year.

This will not be easy. The New York Racing Association, or N.Y.R.A., which operates the state’s tracks at Saratoga, Belmont and Aqueduct, wants to continue running things, despite years of scandal, inefficiency and financial troubles. Competitors for what should be an immensely lucrative contract have emerged, but an analysis by Gov. Eliot Spitzer’s office makes it clear that there are no angels in the running for this high-stakes plum.Bloomberg is taking heat from some racing columnists who tie his threat to close NYCOTB to his personal opposition to gambling, but given his apparent willingness to facilitate change, perhaps their space could be better utilized presenting pros and cons of DETAILED alternatives for correcting the relationship between the OTBs and the racing franchise holder.

[Indulto]

http://news.bloodhorse.com/viewstory.asp?id=42202 (http://news.bloodhorse.com/viewstory.asp?id=42202)
Franchise Delay Hangs Over Trainers

… “We’re at the 10th hour, with the holidays coming up, there isn’t a lot of time,” trainer Kiaran McLaughlin said Nov. 26. “This is a serious situation, a big worry, and a definite concern.

“The politicians must understand that horses are not automobiles that you are able to leave in the garage for a period of time. If there isn’t anybody (at NYRA) to even keep the track open or pick up the manure, we are all going to be gone.”

… “I haven’t made for-sure plans,” he said. “I’m lucky that I have wealthy owners that can afford the $2,000 van ride to Florida, but it’s not going to be okay for some other trainers.”

… “In the last couple of weeks, that tone has picked up,” Hushion said. “I think as (Dec. 31) gets closer, we realize it is a real possibility (that racing could shut down). It has become a game of chicken with NYRA and the state, and no one is so sure what will happen.”

… “Well, it is definitely out there, but I think it will get resolved,” Levine said. “No question, it would be a bump in the road (if racing shut down), but I’m trying not to fret about it. It’s not life-threatening. It’s a bump in the road; you will just have to get around it.

“There is a lot a stake, so I think it will get resolved. Maybe the track will be shut a few days, but it will get fixed. I don’t see racing in New York ceasing forever.”

P.J. Campo, NYRA’s racing secretary, said his office is preparing for the winter meet as usual. “I’m doing what I normally would do, and that’s to continue what I’ve been doing,” he said.

[the little guy]

I'm available to take any and all action from those that actually believe there will be a shutdown of racing in NY for anything other than track condition and/or weather.

[Indulto]

I'm available to take any and all action from those that actually believe there will be a shutdown of racing in NY for anything other than track condition and/or weather.What makes you so certain someone will blink and who do you think it's likely to be?

[freddymo]

NYRA will get an extention. No sense closing down the tracks.

[the little guy]

What makes you so certain someone will blink and who do you think it's likely to be?


Common sense.

[Indulto]

Common sense.Whose? :confused: What could either Bruno or Spitzer be willing to give up at this point? Be specific for a change.

[Indulto]

http://www.nypost.com/seven/11262007/news/columnists/fbi_twist_in_spitz_probe_809445.htm (http://www.nypost.com/seven/11262007/news/columnists/fbi_twist_in_spitz_probe_809445.htm)
FBI TWIST IN SPITZ PROBE
By Frederick U. Dicker

… Sources close to Bruno told The Post that Senate investigators probing the Dirty Tricks Scandal have turned up what one called "strong indications" that Spitzer tapped his powerful law-enforcement connections last year while still attorney general to push the FBI into investigating the Rensselaer County-based Bruno's private consulting business.

"Sure, we think Spitzer was behind it. He's been behind every other attempt to destroy Joe, and it's all tied in," said a source familiar with Bruno's thinking. Bruno, the state's most powerful Republican, hastily called a press conference last December to announce the FBI probe after learning The Post was about to reveal that several Albany-area officials and business leaders had received federal subpoenas

… Spitzer spokeswoman Christine Anderson said any claim that the governor was linked to the FBI probe of Bruno "is untrue, and couldn't be more ridiculous." …http://www.nydailynews.com/blogs/dailypolitics/2007/11/the-blame-game.html (http://www.nydailynews.com/blogs/dailypolitics/2007/11/the-blame-game.html)
The Blame Game
By Elizabeth Benjamin

... Today’s Post story … is just the latest in a string of conspiracy theories connected to Bruno and the federal probe of his outside business interests.

Prior to this, there was an elaborate accusation regarding NYRA; its monitor, Getnick & Getnick and Bruno friend/business associate/donor Jared Abbruzzese, who dropped his involvement with Empire Racing Associates, one of the four firms (along with Spitzer’s preferred pick, NYRA) vying for the state’s lucrative thoroughbred franchise.

And before that there was the speculation that former Bruno ally, ex-Lobbying Commissioner Executive Director David Grandeau, had tipped off the feds to an investigation he started on Abbruzzese and the senator in late 2005. The Lobbying Commission was subpoenaed by the FBI in February 2006.

… A source with intimate knowlegge of the Bruno investigation insisted Spitzer had nothing to do with the federal probe, alleging it started back prior to 2005 and far before the AG announced his intention to seek the executive mansion, although he was widely known to be gunning for it since the first day he entered state politics.… Comments [on the above piece]

First off, no one in Rensselaer County that I know really believes that Joe Bruno is being seriously investigated by the Office of the U.S. Attorney for the Northern District of New York …

… I myself saw the FBI Special Agent who was ordered out of Rensselaer County by the US Attorney back then, after the investigation had been closed, down in front of the Federal Building on Broadway in Albany, and he told me to my face that we had "POWERFUL ENEMIES" in Rensselaer County who could get the FBI ordered off a case like that ...

… And it is clear from reading that file, and knowing the facts and the outcome, that in 1989, the Office of the U.S. Attorney for the Northern District of New York gave Joe Bruno a "DO NOT HAVE TO TROUBLE YOURSELF ABOUT EVER GOING TO A FEDERAL PRISON IN THE FIRST PLACE" CARD ...Meanwhile, The Post may finally think it's time to end it’s Pro Bono pro-Bruno defense:

http://www.nypost.com/seven/11272007/postopinion/editorials/joe_bruno__drunken_sailor_55892.htm (http://www.nypost.com/seven/11272007/postopinion/editorials/joe_bruno__drunken_sailor_55892.htm)
JOE BRUNO, DRUNKEN SAILOR
EDITORIAL... Joe Bruno is up to his old tricks, it seems.

Spending tricks, that is: …

… Hello? How about just not spending so much money?

… Instead, Bruno talked about New Yorkers' many needs - i.e., wants - and how best to address them - i.e., by spending money Albany doesn't have.

… But wait: Shouldn't Bruno feel a little emboldened by the good will he's gotten as the ostensible victim of Team Spitzer's Dirty Tricks Campaign? (That's the project, recall, by Gov. Spitzer's office to use the State Police to gather dirt on Bruno.)

Well, as much as that scandal has hurt Spitzer, it doesn't seem to have empowered Bruno one bit. Not if he's still in full drunken-sailor mode, anyway.

And if Bruno can't restrain himself now, when will he? …Maybe tlg's betting proposition is starting to make uncommon sense. ;)

[Indulto]

http://news.bloodhorse.com/viewstory.asp?id=42226 (http://news.bloodhorse.com/viewstory.asp?id=42226)
NYRA Steps Toward Ending Chapter 11
by Tom Precious

… Hayward, though, said critics should not call the plan offered by Spitzer a bailout. “At the end of the day if there is no new NYRA franchise, the state has a responsibility to assume all the liabilities of NYRA, which is substantially more money than we are talking about in our reorganization plan,’’ he said.

NYRA puts potential liability for the state at more than $300 million.

… The filing says creditors will be paid 100 cents on the dollar for their claims and that contributions to its employee pension plans will be satisfied.. It is also offering to pay the IRS up to $25 million for back taxes, far below the $1.6 billion the IRS says it is owed by NYRA in taxes and penalties. NYRA also will retain 17.5 acres of land adjacent to Aqueduct; it then hopes to sell that parcel sometime next year for about $15 million. …A new wrinkle could be that the IRS thinks the land belongs to them now.

It occurred to me that if NYRA tracks close, substitutes for the Wood and the Belmont might be run at FL as the Woodstock Memorial and the Too-Many-Turn Marathon. :rolleyes:

Actually HOL might spend a buck or two and move up the 2008 HOL Derby to five weeks after the KY Derby, stretching it synthetically to 12 f while offering a $500k bonus to the winner if it had won either the Derby or the Preakness and $1.5m if it had won both.

Maybe they’d fly Sen. Bruno into the infield by helicopter to present the trophy. :eek:

[Indulto]

http://www.drf.com/news/article/90667.html (http://www.drf.com/news/article/90667.html)
Bankruptcy court approves NYRA plan
By MATT HEGARTY

A U.S. bankruptcy court in Manhattan on Wednesday approved an amended reorganization plan submitted by the New York Racing Association and set a date for creditors to vote on the plan by Dec. 21, according to the bankruptcy attorney for NYRA.

… Brian Rosen, the attorney for NYRA, said that representatives of the state appeared at the hearing to voice their approval of the document.

"Everyone was very supportive of the plan, from the state to our creditors," Rosen said.

… According to officials in the offices of Bruno and Spitzer, negotiations are ongoing on a legislative deal to settle the franchise issue, but both sides said that little progress has been made to bring the two sides closer together. If the legislature approves a franchise deal that differs from the Spitzer agreement, then NYRA will likely need to submit a different bankruptcy plan.

Also at the Wednesday hearing, an attorney representing the Internal Revenue Service said that it has agreed with NYRA that the association owes "less than $25 million" to the IRS, according to Rosen.

… The previous document contemplated settlements with creditors that did not always rise to the 100 percent mark."One is the loneliest number."

[trigger]

So far, the NYRA has estimated that it owes the IRS $5 million and the IRS says the NYRA owes them "less than $25 million.
Why does the NYRA owe any taxes to the feds? Is this IRS "owses" something that got caught up in the bankruptcy action or is it another instance of NYRA administrative incompetence?

[PaceAdvantage]

Is this IRS "owses" something that got caught up in the bankruptcy action or is it another instance of NYRA administrative incompetence?The NYRA's a bunch of bums....get rid o' 'dem losers, and let a REAL BIDNESSMAN run the empire!

http://www.paceadvantage.com/images/Franks.jpg

[Indulto]

http://www.saratogian.com/site/news.cfm?newsid=19067267&BRD=1169&PAG=461&dept_id=602469&rfi=6 (http://www.saratogian.com/site/news.cfm?newsid=19067267&BRD=1169&PAG=461&dept_id=602469&rfi=6)
Bankruptcy resolution for NYRA contingent on firm retaining racing franchise
By PAUL POST, The Saratogian

… The ball is clearly in the state's court now, specifically that of Senate Republicans, because for bankruptcy to get resolved the Legislature's franchise plan could not alter reorganization's financial terms. Also, Spitzer and NYRA have specific agreements with regard to racetrack land claims and the next racing contract's length.

"The Senate majority realizes that racing is at a critical juncture in New York state, and as part of our ongoing dialogue on this issue we will be reviewing NYRA's latest filings," said Scott Reif, a spokesman for Senate Majority Leader Joseph L. Bruno, whose district includes Saratoga Springs. "We continue to have discussions with the governor's office to achieve a final resolution that ensures a quality product for racing fans and is in the best interests of taxpayers."http://paulmoranattheraces.blogspot.com/2007/11/sounds-like-plan.html (http://paulmoranattheraces.blogspot.com/2007/11/sounds-like-plan.html)
Sounds like a plan
By Paul Moran
With everyone involved in the racing and breeding industries in New York as well as the national racing community contemplating in horror the cessation of business at Aqueduct at the moment the crystal ball in Times Square signals the transformation of 2007 into 2008, the odds are that the state’s political leaders, anxious to avoid the appearance of absolute buffoonery, will take measures to save face, allow racing and the flow of pari-mutuel tax revenue to continue uninterrupted and avoid saddling taxpayers with $300 million in NYRA’s financial obligations.

… In whatever form it has taken in negotiations between the governor and legislature, a plan will be presented for approval soon and at this point it is almost certain that NYRA will retain the franchise if only as a matter of legal and economic convenience to the state. The alternative is liquidation – the disbanding of NYRA and sale of assets, which would also result in several years of litigation.Yet another believer that common sense will prevail.

[trigger]

The NYRA's a bunch of bums....get rid o' 'dem losers, and let a REAL BIDNESSMAN run the empire!



http://www.paceadvantage.com/images/Franks.jpg
Even Frankie could run an excellent racing program at the NYRA tracks if he could ,at the same time, run up a $300 million debt, need a $70 million infusion to keep operating, receive a couple of $20 million bailouts in last year or two, receive 17% of NYOTB handle on NYRA races and still go bankrupt...not to mention forgetting to pay federal income taxes.:bang:

[Indulto]

http://www.thoroughbredtimes.com/national-news/2007/November/29/IRS-bankruptcy-court-ease-up-on-NYRA.aspx (http://www.thoroughbredtimes.com/national-news/2007/November/29/IRS-bankruptcy-court-ease-up-on-NYRA.aspx)
IRS, bankruptcy court ease up on NYRA
by Paul Post

… 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.

… Senate and executive branch staff have been trying to hammer out a compromise and a Senate spokesman said a deal should be struck by mid-December, at the latest.

… But final resolution could hinge on what the legislature does. Rosen said terms of NYRA’s reorganization including finances, length of contract and land claim, can’t be materially altered by the state’s final franchise agreement.

… Rosen said that roughly 1,000 private creditors have filed claims against NYRA ranging from a few thousand to millions of dollars.

… Some claims were overinflated and some have been thrown out, Rosen said.http://www.forbes.com/feeds/ap/2007/11/29/ap4385807.html (http://www.forbes.com/feeds/ap/2007/11/29/ap4385807.html)
NYRA OKed to Send Ch 11 Plan for Vote
Associated Press

Judge James Peck, of the U.S. Bankruptcy Court in Manhattan, …

… encouraged the parties to come to consensus on the plan because NYRA's case was becoming politicized.

"My impression is that, to sit on the fence at this point is not necessarily in the best interest of this case," Peck said. "There is an extra-judicial influence going on here and it's apparent to me that the NYRA bankruptcy case is going on not only in this courtroom but in the media."

Peck said he saw an "attack ad" on television that denigrated the ability of the organization to run racetracks.

… "The quality of the NYRA as a franchisee has been publicly challenged," Peck said during the hearing Wednesday.

[PaceAdvantage]

Even Frankie could run an excellent racing program at the NYRA tracks if he could ,at the same time, run up a $300 million debt, need a $70 million infusion to keep operating, receive a couple of $20 million bailouts in last year or two, receive 17% of NYOTB handle on NYRA races and still go bankrupt...not to mention forgetting to pay federal income taxes.:bang:I guess you haven't seen Magna's stock price lately....:rolleyes:

[trigger]

I guess you haven't seen Magna's stock price lately....:rolleyes:

I guess you haven't seen NY state/city tax rates lately.

[Indulto]

http://blogs.timesunion.com/localpolitics/?p=892 (http://blogs.timesunion.com/localpolitics/?p=892)
Bruno mail call
by Leigh Hornbeck

Yesterday, a flier with a picture of race horses on it showed up in Saratoga County mailboxes from Senator Bruno. He is looking for help as he tries to “preserve the historic character of Saratoga as the premiere racing destination, while reinvigorating the racing franchise.”

The governor and the Assembly, Bruno wrote, are not getting the job done.

… Although the language on the flip side is vague, Bruno clearly believes Gov. Spitzer and the Assembly are to blame because the franchise issue over who will run Saratoga, Aqueduct and Belmont Park remains unsettled a month before the lease runs out for the current franchise holder, the New York Racing Association. …http://www.liherald.com/site/news.cfm?newsid=19069885&BRD=1601&PAG=461&dept_id=477736&rfi=6 (http://www.liherald.com/site/news.cfm?newsid=19069885&BRD=1601&PAG=461&dept_id=477736&rfi=6)
Lottery terminals at Belmont?
By Jeff Lipton

Residents and community leaders in Elmont say the odds are increasing that video lottery terminals - once thought to be a long shot - will soon be up and running at Belmont Park, spurring new development that will help revitalize their neighborhood and boost local schools.

… "The assemblyman told the governor that Belmont wants a seat at the table, and the governor agreed," said Scott Cushing, a spokesman for Alfano. "Governor Spitzer told the assemblyman, 'You're right, I am going to go with VLTs [at Belmont].' This is a tremendous step forward in the process."

… Cushing said that when Spitzer spoke to Alfano in September, he said he would keep an open mind about VLTs at Belmont. The governor has recently been making statements that would indicate he would now support installation of the terminals, Cushing added.

… "We believe it will help stoke economic revitalization of the area," said Cushing. "First of all, it will bring more people to Belmont racetrack." He added that larger attendance at the racetrack because of the VLTs, which would be operational year-round, would encourage the construction of restaurants and possibly even a hotel. "The governor is now on board with this whole process," said Cushing.

… Even if Spitzer approves the VLTs at Belmont, the lack of support from state Assembly Speaker Sheldon Silver will remain a major obstacle. "He believes the VLTs should only be limited to Aqueduct as per the agreement," said Dan Weiller, a spokesman for Silver.

[the little guy]

Bruno is pretty nervy for a guy with absolutely no coherent or sensible plan for the franchise whatsoever. I hope he hasn't botched other important state situations as badly as he has fouled up this one.

[Indulto]

http://www.saratogian.com/site/news.cfm?newsid=19071264&BRD=1169&PAG=461&dept_id=602469&rfi=6 (http://www.saratogian.com/site/news.cfm?newsid=19071264&BRD=1169&PAG=461&dept_id=602469&rfi=6)
Keehn urges racing ruling
By TED REINERT

... Mayor Valerie Keehn sent an open letter about the future of horse racing to state government leaders Thursday, raising the specter of a Spa City in peril of financial disaster if the franchise question is not answered soon.

… Keehn said the area could lose 36,000 full-time horse related jobs and $2.4 billion in goods and services. She noted that the city would lose hotel tax, sales tax, and track parking revenues as well as admissions tax and OTB revenues.

… In an interview, Keehn said … she thanked Bruno's office for advocating for property taxes on the tracks, which could create a significant budget shortfall if lost.

… Keehn's time in office runs out the same day as NYRA's franchise, as Republican Scott Johnson defeated her in city elections earlier this month.

... Kris Thompson, spokesman for Sen. Bruno, said the Senate has returned to Albany on three separate occasions in the past summer to deal with racing but the governor and the assembly had failed to prioritize the issue. He said the Senate had initiated most of the contact for negotiations to try to get a result that "will preserve Saratoga as a premiere racing destination." …http://www.saratogian.com/site/news.cfm?newsid=19071305&BRD=1169&PAG=461&dept_id=602469&rfi=6 (http://www.saratogian.com/site/news.cfm?newsid=19071305&BRD=1169&PAG=461&dept_id=602469&rfi=6)
Mayor Keehn's letter on racing 11/29/2007

[Indulto]

http://www.timesunion.com/AspStories/story.asp?storyID=643216&category=OPINION&newsdate=11/30/2007 (http://www.timesunion.com/AspStories/story.asp?storyID=643216&category=OPINION&newsdate=11/30/2007)
At finish line, NYRA looks like winner, promises left in dust
By FRED LeBRUN

It looks like the New York Racing Association is the winner of the state's thoroughbred racing sweepstakes after all.

According to a source familiar with closed-door negotiations between Governor Spitzer's office and the state Senate and Assembly, a deal is firming up that will extend the franchise NYRA has held since 1955 for another 30 years, as the governor has strongly advocated.

Senate Majority Leader Joe Bruno has been a strong critic of that plan. To appease Bruno, NYRA will get an entirely new and restructured board of directors as well as a new business model that allows the franchise holder to stay out of the red.

… However, Assembly Speaker Shelly Silver has been adamant all along that there be no VLTs at Belmont, and that appears to prevail. Still up in the air is which of several bidders will get the theoretically lucrative gambling portion of the operation at Aqueduct, although tentatively it now appears NYRA will have a say in the choice.

… Joe Bruno has publicly stated an agreement saving the tracks from going dark in 31 days could be announced as early as next week. …

… earlier than that is important for the horsemen.

… the most logical and appropriate choice has been made in awarding the newly revamped and sanitized NYRA the franchise. They have the experience in running quality horse racing. A new board, new rules and increased oversight for NYRA are also appropriate, given the organization's checkered past.

… What's to boo about is simple enough. …

… These have been among the most secretive deliberations in modern Albany history, and that is saying a great deal. It's been a mockery of a public process. …

[the little guy]

The new board of directors was pretty much always a given. I guess, ultimately, there was ( shockingly ) no public support for Bruno's outlandish behavoir.

[Indulto]

http://paulmoranattheraces.blogspot.com/2007/11/all-over-but-voting.html (http://paulmoranattheraces.blogspot.com/2007/11/all-over-but-voting.html)
All over but the voting?
… The board of trustees will be restructured, NYRA will abandon its ownership claim to the properties on which it does business and oversight provisions will be put in place. NYRA’s tax and bankruptcy problems appear to be fast-tracked toward resolution and an operator will be named for the casino at Aqueduct. There is reasonable speculation that Harrah’s will be named to manage the VLT operation.

To his credit, Senate minority leader Sheldon Silver appears to have prevailed in keeping Belmont Park free of VLTs, a victory for taste, dignity and decorum. This will also quell the nonsense that has prevailed among the citizens of the surrounding communities and the politicians who pretend to represent them, all of whom it seems want a piece of the action. Sorry, there will be no action. …I doubt Moran's editor when he was at Newsday would have permitted the last two sentences above. ;)

According to LeBrun, Moran, and tlg, it's a lock. I think I'll wait until the "Fat Lady sings." :D

[Indulto]

http://www.drf.com/news/article/90721.html (http://www.drf.com/news/article/90721.html)
N.Y. deal could hinge on last-minute politics
By MATT HEGARTY

… In some versions of Bruno's plan being discussed recently, the commission would also have the power to negotiate simulcasting fees, concessions, and bet-processing contracts, providing an ongoing means for business interests to lobby government for favorable deals.

The ability of the commission to control NYRA's simulcast signal - which generates approximately $130 million a year in revenue - could have significant ramifications for the racing industry. The rights to NYRA's in-home signal is currently held by Television Games Network, but that contract expires at the end of this year. TVG's largest rival, TrackNet - a partnership between Churchill Downs Inc. and Magna Entertainment Corp. that buys and sells simulcasting signals - is aggressively seeking the NYRA rights, which are the most valuable in the country. If the commission had control of the signal, companies looking to obtain the rights would bypass the corporate negotiating table for the world of politics.

A senate aide who spoke on the condition of anonymity said that putting the simulcasting rights in the hands of the government made sense, although the commission would attempt to find a company to market the rights.

"One of the reasons that NYRA is in bankruptcy is because they undersold that signal," the aide said. "You want to find someone who does this professionally, who knows how to do this. So you'd contract that out." …Is Bruno entangled in TrackNet's tentacles?

[aaron]

I don't see how anyone can argue about NYRA underselling their product. I juat wonder if its too late to sell the rights to the product at a price that would be considered appropriate.

[Indulto]

I don't see how anyone can argue about NYRA underselling their product. I juat wonder if its too late to sell the rights to the product at a price that would be considered appropriate.A2,
Apparently there are some who think the product still has value:

http://www.timesunion.com/AspStories/story.asp?storyID=643467&category=REGION&newsdate=12/1/2007 (http://www.timesunion.com/AspStories/story.asp?storyID=643467&category=REGION&newsdate=12/1/2007)
OTB puts bet on Web wagers
State board OKs Capital Region chain's entry into Internet gambling
By CAROL DeMAR

… Earlier this year, Connery told the corporation's board of directors he expects Internet betting to increase the handle by $10 million a year. On Friday, he called that figure very conservative.

"No question, it's going to have a major effect on Capital OTB," Connery said. "We now join New York City (OTB) and NYRA on the Internet. Some time ago, we got permission, along with NYRA, to do cash rewards, and we are going to be allowed to do that with the Internet."

… But the racing board denied OTB's request to provide certain privileges to VIP bettors.

The board found "vagueness in the language in OTB's internal controls as it relates to VIP Internet account wagering," board spokesman Dan Toomey said.

… V Commerce, Australian company based in Boston, will operate the program. OTB officials have said a vendor usually takes an annual fee of 3 percent to 3.5 percent of the Internet handle. V Commerce also provides the voice on phone-a-bet. …That's 3.5% that's not going to NYRA or state/local government(s). Plus they're trying to give cash rewards as well.

Considering the OTB surcharge on winnings, what advantage(s) would an OTB internet account provide over a NYRA account to a New York State resident?

Anybody have any data re: number of people betting over the internet through NYCOTB vs NYRA?

[aaron]

I don't believe NYC otb charges the surcharge on internet wagers.

[Spendabuck85]

There is no surcharge on Capital OTB phone account winning wagers if you maintain a $300 account balance. I believe this will be the same with Internet wagers since you will be using the same account.

[Indulto]

There is no surcharge on Capital OTB phone account winning wagers if you maintain a $300 account balance. I believe this will be the same with Internet wagers since you will be using the same account.Would you prefer OTB as your vendor for any reason other than you already have an account with them?

[Spendabuck85]

I had a Youbet account through 2005 and switched to Brisbet at 1/1/06 for the free PP's and live video. I've maintained my Capital OTB account (no surcharge - $300 balance) to play the NYRA tracks not offered by Brisbet (now Twinspires).

The free PP's (even on NYRA tracks) offered by Twinspires as long as I make at least one bet with them on the day of the PP's will keep them as my primary account with Capital OTB as backup to cover tracks not currently offered by Twinspires.

[Indulto]

I had a Youbet account through 2005 and switched to Brisbet at 1/1/06 for the free PP's and live video. I've maintained my Capital OTB account (no surcharge - $300 balance) to play the NYRA tracks not offered by Brisbet (now Twinspires).

The free PP's (even on NYRA tracks) offered by Twinspires as long as I make at least one bet with them on the day of the PP's will keep them as my primary account with Capital OTB as backup to cover tracks not currently offered by Twinspires.Thanks for responding. Just to make sure I understand, as a New York state resident, you can use any ADW to play any tracks they offer out-of-state, and in-state other than NYRA tracks? To bet NYRA tracks, however, you need either an OTB or a NYRA account?

[Spendabuck85]

Thanks for responding. Just to make sure I understand, as a New York state resident, you can use any ADW to play any tracks they offer out-of-state, and in-state other than NYRA tracks? To bet NYRA tracks, however, you need either an OTB or a NYRA account?

As a NYS resident I can bet any track offered by an ADW. The reason I can't bet NYRA is the whole Tracknet/TVG issue that all of us are aware of. Prior to that mess I was able to bet NYRA through Brisbet. I could open a TVG account and bet NYRA but it was a personal preference to go with Capital OTB as my secondary ADW since I have had a telephone account with them since the late 1970's.

Also, I would like to thank you for all postings in this thread as this a daily read of mine to see what's happening on this disgusting franchise issue mess. I'm sure that there are many when they see the thread title "franchise award recommendation may come Nov 21st" they don't realize it was 11/21/2006.

One of the local papers (The Daily Gazette -Schenectady, N.Y) had a front page article today titled "Leaders uneasy about racing future" and it primarily focused on NYRA not taking seat reservations for Saratoga 2008, and the mayor of Saratoga predicting disastrous fiscal consequences for the city if the state doesn't resolve the franchise issue by year's end.

[Bobzilla]

I second Spendabuck85's gratitude to Indulto for keeping us serious New York players current on the entire franchise renewal process since this thread was opened, unbelievably over a year ago. It has become part of my morning routine to see if this thread has been updated. Though I'm sensing light at the end of the tunnel in regard to this unbelievable mess, I've learned to approach this subject as pessimistically as possible, and I fervently hope that the light I see isn't a train, with Joe Bruno at the controls tooting his horn no doubt. And to think I used to think he was one of NYRA's best buddies.

Again Indulto, thanks for all the frequent updates.

[Zaf]

Agree , Thanks Indulto ! :ThmbUp:

Z

[Indulto]

S5 and BZ,

It’s gratifying to know there are others here who share my fascination and concern regarding this issue. Ron started the thread with the basic question those of us who follow the story ask every day. PA was patient enough to leave the thread open despite some overly-contentious moments. Looking at the number of views vs. posts and sometimes tracking views during periods of relative inactivity, I get the impression that there are about 30-40 regular observers.

When this is all over, some of us may wish to review the institutional intrigue, ineptitude, and insanity involved that defied imagination. However, some links to articles will become inactive, so I’ve tried to preserve the humor and irony contained in rhetoric from politicians and insights from pundits in accompanying quotes.

Interestingly, when using google to search for related information, I sometimes encounter this thread as a jelsoft(@) archive file which can be displayed as a variable number of pages. Unfortunately, the same search argument combination doesn’t always retrieve the entire archive, but merely an individual post. If anyone knows how to generate such an archive directly, please let me know.

[Indulto]

I appreciate your making me aware of your interest, Zaf.


Apparently some women don't need Capital Offense to get them on-track:

http://poststar.com/wordpress/?p=2598&cat=38 (http://poststar.com/wordpress/?p=2598&cat=38)
We need a plan…NOW
by Drew Kerr… Saratoga Springs Supervisor Joanne Yepsen is crying fowl over the state’s horse racing quagmire and writing the state’s higher ups.

… Yepsen is calling for an “interim plan” to be installed by Dec. 15. Failing that, the NYRA franchise should be extended another year until a new, long-term plan can be put in place, she says.

...“… given the importance of the racing industry to our City, our region, and New York State, we can no longer sit back and simply hope that something will be done to avert what certainly would be a major economic disaster. …”

… “We don’t need any more forums, political mailings or any more hearings on racing. We need a signed agreement. To not come up with an interim agreement by the middle of this month is both dangerous and irresponsible. …”

[Indulto]

http://sev.prnewswire.com/multimedia-online-internet/20071203/NEM03003122007-1.html (http://sev.prnewswire.com/multimedia-online-internet/20071203/NEM03003122007-1.html)
Capital OTB Bets on VeCommerce for Telebet-for-the-Web

… VeCommerce Inc., a speech self- service technology company based in Acton, MA, announced that its new internet wagering solution for Capital District Regional Off Track Betting in Albany, NY, was approved for operation. Capital OTB had awarded VeCommerce Inc. the contract to design, develop, deploy, and support its Telebet-for-the-Web internet wagering solution.

… The VeCommerce-hosted solution is inherently fast and responsive, allowing online customers to place wagers within seconds right up until moments before post time.Based on speculation in another thread regarding horseplayer girth, some "Tele-bettors" may be “Tele-tubbies.” ;)

http://www.nysun.com/article/67361 (http://www.nysun.com/article/67361)
Council Member Pushes To Save OTB
… Council Member David Weprin and the Off-Track Betting union president, Leonard Allen, are pressing the state Legislature to save the gambling association from bankruptcy by renegotiating its contract.

Mr. Weprin said yesterday that the city's OTB, though profitable, is stretched too thin by required payments to racetracks and the state racing association.

He called for a new plan that would tax net revenue rather than gross revenue, eliminating its current operating deficit.

"This will result in less money coming to the state and the city," Mr. Weprin said. "But if they close down, the city and the state will lose all of that revenue."http://www.newsday.com/news/local/newyork/ny-5486130dec03,0,6563874.story (http://www.newsday.com/news/local/newyork/ny-5486130dec03,0,6563874.story)
City, Nassau discussed OTB merger
BY KARLA SCHUSTER

Two weeks before Mayor Michael Bloomberg threatened to shut down the city's financially strapped Off-Track Betting operation when it runs out of money in June, city officials met with Nassau OTB about consolidating services.

City officials insist they are looking to sell New York City Off-Track Betting, but confirmed the Oct. 29 meeting, which included Deputy Mayor Dan Doctoroff and Nassau OTB President Dino Amoroso. The city says Nassau OTB sought the meeting to talk about ways to merge services, but county sources say that the city initiated the discussion.

"Nassau OTB approached the city to discuss a proposal for consolidating services," a mayoral spokeswoman said. "While we are not soliciting bids for NYCOTB, our position has been clear and the ball is now in Albany's court."

… "It's just too hard to formally merge those two operations, especially when one is so much larger than the other," said Bennett Liebman, an Albany Law School professor and racing expert. "I just see some sort of working or operating agreement to share certain services." …http://blog.silive.com/trackside/2007/12/down_to_the_wire.html (http://blog.silive.com/trackside/2007/12/down_to_the_wire.html)
Down to the wire
Posted by Bob Raimonto
… While publicly defending their respective positions, the Spitzer and Bruno camps are said to be privately negotiating a deal.

This clandestine cooperation either will produce an agreement, in which case NYRA will be pleased to still be breathing, even if all aspects of the pact might not be agreeable to its top executives; or the last-ditch bargaining will fail and NYRA's existence will seem in peril, in which case the organization will scurry to court in an effort to block a state takeover of its operations.

As bad as NYRA has been in the past, and we have been a frequent critic, the idea of a government agency taking over the tracks, even temporarily, is unacceptable.

Certainly, it's time for a long-term agreement to be reached and for the fate of this important industry to no longer rest in the hands of men seemingly more interested in feuding than in governing.

[Indulto]

http://www.nydailynews.com/blogs/dailypolitics/2007/12/fiddling-while-nyra-expires.html (http://www.nydailynews.com/blogs/dailypolitics/2007/12/fiddling-while-nyra-expires.html)
Fiddling While NYRA Expires
By Joe Mahoney
… Bruno has actually used the word “wimp” on multiple occasions to describe both the speaker and Senate Minority Leader Malcolm Smith, both of whom the majority leader deems too close to the governor for his taste.

… In response, Silver said: “Sticks and stones may break my bones, but names will never harm me. Joe is frustrated. If he resorts to calling me names, that’s fine. If that’s better than talking about substance, that will reflect on himot me.”

… “What’s wrong with putting VLTs at Belmont?” Bruno asked.

“The stumbling block seems to be the Assembly,” said Bruno, pointing out that at least Spitzer has outlined a broad plan for racing while he said Silver has questioned the urgency of the issue.

Bruno also shot down the notion that a one-year extender could be passed for NYRA, saying such a proposal is not under discussion.

As for why the franchise process is about to be dragged out to the final hour, Bruno said he could only speculate, and volunteered a guess of his own.

“Maybe it’s them jamming me on a personal level,” he said, noting the Sartoga track sits in his district.

He also suggested Silver could be using the delay as “leverage” in order to get pay raises for lawmakers.

… Bruno said he did not think the tracks would go dark on Jan. 1, when NYRA’s franchise will be expired, noting state law would give a special racing oversight committee control over the three tracks until the franchise issue is settled.

Finally, the Senate leader called on the governor to “reconstitute” the NYRA board, noting Spitzer has already obtained letters of resignation from existing board members.

[Indulto]

http://cityroom.blogs.nytimes.com/2007/12/03/the-wimp-factor-in-albany/ (http://cityroom.blogs.nytimes.com/2007/12/03/the-wimp-factor-in-albany/)
The ‘Wimp’ Factor in Albany
By Danny Hakim… The State Senate majority leader, Joseph L. Bruno … held a news conference to chastise Gov. Eliot Spitzer and Assembly Speaker Sheldon Silver for stalling on an agreement over who will run the state’s three thoroughbred tracks when the New York Racing Association’s contract expires at the end of the year. Mr. Bruno is at a disadvantage in the talks, because the Saratoga track is in the heart of his district and thus the issue is a far higher priority for him than the other two men who run the state.

That’s a problem. Start with Mr. Silver. Mr. Bruno is angry at Mr. Silver, the Legislature’s top Democrat, because he feels the Assembly speaker has grown far too close to the governor.

“He says I called him a wimp. And I did!” Mr. Bruno said, eliciting laughter from the press corps. “You can’t be sensitive in this business. O.K.? Step up, show leadership, we can pass bills and send them to the executive.”

… “They spend all their times concocting devious schemes about a nice guy like me,” he said of the Spitzer administration. …Was that the “New York Times” or “Mad Magazine?”

http://www.fox23news.com/news/local/story.aspx?content_id=1a5911c1-78d6-4e5c-bbe0-6a094473f6d4 (http://www.fox23news.com/news/local/story.aspx?content_id=1a5911c1-78d6-4e5c-bbe0-6a094473f6d4)
State Republican's Plan for Racing… Senator Bruno says, "We can live with almost anything. This isn't about people, this is about a plan that can work on behalf of 19 million New Yorkers, we could live with whatever makes sense."

Bruno also says the assembly is holding up any kind of agreement. The senate is coming back to Albany this month for a special session. The racing franchise issue will be front and center.What’s that line about “lips moving?”

http://polhudson.lohudblogs.com/2007/12/03/bruno-were-at-the-finish-line/ (http://polhudson.lohudblogs.com/2007/12/03/bruno-were-at-the-finish-line/)
Bruno: We’re At the Finish Line

… Bruno, the tough-talking Rensselaer County Republican, put the blame on Spitzer and Silver, both Democrats.

… Here’s Spitzer’s office’s reaction:

… The Governor’s Office is engaged in active discussions with all parties to seek to resolve any differences the Senate has with the approach already endorsed by the Executive, the Assembly and NYRA.”http://news.bloodhorse.com/viewstory.asp?id=42309 (http://news.bloodhorse.com/viewstory.asp?id=42309)
Senate Reviews NYRA's Opportunities
by Tom Precious

The Republican-led Senate is open to letting a “reconstituted’’ New York Racing Association continue running the state’s three Thoroughbred racetracks, but wants to open up other business opportunities – including NYRA’s simulcasting and tote operations – to outside interests.

… Several months ago, Bruno floated an idea of having different operators for the three tracks now run by NYRA. He now appears to have backed off that idea with his negotiators telling officials that NYRA should give up its control to enter into simulcasting arrangements and other aspects of the business, including tote and marketing operations.

Allies of NYRA in Albany, however, say such an idea would be unworkable by taking major decision-making – and likely money – out of NYRA’s hands for such lucrative components such as simulcasting. These allies also wondered if Bruno is trying to push some entities – such as Magna Entertainment for the simulcasting operation – as part of his plan. Sources close to Bruno insisted the lawmaker has no such players in mind, and that the choice would be up to a new state authority based on bids.

… The sides are still also apart on a key issue: a casino at Belmont. Bruno, with Spitzer’s tacit backing, wants a casino there, while Silver has said his fellow Assembly Democrats will not approve another gambling site so close to one already approved – though not yet opened – at Aqueduct.Is it possible that only the industry press realizes the significance of the simulcasting issue? Hopefully the DRF, Times Union, and Saratogian will further explore Bruno's interest in simulcasting and tote companies.

[Indulto]

The following link also has video from Bruno’s press conference:

http://www.capitalnews9.com/content/headlines/?ArID=226419&SecID=33 (http://www.capitalnews9.com/content/headlines/?ArID=226419&SecID=33)
Time ticking on racing franchise
By: Ken Jubie

… "More rhetoric, particularly of a personal nature like that, does not help the process. It would have been very helpful if Senator Bruno and the Governor were talking last month, or last week," said Assembly Majority Leader, Ron Canestrari.

… "Now is the time to activate. Energize. Not lay down and take a rest and think about oats and hay like some people are apparently doing," Bruno said.

… "We've been supportive of the governor's plan. I think it's balanced and reasonable and if the senate comes along and we tinker it in this plan in some way, and we all compromise, we can get this done in the next two or three weeks," Canestrari said. …http://www.nypost.com/seven/12042007/news/regionalnews/nyra_load_of_horse_____583878.htm (http://www.nypost.com/seven/12042007/news/regionalnews/nyra_load_of_horse_____583878.htm)
NYRA LOAD OF HORSE $#!@
By KENNETH LOVETT Post Correspondent
… Gov. Spitzer (http://www.nypost.com/news/p/spitzer_eliot/spitzer_eliot.htm)'s choice to run New York's thoroughbred racing tracks for the next three decades has stiffed the state of nearly $11 million in fees over two years, The Post has learned.

A bombshell audit being prepared by the state Comptroller's Office found that the scandal-plagued and bankrupt New York Racing Association, … , uses questionable expenses to short-change the state, a knowledgeable source told The Post.

Word of the pending audit results comes as Spitzer and lawmakers continue to battle over the fate of the state's racing franchise …

… "Basically, [the NYRA's] books have been mismanaged and are out of whack."

Auditors looked at the franchise fees the NYRA was supposed to pay in 2004 and 2005 and found the racing association did not properly follow the formula to determine just how much it owes the state, the source said. …http://www.troyrecord.com/site/news.cfm?newsid=19081272&BRD=1170&PAG=461&dept_id=7021&rfi=6 (http://www.troyrecord.com/site/news.cfm?newsid=19081272&BRD=1170&PAG=461&dept_id=7021&rfi=6)

Saratoga Springs bracing for the worst
By: Jim Kinney

… Assemblyman Roy McDonald said Monday he's been told to be available in Albany next week where he'll be asked to vote on a new structure for horse racing in New York state, a deal now being negotiated by the state's top legislative leaders.

… The area's most powerful legislator said Monday that McDonald may be a little to optimistic. State Sen. Joseph Bruno, R-Brunswick, told a news conference that he's last met with Gov. Eliot Spitzer's office Thursday. The next meeting isn't scheduled until this coming Thursday.

Even McDonald, who remains optimistic, said the racing franchise decision has become a high-stakes "game of chicken" between the administrations and Bruno.

… "What's worse than three men in a room working on a deal in secret," Yepsen, a recently re-elected Democrat, said referring to the state's much-maligned budget process. "It's three men in three different rooms not talking to each other at all." …http://www.timesunion.com/AspStories/story.asp?storyID=644206&category=REGION&newsdate=12/4/2007 (http://www.timesunion.com/AspStories/story.asp?storyID=644206&category=REGION&newsdate=12/4/2007)
City squeezed by racing standoff
Saratoga Springs officials say track dispute already causing financial pain

… The inability of Gov. Eliot Spitzer and Sen. Joseph L. Bruno to hammer out a deal on who will direct racing's future in the state is already hurting the city's economy and could cripple it in the future, city officials said Monday in the city's Visitors Center.

… Bruno, in a hastily called news conference Monday afternoon, revealed he is offering to compromise with Spitzer, letting NYRA continue running the tracks as long as some other conditions were met, including the resignation of NYRA's board and creation of some sort of oversight body to be responsible for racing, gaming and OTB operations.

Bruno said he is "frustrated" and "exasperated" that talks with Spitzer's staff have failed to resolve differences the Senate has with Spitzer's plan to give NYRA a 30-year extension.

… Bruno claimed the resignation letters from NYRA's board are on Spitzer's desk awaiting action, but Steven Duncker, NYRA's chairman, said trustees have not submitted their resignations. The deal NYRA and Spitzer worked out does call for shrinking the size of the racing association's board.

Bruno said if no resolution occurs, a state oversight board already in place will take over the three tracks even though NYRA is threatening to sue to prove it owns the tracks. "People want to litigate," Bruno said.

… Horsemen in the state are already looking at other tracks to keep their horses, and Kentucky is stepping up its breeding incentives, Yepsen said. …

[Southieboy]

ALBANY - Gov. Spitzer's choice to run New York's thoroughbred racing tracks for the next three decades has stiffed the state of nearly $11 million in fees over two years, The Post has learned.

A bombshell audit being prepared by the state Comptroller's Office found that the scandal-plagued and bankrupt New York Racing Association, which currently operates the tracks, uses questionable expenses to short-change the state, a knowledgeable source told The Post.

"It's not good," the source said of the audit. "Basically, [the NYRA's] books have been mismanaged and are out of whack."


http://www.nypost.com/seven/12042007/news/regionalnews/nyra_load_of_horse_____583878.htm

[Indulto]

http://www.saratogian.com/site/news.cfm?newsid=19084594&BRD=1169&PAG=461&dept_id=602469&rfi=6 (http://www.saratogian.com/site/news.cfm?newsid=19084594&BRD=1169&PAG=461&dept_id=602469&rfi=6)
NYRA, state at odds
By PAUL POST

SARATOGA SPRINGS - New York Racing Association has a history of underestimating franchise fees, which are also the subject of a current state audit, officials said Tuesday.

But NYRA President and CEO Charles Hayward says the association hasn't shortchanged anyone and that the case boils down to a dispute over accounting principles.

… Hayward said NYRA uses taxed-based expenses when calculating franchise fees. The state has called for actual expenses, in line with Generally Accepted Accounting Principles.

"We've gotten legal support from counsel, we've gotten accounting firm support," Hayward said. "We just think that's the way to do it. So do our lawyers. So do our accountants. This has been an issue for almost 10 years."

While recommending that NYRA change practices, the state has never ordered it to, Hayward said.

"We've had a fundamental disagreement over how the calculation's arrived at," he said.

… "The governor's proposal needs to be worked on," said Gary Pretlow, D-Yonkers, chairman of the Assembly's Racing and Wagering Committee. The contract is too long, the state shouldn't absorb NYRA's huge debt and racetrack property taxes should be guaranteed to local municipalities, he said.

… "Whatever the final deal is, it has to be a better deal for taxpayers," said Scott Reif, a spokesman for Senate Majority Leader Joseph L. Bruno, R-Brunswick.

… "There needs to be more urgency from the governor's office," he said. "We need to be meeting more than once a week. We need to be meeting every day. This is our top priority now."

… The IRS had said that NYRA owed it $1.6 billion, but has since set a $25 million cap on the claim. "I wouldn't be surprised with regard to anything that comes up with NYRA," Pretlow said.http://www.newsday.com/news/local/state/ny-strace045487123dec04,0,3056071.story (http://www.newsday.com/news/local/state/ny-strace045487123dec04,0,3056071.story)
Bruno pushes for talks over racetrack operator
BY JAMES T. MADORE

… Bruno, the state's top Republican and a racing fan, accused Democrat Spitzer of failing to pressure Assembly Speaker Sheldon Silver (D-Manhattan) to drop his opposition to installing slot-like gambling machines at Belmont.

… While describing Spitzer's plan as "a disaster," Bruno said he supported some elements, such as a new NYRA board with more state representatives and bailing NYRA out of bankruptcy.

Still, Bruno touted his plan for a public authority to oversee racing and involvement by NYRA's rivals. "I believe we can get together with the governor ... in a plan to move forward. The stumbling block seems to be the Assembly."

Dan Weiller, a spokesman for Silver, said the speaker remained opposed to video lottery terminals at Belmont but was committed to resolving the racing issue before Dec. 31.

… Bruno said yesterday that he hadn't talked to Spitzer about substantive issues in "three months plus."

[Indulto]

http://www.horseraceinsider.com/John-Pricci/ (http://www.horseraceinsider.com/John-Pricci/)
Time for Albany Politicians to Fix the NYRA Mess and Go Away
by John Pricci

… Now it is said that Bruno might allow NYRA to conduct racing with a reconstituted Board of Directors but …

… The sticking point is that a newly created government agency would make non-racing decisions including third party negotiations of simulcast and tote contracts and the execution of marketing initiatives.

I know that’s what I would want at my track: Political appointees making racing-business decisions then tell me how to market that product. And everyone thought the old NYRA was arrogant.

… Silver is no better than his Senate rival. He said on a radio show recently that thoroughbred racing is not a priority of the State Assembly.

Good of our elected representatives to take little interest in an industry that generates $2.4 billion in this state.

… What Bruno is not saying now is that he has concerns that the state law calling for an oversight committee with its Republican majority would be unworkable. The NYRA would have to provide the keys to the building. NYRA would not, of course, because they know--as Spitzer fears--that their land claim has teeth.

… No VLTs for Belmont, only at Aqueduct, because, he [Silver] said, “the Assembly is against an extension of gambling in the state.”

Oh? And it would have nothing to do with the fact Aqueduct and Belmont are seven miles apart, and that Aqueduct lives in New York City’s Queens County? Could you be any more transparent, Mr. Silver?http://www.nypost.com/seven/12052007/news/regionalnews/all_bets_are_off_for_otb_71101.htm (http://www.nypost.com/seven/12052007/news/regionalnews/all_bets_are_off_for_otb_71101.htm)
ALL BETS ARE OFF FOR OTB
By DAVID SEIFMAN

… Mayor Bloomberg's threat to shut OTB if Albany doesn't overhaul a one-sided revenue-sharing formula isn't a bluff, a top mayoral aide declared yesterday.

In a rare appearance before the City Council, Deputy Mayor Dan Doctoroff said the city's Off-Track-Betting Corp. has been insolvent for two years and will need an infusion of $358,000 to keep operating past June 30.

"There are no more tricks in the bag once we reach that point," he warned. …

[Indulto]

http://www.thoroughbredtimes.com/national-news/2007/December/05/NYRA-accounting-practices-called-into-question.aspx (http://www.thoroughbredtimes.com/national-news/2007/December/05/NYRA-accounting-practices-called-into-question.aspx)
NYRA’s accounting practices called into question
by Paul Post

… Senate and executive branch staff members are expected to meet on Thursday to work on the franchise deal.

NYRA President Charles Hayward …
… compared the [audit] 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.

… Senate Republicans have called for a new public authority to run racing, with gaming at Belmont Park and Aqueduct.

… Gary Pretlow (D-Yonkers) chairs the state Assembly’s Racing and Wagering Committee. He supports the Belmont concept but dislikes the GOP’s proposed racing structure.

“We’re trying to get away from authorities,” he said. “They become horrendous monsters. They just have tentacles.”Why does Pretlow, whose district includes the underperforming slots at Yonkers Raceway, endorse the despoiling of both racetracks only to have them compete for the same local customer base?

I sometimes get the impression that Post, who covers the franchise renewal proceedings for the "Saratogian" as well as the "Thoroughbred Times," has a regional bias that gets edited out by the latter. I wonder how he decides which tidbits go where?

[Indulto]

http://www.nytimes.com/2007/12/06/nyregion/06nyra.html?ref=nyregion (http://www.nytimes.com/2007/12/06/nyregion/06nyra.html?ref=nyregion)
Lawyer Associated With Racing Association Is Subpoenaed
By NICHOLAS CONFESSORE

… The lawyer, Neil V. Getnick, was the court-appointed monitor for the New York Racing Association in 2004 and 2005. This year, the association hired him as an independent inspector-general, a move criticized by Senate Republicans in hearings in September.

Mr. Getnick said that the State Commission of Investigation wanted him to testify about the association’s process for awarding contracts and, according to the subpoena he received, about “other matters related thereto or arising therefrom.”

… Mr. Bruno on Wednesday called for a public meeting between the governor and lawmakers to resolve the franchise decision by the end of the year.

… Mr. Getnick said that he received a phone call from a New York Post reporter seeking comment just an hour after receiving the subpoena. The commission is legally required to conduct all its investigations in secret. A spokesman for the commission declined to comment on Mr. Getnick’s subpoena.

… a spokesman for Mr. Bruno, said the commission was “doing their own thing” and that the senator’s call for a public meeting was “no different from what the senator has been doing for days and weeks and really months, in terms of getting a result on New York racing.”
http://www.nypost.com/seven/12062007/news/regionalnews/nyra_probe_heats_up_471067.htm (http://www.nypost.com/seven/12062007/news/regionalnews/nyra_probe_heats_up_471067.htm)
NYRA PROBE HEATS UP
By KENNETH LOVETT and FREDRIC U. DICKER

… The corruption-fighting State Investigations Commission has issued subpoenas as part of its widening probe into Gov. Spitzer's push to keep the troubled New York Racing Association operating the state's three thoroughbred racetracks, sources told The Post.

At least one subpoena compelling testimony and records went to high-profile lawyer Neil Getnick and possibly to his firm, Getnick & Getnick, sources said.

… Getnick, whom Senate Republicans accuse of having close ties to Spitzer, wouldn't confirm or deny whether he or his firm were subpoenaed, but told The Post, "I would welcome the opportunity to testify before the State Investigations Commission."

SIC spokesman Steven Greenberg yesterday said the agency does not confirm or deny investigations.The Times article appeared before the Post article even though the Post contacted Getnick first. Did Getnick initiate the Times interview?

[Indulto]

http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--racingfranchise1206dec06,0,2996423.story (http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--racingfranchise1206dec06,0,2996423.story)
NYRA's law firm subpoenaed
By MICHAEL GORMLEY

… The subpoena apparently stems from a recent hearing by the state Senate's racing committee, in which the no-bid contract to Getnick & Getnick as integrity counsel was criticized. The contract is worth $125,000 a month.

… "I regret that I was not afforded the opportunity to appear before the state Senate racing committee when it held its NYRA related hearing earlier this fall," Getnick said. "I would welcome the opportunity to testify before the state investigation commission. The facts are straightforward and should be heard by the public."

"We stand in full support of Neil and his firm," said Charles Hayward of NYRA. "We're thrilled to be associated with them."

Asked if he thought the subpoena was timed to hurt NYRA's chances at renewing its franchise, Hayward said: "I think the investigation is not fact based."

… The closed-door negotiations, however, have grown to include several other measures including a pay raise from lawmakers and state judges, a senior citizen tax break, and a $900 million capital budget that would be directed to projects back in lawmakers' districts as a kind of pork-barrel spending.http://www.timesunion.com/AspStories/story.asp?storyID=644919 (http://www.timesunion.com/AspStories/story.asp?storyID=644919)
NYRA consultant target of subpoena
No-bid contract pays "integrity counsel" $125,000 per month
By JAMES M. ODATO

… The commission's chief counsel, Anthony Cartusciello, said he could not discuss matters before the panel, a six-person body dominated by appointees of former Gov. George Pataki and Senate Majority Leader Joseph L. Bruno.

The commission received an anonymous letter claiming Getnick conspired with Gov. Eliot Spitzer's office to subvert the process for awarding the racing franchise for operations at Saratoga, Aqueduct and Belmont Park thoroughbred tracks and steer it to NYRA and Excelsior Racing Associates.

… NYRA Chairman Steven Duncker has defended the five-year contract, saying Getnick is uniquely qualified, having worked as NYRA's monitor for 18 months, and that racing law allows some exemptions from competitive bidding.

He has called the letter "a pack of lies."

Duncker would not comment further Wednesday, but said NYRA has not been subpoenaed.http://www.newsday.com/news/local/state/ny-strace065489485dec06,0,3182559.story (http://www.newsday.com/news/local/state/ny-strace065489485dec06,0,3182559.story)
Bruno wants Spitzer to call horse-racing meeting
By Melissa Mansfield

… "There is no issue more important at this time than the awarding of the state's horse racing franchise, which expires at the end of the year," he said, requesting the meeting of Spitzer, Assembly Speaker Sheldon Silver and himself to take place on Monday.

Silver spokesman Dan Weiller said earlier this week that the speaker wanted the issue resolved before the Dec. 31 deadline.

"Given the issue's importance to the local communities surrounding Saratoga, Aqueduct and Belmont, to the 40,000 people whose jobs are affected by the racing industry, and to all 19 million New Yorkers, I am committed to meeting every day so that we can resolve any differences that exist," said Bruno, a Republican who represents Saratoga.

[Indulto]

Comment (#21) by poster Paul Stone in response to the following blog entry by John Pricci: A Viable Candidate for Racing Commissioner
http://www.horseraceinsider.com/blo...ioner/#comments… May I interrupt this thread to remind everyone that there is a Franchise to save. Since the local NYC papers ignore racing( it might as well be Beach Volleyball), I try and read the Albany Times-Union for my franchise news. There is an eighteen minute video on the Capitol Confidential blog that everyone concerned with NY racing should watch. Apparently, Senator Bruno was bored with the back-alley negotiations going on and he felt the need to expound on his views of the world, including what should happen with the Franchise. ...Here it is:

Bruno Worries About The Future Of Horse Racing (http://blogs.timesunion.com/capitol/?p=5904)

[Indulto]

http://www.drf.com/news/article/90865.html (http://www.drf.com/news/article/90865.html)
NYRA deal under discussion
By MATT HEGARTY

… Paul Larabee, a spokesman for Spitzer, said that talks occurred this week between Spitzer's office and representatives of the Senate and the Assembly over a deal to extend NYRA's franchise, …

… "All of the parties are aware of the urgency of finding a resolution, and there have been ongoing conversations," Larabee said. "As long as the parties continue to talk, there is hope for a resolution."http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--racingfranchise1207dec07,0,3455177.story (http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--racingfranchise1207dec07,0,3455177.story)
Audit: NYRA shorted state $54 million in franchise fees
By MICHAEL GORMLEY

… auditors claimed it failed to pay the state $54 million in franchise fees since 2000.

The audit by state Comptroller Thomas DiNapoli found NYRA shorted the fees by $10.9 million in 2004-2005 alone. NYRA pays the state for the right to run the Aqueduct, Belmont and Saratoga race tracks under the franchise. The fee is based on a calculation of revenue after expenses.

… NYRA President Charles Hayward said the criticism is unwarranted, but he supports DiNapoli if he is calling for a review of how the franchise fee is calculated.

… "If the comptroller is asking for clarification, then we applaud it. But we think we're doing it right," Hayward said.

… "The comptroller's audit is another reason why we can't support the governor's plan to continue the status quo with NYRA," said Scott Reif, … http://www.zwire.com/site/news.cfm?newsid=19094555&BRD=1601&PAG=461&dept_id=477736&rfi=6 (http://www.zwire.com/site/news.cfm?newsid=19094555&BRD=1601&PAG=461&dept_id=477736&rfi=6)
Heading for the homestretch on VLTs
By Jeff Lipton December 07, 2007

Gov. Eliot Spitzer, who has not publicly supported video lottery terminals at Belmont Park, appears to be softening his stance toward a proposal to install the slot machine-like gambling devices at the Elmont racetrack.

… “The governor said he has absolutely no problem with VLTs at Belmont,” Cushing said. “It’s wonderful news that the governor is listening to the community members, and this will mean more progress in revitalizing Elmont” and the areas around Belmont. Spitzer, Cushing said, is expected to try to persuade Assembly members to get behind the plan.

The VLTs are a major draw, and leaders in Elmont expressed concern that since Belmont and Aqueduct are just 7 miles apart, Belmont will lose patrons to the Queens racetrack. Belmont once regularly drew upward of 20,000 spectators, but now attracts around 6,000, said Pat Nicolosi, an Elmont resident for 40 years.

… “The NYRA owes over $20 million in back taxes, which affected dollars meant for our schools,” he continued. “The track has an obligation to Long Islanders to maintain its facility so it does not continue to be an eyesore. We are asking the state for the same deal afforded to New York City and Yonkers. …

[PaceAdvantage]

What did I miss? How will Belmont lose patrons to Aqueduct when the two tracks don't race at the same time? Huh?

[Indulto]

What did I miss? How will Belmont lose patrons to Aqueduct when the two tracks don't race at the same time? Huh?I did a double take also, but I assume they're talking about slots players who would go to BEL instead if they had machines as well. This viewpoint ignores the fact that both locations would "serve" the same geographic area thus dupliocating the overhead and reducing total revenue generated just like the OTBs.

[PaceAdvantage]

I did a double take also, but I assume they're talking about slots players who would go to BEL instead if they had machines as well. This viewpoint ignores the fact that both locations would "serve" the same geographic area thus dupliocating the overhead and reducing total revenue generated just like the OTBs.Do you ever get the feeling that the folks "in charge" of this grand plan didn't quite think things through?

[Indulto]

http://news.bloodhorse.com/viewstory.asp?id=42376
Audit: NYRA Underpaid State
by Tom Precious

… NYRA pays a franchise fee to the state based on its adjusted net income, with the exception of $2 million that goes for purses and stakes. If the net income is below $2 million, the balance goes entirely to purses and stakes and the state gets no franchise fee.

… Auditors said the way NYRA calculates its expenses has provided its trustees with an inaccurate “picture of its financial situation when they voted on its budget,’’ the comptroller’s office said.

… NYRA disputed the comptroller’s findings. In a written response included in the audit, NYRA president Charles Hayward said the law was followed in determining the franchise fee payment. “We must respectfully submit that no additional funds are owed to the state of New York,’’ Hayward said.

… He noted the comptroller’s own audit showed a decline in expenses by NYRA over the past several years. He said NYRA’s entire business climate has changed: 100% of wagers being on-track in 1955 to just 12% today. And he added that half of its costs are fixed for such expenses as health insurance, pensions and utility expenses. ...http://www.newsday.com/news/local/nassau/ny-linyra1208,0,5345251.story (http://www.newsday.com/news/local/nassau/ny-linyra1208,0,5345251.story)
Audit: Track operator owes state millions in fees
BY BART JONES

.. "NYRA is legally required to pay taxpayers a reasonable amount in exchange for operating the state's thoroughbred racetracks. But over and over again our auditors have found that NYRA has continually misinterpreted the mathematical formula for calculating the franchise fee and shortchanged taxpayers," DiNapoli said.

... But NYRA head Charles Hayward said the issue is that NYRA believes it should calculate its franchise fees one way -- tax-based -- while the comptroller believes the calculation should be done another way, known as general accounting practices.
…
Hayward said he agreed with one recommendation in DiNapoli's report -- that the state come up with clearer guidelines on the franchise fee when it awards a new franchise for thoroughbred horse racing.

… In his report, DiNapoli also made other recommendations, including passing legislation that would confirm the comptroller's "broad audit authority" and its right to "examine all financial and operational matters associated with racing and gaming activities."http://www.theithacajournal.com/apps/pbcs.dll/article?AID=/20071208/NEWS01/712080356/1002/NEWS01 (http://www.theithacajournal.com/apps/pbcs.dll/article?AID=/20071208/NEWS01/712080356/1002/NEWS01)
Race tracks seek bigger slice of gambling profits
By Joseph Spector
Albany bureau

… Even Yonkers Raceway, the state's largest video-lottery-terminal parlor, has failed to meet expectations, despite its proximity to New York City, analysts said.

“In some areas, especially Yonkers, the win per-day per-machine is much lower than anyone could have anticipated,” said Bennett Liebman, head of the Racing and Wagering Law Program at Albany Law School.

“It's just a major disappointment.”

The best-performing facilities have been Finger Lakes Gaming and Racetrack in Ontario County and Saratoga Gaming and Raceway, ...

… Officials at the eight tracks with video-lottery terminals are urging the Legislature that as they deal with NYRA, they also should boost the tracks' share of revenue.

Under current state law, 92 percent of the money put into the machines goes back to players as winnings. The remaining 8 percent is divided between the tracks and the state. The tracks get about 32 percent of that and about 8 percent for marketing. The rest — about 60 percent — goes to the state.

The state Senate passed a bill this year that would make it closer to a 50-50 split between the tracks and the state. Yet the Assembly has yet to act or agree to come back and deal with NYRA.

… Assemblyman Gary Pretlow, D-Mount Vernon, Westchester County, who heads the Assembly's racing committee, said he favors the new formula. A boost to the tracks would mean more amenities there and thus more players, which would result in bigger profits for the state, he said.

… Video lottery terminals in other states, according to gaming officials, have averaged around $250 per device a day in net profit — the benchmark figure that records how much money is left in each machine after payouts to players.

Since April, the revenue per machine per day in New York has averaged $168 a day, according to the state Lottery. Saratoga has averaged $234 a day per machine since April, while Finger Lakes, the state's only privately owned thoroughbred track, is at $224; Yonkers is at $209. Trailing the pack is Monticello at $121. ...

[Indulto]

http://www.troyrecord.com/WebApp/appmanager/JRC/BigDaily?_nfpb=true&_pageLabel=pg_article&r21.content=%2FMAIN_REP%2FArticle%2F2007%2F12%2F07 %2F1228950 (http://www.troyrecord.com/WebApp/appmanager/JRC/BigDaily?_nfpb=true&_pageLabel=pg_article&r21.content=%2FMAIN_REP%2FArticle%2F2007%2F12%2F07 %2F1228950)
Is Joe feeling the heat?
By Nick Kling

… New York Senate Majority Leader Joseph Bruno must be feeling the heat from his constituents and the local media.

… In recent weeks it has been apparent that public opinion has been settling on Bruno as the principal cause of delay in resolution of this problem. New York Thoroughbred horsemen, Saratoga Springs public officials, and most commentators have been pointing the finger directly at the Senator. As a result, Bruno and his staff have tried to turn the focus toward Spitzer.

… Don’t make the mistake of assuming that if the leadership comes to a decision about the franchise next week, the issue is resolved.

… Should the Bruno, Silver, Spitzer triumvirate come up with a plan unacceptable to NYRA, there will be almost no time left to work out the details before Dec. 31.

NYRA can press the claim that it owns the real property connected with the racetracks. NYRA holds the cards as long as the land claim remains in their hands and in play. However, if NYRA refuses to keep racing going after Jan. 1 because of small differences, it becomes public enemy number one.What does Kling consider a small difference? Responsibility for failure to renew the racing franchise rests squarely on the shoulders of Bruno and those members of the Pataki administration that NYRA is still suing. NYRA has no choice but to play it out as planned and let the court resolve the issue if Albany won’t or can’t. At least NYRA has been upfront about their position. Now they need to show their character and resolve when it counts.

http://www.harnesslink.com/www/Article.cgi?ID=59115 (http://www.harnesslink.com/www/Article.cgi?ID=59115)
Faraldo on VLT legislation
By Joseph A. Faraldo, President, Standardbred Owners Association of New York
… Fortunately for the breeders, horsemen and the 40,000 New Yorkers who rely on racing, the State Assembly has shown great leadership and responsibility by refusing to gratuitously give this handful of wealthy track operators millions of additional tax dollars without legal guarantees that such a move will both enhance patronage at the racinos and contribute to the long-term vitality of the New York racing and breeding industries. …

[Indulto]

http://www.nysun.com/article/67751 (http://www.nysun.com/article/67751)
A Losing Bet by AUSTIN SHAFRAN

First -- this editorial’s final statement: Mr. Shafran is a political consultant at Sheinkopf Ltd., which has been retained by Capital Play Inc., one of the firms bidding against NYRA for the racing franchise.Maybe poster NYP or others can help evaluate the truth and relevance of the following statements, but if they have validity, wouldn’t they have appeared in the NY Times instead of the NY SUN?… NYRA is currently projected to lose a record $25-$30 million this year alone. Thus, they will require a continuing taxpayer subsidy exceeding $260 million.

… The IRS filed a multi-million dollar claim against them. To escape more trouble, NYRA has hired a pricey legal defense team at a cost to the public of over $10 million.

… In its [reorganization] proposal, NYRA completely ignored their employees' pension plans, which are under-funded by $95 million. Instead, they chose to ensure that only the president's retirement package was safe under the reorganization plan.

…. Revenue from horse racing is used to help fund our children's education. Under NYRA's control, however, racetracks have fallen apart, meaning there is less money for schools and less money for students.

If NYRA is able to retain control of the racing franchise, they will require a taxpayer bailout of over $250 million that would otherwise have gone to State education funding.

… With the State expected to face a deficit of over $4 billion dollars in the coming year, and possibly a tenuous budget battle set to engulf Albany, NYRA is forcing the public to subsidize a corrupt agency.

… Every dollar taxpayers are forced to spend bailing out NYRA results in less money that can be spent better servingthe people of New York. …

[aaron]

Interesting line is they ignored the employees pension and insured the president of NYRA's pension. If that is true,it seems to be business as usual under the new NYRA.

[PaceAdvantage]

In its [reorganization] proposal, NYRA completely ignored their employees' pension plans, which are under-funded by $95 million. Instead, they chose to ensure that only the president's retirement package was safe under the reorganization plan.Huh? Really? With all the warts NYRA HAD and HAS, do critics really have to go and make shit up? They must be getting very desperate....

Yeah, only the "President's" pension is going to be covered...yeah...ok...whatever...

Every news item I have read over the past few weeks seems to indicate otherwise, but let's believe the guy from Capital Play about NYRA pensions.

From BloodHorse, Nov 29:

The “disclosure statement’’ filed by NYRA Nov. 27 is intended as a roadmap for the creditors committee and the state to use in what NYRA officials hope will be the end of its bankruptcy case.

The filing says creditors will be paid 100 cents on the dollar for their claims and that contributions to its employee pension plans will be satisfied..

Mr. Capital Play also wrote this:

...since new management for NYRA took over the place in 2003... Track attendance at the 2007 Belmont Stakes was among the lowest in its history.While conveniently forgetting to mention that attendance for the 2004 Belmont Stakes (also under the NEW MANAGEMENT) was the HIGHEST EVER. And for 2003, also under NEW MANAGEMENT, it was AMONG THE HIGHEST EVER.

Unreal.

[the little guy]

At least NYRA doesn't have to worry about where to find the cash to pay Steve Duncker and Jim Heffernan.

[Indulto]

Interesting line is they ignored the employees pension and insured the president of NYRA's pension. If that is true,it seems to be business as usual under the new NYRA.A2,
Do you believe everything you read? The NY Sun appears almost as virulently anti-Spitzer as you are anti-NYRA. BTW was that you spreading your usual joy at the Pricci Blog? ;)

Some of the criticisms of NYRA that you've registered on this board are valid to be sure, but it would seem that your most oft-repeated complaint has been a change in ATM vendors. As an old cyberfart, I seldom find change progressive myself, but isn't adaptability supposed to be a desirable trait in horseplayers?

Why are you so eager to change management of what up to now has been the best warm-weather racing in America as well as the best in cold-weather? Especially since those who want to take their place are showing themselves to be even less concerned with horseplayers like us, and to be guided with far less ethics in their pursuit of the franchise.

As PA just said, NYRA isn't "without warts." What track operator is? Some people here wanted to hang the guy in charge of Del Mar, and that was even before they had the opportunity to criticize the new surface!

I actually believe those NYRA opponents who have asserted that as New York racing goes, so does racing nationwide. For racing to continue as a viable economic entity, racetracks don't have to be a destination for people as much as for horses. New York racing is not defined by its purses as much as by the owners willing to compete for them.

Considering how few owners wind up in the black, I wonder how many of them with equine stars will enjoy participating at slot-spangled facilities rather than more traditional venues.

Maybe those responsible for renewing the franchise should check with the people willing and capable of supporting racing tradition in New York, and find out which bidder they would prefer to participate with. It's their vote that really counts. If such "horsemen" are not pro-NYRA, I would appreciate learning why they aren't.

[Spendabuck85]

http://www.capitalnews9.com/content/your_news/saratoga/?SecID=231&ArID=226972

Senate Majority Leader Joe Bruno is blasting Governor Spitzer once again -- this time about reaching an agreement over the future of New York State horse racing.
Bruno released the following statement on Monday:

Last week, I called for a public leaders meeting to discuss the future of horse racing in New York. However, Governor Spitzer ignored my request and is allowing the horse racing industry to remain in limbo with just 21 days remaining until the existing NYRA franchise expires.

We should be meeting every day until we reach an agreement. The Senate will return to Albany this Thursday and would be ready to approve an agreement at that time.

After almost three years of discussing the future of horse racing, it should not be difficult to get a result. What would be difficult is to simply extend NYRA's franchise for another 30 years, as the Governor has proposed.

NYRA has repeatedly used bankruptcy as a cover to resist change and complicate negotiations on the future of the racing franchise. In addition, a critical audit by the State Comptroller last week showed that NYRA continues to bleed money, despite state bailouts. Also, there are reports that the State Investigations Committee is conducting an investigation into NYRA, which, together with the Comptroller's audit, are basically votes of no confidence in NYRA and its Board of Directors.

The slate needs to be wiped clean. The State should provide the funds necessary to clear up NYRA's financial difficulties and the Governor should accept the resignations of NYRA's Board of Directors.

With the slate clean, we should do what I've been calling for, meet every day until we achieve a real result to ensure that New York has the best horse racing in the world -- for the horsemen, the fans, the host communities that depend on racing, and the schools and governments that need the revenue produced by racing.

[the little guy]

Bruno probably yelled at his mother before she had a chance to yell at him for robbing the cookie jar. His comments are so disingenuous that it would be impossible for him to be anything other than a politician.

Sounds to me like he's feeling the heat for screwing up this entire situation.


By the way, Indulto, nice post.

[aaron]

Indulto-
I didn't say I believed anything that was read about them insuring the President's pension and not the employees. I just commented that if it was true it was business as usual. You do recall Kenny Noe,don't you ? As for who runs NYRA, I have no clue who should be in charge. As far as I can see,racing is run by inept politicians and if they have a say on how racing is run,it really doesn't matter who fronts for them as an organization.What I don't understand is how anyone can say NYRA has done a good job.Everyone seems to like the current NYRA and they probably do mean well,but if radical changes aren't made it won't make a difference who runs racing.The game will continue to decline.

[aaron]

Nice interview with Haywood on" Inside Racing." If his views come to be, racing will be headed in the right direction.

[Indulto]

Indulto- I didn't say I believed anything that was read about them insuring the President's pension and not the employees. I just commented that if it was true it was business as usual. You do recall Kenny Noe,don't you ? As for who runs NYRA, I have no clue who should be in charge. As far as I can see,racing is run by inept politicians and if they have a say on how racing is run,it really doesn't matter who fronts for them as an organization.What I don't understand is how anyone can say NYRA has done a good job.Everyone seems to like the current NYRA and they probably do mean well,but if radical changes aren't made it won't make a difference who runs racing.The game will continue to decline.Nice interview with Haywood on" Inside Racing." If his views come to be, racing will be headed in the right direction.Is there any archived acess to that show? I'm glad you sound more postive about Hayward. Did he address the Sun's editorial?

What could be more radical than replacing most of the directors on the NYRA board AND legislating a new business model with greater accountability and transparency?

Who do you think is/would be a "front" for whom? This is a valid issue you raise. Who will replace the vacating board members? Direct appointments by Spitzer, Silver, and Bruno are bound to be political, but appointments without their approval doesn't provide transparency. You want people that will provide input from -- and feedback to -- the Governor and the legislature, but you don't want contentious monkey-wrench throwing either. I envision Bruno appointing Perlee to the board if he could.

There will be some holdovers. Duncker for one, I imagine, as well as other knowledgable and influential owners and officials who are interested in preserving the good things about New York racing, while being able to withstand the scrutiny of the "Integrity Report" and the media. If the idea is to create a more knowledgable and progressive yet accountable group, then several well-regarded industry experts of long standing such as Bennett Liebman and Steven Crist should be added to that traditional core.

The resulting group could then propose additional members for approval by at least two of the three controlling bodies: the Governor's office, the State Assembly, and the State Senate. Obviously some of them would be long-standing New York horsemen/businessmen/government officials who had not served previously. In a perfect world, the perspectives of jockeys and both casual and professional players would somehow be represented there as well.

[Indulto]

Bruno probably yelled at his mother before she had a chance to yell at him for robbing the cookie jar. His comments are so disingenuous that it would be impossible for him to be anything other than a politician.

Sounds to me like he's feeling the heat for screwing up this entire situation.


By the way, Indulto, nice post.Thanks, tlg. After watching that Bruno video from the Times Union Blog, I can't fault your assessment. ;)

[Indulto]

http://blogs.timesunion.com/capitol/ (http://blogs.timesunion.com/capitol/)
Bruno, Still Counting The Days, Doesn't Count ON NYRA
by James M. Odato

With Gov. Eliot Spitzer spending the day on Long Island, Senate Majority Leader Joseph Bruno didn’t get an open leader’s meeting to discuss the future of racing. He had called for such a session last week for today.

Instead, Bruno used the day to fashion a statement stating that the New York Racing Association’s board of directors need to be replaced and NYRA doesn’t deserve the 30-year franchise extension Spitzer proposes.

… A deal on the franchise appears bound up as Spitzer and Bruno’s aides and Assembly Speaker Sheldon Silver’s aides remain at odds. This, Bruno notes, is happening 21 days before the NYRA franchise is set to expire.http://news.bloodhorse.com/viewstory.asp?id=42720 (http://news.bloodhorse.com/viewstory.asp?id=42720)
NYRA Franchise Blasted by Bruno
by Tom Precious

… “The slate needs to be wiped clean,’’ Bruno said in a curiously timed statement December 10. Only a week ago, Senate officials were saying Bruno would be comfortable with NYRA continuing to run racing, but that he wanted other aspects of the business – including the simulcasting operation – to be taken over by others.

… He said the audit and investigation amount to “basically votes of no confidence in NYRA and its board of directors.’’

“The state should provide the necessary funds to clear up NYRA’s financial difficulties and the governor should accept the resignations of NYRA’s board of directors,’’ he added.

… It remained unclear whether Bruno’s latest salvo is merely a negotiating tactic, or a sign of how bad negotiations are going. Officials with the governor’s office and the Assembly and Senate met December 9, but reported a widening in the dispute. One source said Spitzer had joined Assembly Speaker Sheldon Silver in now opposing expansion of a VLT casino at Belmont. Aqueduct is already in line for a casino.

Bruno's critics say his actions appear designed to help one or more of NYRA's competitors. Bruno has never publicly endorsed any of NYRA's competitors for the franchise rights.

… Bruno is said to be under pressure from business and civic leaders in Saratoga, which he represents in the Senate, not to do anything that would disrupt racing. They fear a shut-down of racing if a deal is not reached could hold catastrophic implications for a city that relies on the annual summer meet. …It looks as if Bruno has finally lost any leverage he may have had. My guess is that Spitzer knows he won’t be blamed if a deal isn’t done and is now just waiting for Bruno to hang himself, politically that is.

[Spendabuck85]

The Inside Racing show with the Hayward interview is on FSNY right now from 9:30 a.m. to 10 a.m. and will be on again from 5:30-6 p.m. this evening (Tuesday).

[aaron]

Indulto-
I'd really like to see Crist and Leiberman appointed to the board,but with all the politicians involved,I don't know how much it would help. Crist worked for NYRA and couldn't accomplish anything becasuse of Kenny Noe. With Haywood in charge at least Crist would have a shot.

[the little guy]

Indulto-
I'd really like to see Crist and Leiberman appointed to the board,but with all the politicians involved,I don't know how much it would help. Crist worked for NYRA and couldn't accomplish anything becasuse of Kenny Noe. With Haywood in charge at least Crist would have a shot.


Kind of a conflict of interest for both.....don't ya think?

[aaron]

Kind of a conflict of interest for both.....don't ya think?
It may be a conflict of interest,but at least I believe they would try to do the right thing.

[the little guy]

It may be a conflict of interest,but at least I believe they would try to do the right thing.

Of course they would.....but unfortunately it's not really possible.

[Indulto]

Kind of a conflict of interest for both.....don't ya think?Are you referring to the fact that DRF is a creditor of NYRA?

My suggestion was intended to bring Crist's expertise to NYRA in an advisory and deliberative rather than in an executive capacity, but I had forgotten that Hayward used to own the DRF. Senior moment. :bang:

Of course there must be an existing relationship between Hayward and Crist that already provides a path for the latter's input. Thanks for pointing that out.

How about Liebman; any conflict there?

[the little guy]

It feels like a question of journalistic integrity to me but I suppose his opinions could always be valuable ( they are to me ). However I would assume his professional position precludes him from being on the NYRA board. The same could be said for Ben.

Ben's " departure " from the NYS Racing and Wagering Board was a great loss, however, for racing in this State. But that's already been covered....I just feel it can never be said too often. Plus, in case he reads the board, I can't help sucking up to him at any given opportunity.

[the little guy]

NYRA Franchise Blasted by Bruno
by Tom Precious


Bruno's critics say his actions appear designed to help one or more of NYRA's competitors. Bruno has never publicly endorsed any of NYRA's competitors for the franchise rights.



By the way, neither has Tom Precious, but considering the massive amount of Empire press releases he " reported " as news stories his critics could suggest his actions had questionable motives as well.

Not that I would ever be that cynical.

[Indulto]

NYRA Franchise Blasted by Bruno
by Tom Precious


Bruno's critics say his actions appear designed to help one or more of NYRA's competitors. Bruno has never publicly endorsed any of NYRA's competitors for the franchise rights.


By the way, neither has Tom Precious, but considering the massive amount of Empire press releases he " reported " as news stories his critics could suggest his actions had questionable motives as well.

Not that I would ever be that cynical.Talk about something precious:

http://www.thejournalnews.com/apps/pbcs.dll/article?AID=/20071211/NEWS05/712110364/1026/NEWS10 (http://www.thejournalnews.com/apps/pbcs.dll/article?AID=/20071211/NEWS05/712110364/1026/NEWS10)
Spitzer's popularity continues to plummet, says poll
By JOSEPH SPECTOR

… Bruno implored Spitzer yesterday to deal with the NYRA issue after Bruno was rebuked in his request to hold a leaders' meeting on the issue in Albany.

"We should do what I've been calling for: meet every day until we achieve a real result to ensure that New York has the best horse racing in the world," Bruno said.Is Spector clueless or Inspector Clusseau?

[the little guy]

Well I guess he's just reporting the story and it's an interesting one at that ( at least to some of us ). Of course the idea that Bruno now is trying to portray himself as the conciliator, when he was the one who absolutely sabotaged this process, with absolutely no plan, in an obvious attempt to serve his own best interests, is amusing at best and insidious in other ways.

I hope, and assume, you read Steve Crist's column from Sunday. I will ask if I can reprint it here.

[Indulto]

... I hope, and assume, you read Steve Crist's column from Sunday. I will ask if I can reprint it here.There's an interesting response to that column at the LeftAtTheGate blog:

https://www.blogger.com/comment.g?blogID=8711985&postID=2252780427762451287 (https://www.blogger.com/comment.g?blogID=8711985&postID=2252780427762451287)

[Indulto]

http://www.newsday.com/news/local/newyork/ny-lirace1212,0,727864.story (http://www.newsday.com/news/local/newyork/ny-lirace1212,0,727864.story)
Year may end with no Belmont solution
BY BART JONES

… Racing expert Bennett Liebman, a professor at Albany Law School, said it was unclear whether state officials would reach an agreement by Dec. 31.

"We've reached a point where it seems that all the parties ... are playing chicken with each other," he said.

… Reif expressed some optimism, saying staff members from the Senate, the Assembly and Spitzer's office were at least meeting behind closed doors and making some headway.

"There has been some progress made by the staffs," Reif said, adding that he could not comment on details. "We're hopeful that we can get this done sooner rather than later." …Looks like we may soon see a Crist column with an odds-line for various scenarios occurring on January 1 including an inaugural Pick Zero.

[Indulto]

Two bothersome “B”s became distractions,
To busy bettors at racing attractions.
The bigger bandido: Biancone or Bruno?
These malefactor’s detractors want to know.

One deceived bettors, the other voters.
One sought fast rides, the other free rides.
One defied authorities, the other majorities.
One procured venom, the other provoked it.

Befuddler of government, beguiler of horsemen,
Befriender of Empire, belittler of NYRA,
Broadsider of franchise renewal agreement,
Bruno’s the badder; a stunning achievement.

[Indulto]

http://paulmoranattheraces.blogspot.com/2007/12/same-old.html
Same old ...
By Paul Moran
… a piece published while labeled “opinion” by the New York Sun authored by Austin Shafran, a venomous political consultant retained by Capital Play.

Apparently the editorial columns of the Sun are for sale because the Shafran screed is in reality a political advertisement cloaked in more dignified if entirely made of paper haberdashery. … The Sun portraying this as unbiased opinion is patently dishonest.

… If racing is suspended on New Year’s Day, Bruno, who has no interest other than his own and is flirting recklessly with the fate of tens of thousands who stand to lose their livelihoods because the Republican blunderbuss in Albany fails to accept what has become inevitable. We have gone well past the point at which the headline “Bruno blasts NYRA” is news but rather a symptom of dementia. …http://blogs.timesunion.com/capitol/
Spitzer Has “Confidence” In DiNapoli
by James M. Odato
It wasn’t an apology, but Gov. Eliot Spitzer emphasized today that once Comptroller Thomas DiNapoli was appointed over his objections by the Legislature he chose to work with him.

He said DiNapoli, whose credentials he sharply questioned in January, has done a “superb” job.

… Spitzer also indicated that he isn’t frantic because there is no deal on the future of the racing franchise despite a Dec. 31 expiration date for the New York Racing Association’s rights to run the three state thoroughbred tracks.

“The 31st is still almost distant in terms of Albany’s ability” to get a deal done, the governor said.http://www.thoroughbredtimes.com/national-news/2007/December/12/Clock-ticking-on-NY-franchise-agreement.aspx (http://www.thoroughbredtimes.com/national-news/2007/December/12/Clock-ticking-on-NY-franchise-agreement.aspx)
Clock ticking on NY franchise agreement
by Paul Post

… Senate, Assembly, and executive branch staff members met Tuesday night again, trying to work out a deal before New York Racing Association’s current franchise expires on December 31.

Despite encouraging signs, the Assembly has not been called back to Albany, the state capital.

... NYRA President and Chief Executive Officer Charles Hayward said the timing of the comptroller’s report, with a franchise agreement imminent, is politically motivated. He also said there’s no basis for the investigation into Getnick’s contract.

… Hayward also objected to a complete board resignation, pointing out that NYRA’s three vice chairmen were all appointed by the state.

“It’s a little puzzling to me,” he said. “We don’t see surrendering the board of trustees for a state-appointed oversight board.”

[Indulto]

http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--racingfranchise1212dec12,0,1751233.story (http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--racingfranchise1212dec12,0,1751233.story)
NYRA could continue racing under last-minute `handshake' deal

… New York leaders may make a last-minute handshake deal to award a thoroughbred racing franchise that would give new life to the New York Racing Association.

Senate Majority Leader Joseph Bruno says he could accept an oral agreement with Gov. Eliot Spitzer and Democratic Assembly Speaker Sheldon Silver involving NYRA before its current franchise ends Dec. 31. Bruno said the Legislature could then return after Jan. 1 to approve a formal agreement in the regular session.

Spitzer says an agreement could be reached by Dec. 31 with details worked out in January. Both leaders spoke Wednesday on the eve of a special session of the Senate. …Will the details of this “oral agreement” be presented publicly with full disclosure? This is the point when NYRA should count its fingers with every handshake.

http://news.bloodhorse.com/viewstory.asp?id=42752&source=rss (http://news.bloodhorse.com/viewstory.asp?id=42752&source=rss)
New York: Clock Ticks, Talks Rage
by Tom Precious

… having the New York Racing Association continue to run racing in the interim after its current franchise expires Dec. 31 until a final deal is voted on by the Senate and Assembly.

… Spitzer …”… we could have agreements that keep us moving forward and a resolution in the first week of January," …

… Bruno … “The important thing is that we have continuity, that we have something definitive."

… Bruno indicated he could support NYRA continuing running the racing end of the business, but only if it’s board is “reconstituted." Precisely how is unclear, though it would include a new board. Bruno would not say how its members should be appointed.

.. Bruno also is talking about a franchise extension of as few as 15 years … NYRA officials … opposed … because their deal with Spitzer calls for NYRA to relinquish … more than $1 billion worth of property.

… Bruno also wants … the franchise-holder’s racetrack operations … formally reviewed every three years by the state. Finally, he wants a deal--he did not elaborate--to somehow incorporate some of the state’s off-track betting corporations under a broader umbrella that would presumably include the franchise-holder.

… Despite the disagreements, Bruno said he believes the odds are 2-1 that a franchise deal comes together before Dec. 31.

… Capital Play … representatives, joined by their newest lobbyists--John Cordo and Jennifer Cunningham, politically connected lobbyists who have been close to Bruno over the years--were seen going into a meeting in Bruno’s office soon after the lawmaker talked to reporters …

…. If it opposes the deal put together by state officials, … NYRA … could tie up the state’s ability to let another entity run racing until the bankruptcy case plays out.

… negotiators … were back at it again behind closed doors at the Capitol the evening of Dec. 12 to try to bring the sides closer.I'd guess Bruno will have an impact on NYRA's autonomy, but the lobbyist's clients will get zilch. Here's what I see happening:

-The second half of NYRA's 30-year term for NYRA will be somehow tied to performance

-A majority of board members will vacate

-The State may appoint or at the very least, approve, most new board members

-The oversight board will be modified to reflect the new administration.

-Getnick’s contract will be cancelled and all future contracts will follow stricter state guidelines

-NYRA's tax liabities will be re-defined and their finances closely monitored by the State Comptrollers office.

-Slots at Belmont will be approved -- but authorization delayed -- contingent upon performance at AQU

-The BEL VLT franchise will be bid separately when authorized, but the AQU VLT franchisee will be able to bid on it

-NYRA signal-pricing will be subject to greater oversight

-ADW licensing will be subject to approval beyond NYRA and TVG will not get wagering exclusivity.

-OTBs will be treated like competing ADW/simulcast vendors and will have to merge/reorganize on their own to be viable.

[NYPlayer]

Bruno is right on point.

1. Greater oversight
2. Shorter franchise license period.
3. A new entreprenurial management team with cash and experience to develop the new adjunct businesses.

Go Bruno, Go!

[PaceAdvantage]

Like TLG once said, "it's the Internet....."

[asH]

Friday, December 7, 2007
NYRA owes state $11M: audit


The Business Review (Albany)


A state audit released today found that the New York Racing Association (http://www.bizjournals.com/albany/gen/New_York_Racing_Association_FA85FDE9195640189420F3 9713FD8F37.html) owes the state $11 million in franchise fees, adding yet another wrinkle to an already complicated scenario.

This audit covers 2004 and 2005. When combined with previous audits, NYRA has underpaid the state nearly $54 million dating back to 2000, according to calculations from the office of state Comptroller Thomas DiNapoli.

http://www.bizjournals.com/albany/stories/2007/12/03/daily41.html

[the little guy]

Friday, December 7, 2007
NYRA owes state $11M: audit


The Business Review (Albany)


A state audit released today found that the New York Racing Association (http://www.bizjournals.com/albany/gen/New_York_Racing_Association_FA85FDE9195640189420F3 9713FD8F37.html) owes the state $11 million in franchise fees, adding yet another wrinkle to an already complicated scenario.

This audit covers 2004 and 2005. When combined with previous audits, NYRA has underpaid the state nearly $54 million dating back to 2000, according to calculations from the office of state Comptroller Thomas DiNapoli.

http://www.bizjournals.com/albany/stories/2007/12/03/daily41.html


A little late to the party with that nonsense.

Since you're new here.....try to read the threads before posting. That way you lessen the chances of repetition.

Indulto has it covered.

[Spendabuck85]

http://www.nypost.com/seven/12132007/sports/nyra_chief_is_optimistic_778483.htm

Excerpt From today's NY Post:
Vowing that racing would not stop under his watch, NYRA president Charles Hayward said he expected Aqueduct to be running on Jan. 1, the day after franchise expires, during an interview broadcast yesterday over the track's CCTV. Hayward's confidence represents an about-face from past statements, when he warned that NYRA's bankruptcy hearings could bring racing to a halt.
In case a last-minute deal is not struck, "We are developing contingency plans to make sure we can keep horses in training," Hayward said. "But I don't think we'll be using those plans. I'm very committed to keep racing going."

[Indulto]

... Indulto has it covered.The original Indulto was a gelding and never covered a broodmare, although he brooded about leaving the gate. :lol:

I always wondered whether the leftatthe gate blogger was also a fan of that stubborn gelding. Have you checked out that response to Crist's column yet? I can't believe you don't have a reaction worth sharing – or were that critic’s points valid?

[Indulto]

http://news.bloodhorse.com/viewstory.asp?id=42768 (http://news.bloodhorse.com/viewstory.asp?id=42768)
New York: Negotiations Continue
by Tom Precious

… “In the last few days, we’ve begun to see serious movement and real progress, but the Senate is still holding onto positions that would make it impossible for a deal by year end,’’ said Paul Francis, … who is negotiating along with Patrick Foye and Richard Rifkin on behalf of Spitzer with legislative aides.

“We need to have the Senate move closer to the position of the other three parties for a four-way deal,’’ Francis said in an interview.

… Negotiators have been working on “benchmarks’’ that NYRA would have to follow. … such as … meeting certain attendance performance at its racetracks.

The sides also want to create a new state entity to oversee NYRA. The Senate favors a public authority, which would be legally separate from the governor’s branch of government, while the administration wants to create a new agency. The sides haven’t agreed on who would pick the members of the new entity.

… The Senate has been insisting on taking the lucrative simulcasting business away from NYRA and awarding it to an outside company. It has not publicly revealed who should get the contract. The Spitzer administration considers the Senate position a poison pill that will prevent a final deal.

… insistence by Bruno that the NYRA board be dissolved and replaced by a new slate of directors.

… “It’s just not going to happen. They are NYRA,’’ said a source who has been involved in the lengthy talks this week in Albany.

… All sides agree the Legislature does not have to vote on an agreement before December 31 to keep racing going. If an agreement is reached before the end of the year, the governor and legislative leaders would announce a pact. The NYRA oversight panel would then legally step in to run NYRA until lawmakers return for the 2008 session on January 9.The proposed oversight panel is the key to anything happening here. The existing oversight board controlled by Pataki appointees will never fly.

http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--wintersession1213dec13,0,943008.story (http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--wintersession1213dec13,0,943008.story)
Senate's winter session fizzles without Assembly
By VALERIE BAUMAN

… "We do support pay raises for judges," said Silver spokesman Dan Weiller. He said the Assembly was frustrated that they were unable to speak with the Senate about any issues outside of the state's thoroughbred horse racing franchise.

"The only thing that he (Bruno) will let his staff talk about with us is NYRA," he said, ...http://www.horseraceinsider.com/John-Pricci/ (http://www.horseraceinsider.com/John-Pricci/)
New York Racing Running Out of Hope for Timely Settlement
by John Pricci… The whispers and hunches we hear, and have, is that the Governor will get off the 30-year extension for the New York Racing Assn and perhaps try to convince the Assembly to accept a casino operation at Belmont Park.

For this, Bruno gets off his state-appointed public authority plan and actually allows NYRA to conduct its marketing and simulcast operations, like any real company. It could be, too, that he wants Capital Play to replace Excelsior Associates as the gaming operators.

The NYRA would probably have to cave somewhat and seriously reduce the current number of NYRA-elected Trustees on its Board. And, of course, cede the title of the properties to the state. …Hey NYP,
Once the state gets the land, it's like that Clusseau quote from one of the Pink Panther movies, "What the minkey does with his money is his own bus-i-ness." :lol:

[the little guy]

The original Indulto was a gelding and never covered a broodmare, although he brooded about leaving the gate. :lol:

I always wondered whether the leftatthe gate blogger was also a fan of that stubborn gelding. Have you checked out that response to Crist's column yet? I can't believe you don't have a reaction worth sharing – or were that critic’s points valid?


I did read it, thanks, and found it interesting but to tell you the truth I didn't have the energy to disect it and figure out where the truth lay. There was one poster that certainly seemed knowledgable but I didn't really know exactly what he was talking about, though he seemed to, thus I didn't feel like I could comment one way or another.

[Indulto]

http://www.drf.com/news/article/90996.html (http://www.drf.com/news/article/90996.html)
Proposed changes to plan irk NYRA chief
By DAVID GRENING

… In a meeting with NYRA employees at Aqueduct, Hayward said that NYRA has received several proposed amendments to the memorandum of understanding, … … Hayward declined go into detail about the amendments but appeared to reject many of them out of hand.

… "We need a deal with legislation so that we can go into court on the 27th and get out," Hayward said. "What's the likelihood of getting that done by the 27th? Probably pretty low. We have strategies in place with the bankruptcy court so that we can hopefully continue and hopefully have a successful outcome."

… "As bleak as it would be, if we have to stop racing for a week, I'd much rather stop the first week in January than the week of the Wood Memorial," he said.

… "As I said from the day I took this job, the oversight board can run racing, they just can't run it at Aqueduct, Belmont, or Saratoga - it's our property," Hayward said. "There is a scenario under which if they really push that and they don't want to work with us, where we would retain our right.

… Hayward said that in the event of a shutdown, he would hope that training could continue, although it might have to be consolidated to one track, Belmont. Horses stabled at Aqueduct would have to ship to Belmont to train.

… In the event of a shutdown, Hayward said that some employees such as mutuel clerks and maintenance personnel would be laid off.http://www.nydailynews.com/blogs/dailypolitics/2007/12/late-entry-from-capital-play.html (http://www.nydailynews.com/blogs/dailypolitics/2007/12/late-entry-from-capital-play.html)
Late entry from Capital Play
By Elizabeth Benjamin

A company bidding to take over management of thoroughbred racing in New York has shared with the Daily News its latest offer, which focuses only on Aqueduct Race Track in Queens.

… NYRA would remain in charge of staging the races, while Capital Play would take over business operations, including marketing, facilities, concessions, corporate sponsorships, real estate development and relations with OTBs and other tracks.

… would pay $125 million for a 49-year lease including development rights and paramutuel and simulcast revenues.

It would also pay to build a “racino” with 4,500 video lottery terminals to be managed by Mohegan Sun and develop the Queens property as a destination resort with restaurants, hotels, shopping and other attractions. …Very smart to avoid the VLT at BEL conflict with Silver. Would Bruno approve the same deal with Excelsior rather than Capital Offense? New Yorkers may still be too "parochial" to play Cowboys and Indians, Australian style. ;)

[Indulto]

I did read it, thanks, and found it interesting but to tell you the truth I didn't have the energy to disect it and figure out where the truth lay. There was one poster that certainly seemed knowledgable but I didn't really know exactly what he was talking about, though he seemed to, thus I didn't feel like I could comment one way or another.The comments at all the racing blogs are starting to get very interesting now that action appears imminent. Can you convince Crist to let you post his next few columns on this subject here?

[NYPlayer]

Hey NYP,
Once the state gets the land, it's like that Clusseau quote from one of the Pink Panther movies, "What the minkey does with his money is his own bus-i-ness." :lol:

Ah yes! The "minkey" scene. You've jogged my memory, Indulto. As I recall, the minkey and its blind master were but a ruse covering a bank robbery, and Clouseau found it quite difficult to comprehend how a blind man could serve as such an effective look-out. Poor Dreyfus! I'd have gone mad too.

This whole darn horse thing is maddening. I have a feeling bumbling Jacques will once again be a hero, and I'll be in an asylum.

Sellers was a genuis.

[NYPlayer]

Two bothersome “B”s became distractions,
To busy bettors at racing attractions.
The bigger bandido: Biancone or Bruno?
These malefactor’s detractors want to know.

One deceived bettors, the other voters.
One sought fast rides, the other free rides.
One defied authorities, the other majorities.
One procured venom, the other provoked it.

Befuddler of government, beguiler of horsemen,
Befriender of Empire, belittler of NYRA,
Broadsider of franchise renewal agreement,
Bruno’s the badder; a stunning achievement.

It's good stuff, Indulto. Were it in my power, I would pronounce you the poet of PA.

The best I can do is: Go Bruno, Go! I like backing a winner.

[the little guy]

The comments at all the racing blogs are starting to get very interesting now that action appears imminent. Can you convince Crist to let you post his next few columns on this subject here?

Sure. I doubt he'll mind as he hasn't in the past.

[Indulto]

It's good stuff, Indulto. Were it in my power, I would pronounce you the poet of PA.

The best I can do is: Go Bruno, Go! I like backing a winner.Thanks,
It was a slow news day. ;)

Your memory of the "minkey" scene was impressive.

The last time I heard your slogan was when Sanmartino used to wrestle. Don't you have to wrestle your conscience to root for Joey's tag team partner?

http://leftatthegate.blogspot.com/
Bruno: 2-1 on Franchise Agreement

... If that is true, their continued misleading and vicious attacks on NYRA are the height of hypocrisy. Sure, NYRA is an evil incompetent monster that is taking money away from our precious schoolchildren, but yeah, if we get a piece of the casino action, then OK, we'll overlook that. Gimme a break.

[NYPlayer]

Thanks,
It was a slow news day. ;)

Your memory of the "minkey" scene was impressive.

The last time I heard your slogan was when Sanmartino used to wrestle. Don't you have to wrestle your conscience to root for Joey's tag team partner?

http://leftatthegate.blogspot.com/

Slogans and phrases are really a dime a dozen aren't they? I was thinking of the NTRA slogan.

I was never into wrestling, but I don't struggle with supporting Capital Play. I think they would infuse new money and new ideas into NY racing that would likely improve the quality and public perception of the sport. I read the entire transcript of their presentation before the special committee, and found it appealing and plausible. They've been involved in promoting racing in Australia where racing thrives, and that is probably the most important highlight of their resume.

Well, there are many who are vehemently oppossed to anyone but NYRA operating the franchise. This I find perlexing, considering how bad things are, although amazingly, some people don't think the current situation (falling attendance and handle) is all that bad, and so don't want to see things change. There's another phrase that comes mind. A poignant reminder of life in a capitalist economy - Evolve or die.

[aaron]

Slogans and phrases are really a dime a dozen aren't they? I was thinking of the NTRA slogan.

I was never into wrestling, but I don't struggle with supporting Capital Play. I think they would infuse new money and new ideas into NY racing that would likely improve the quality and public perception of the sport. I read the entire transcript of their presentation before the special committee, and found it appealing and plausible. They've been involved in promoting racing in Australia where racing thrives, and that is probably the most important highlight of their resume.

Well, there are many who are vehemently oppossed to anyone but NYRA operating the franchise. This I find perlexing, considering how bad things are, although amazingly, some people don't think the current situation (falling attendance and handle) is all that bad, and so don't want to see things change. There's another phrase that comes mind. A poignant reminder of life in a capitalist economy - Evolve or die.
I have been for change since the process began,but the more I look at the situation the more I realize that it really doesn't matter who runs the racing end of the franchise. As long as gov't interferes there will be no improvement. NYRA's hands are tied,even if the current administration means well. All the others seem to want to raise the takeout. No entity is interested in doing right by the customer or improving the product. Many on this site argue that the product is the best. This is true except when it is compared to the product it presented 10-15 years ago. Can any entity improve the product and bring new fans into the game ? I have no answer to that question,but hopefully I'll be surprised about the future of racing.

[garyoz]

A poignant reminder of life in a capitalist economy - Evolve or die.

Actually the concept is Shumpeter's "Creative Destructivism." I just don't see the "creative" part here for Capital Play or Bruno's hacks. Capitalism is also about providing utility or value to the customer. My chips would be on NYRA's ability to meet the customer's needs at this point.

[the little guy]

How anybody could support a group, such as Capital Play, that wants to raise takeout is beyond me. We already pay way too much.

Please, NY Player, tell me why you think anyone that bets their money should want the takeout raised. Honestly, I'm curious.....I must be missing something.

[Indulto]

https://www.blogger.com/comment.g?blogID=8711985&postID=6532834453520972376 (https://www.blogger.com/comment.g?blogID=8711985&postID=6532834453520972376)
… Anonymous said...
All the way back at the Saratoga meet, NYRA was talking about getting out of their TVG deal and making a deal with Tracknet Media.tlg, truth or B.S.?

http://www.newsday.com/news/local/ny-webrace1215,0,1834853.story (http://www.newsday.com/news/local/ny-webrace1215,0,1834853.story)
Bruno may be easing resistance to state horse racing
BY BART JONES

… Bruno spokesman Scott Reif said Friday that Bruno is open to considering a new franchise for the New York Racing Association, albeit with new restrictions and limits put in place.

… "The framework that's being discussed in these meetings is NYRA continues to run racing but under certain conditions that are met that we support," Reif said.

… Reif denied that Bruno's current stance represents a change, although Bruno previously called for a new entity to run racing. "He's never been completely opposed to" a role for NYRA or stated that "NYRA under no circumstances can run racing in New York," Reif said. ...http://www.thoroughbredtimes.com/national-news/2007/December/13/Compromise-for-NY-franchise-coming-down-to-wire.aspx (http://www.thoroughbredtimes.com/national-news/2007/December/13/Compromise-for-NY-franchise-coming-down-to-wire.aspx)
Compromise for NY franchise coming down to wire
by Paul Post

...Hayward said, however, that it makes no sense to get rid of the entire board, whose members rank among the nation’s most successful businessmen. NYRA currently is in bankruptcy, roughly $364-million in debt with projected 2007 operating losses of $27.2-million. ...One for NYP's guys.

http://paulmoranattheraces.blogspot.com/2007/12/bizarre-charade-continues.html (http://paulmoranattheraces.blogspot.com/2007/12/bizarre-charade-continues.html)
The bizarre charade continues
By Paul Moran
… it would be a good idea for the senate republicans in Albany to meet privately to consider a competency hearing for their leader.

… To his credit, Bruno has no qualm about suggesting such things in public, unabashedly exposing his own lack of expertise, void of intelligent advice or, at worst, the loss of a grip on reality ...One for the other guys! :D

[NYPlayer]

How anybody could support a group, such as Capital Play, that wants to raise takeout is beyond me. We already pay way too much.

Please, NY Player, tell me why you think anyone that bets their money should want the takeout raised. Honestly, I'm curious.....I must be missing something.

Here's the Cap Play take-out proposal as posted in their original bid at www.capitalplayny.com (http://www.capitalplayny.com/). I believe that these take-out rates are similar to the current structure under NYRA. And consider too that, if the fan base and handle grows, they could generate better pay-off odds for the more sophisticated players.





Bet Type Takeout






WPS 15%





Daily Double 20%

Quinella 20%

Exacta 20%

Superfect 25%

Trifecta 25%

Pick 3 25%

Pick 6 25%

Grand Slam 30%

[Indulto]

http://timesunion.com/AspStories/story.asp?storyID=647512&category=STATE&BCCode=&newsdate=12/15/2007 (http://timesunion.com/AspStories/story.asp?storyID=647512&category=STATE&BCCode=&newsdate=12/15/2007)
NYRA rival makes another offer
Capital Play wants to build huge VLT casino at Aqueduct and take over simulcast at Queens track
By JAMES M. ODATO

… give the state at least $125 million in upfront money for the right to develop Aqueduct and sell its simulcast signal, while NYRA continues running races ….

… The plan involves getting the rights to develop Aqueduct's racing plan[t?] and real estate. That includes building a video lottery terminal casino and running the gambling there.

… NYRA, which would focus on operating only horse racing at Aqueduct, would be free to run Saratoga and Belmont as it wishes.

… Capital Play would also seek real estate development rights at Aqueduct so it would be able to build the VLT parlor, a retail mall and other development, "subject to community input."

… At Aqueduct, NYRA's only responsibility would be inside the rails -- making sure races went off, scheduling and paying purses.

… "We're saying give us Aqueduct and see what we can do. We'd prefer all three tracks," O'Farrell said. …http://leftatthegate.blogspot.com/ (http://leftatthegate.blogspot.com/)
… I imagine that NYRA is not going to easily give up their control of wagering at the Big A. And again, I think it's highly hypocritical of Capital Play to now be willing to work with an organization its vilified so viciously and unfairly in the last couple of months. But the up front payment would effectively reimburse the state for a portion of the money due to NYRA in the MOU. The proposal is also in the spirit of Bruno's desire to split up various operations amongst various parties. So I imagine it could be taken seriously and perhaps embraced by Bruno as a partial face-saver with which to get out of the corner he's rapidly painting himself into.A2,
This has got to be the best indicator yet of how valuable the NYRA signal is.

Have I overlooked any details that indicated whether it was the rights to the signal for all tracks or for AQU alone?

Aspects of the plan are not unattractive, but Capital Offense is. Integrity IS the issue. The smears and political manipulation that characterize this bidder do not mesh with prior concerns about corruption, fraud, and money-laundering. The governor's image will sink even lower if he also gets into bed with these chameleons.

Also, if such an approach is now considered viable, why not re-open the bidding? If the plan is so attractive, why didn’t CO propose it originally? What undisclosed intentions are behind this last-ditch effort to get their foot in the door?

AQU is undeniably NYRA’s weak link and winter racing detracts from the overall quality of its product. I would modify my previous proposal allowing the AQU VLT franchisee to lease the facility -- and run the inner track meet – to having NYRA lease its main track meet from a racino operator that conducted an independent winter meet without graded stakes and took NYRA’s signal as a simulcast operation competing with other tracks and OTBs. The racino, of course, would still fuel purses at NYRA meetings.

NYRA would still have the option to transfer its remaining warmer-weather racing dates at AQU to BEL if the arrangement failed to increase attendance substantially. Perhaps NYRA should also retain ownership of SAR and BEL, continuing to pay taxes at those locations.

There is only one way to attract a non-resort/vacation-oriented crowd. An undeniable champion nust run in a marquee event. HOL had a capacity crowd when Seattle Slew lost the Swaps to J.O. Tobin. SA would surely have a capacity crowd if they could lure Curlin to the SA Handicap.

Toward that end, NYRA should also set up a purse for the Belmont that pays bonuses to winners of the Wood, the Derby and the Preakness with specific escalating values for winning each combination of the previous three; and for the Travers which provides similar incentives for winners of those four previous races. If signal price can be raised for the BC, then why not for these two events?

[highnote]

Why the big push to develop AQU's real estate?

I happen to like the weekend flea market they operate in the parking lot when the racing is at BEL or SAR.

[Indulto]

Why the big push to develop AQU's real estate?

I happen to like the weekend flea market they operate in the parking lot when the racing is at BEL or SAR.If Spitzer lies down with chameleons, he'll get up with flea markets. ;)

[Indulto]

http://news.bloodhorse.com/viewstory.asp?id=42787 (http://news.bloodhorse.com/viewstory.asp?id=42787)
NYRA Franchise Extension Positive
by Tom Precious

The New York Racing Association can agree to new performance benchmarks … , but state officials must be more flexible to take into account future changes in the racing industry that could affect those new standards, …

… NYRA cannot afford to give up its simulcasting business – which accounts for 88% of its total handle -- as the state Legislature’s top Republican is seeking in closed-door negotiations at the state Capitol.

… a series of new “benchmarks’’ … include minimum handle performance, racing dates, and components such as backstretch conditions, among others.

… Hayward called it “ridiculous’’ to propose that NYRA just “muck out the stalls and keep the track in order.’’ Letting Capital Play do everything but racing is “completely nonsensical,’’ he added.

… Hayward said NYRA has told Spitzer’s negotiators, who it has been in regular contact with in recent days, that it can agree to some of the operating benchmarks being talked about ...

... “What we want is the same thing I’d think the state would want, which are benchmarks that reflect a continued leadership position for New York racing in context with the rest of the industry,’’ Hayward said.

One plan calls for NYRA meeting certain on-track attendance schedules. But he said racetracks with VLTs don’t keep track of patrons entering a casino, which would be the case in a future Aqueduct-based facility, thereby possibly skewing future attendance figures. He noted Churchill doesn’t release daily attendance figures anymore.

Another benchmark calls for attaining on-track handle goals. But he said an increasing number of bettors at the track are calling in bets to NYRA’s phone account, and NYRA is also planning a new system in which people could place internet bets via their cell phones or other hand-held devices. Such bets, however, count as off-track wagers, and so wouldn’t be included in the benchmark even though the patron is at the track.

… any benchmark involving things like handle should be counted over a five-year period, not one year. He said a single year could be thrown off by outside events, such as additional bets going to Pennsylvania tracks when they are fully up with all the planned VLT facilities.

… NYRA could back handle performance benchmarks looked at over a longer period of time than one year. He said NYRA now has nearly 17% of the nation’s handle, though it offers about 4% of the races.

... The benchmarks would be amendments to the memorandum of understanding signed in September by NYRA and Spitzer. They have been worrisome to some NYRA officials because violating them in the future could give the state an out to immediately cancel the franchise.

Hayward said NYRA is comfortable being held to certain standards. “We just don’t want any trick questions, as it were, or things that could have an impact unwittingly,’’ he said.

… On December 17, a state panel that has been overseeing NYRA’s finances is set to meet.

… Hayward said NYRA could accept a short-term extension with the oversight board in place in which it controls racing while NYRA runs the actual product. But he said the arrangement would have to not jeopardize NYRA’s land claims if it has to go back to court. Moreover, he said there would have to be signs of real progress in Albany. ..Finally, some meaningful dialogue.

[trigger]

How anybody could support a group, such as Capital Play, that wants to raise takeout is beyond me. We already pay way too much.

Please, NY Player, tell me why you think anyone that bets their money should want the takeout raised. Honestly, I'm curious.....I must be missing something.
LTG,
It depends where you are coming from....if you will get a large rebate on bets at a given track then your advantage over the bettors not receiving rebates grows if the track raises the takeout. For example, say Rebate Shop X pays the track 5% of the handle, keeps 5% and gives the rest as a rebate (10% if total takeout is 20%). Now if this track raises takeout to 25%, increasing the rebatee's advantage(15% rebate) over the non-rebatees because they are now betting only 85% of the money that non rebatees are on the same bets(i.e. same odds/payoffs) ..this is a tremendous advantage for the rebatees.
To me,it's akin to a guy running and playing in a poker game and taking a 15% "house cut".......who do you think will wind up the winner....not the other players unless they play real well and get a real fantastic lucky streak. Bottom line is rebated players benefit from high takeouts.

[aaron]

Indulto-
In my opinion all internet and NYRA One accounts handle should be considered the same as on track handle. After all, NYRA receives the same percentage for all races bet thru NYRA ONE whether on track or off.

[George Sands]

Indulto,

I thought I might find you here. You need to clean out your private mailbox.

[Spendabuck85]

http://timesunion.com/AspStories/story.asp?storyID=647705&category=FRONTPG&BCCode=HOME&newsdate=12/16/2007

Albany Times Union - Fred LeBrun

A new formal franchise, presumably for 30 years as the governor has agreed to, remains elusive because of a single issue: whether or not to replace NYRA's sitting board of trustees.

Instead, it appears the state will offer NYRA a brief extension of the current franchise in order to continue discussions while not jeopardizing the continuity of New York racing.

This game of chicken between the state and NYRA over a new franchise that's been going on for months has frayed a lot of nerves, including those of Senate Majority Leader Joe Bruno, who is getting incredible pressure from his home district in Saratoga Springs to settle essentially on NYRA's terms. Those close to Bruno say he is not a happy camper over how this is turning out.

[the little guy]

I'll make a guess, and I may be totally wrong, but I don't think it's necessarily the replacement of the board that's specifically the problem. I bet it's more a problem of who may be considered some of the possible replacements.

[Indulto]

http://timesunion.com/AspStories/story.asp?storyID=647705&category=FRONTPG&BCCode=HOME&newsdate=12/16/2007

Albany Times Union - Fred LeBrun ...From the article:... The tail will wag the dog after all. And that's ultimately because, as we've said all along, NYRA's expertise and services are needed to run Belmont, Aqueduct and Saratoga, and they know it. But not necessarily needed, say critics and even some supporters of NYRA, is the current board of trustees.

Or as one prominent horseman put it, who is fed up with the state's caving in to NYRA, "Where is the accountability? Why is failure being rewarded here? That board has to go."

… No wonder Bruno is turning bitter over local pressure to settle, as one longtime acquaintance put it.

The senator's experienced negotiating hands are being tied by his own friends and neighbors.And rightfully so. Until now, when during the last three years has Bruno demonstrated any leadership or provided detailed input to the process?

Why couldn't his aides have started negotiating right after the MOU was released instead of holding meaningless Senate hearings to provide a forum for political posturing? Even now it appears that competing bidders are driving the resistance rather than the interests of the residents of NY State.I'll make a guess, and I may be totally wrong, but I don't think it's necessarily the replacement of the board that's specifically the problem. I bet it's more a problem of who may be considered some of the possible replacements.As long as you're willing to speculate a little, who do you think they may be trying to foist off on NYRA?

Please share your opinion as to which current members besides Duncker and Heffernan are vital holdovers. It's only a matter of time before Bruno's boys and their friends in the press start fingering some that have to go starting with those whose credibility was challenged in the "Integrity Report."

Is it too naive to think that a group of well-intentioned, but non-critical members could be convinced internally to vacate collectively as gesture of good will; taking any scoundrels with them in the process? Surely the board doesn't consider itself without any blame whatsoever for the current state of affairs.

[the little guy]

Certainly there are members of the board who will leave, that was probably always a fait accompli, but as you pointed out there are members that shouldn't. However, I don't know the trustees, and couldn't speculate too specifically anyway.

[Indulto]

http://sports.espn.go.com/sports/horse/news/story?id=3004360 (http://sports.espn.go.com/sports/horse/news/story?id=3004360)
NYRA gets governor's nod
By Matt Hegarty

...Updated: September 4, 2007, 5:59 PM ET

… The agreement, which was approved unanimously by NYRA's board on Tuesday morning, will form the basis for a recommendation by Spitzer to the state legislature …

… Also under Spitzer's plan, NYRA would be required to trim its board from 28 members to 19, with two members of the board to be approved by the governor, one by the assembly speaker, one by the senate majority leader, one by the state's breeding association, and one by the state's horsemen's association. …Since 5 of the 19 members must be new, the maximum number of holdovers is 14 or half the existing board.

http://www.ig.state.ny.us/pdfs/Report%20to%20the%20Governor%20on%20the%20Integrit y%20of%20Those%20Seeking%20to%20Operate%20the%20Ra cetracks%20at%20Aqueduct,%20Belmont%20Park%20and%2 0Saratoga.pdf (http://www.ig.state.ny.us/pdfs/Report%20to%20the%20Governor%20on%20the%20Integrit y%20of%20Those%20Seeking%20to%20Operate%20the%20Ra cetracks%20at%20Aqueduct,%20Belmont%20Park%20and%2 0Saratoga.pdf)

Integrity report document pages 44-56 (PDF document pages 47-59 of 148)

Page 44 defines 34 key persons at NYRA including:

-All Board members and Trustees
-All share
-All Officers
-ALL persons named in the top three levels of NYRA’s organizational chart

The names of these 34 persons are shown alphabetically on page 45, but it isn’t clear which key person definitions apply to each.

What is the difference between a board member and a trustee? How can a board member who is also a shareholder be removed? Who on the board are shareholders? How many shareholders are there? Are there any who aren’t on the board who are unwilling to cede the land?

http://www.newsday.com/news/opinion/ny-vpnyra175504591dec17,0,5175018.story (http://www.newsday.com/news/opinion/ny-vpnyra175504591dec17,0,5175018.story)
Editorial: Still time for video lottery terminals at Belmont
… only the Big A has the legal right to have the machines; Belmont would need a special law. The Republican-controlled Senate, driven by the powerful Long Island delegation headed by Dean Skelos of Rockville Centre, is pushing for gaming at Belmont in return for having some of that revenue invested in the struggling community that surrounds the park. But this is Albany, and Assembly Speaker Sheldon Silver (D-Manhattan) is holding Belmont hostage - although no one is quite sure what he wants in return. Long Island's Democratic delegation should try to find out.

Belmont, a neglected and underutilized jewel at the entrance to Nassau County, should get VLTs and the developmental face-lift that comes with them. If not, some of the racing profits from this new franchise deal should be earmarked for the surrounding Elmont area, which bears the park's burdens. NYRA must also agree to specific performance requirements for maintenance of the tired facility and good stewardship in the community. At the very least, Belmont and Elmont deserve to break even.

[Indulto]

http://sports.espn.go.com/sports/horse/news/story?id=3004360 (http://sports.espn.go.com/sports/horse/news/story?id=3004360)
… Also under Spitzer's plan, NYRA would be required to trim its board from 28 members to 19, with two members of the board to be approved by the governor, one by the assembly speaker, one by the senate majority leader, one by the state's breeding association, and one by the state's horsemen's association. …Sorry folks. Late night eyesight. ;)

Since 6 of the 19 members must be new, the maximum number of holdovers is 13 or less than half the existing board.

tlg,
Does "approved" mean "selected" now? How are prospective new members nominated?

[Indulto]

http://news.bloodhorse.com/viewstory.asp?id=42800 (http://news.bloodhorse.com/viewstory.asp?id=42800)
NYRA Offered Temporary Extension
by Tom Precious

… Carole Stone, chairwoman of the oversight panel, said if NYRA does not agree, the board has the authority to enter into a contract with another operator to keep racing going. But NYRA officials have said that could be a problem because NYRA claims, in its bankruptcy case, that it owns the land on which the racetracks sit and that the state could not let another operator onto the property to run racing.

… NYRA officials want some assurances a deal is in the works by the Spitzer administration and legislative leaders to resolve the franchise issue; he expressed concerns an extension could take the heat off of negotiations under way at the Capitol.

… The oversight panel said the temporary deal with NYRA would begin Jan. 1 and end upon the selection by Gov. Eliot Spitzer and the legislature of a new franchise operator. It gave no end date to the extension.

If NYRA refuses the extension, Stone, who was appointed to the post by former Gov. George Pataki, would have the authority to enter a deal with a different company for a temporary period to run racing. …

[the little guy]

I honestly don't know how board members are necessarily " selected. " Some are appointed by the state but I really don't know much about it.

[Indulto]

http://www.drf.com/news/article/91052.html (http://www.drf.com/news/article/91052.html)
Oversight agency offers NYRA an extension
By MATT HEGARTY

… The proposal would have to be accepted by NYRA in order to go into effect, and after the meeting, NYRA's chairman of the board, Steven Duncker, said in a statement that the association is "reviewing the resolution ... to determine a course of action."

… "NYRA remains confident that an agreed memorandum of understanding and legislation will be achieved," the statement said. "NYRA will continue to work cooperatively toward that end."

The proposal was approved by the Non-Profit Racing Association Oversight Board, a creation in 2005 of former governor George Pataki, a Republican. Under state law, the oversight board has the right to run racing at NYRA's three tracks if a franchise agreement is not in place, but NYRA officials have said that they would block any effort by the oversight board to install a different operator of the tracks….http://polhudson.lohudblogs.com/2007/12/17/oversight-board-says-nyra-can-continue/ (http://polhudson.lohudblogs.com/2007/12/17/oversight-board-says-nyra-can-continue/)
Oversight Board Says NYRA Can Continue

… Here’s the resolution: Reso%2007-08%20NYRA%20End%20of%20Franchise.doc (http://www.democratandchronicle.com/blogs/political/Reso%2007-08%20NYRA%20End%20of%20Franchise.doc)
…

[Indulto]

http://www.horseraceinsider.com/John-Pricci/ (http://www.horseraceinsider.com/John-Pricci/)
Let There Be Peace In the State House
By John Pricci… In this entire process, there have been very few people among the NYRA shot callers, including their Board of Trustees, which operate without transparency just like the three Indian Chiefs in Albany--political correctness be damned--that could always be found wearing white hats.

… If NYRA’s whole stance is based on land ownership claims, they cannot afford to agree to an extension while negotiations continue. They believe that either they have a franchise to run racing, or they do not.

… NYRA would probably have to … agree to fewer of their own appointees to the Board of Trustees in favor of--yes--political hacks. Hopefully, those “appointees” would know something about racing.

… the venue that hosts the Triple Crown’s third jewel needs a facelift badly. And those Belmont grounds have room for a proposed destination complex for all the people in the state to enjoy. More importantly, people from other states, too.

Sen. Bruno has to get off giving away a store he doesn’t own to people he wants indebted to him. Who is he to replace the entire Board of any corporation, not-for-profit or otherwise, in the name of transparency and accountability? Who minds his store? What right does he have to take a product he doesn’t own--races for export, via simulcasting--and cut a third party a slice of that action? He’s supposed to be working for voters, not lobbyists. ...http://leftatthegate.blogspot.com/2007/12/will-racing-get-stoned.html (http://leftatthegate.blogspot.com/2007/12/will-racing-get-stoned.html)
Will Racing Get Stoned?

… Oh man. Do you really think that the state would have Ms. Stone arrange to bring one of those entities in? Can you picture the NYRA security guards at Aqueduct physically turning Jeff Perlee and Karl O'Farrell away on Jan 1?

… if NYRA were to agree to the extension as is, without a definitive end date, I think it takes the heat off Bruno. Without any immediate threat of NYRA running to court to enforce the land claim in the face of an imminent threat (PERLEE AT FIVE O'CLOCK!), Bruno could harden his position and even put the onus on NYRA to give in on important points. So I'd be surprised if NYRA accepts the offer as is; it seems to me that it could diminish their most powerful weapon. I think they'll either insist on a hard deadline in the not too distant future, or reject the extension offer outright.http://www.thejournalnews.com/apps/pbcs.dll/article?AID=/20071218/NEWS05/712180337/1021 (http://www.thejournalnews.com/apps/pbcs.dll/article?AID=/20071218/NEWS05/712180337/1021)
NYRA may get temporary extension to run racing
By JOSEPH SPECTOR

… The agreement requires NYRA to sign off on a temporary extension, and the beleaguered agency did not indicate whether it will go along with the resolution.

… "I could envision possibly working out an arrangement with the oversight board that would protect all of our rights and privileges," NYRA President Charles Haywood said last week.

… "We're working very hard to reach a conclusion there," Spitzer said of reaching a deal.

Bruno blamed Assembly Speaker Sheldon Silver for holding up the deal because Silver opposes video lottery terminals at Belmont.

"We could close with the Governor's Office today," Bruno said yesterday. "The speaker isn't there."

An Assembly spokesman said negotiations continue.

[Indulto]

http://www.thoroughbredracingradionetwork.com/option,com_events/task,view_detail/agid,137/year,2007/month,12/day,17/Itemid,35/ (http://www.thoroughbredracingradionetwork.com/option,com_events/task,view_detail/agid,137/year,2007/month,12/day,17/Itemid,35/)
ATRAB interview with John Nerud

12/17/2007 -- HOUR 1 -– midway through.. “Finest plant in the world is Belmont.
Finest racing in the United States is Belmont.” …

… “Aqueduct has to go. ... Belmont needs to be winterized.” …Nerud spoke of his direct knowledge that two top lawyers had independently verified that NYRA owns the land.

DT is indeed fortunate to have a personal relationship with this amazing individual.
This was one of the rare times his usual effusive praise for a guest was insufficient. :ThmbUp:

[Indulto]

http://paulmoranattheraces.blogspot.com/2007/12/hits-just-keep-coming.html (http://paulmoranattheraces.blogspot.com/2007/12/hits-just-keep-coming.html)
The hits just keep coming
By Paul Moran
… Where does Ms. Stone think that, even were such action technically legal, a third party would hire a sufficient number of people to operate Aqueduct while maintaining the facilities at Belmont Park and Saratoga? Who would turn on the lights? Man the betting machines? Manicure the racing surface? Man the starting gate? Park the cars? Make the popcorn? Publish the program? And by the way … all the vendor contracts, which include closed circuit television, photo finish and timing, janitorial service, manure removal and other ingredients essential to the conduct of racing expire with the franchise. No third party has contracts in place to cover simulcasting and dissemination of the television signal to the state’s off-track betting outlets.

Apparently, Ms. Stone and her fellow board members believe that racing just happens by itself. One would think that the uninformed benefactors of the politcal system would carefully guard rather than so willingly expose their lack of expertise. …http://www.newsday.com/news/local/state/ny-strace185505943dec18,0,7184850.story (http://www.newsday.com/news/local/state/ny-strace185505943dec18,0,7184850.story)
State board pushing to keep racetracks open
BY JAMES T. MADORE
… Stone said she hoped to have the stopgap plan worked out by Friday. "We are doing everything possible to assure that racing will continue uninterrupted beginning Jan. 1, and we'll be working with NYRA this week to make sure that occurs," she said.

NYRA, however, didn't jump at Stone's offer. Spokesman John Lee said NYRA's lawyers were "reviewing" the board resolution "to determine an appropriate course of action."

… Asked about the board, Spitzer said he hoped a new franchise agreement would be reached within two weeks. "I don't want to create an impression that we believe that will happen or that it will be necessary," he said, referring to a board takeover of racing.

"We are working very hard to reach a conclusion ... We are conscious of the Dec. 31 deadline, though there are statutory considerations and alternatives to governing in the event that there's not a decision," he told reporters.

And for those of NYP’s persuasion:

http://www.nydailynews.com/opinions/2007/12/18/2007-12-18_hold_your_horses_governor.html (http://www.nydailynews.com/opinions/2007/12/18/2007-12-18_hold_your_horses_governor.html)
Hold your horses, governor
By Bill Hammond
... Spitzer and legislative leaders … should use that time to step back, take a deep breath and reread the proposals from Capital Play, Empire Racing and Excelsior Racing.

NYRA has replaced many of its top managers since barely escaping a federal indictment a few years ago. But its plan for managing the tracks amounts to a continuation of the same-old, same-old practices that have led to shrinking attendance and stagnant wagering.

The private bidders, by contrast, have big plans to draw the crowds back. At Aqueduct, they would build not just a "racino" to house the video slots, but also restaurants, hotels, concert venues and retail shops, transforming a grossly underdeveloped property into a destination resort a stone's throw from JFK Airport. Best of all, it's private developers, and not taxpayers, who would shoulder most of the risk.

… But NYRA's dubious ownership claim is no reason for Spitzer to hand it the keys for another three decades. How about giving it a short-term extension of a year or two while that dispute is settled, once and for all, in the courts?

… At least two of the would-be operators - Capital Play and Empire - say they can make that work. Capital Play - a partnership that includes the sponsors ofAustralia's Melbourne Cup, one of the world's most successful horse races - is offering $125million to jointly manage Aqueduct with NYRA. And Empire is willing to put up $100 million for a similar plan. …

[the little guy]

BIG PLANS!!!!

What a schmuck.

[Indulto]

BIG PLANS!!!!

What a schmuck.Maybe they're planning to fly some of those hyper-enthusiastic Australian racing fans in on jumbo jets. :D

Re: those suggested performance standards for attendance, how would NYRA track horseplayers vs. slotplayers, if there's no admission fee to play slots and they expect slotplayers to bet horses from within that area? :confused:

[the little guy]

You read dreck like that and it's completely impossible not to wonder which one of these money grabbing carpetbaggers has this dude on their payroll.

[Indulto]

BIG PLANS!!!!

What a schmuck.You read dreck like that and it's completely impossible not to wonder which one of these money grabbing carpetbaggers has this dude on their payroll.Is your next post going to invoke some Yiddish curse similar to the one about growing like an onion with one's head in the ground? ;)

[the little guy]

Those may be the only yiddish words I know. They did, however, seem appropriate.

[Indulto]

Those may be the only yiddish words I know. They did, however, seem appropriate.And you were able to use them appropriatety in English sentences! :D

Allow me to append the additionally applicable, but no less appropriate terms, a$$hole and Bulls__t, respectively, to your accurate assessment. :lol:

[the little guy]

It's really midboggling the crap these papers spew about this situation. They know little or nothing about any of the realities yet feel free to spout uninformed rhetoric.

How come ten years ago, when Kenny Noe's NYRA was getting an extension unopposed, they had nothing to say about the state of racing and NYRA?

[Indulto]

It's really midboggling the crap these papers spew about this situation. They know little or nothing about any of the realities yet feel free to spout uninformed rhetoric.

How come ten years ago, when Kenny Noe's NYRA was getting an extension unopposed, they had nothing to say about the state of racing and NYRA?No one was trying to get elected Governor at NYRA's expense and VLTs weren't in the picture. How come then Gov. Cuomo never acted on the recommendations of the panel Crist served on?

What did you think of Nerud's comments on ATRAB?

[the little guy]

I think John Nerud is awesome. Just the fact that he's at the races as often as he is ( he sits right by me at Belmont ) is great. He's one of the great legends of our game.

However, I think Aqueduct plays a very important role in the game, and to dismiss it lacks a complete understanding of the racing situation. Many players ( I mean trainers and owners ) need the winter racing to have a chance to make enough money to even survive the more difficult racing of the warmer months. Everything works together, as without these folks it would be near impossible to put on the show at Belmont ( and even Saratoga ).

Also, it isn't as though NYRA was completely opposed to the possibility of closing for some of the winter or shutting Aqueduct and making a winterized smaller facility on the Belmont grounds, and it's far from clear that it wasn't the State that rejected this potential plan.

[bigmack]

I think John Nerud is awesome.
Forgive the thread drift:

The big bay colt was still a yearling when Tartan Farm's trainer and breeding manager, the great John Nerud, suffered a near fatal fall from a stable pony. The Boston brain surgeon who saved the trainer's life was Dr. Charles Fager, in whose honor the future world record holder was named.

http://i165.photobucket.com/albums/u70/macktime/drfagernerud.jpg
Dr. Fager & JNerud

[Indulto]

... I think Aqueduct plays a very important role in the game, and to dismiss it lacks a complete understanding of the racing situation. Many players ( I mean trainers and owners ) need the winter racing to have a chance to make enough money to even survive the more difficult racing of the warmer months. Everything works together, as without these folks it would be near impossible to put on the show at Belmont ( and even Saratoga ).

Also, it isn't as though NYRA was completely opposed to the possibility of closing for some of the winter or shutting Aqueduct and making a winterized smaller facility on the Belmont grounds, and it's far from clear that it wasn't the State that rejected this potential plan.Do you agree with John Pricci that BEL slots are justified and that Silver is resisting them to ensure that Queens gets all VLT-related business?

Given the experience at Yonkers, do you think VLTs can match expectations at both thoroughbred venues, simultaneously, while drawing from the same local population?

[Indulto]

http://www.drf.com/news/article/91075.html
NYRA in account-wagering talks
By MATT HEGARTY

… Though NYRA's chairman, Steven Duncker, said that no contracts have been signed, NYRA intends to assign wagering rights for Aqueduct, Belmont, and Saratoga to all the major domestic account-wagering companies in the United States.

… In part, the contracts have not been fully negotiated because of ongoing talks regarding an extension of NYRA's franchise, which expires at the end of this year.So what role is necessary in this area for the oversight board or any other state entity?

[the little guy]

Do you agree with John Pricci that BEL slots are justified and that Silver is resisting them to ensure that Queens gets all VLT-related business?

Given the experience at Yonkers, do you think VLTs can match expectations at both thoroughbred venues, simultaneously, while drawing from the same local population?


I don't know anything about the Belmont slots situations....one way or another. It does, however, appear to be a viable spot for them.

My feelings on slots in general are too long and complicated for me to get into right now. I do wonder where the saturation point is but they certainly seem to be proving PT Barnum on a daily basis.

[the little guy]

http://www.drf.com/news/article/91075.html
So what role is necessary in this area for the oversight board or any other state entity?


None.

[Indulto]

I don't know anything about the Belmont slots situations....one way or another. It does, however, appear to be a viable spot for them.

My feelings on slots in general are too long and complicated for me to get into right now. I do wonder where the saturation point is but they certainly seem to be proving PT Barnum on a daily basis."A sucker born every minute?" Are you referring to slots players or to people who think the revenue they generate will compensate for the negative aspects that will accompany them into their communities?

If you feel you don't know enough about about it, why do they appear viable to you? There's no requirement that one has to be right to express an opinion here; hopefully just that one be straightforward about what one believes at the moment -- and why -- given the best information one has access to at the time. Interpretation is as important as fact. I wouldn't be seeking your opinion if I didn't think it had some value.

Why were slots restricted to Aqueduct in the first place? I haven't been able to find any debate or discussion related to the original legislation.

[the little guy]

I was referring to slot players.

I could probably argue all sides in the slot debate. Unfortunately, it has become imperative, especially on the East Coast, and Northeast, to have slots to remain reasonably competitive. And, for all the Harness Tracks in NY State to have had slots for years now, and NYRA prevented by a vindictive Pataki, seems borderline criminal. Obviously Pataki, and his constituents, didn't want NYRA to have the strength slots would have given them, but in the meantime they have cost the horsemen and owners a lot of money, as well as the taxpayers. There is no moral stance for them as the other tracks were given the go-ahead.

Are they viable as a long-term solution to racing? That's hard to answer. If they provide the short-term revenue to upgrade your product and hopefully allow NYRA ( or any racing organization ) to move in the proverbial right direction, whatever that nebulous concept may be, then their long term merits become less relevant. If racetracks rely on them as a crutch they will continue to make the same mistakes of the past.....and then their long-term merits become important. So, to me, it is imperative to have a concrete plan as to how you are going to best put those dollars to use in the immediate future. What exactly this is I do not specifically know. However, nobody is paying me the big bucks, or even the small bucks, to come up with those answers.

I am not sure as to why they are restricted to Aqueduct, and not allowed at Belmont, though I believe Long Island, or Elmont, opposed them. Why, or if I'm even completely correct, I don't know.