Spitzer, NYRA, and Arthur Anderson

[PaceAdvantage]

I posted this as part of another thread, but thought it also deserved a wider audience, mainly to get reaction to Spitzer's comment on the indictment of Arthur Anderson and how that might relate to the NYRA indictment.....here is the copy of my post:

Why is the NYRA in bankruptcy?


There are many reasons why the NYRA is in bankruptcy. Allow me to count some ways:


They wanted to force the state's hand and get the issue of land ownership into the courts.
Various powerful state politicians in Albany decided early on that when the slots came to town, those that lobby the hardest reap the most benefits.
The Federal indictment of the entire NYRA (which was subsequently DROPPED after current management addressed many of the problems facing NYRA successfully) placed a huge financial burden on the non-profit racing association. Goes hand in hand with #2.
They ran out of money.
Now, interestingly enough, former Attorney General Eliot Spitzer (now Governor Spitzer), the man behind the NYRA indictment, had some very, VERY interesting things to say about another company that was indicted AS A WHOLE. That company was Arthur Anderson, and they were indicted over their participation in the ENRON disaster, which most would agree, was a much, MUCH more serious charge than allowing some tellers to mess with their tax returns. Listen to Governor Spitzer as he dances on the head of the hypocrisy pin:


Click the following link and fast forward to the 5:30 mark:

http://release.theplatform.com/content.select?pid=1sxElY90EMNb7Z_9H1oDaBaW8_8gDoE T

[aaron]

PA-
You stated that NYRA operated for 50 years without slots. I agree,that is a fact that cannot be argued.
What I would like to have answered,if there is an answer, Is what drove them to bankruptcy ? Was it all Spitzer ? Was the state government looking the other way for 50 years ?
I understand that slots will support NYRA or whoever runs racing in NY,but what I am having trouble understanding is why racing can't be run without slots.Slots should be the topping on the cake,not the cake.
Racing was run as a non-profit organization,so I can't compare it to casino's or entity's run for profit.
What went wrong with the business model ? Handle at NYRA has increased in epic proportions over the years,yet the business fails. It makes no sense.

[alysheba88]

PA-
You stated that NYRA operated for 50 years without slots. I agree,that is a fact that cannot be argued.
What I would like to have answered,if there is an answer, Is what drove them to bankruptcy ? Was it all Spitzer ? Was the state government looking the other way for 50 years ?
I understand that slots will support NYRA or whoever runs racing in NY,but what I am having trouble understanding is why racing can't be run without slots.Slots should be the topping on the cake,not the cake.
Racing was run as a non-profit organization,so I can't compare it to casino's or entity's run for profit.
What went wrong with the business model ? Handle at NYRA has increased in epic proportions over the years,yet the business fails. It makes no sense.


Lets put aside NYRA for a second. Do you ask the same exact questions of other states and racing organizations? Have you looked around at all the tracks adding slots and wondered why they did and why they were losing money until they did? Just look outside NY for a second

[alysheba88]

As far as handle- there is a big difference between on track handle and off track. Clearly keep much more of the former. The tracks- all the tracks- have made some bad decisions on how they collect on their signal.

[aaron]

Alysheba-
I do question other racing venues not being able to operate without slots. Other venues may be trying to make a profit,which NY is not compelled to do.
Also,as far as handle,I mentioned that on track and simulcasting are vastly different.
Which brings us to the next question- Do racetracks sell their signal below its market value and if so why ?

[AQUEBUCKS]

Guys, the way I see it is that non-profit means non-profit. Meyocks' (before they sh*t canned him) $350K per year salary plus another 100K in perks while he walked around for mabe 5 hours a day/5 days a week with his thumb up his ass. And what business model are you referring to?

[DJofSD]

Racetrack ownership is in the same position as the American automobile industry -- too locked into existing interests to make the changes that need to be made. And just as US auto makers have partnered up with foriegn interests, so to the racetracks with slots.

[alysheba88]

Alysheba-
I do question other racing venues not being able to operate without slots. Other venues may be trying to make a profit,which NY is not compelled to do.
Also,as far as handle,I mentioned that on track and simulcasting are vastly different.
Which brings us to the next question- Do racetracks sell their signal below its market value and if so why ?

To me thats a pretty parochial view. Something I was accused of in that one thread. To put the blinders on to nationwide racing and look at NY in isolation? Dont get it

[aaron]

Alysheba- I don't get your point. I said do racetracks sell their signal too cheap,not does NYRA sell their signal too cheap.I said NYRA is a non-profit organization and other race tracks aren't. I just believe there is a differnce in how non-profit organizations are run and companies that are run for profit are run. Do you feel that all racetracks are run in the same manner ?
Why won't you answer the question-"Do Race Tracks sell their signal too cheap? If you have no opinion on this question,just say so.

[alysheba88]

aaron, there are so many different points being made I dont even know what we are discussing anymore. I was thinking we were talking about one thing and apparently you meant something else. I was thinking we were talking about big picture. Tracks relying on slots. Not thinking about track signals when I made my last post. I was talking about larger issues. How racing nationwide is struggling and looking at the bigger picture not just NYRA. As I said earlier, tracks made bad decisions when it came to selling their signal