New York Franchise Award Recommendation May Come Nov. 21

[Indulto]

http://www.bloodhorse.com/horse-raci...out?source=rss
Paterson Says NYRA Will Get State Bailout
By Tom Precious May 18, 2010

… "We have a plan to loan NYRA, in the short term, money to get through Saratoga and we’re working on a long-term plan to help them beyond that," Paterson said.

... "I think they’ll pass it," Paterson said of lawmakers and the new bailout plan.

But Assembly Speaker Sheldon Silver did not commit to passing the NYRA bill. "I haven’t seen the bill yet," Silver said.

Nor has Assembly Racing Committee chairman Gary Pretlow. But he said he is confident state help for NYRA is on the way. "We’re not going to let Saratoga fail," Pretlow said of the upcoming race meet.

… A deal signed by the state several years ago provides that the state will make a good faith effort to help NYRA if it faced financial trouble if the long-delayed Aqueduct casino was not operating by April 2009.

Further, NYRA officials argue that the state--because it now owns NYCOTB--is on the hook for the money owed NYRA by the OTB giant. NYCOTB, in its Chapter 9 bankruptcy filing, acknowledges a $15 million debt to NYRA; officials at NYRA have said that amount has since grown to $17 million.

"NYRA has a good case for the money," Pretlow said. "OTB is the state and OTB owes NYRA, ergo, the state owes NYRA."

State officials said the new borrowing plan envisions the state Empire State Development Corp., a state agency that runs economic development efforts, lend NYRA between $15 million and $25 million. They said the plan would get around state constitutional prohibitions on gifts or loans of credit by terming the loan a “working capital’’ borrowing that NYRA would have to pay back before next March 31, which is the end of the state’s 2010 fiscal year.

If NYRA does not repay the loan, the proceeds would be taken from future revenues NYRA expects from a casino at Aqueduct racetrack. The Paterson administration expects a casino operator to be tapped–in what is now the fourth separate bidding process for the racino–sometime in early August. …

http://www.timesunion.com/AspStories/story.asp?storyID=932295
Bailout loan for NYRA in works
Saratoga, Belmont meets to be saved by state note for up to $25 million
By JAMES M. ODATO AND LEIGH HORNBECK
May 19, 2010

…

Hayward said NYRA needs $20 million -- "a small amount given the $90 million NYRA and OTB pay in taxes and fees to the state each year."

Dan Silver, spokesman for Hayward, said the numbers are based on a state report from 2008. …

http://www.saratogian.com/articles/2010/05/18/sports/doc4bf351af20e06728785651.txt
VEITCH: Plenty of problems with New York racing
By Mike Veitch May 18, 2010

…You would be inclined to say this is all hard to believe, except that New Yorkers do believe it, as residents of the most dysfunctional state in the Union.

… Rumors circulate about wealthy NYRA board members considering putting forth some help.

It’s a nice thought, and heaven knows there are thousands of workers out there hoping for help, but it does nothing to address the very serious structural problems in New York racing.

… Even if Albany somehow comes up with an assist to get NYRA through the end of the

year, it does not address widening cracks in the state industry.

It is long past time for the off-track betting system and the track operator to be working together.

… There is too much racing at NYRA tracks today, and that includes Saratoga, which is almost certain to have some dreadfully bad cards in the 40-day schedule this summer.

It is also time for a review, by racing leaders, of just how it promotes thoroughbred racing.

A suggestion here is to back off the incessant emphasis on gambling.

… If wealthy patrons, at any time prior to the franchise renewal in 2008, had offered to deal with NYRA’s growing financial losses, the picture might be different today.

... Today, we are stuck with a situation that is going to repeat itself now that these three tracks are in state hands.

There would also be some $4 million more on hand for NYRA today if its board did not reject plans to close the race-day detention barn and the training program at Aqueduct.

Bad call there.

… Shortly after the current franchise was renewed, Hayward shared with me his dream that the new deal signaled a chance to revitalize the game.

His hopes included the concept of a racing trust at Saratoga and Belmont, one that recognized the historical significance of both places, founded on tremendous thoroughbred racing and its attendant cultural activities. …

[Indulto]

http://www.drf.com/news/article/113105.html
Audit: New York OTBs should pay less to racing
By Matt Hegarty5/20/2010

New York's five regional off-track betting corporations must be allowed to cut their payments to the racing industry in order to remain solvent, the state's comptroller, Thomas P. DiNapoli, said in an audit of the corporations released on Thursday.

… "If OTBs are going to remain viable, New York will have to take action to bring back the bettors and fix OTB," DiNapoli said. "The current business model just doesn't work."

… The audit also said that the county-owned OTB companies are facing significant competition from casinos in New York and neighboring states and from out-of-state account-wagering companies. However, the report also acknowledged that only two of the companies, Capital and Nassau, operate their own Internet wagering platforms despite legislation that was passed four years ago legalizing the practice.

According to the audit, the net operating revenue of the five companies declined by 67 percent from 2004 to 2008. Part of that decline was due to an industry-wide contraction in handle, the audit said, but the audit also blamed "up front" payments to the racing industries for contributing to the decline while crediting the OTB companies for reducing some expenses.

"We believe that corporations will be unable to cut expenses fast enough to continue as financially viable entities if no action is taken to reduce these required payments," the audit said.

The audit specifically singled out payments to the harness industry required by law when New York's OTBs take night-time simulcast signals. Those payments are "outdated and too high," the audit said.

http://www.nypost.com/p/news/local/gov_eyes_new_otb_jockey_g84U7fZJC0dqWvXDVavJAN
Gov eyes new OTB jockey
By FREDRIC U. DICKER May 20, 2010

Gov. Paterson has lost confidence in Meyer "Sandy" Frucher's ability to run the bankrupt and embattled New York City Off-Track Betting Corp., and would "accept his resignation if offered," The Post has learned.

"Sandy has no credibility left in Albany. He doesn't know when to compromise, and he's lied repeatedly to the officials he has to deal with," said a source familiar with the situation.

"Sandy has also done something that people never thought was possible: He's united the entire racing industry against him . . . If Sandy offered his resignation, it would be accepted."

… Frucher has been holding back millions of dollars in payments owed to the NYRA by the OTB, citing the agency's ongoing bankruptcy proceedings and cash-flow woes.

The source said Frucher had been warned by aides to Paterson that his policies risked "destroying New York's racing industry," a charge already made by thoroughbred owners and breeders associations.

http://www.nypost.com/p/blogs/knickerbocker/paterson_offers_no_support_for_otb_mDwDR7XZZgZPEGr kfxA1eJ
Paterson offers no support for OTB chief
By BRENDAN SCOTT May 20, 2010

… Paterson said only “we have to decide what’s best for the state,” when asked about an exclusive Post report that administration officials want Frucher to quit after a bumbling OTB bailout bid that infuriated lawmakers and much of the racing community.

“In the papers this morning, there’s indication that you would like to see Sandy Frucher, who runs OTB, out of town – get replaced,” WOR 710-AM host John Gambling asked the governor during an interview.

“Well… Not necessarily,” Paterson said. “It’s just at this point we have to decide what’s best for the people of the state of New York.

“You can’t keep running to the state,” the governor continued. “As you see, what’s happening now is that when other entities are collapsing, they’re blaming the state. OTB has really not been profitable.”

Paterson tapped the former Philadelphia Stock Exchange chief and longtime advisor to former Gov. Mario Cuomo last June to help rescue to long-struggling bookmaking operation from bankruptcy.

But Frucher angered many state leaders after threatening to shutdown OTB if the agency didn’t get a state bailout. The bailout never came and OTB stayed open, confirming, for some, suspicions that Frucher had exaggerated the crisis. …

[46zilzal]

Good you posted Michael Veitch's article as he lives right there and has his hand on the pulse of the problem.

[PaceAdvantage]

Originally Posted by 46zilzal

Good you posted Michael Veitch's article as he lives right there and has his hand on the pulse of the problem.

How can you say this when he makes the following statement:

A suggestion here is to back off the incessant emphasis on gambling.

WHAT incessant emphasis on gambling? That's part of the problem! They DON'T promote the fact that this is one of the FEW forms of wagering where you actually have a shot at coming out AHEAD in the end...unlike casino gambling or the lottery (unless you're extremely lucky), where you are pretty much a guaranteed loser no matter what you do or how hard you work at getting better...

For a man whom you claim has his hand on the pulse of the problem, that is just an incredible statement from where I sit.

[slewis]

Originally Posted by PaceAdvantage

How can you say this when he makes the following statement:WHAT incessant emphasis on gambling? That's part of the problem! They DON'T promote the fact that this is one of the FEW forms of wagering where you actually have a shot at coming out AHEAD in the end...unlike casino gambling or the lottery (unless you're extremely lucky), where you are pretty much a guaranteed loser no matter what you do or how hard you work at getting better...

For a man whom you claim has his hand on the pulse of the problem, that is just an incredible statement from where I sit.

Good point PA...

With all due respect ZIL, Mike Veitch is a big time ass kisser. I spend the entire meet up there, have for over a decade, and most of the local racing journalists are bad. Nick Kling is about the best.

But if we (and the press) dont start DEMANDING that racing management and EVERYONE involved in this sport, including it's journalists, start emphasizing GAMBLING as the true revenue stream for survival, the sport is doomed.

I want to see when things turn around (because I'm a racing optimist) how NYRA goes out and hires their next VP for a $200k per yr. plus salary.
I'll bet anyone he has LOTS of racing experience and NO gambling backround.

Anyone want to take me up on that bet?

[Indulto]

http://www.drf.com/news/article/113151.html
NYRA says it will close June 9
By Matt Hegarty 5/21/2010

The New York Racing Association notified its employees on Thursday that it will close its three racetracks beginning June 9 if the association does not receive financial assistance from the state, the association said.

The notices are required under state and federal law if a business anticipates shutting down within 60 days. …

… Although some influential legislators and Gov. David Paterson have said that they are committed to finding a way to assist NYRA, other legislators have balked at providing money to the association at a time of deep budget cuts in New York. …

http://www.drf.com/news/article/113152.html
More signals pulled from New York OTB
By Matt Hegarty 5/21/2010

The number of racing signals available to customers of the bankrupt New York City Off-Track Betting Corporation dwindled even further on Thursday with an order by state regulators to pull the signal from Hollywood Park, Churchill Downs, and Calder Race Course.

The order from the New York State Racing and Wagering Board reduced New York City OTB's Friday afternoon Thoroughbred menu to two New York tracks, Belmont Park and Finger Lakes - both are required to be carried by law - and Golden Gate Fields. In addition to ordering the signals pulled, the board also told New York City OTB that it would not approve the company's simulcast contract with Monmouth Park, which opens on Saturday.

In a letter sent to New York City OTB on Thursday, the board claimed that it "has no record" of approving simulcasting contracts with the tracks. The letter, which was released to Daily Racing Form after a request by the publication, said the board is "reviewing whether or not sanctions related to the simulcasting activity referenced should be recommended or imposed."

… In addition to accusations that New York City OTB did not receive approvals to offer the tracks, the board notified OTB three weeks ago that it would not approve any other simulcast contracts until OTB "assures us that they are able to meet their financial obligations," according to Joe Mahoney, a spokesman for the board

… Most significantly, the orders to pull the signals could drive many customers of New York City OTB to wager more on the signals that are still available, particularly Belmont Park, which is operated by the New York Racing Association. New York City OTB owes NYRA $17 million.

As part of its bankruptcy reorganization, New York City OTB has delayed making statutorily required payments to New York tracks on wagers made by its customers on out-of-state tracks. Regulators have cited that decision in making the case that they are uncertain whether the company is meeting its financial obligations. …

http://www.drf.com/news/article/113185.html
Enjoy seaside riches while they last
By Steven Crist 5/21/2010[QUOTE]… Everyone expects New York to come up with its promised $17 million for Belmont before June 9 -- the notices sent out are a legal requirement and a standard part of the political theater of threatened shutdowns in New York racing politics. As the issue gains even more public attention in the spotlight of the Belmont Stakes on June 5, a solution will be found. The holdup so far has been on the technical mechanisms for the loan rather than anyone's arguing that Belmont should be starved into extinction.

Eventually an Aqueduct racino operator will be chosen -- even though "eventually" has taken eight and a half years so far since voters approved racinos in November 2001. The state can not wait much longer though, since it is facing a $9.2 billion budget deficit and is losing at least $1 million a day in revenue without the Aqueduct racino. Once that happens it will take at least a year to get the slots spinning, but once they do, even conservative estimates are that New York's race purses will increase by at least 30 percent. …/QUOTE]

[Indulto]

http://www.empirepage.com/2010/5/25/interview-with-bennett-liebman-executive-director-of-the-government-law-center-albany-law-school
Interview with Bennett Liebman, Executive Director of the Government Law Center, Albany Law School
May 25th, 2010

… Liebman: Quite frankly, everything is dependent on some continued public interest in horse racing. If people don’t bet on racing, there is little we can do to make the industry work. To paraphrase Yogi Berra, “If the fans don'tcome out to the racetrack or the OTB, you can'tstop them." The racing industry is certainly vitally important to the Saratoga area and to those counties with major breeding operations. We shouldn’t let them fail. To help NYRA and to help these regions, I think NYRA needs somewhat added flexibility in its choice of dates. And it needs to be able to develop a fully operative capacity to work with the entire industry in New York to create a single site to take Internet and account wagers. We still need to make it simpler for people to place bets on horse racing.

… Liebman: It would be nice, and it would be certainly helpful if we could coordinate and reorganize the OTB system. Nonetheless, the central problem isn’t who runs the OTB’s or how they make their payments to the racing industry and government. The issue is whether we can maintain any fan interest in horse racing. The national economy certainly hasn’t helped horse racing, but the sad fact is that unless we increase public support of horse racing, there is little that can be done by the government (short of giving them VLT’s) for the OTB’s.

Public interest in horse racing in New York has been declining steadily for more than a third of a century, if not longer. Adjusting for inflation, total New York State handle on horse racing in 2008 was 26.8% of what it was in 1978. When you adjust for inflation, New York handle on horse racing hasn’t been this low since 1942.If it continues to decline, then the laws of economics will eventually have their way with the OTB’s. If you care about horse racing, patronize a racetrack or an OTB. Don’t simply complain about the government.

http://www.horseraceinsider.com/blog.php/Zasts-TrackWords/comments/2010-05-24saratoga-in-the-year-of-the-new-monmouth/#comments
Saratoga in the Year of the New Monmouth
By Vic Zast May 23, 2010

…

Guilt by association has damaged the Camelot quality of Saratoga. In its attempt to gain the notice of government, the horse racing industry has heaped so much negative publicity on itself in terms of its inability to exist without subsidy that patrons must wonder what is wrong with the sport. Each time an article that addresses the problems appears in The Saratogian newspaper, angry readers come forth like an oil spill. The worm is turning on NYRA despite that its business model was constructed on assumptions that the State created and then failed to deliver. Faith in the franchise is evaporating like a cold pad of butter on a hot cob of sweet corn.

Other options for summer fun are entering the minds of the faithful. It’s too late to create an upbeat impression for this year’s Saratoga meet to match the optimism that’s sweeping over Monmouth. Even if the dithering politicians save the day with the dough they owe NYRA, nothing corrective to the core problems will happen in New York until there’s a comprehensive overhaul. At this point, getting a law passed seems a pipedream.

http://www.bloodhorse.com/horse-racing/articles/57171/new-york-lawmakers-approve-nyra-loan
New York Lawmakers Approve NYRA Loan
By Tom Precious May 25, 2010

… Under terms of the deal, NYRA must repay the loan by next March 31, which is within the state’s 2010 fiscal year.

… The new borrowing idea lowers to $225 million from $250 million an appropriation previously approved for the Aqueduct working capital plan to be used by a future operator of the casino. The Paterson administration hopes to award a new agreement for the long-stalled casino sometime in early August.

… If NYRA does not pay back the loan by the end of next March, the state will take proceeds from the future casino operator – from money destined to NYRA as part of a revenue sharing deal – until the $25 million is repaid.

… The Assembly’s top Democrat backed the NYRA loan. “I think one crisis in the industry is enough. It’s a loan against something that’s clearly a recognized commodity that will easily be paid back,’’ said Assembly Speaker Sheldon Silver.

Assemblyman Gary Pretlow, chairman of the Assembly racing committee, said the measure could go to the floor for passage as soon as this afternoon. “I would hope it does,’’ Pretlow said when asked for its chances for passage.

Pretlow said NYRA would not be in the fiscal condition it faces were it not for the state’s failure to open the Aqueduct casino and the lapsed payments by NYCOTB. “We never should have gotten to this point,’’ he said. Pretlow was critical of what he called the “still bloated’’ management at NYCOTB that don’t “want to pay their bills.’’

http://www.drf.com/news/article/113244.html
New York approves $25M loan to aid NYRA
By Matt Hegarty 5/25/2010

… In a prepared statement, NYRA's chairman, Steven Duncker, said that the loan "guarantees world-class Thoroughbred racing" at the association's three tracks: Aqueduct, Belmont, and Saratoga. …

… the $25 million loan will sustain the organization until sometime during the middle of the next year, provided that New York City OTB's debt to the association does not rise significantly during that time period.

The bill providing for the loan was attached to legislation that was necessary for the state to continue paying its bills as the legislature attempts to address a $9 billion budget deficit.

… Morgan Hook, a spokesman for Paterson, said that "details are still being worked out" on when the state would release the money, though he said that the money will likely be released to NYRA in installments.

"NYRA will be funded and no races will need to be canceled," Hook said. …

http://www.thoroughbredtimes.com/national-news/2010/May/25/New-York-OTB-ordered-to-stop-showing-out-of-state-simulcasts.aspx
New York OTB ordered to stop
showing out-of-state simulcasts
by Paul Post May 25, 2010

…

The New York State Racing and Wagering Board has ordered the entity to stop showing races from numerous venues, including Pimlico Race Course, Arlington Park, Calder Race Course, Churchill Downs, and Hollywood Park.

New York City OTB apparently was accepting signals from these tracks without board-approved contracts.

… “Not only is New York City OTB not paying the New York industry for its rights to conduct wagering, they're paying out-of-state tracks on a regular schedule,” he said. “Simply put, they are using New York horsemen, breeders, and track dollars to keep their business afloat this year. This is yet again another red flag being waived, demonstrating the corruption and misaligned intent of New York City OTB. At some point, we must have a reformed industry model in New York.”

New York City OTB spokesman Ben Branham said the financial impact of the board’s action could not immediately be assessed.

“We are in discussions with the Racing and Wagering Board to rectify the situation,” he said.

[Indulto]

This article should be read in its entirety IMO Frucher deserves to be heard without all the accompanying catcalls. That there is waste and fat is undeniable, but I think we all have to look at what he was aked to do and who he has to deal with.

http://www.thoroughbredtimes.com/nat...n-Frucher.aspx
Q&A with New York City OTB chairman Frucher
May 26, 2010

… I was asked to take over NYCOTB with the specific mandate to try and fix it. … there were two obvious issues. One was sustaining the industry and the other was not having a massive hit on the treasury of the city or the state at a time when you have a $9.5-billion budget gap at the state level.

… I was surprised at how fractionalized the industry is. And that people were rowing in different directions. There isn’t an easy way to sit down with the entire community to try and work out rational solutions. … it’s very hard to get a cohesive, rational resolution.

… Part of my mandate is to ensure that the public doesn’t get stuck with a $700-million bill in one form or another. … I believe, firmly, that NYCOTB has to stay in business, in one form or another, until you clean up the balance sheet. And when you do that, I think it’s all up for grabs. And I think the public policy makers should decide how they want to proceed with it. It all has to be done within the context of the public not holding a $700-million bag.

… The problem with the legislative process is, and was, that it’s not easy—it’s virtually impossible—for all the interests to be gathered in one place. What happens is that you have revolving doors of lobbyists all representing their clients legitimately. Except that, in that process, it’s very hard to have anybody willing to allocate any losses. It’s always, and has traditionally been, how you allocate gains. We’re now at a time when that’s simply not possible. So the question is: How do you limit the downside?

… If the industry is going to remain whole in this process without any significant losses, there has to be an infusion of revenue. … if you start cutting back simultaneously at the expense base, which is clearly what we have to do, you also start cutting back simultaneously at the revenue base. And you reach a point where the savings you get really is offset by the revenue you lose. By that, I mean, 66% of the revenue that comes into OTB comes in through the parlors. And, frankly, that’s where the bulk of your costs lie. …

… So you have not just the parlors, which are expensive in and of themselves, you have an infrastructure that is necessary to sustain the parlors. So when you start cutting the parlors, which is really where your expenses are, you’re cutting your revenue base. And remember, the statutory distribution in New York state mandates that the [racing] industry gets its distribution off the gross handle. And as a consequence there is a disproportionate outlay against the expense savings, and thus the revenue side that is distributed takes a bigger statistical hit than you get on the expense side. … The challenge here is: How do you replace the revenue that you lose when you close the parlors? That’s why we were looking for technological solutions that allow you, at a significantly lower cost basis, to harvest revenues.

… I think the Legislature, on balance, privately understands the dilemma. Obviously, the union understands the dilemma. I don’t think there are enemies who are out to scuttle you. What there are are people who have multiple constituencies who try to balance the needs of those multiple constituencies. …

… I don’t think, in the short term, the industry in New York state would be well served with any reductions. On the other hand, I don’t believe that state money can or should be used to bail out any of the parties involved—whether it’s OTB, NYRA, breeders, or any of the tracks. The question is: How do you do that? I say the way you do that is through the issuance of bonds, which is permissible under Section 611 of the OTB statute. You’d have to develop a business model that works that would allow for an investor to come in and choose to invest in OTB bonds.

… It becomes problematic politically because the industry wants to hold on with all its might to what they know and what they like, which is a statutory distribution process that distributes the dollars from the gross. And that’s not possible. It’s simply not possible to do and find any kind of outside investor who would be willing to invest in any form. Anybody who’s going to come in with any kind of venture capital or anybody who is coming in to buy your bonds is going to insist that their investment be in first position. By definition, that requires a change in the statutory distribution process.

… The industry has two arguments about why they like the gross distribution process. Number one: The industry should get paid for services it provides. I heartily agree 100%. There’s no disagreement. Where there is a disagreement is that I think that applies to all races in-state. But I don’t think people realize that two-thirds of all wagers, all the bets, that go through NYCOTB are for races outside of New York state. And that of the revenue distributed to the industry in New York state, 55% of that revenue comes from out-of-state races. …

… The second is an even more bizarre argument: Well, if you give those bums unfettered expenses to run their operations they’ll run themselves into the ground. ….. The real argument is: We get this amount of money, we’re in troubled times, and we need the money. Okay, that’s a more rational conversation than trying to justify something that from any business vantage point simply doesn’t make sense.

… I’m doing this pro bono. I’m doing this to avoid a disaster to the state. I don’t have any fat in the fire. I’m just looking at it objectively. This industry is blessed with a public policy in New York state that says, “These failed businesses, because they are failed businesses, they cannot operate on their own and make a profit on their own in New York state, need an additional public subsidy,” i.e., the awarding of franchises to run the only legal casinos in New York state, at these tracks. Now that clearly was a public policy that said, “Let’s consolidate gambling in New York state, at the tracks, for the purposes of sustaining this industry.” If it was, “Let’s have gambling to get money for the public purse, the public treasury” … then you would put them at more strategic locations like in the middle of Manhattan. So clearly, that’s designed as a subsidy for the industry. That all needs to be looked at in context.

… That is what we now are calling IATs—Internet Access Terminals. I wish we had called them that in the first instance because people really didn’t understand what a kiosk was. It led to a lot of confusion. What we’re saying is that there are already existing locations that have a culture that already incorporates wagering on sports events. It would not be out of character to have a terminal there that would allow people to place bets.

… When you look at the handle in France, for example, they have four times the wagering, per capita, that we do on horse racing through those IATs. They’ve also changed the demographic, which is one of the keys to helping. That needs to be done for the long-term viability of the racing industry, whether it’s here in New York or nationally.
The demographic here is 55 years old and older. Predominantly male. Eight percent is female. In France, the core customer group is 40 to 45, yes, male. But 42% of all the wagers [placed] is done by women. Obviously both the technology … and the familiarity [with racing and wagering] by the younger demographic who feel more comfortable in a different kind of setting. Which are essentially bars and bistros as opposed to our wagering parlors. Let me say that an OTB parlor has three functions, and then there’s a fourth dynamic. First: It’s where you place your bet. Second: where you cash out your winnings. Third: where you watch the race and socialize at the same time. Now that doesn’t have to be a parlor. It could be a bar or bistro. So you can replace the elements of it in a different setting. And at the same time start to change the demographics.

… The first objective is clearly to come up with as close to a united approach to this as possible. Two, that approach would allow us to go out and get financing to allow us to pay all of the arrearages, and to capitalize five new Super Parlors. And [that] would allow us to give early retirement and severance to our employees. And [that] would allow us to downsize significantly. Those are the objectives for this year. To get past the silliness of the name-calling, to get everybody to sit down and professionally analyze the situation. To come up with what should be a united, rational plan, and to move forward constructively in a way that would try to unite the industry as opposed to continue to divide it and fractionalize it.
The next objective would be, as an adjunct of what I’ve been talking about, to create an industry-wide public “back office utility,” so that redundant services are brought together in one place under a single management.

… Tote, Internet, telephone, marketing, [and] television. …

[Deepsix]

Thanks Indulto.... you've been birddoggin' this issue for some time and I've enjoyed reading all of your posts on the subject. That said, this article is particularly interesting... the confounding issues expressed concerning NY vary only ever so slightly from California issues.

Thanks

[Indulto]

Originally Posted by Deepsix

Thanks Indulto.... you've been birddoggin' this issue for some time and I've enjoyed reading all of your posts on the subject. That said, this article is particularly interesting... the confounding issues expressed concerning NY vary only ever so slightly from California issues.

Thanks

D6,
Thanks for the kind words.

As I've said before, it's the political aspect of this issue I find intriguing. This interview was not a challenging one, but Frucher used it the way a good politician should and communicated effectively. His style didn't drive home the significance of what he was saying unless I was really concentrating, so I can understand why he has been so maligned in the press.

[Deepsix]

And.... Your style of presenting the numerous links, and letting them speak 'pretty much' for themselves, instead of interjecting your personal slants/biases in some over powering agenda is appreciated by this reader. Naturally, we all have our own views and they will inevitably filter through, it seems.... BUT it appears you've made an effort to be neutral and not controversial with your personal views. Good stuff.

[Indulto]

Originally Posted by Deepsix

And.... Your style of presenting the numerous links, and letting them speak 'pretty much' for themselves, instead of interjecting your personal slants/biases in some over powering agenda is appreciated by this reader. Naturally, we all have our own views and they will inevitably filter through, it seems.... BUT it appears you've made an effort to be neutral and not controversial with your personal views. Good stuff.

Actually, I indicate my personal bias as to what I think is significant whenever I bold or underline a passage.

I've never been neutral, and while I haven't supported any alternative to NYRA that has been presented so far, I feel much of the criticism directed at it is deserved. While I'm grateful Hayward blew the whistle on Smith, I don't believe he was the appropriate alternative for the job. IMO the new loan should not bring an end to the cost-cutting, but rather more accountability.

I also feel too little attention has been paid to what goes on at the OTBs, and the press doesn't seem to be as motivated in reporting its "dirty little secrets" to the ame extent it has been regarding NYRA. Maybe that will change.

Winter racing AND Aqueduct should both go away. I'd always been against slots at BEL and govt. dependence on gambling to pay the salaries of its employees. However, since it's now clear that horseplayers are too far and few between -- and a slots subsidy is necessary in NY for both standandbred thoroughbred racing -- they should be at BEL, or only SAR will survive.

[Deepsix]

Yes I certainly have noticed where you choose to highlight (bold print) and that is what I referred to above regarding your personal biases. I place emphasis on my words that you don't 'overpower' your position as you've posted these topics.

At any rate, enough of this and post as you will. <smile>

[Indulto]

http://www.drf.com/news/article/113627.html
New York OTB chairman submits resignation
By Matt Hegarty 6/5/2010

… The resignation letter stated that Frucher did not believe his plan to reorganize New York City OTB under Chapter 9 of the bankruptcy code would be successful, according to several officials with knowledge of the matter. Frucher's plan relied on massive layoffs, the closure of more than half of the OTB's parlors, and raising $250 million through a state-backed bond issue, a measure that has become increasingly unlikely given the state's $9 billion budget deficit.

"It was all very cordial," said one of the sources, regarding the tone of the letter.

… Frucher's reorganization plan had also included the possibility of the installation of hundreds of betting machines at New York City's bars and restaurants. Critics of the plan had contended that the machines were stalking horses for video-lottery terminals, a type of slot machine that is currently restricted to New York's eight harness tracks and to Aqueduct racetrack in Queens.

New York City OTB filed for bankruptcy last December. Twice this year Frucher threatened to shutter the company's parlors and its account-wagering operation unless the legislature granted the company concessions on its statutory obligations to the racing industry, but both times he backed away from the threat, citing progress with legislators.

Since then, the New York State Racing and Wagering Board temporarily shut off the majority of Thoroughbred racing signals that OTB was offering to its customers, claiming that it had concerns over whether the company could meet its financial obligations. The signals were restored last Friday. …

http://blog.timesunion.com/capitol/archives/27862/frucher-resigns-says-his-job-was-made-untenable/
Frucher resigns, says his job was made untenable
by Jimmy Vielkind June 5, 2010

… “In light of Mr. Megna’s letter and Mr. Sabini’s actions and their effect on the restructuring plan, I have determined that it is time for me to step aside to allow you and your staff the opportunity to resolve NYCOTB’s situation,” Frucher wrote to Paterson. “In doing so, I take pride that I have successfully completed all the task assigned to me upon my appointment: 1) evaluation and assessment of NYCOTB’s operations and financial condition; and 2) development of a sound restructuring plan that would not require taxpayer funds, treat employees with dignity and respect, will benefit the racing industry and permit it to continue as an economic engine for the State.”

The resignation took effect Friday. Frucher’s full letter is above.

http://www.ny1.com/content/top_stories/119898/otb-chairman-announces-resignation
OTB Chairman Announces Resignation
By: NY1 News

Off-Track Betting's New York City Chairman Meyer "Sandy" Frucher is resigning.

… He says upon completing the assessment he, "...determined that the corporation was in fact, insolvent, and just as important that its business model was antiquated and overly labor intensive.”

Frucher said this and a financial downturn in the state's racing industry lead to a “perfect storm that not only threatened to bring down NYCOTB, but bring the demise of the entire horse racing industry in New York."

Frucher created a rescue plan that included shutting down dozens of OTB outlets and replacing them with automated betting kiosks spread out across the city, as well as downsizing the workforce by 60 to 65 percent. The plans were scratched after a number of negotiating problems with the OTB's budget director and state racing chairman.

Frucher maintains that though he's stepping down, he successfully completed all of the tasks assigned during his appointment

[Indulto]

http://www.nytimes.com/2010/06/06/nyregion/06otb.html
Paterson Aide to Lead OTB After Its Chairman Quits
By CATE DOTY : June 5, 2010

The top aide to Gov. David A. Paterson will lead New York City’s troubled Off-Track Betting Corporation, whose chairman resigned on the eve of the Belmont Stakes, New York’s largest racing event, officials said on Saturday.

… The administration replaced Mr. Frucher with Mr. Paterson’s top aide, Lawrence S. Schwartz, the secretary to the governor, who is known as the office’s disciplinarian. He will keep his old job while taking on his OTB duties.

Morgan Hook, the governor’s communications director, said Mr. Paterson had not asked Mr. Frucher to step down from the job, which is an unpaid position. “He thanks Sandy for his service to New York, and for the diligence and passion that he brought to the position,” Mr. Hook said on Saturday.

… Last week, Robert L. Megna, the state’s budget director, rejected Mr. Frucher’s request for nearly $300 million in tax-free municipal bonds, which would have financed his proposal to restructure OTB. …