Cuomo to sign NYRA reform legislation seeking to privatize - NYPOST.com

[andymays]

http://www.nypost.com/p/news/local/g..._content=Local

Excerpt:

Gov. Cuomo, in a startling move, has decided to “privatize’’ the running of the famed Aqueduct, Belmont and Saratoga thoroughbred tracks with a new management company that will replace the scandal-scarred New York Racing Association, The Post has learned.

Cuomo, who will sign legislation within days giving the state control of NYRA’s board of directors, plans to seek public bids for a new operator to replace NYRA, a not-for-profit corporation, from for-profit companies with deep experience in the racing and/or entertainment industries, sources said.
State officials believe operators of such prestigious tracks as Churchill Downs, site of the Kentucky Derby, and Santa Anita Park, in Arcadia, Calif., as well as the managers of major entertainment destinations, will pay huge fees to run the three New York tracks.

[Tom]

Bad idea.
NYRA is number one. Sell it to some lesser outfit?

Of course, Cuomo is number two.

[Robert Goren]

As read it, he is not selling but just turning the management over to private concerns. NY state will get raped if that is the case. They should sell the tracks lock, stock and barrel. Private industry should be the only owners of race tracks. It is in nobody's best interested for race tracks to be owned by the state long term. There maybe case for short term ownership of state owned race track, but even liberal like me has a hard time justifing even that.

[OTM Al]

Not legal either. The State awarded a 25 year contract to NYRA to run the tracks. It was approved by then AG Andrew Cuomo. They then violated the terms of that contract. It is true that there were provisions to take the franchise back, but there was a system of due process built in for them to do this. It has not been followed. The State, in violating these terms, made further promises in their legislation that control would be returned to the franchise in 3 years. If what in this article is true, then they are now in the process of violating these new terms. Don't think it's going to be so easy this time. Of course the key to the whole article is this

"State officials believe operators of such prestigious tracks as Churchill Downs, site of the Kentucky Derby, and Santa Anita Park, in Arcadia, Calif., as well as the managers of major entertainment destinations, will pay huge fees to run the three New York tracks."

So let's see, if you were in position to pay these "huge fees" and were interested in doing so, would you make a deal with an entity that has clearly shown it will not uphold its deals and will sell you out at the opportunity to make some more money? Genting figured that one out already.

[Robert Goren]

Having worked in an industry who managed things for governments, be assured there is no such thing as a government contract that the government doesn't have escape causes that they can't use to get out of it in about 20 seconds for no reason except they want out. Anybody who thinks different hasn't never contracted with government to do anything.

[OTM Al]

Originally Posted by Robert Goren

Having worked in an industry who managed things for governments, be assured there is no such thing as a government contract that the government doesn't have escape causes that they can't use to get out of it in about 20 seconds for no reason except they want out. Anybody who thinks different hasn't never contracted with government to do anything.

Actually this contract had a very specific escape clause for the government. It required certain steps be followed. They may think they can just get out of it, but courts may well see differently. We shall see.

[therussmeister]

Judging by the process by which slots were installed at Aqueduct, I am predicting the private company will officially take charge on the opening day of the 2018 Saratoga meet.

[Robert Goren]

Originally Posted by OTM Al

Actually this contract had a very specific escape clause for the government. It required certain steps be followed. They may think they can just get out of it, but courts may well see differently. We shall see.

That would be truly amazing if true. I once had a long talk with a VP of ABM Industries, the world largest manager of government buildings and services(a NYSE traded company I worked for), tell me that every government contract he had ever seen that the contractor was technically in violation of the terms of the contract when they signed. I am sure he had seen thousands of them in his job.

[OTM Al]

Originally Posted by Robert Goren

That would be truly amazing if true. I once had a long talk with a VP of ABM Industries, the world largest manager of government buildings and services(a NYSE traded company I worked for), tell me that every government contract he had ever seen that the contractor was technically in violation of the terms of the contract when they signed. I am sure he had seen thousands of them in his job.

I'm sure he has, but the difference is you are talking about procurement contracts. There's going to be, and probably has to be, some give and take there as contracts will be renewed and new ones granted regularly. You don't blow up a specific deal because that means you won't get the future ones and evidently they were still making money even though the terms were fudged. This isn't a procurement contract.

[cj]

I was involved with lots of contracts in the military, and it is very hard for the government to get out of them even when the contractor performs sub-standard work, or even doesn't finish.

[Robert Goren]

Originally Posted by cj

I was involved with lots of contracts in the military, and it is very hard for the government to get out of them even when the contractor performs sub-standard work, or even doesn't finish.

I have no idea about military contracts. I know the kind of contracts I was talking about were very seldom canceled although it was not all that rare for the government to threaten to cancel one to get something they wanted. The actual canceling of a contract involved a fair amount of work for the government, such as finding a a temporary contractor and then starting a new bidding process. Every government bureaucrat I ever dealt with hated the bidding process and that I am sure has saved many a contract.

[OTM Al]

Does anyone find it stupefying that the governor threw a fit when NYRA farmed out its telephone betting to Twinspires and now doesn't have a problem selling the whole operation to them? Maybe I should start a question a day thread on this......

[pandy]

Originally Posted by therussmeister

Judging by the process by which slots were installed at Aqueduct, I am predicting the private company will officially take charge on the opening day of the 2018 Saratoga meet.

I was thinking the same thing, although it could be well into the 2020's.

[hibiscus]

Originally Posted by OTM Al

Not legal either. The State awarded a 25 year contract to NYRA to run the tracks. It was approved by then AG Andrew Cuomo. They then violated the terms of that contract.

Since the newly constituted NYRA board is going to consist of a majority of State appointees and the Chairman is going to be specifically appointed by Cuomo who then would object to much less file a suit against the state for breach?

[Itamaraca]

Time for a long overdue change. How, really, could it be any worse with an entity other than NYRA running the ship? I know this much, there are things that need improvement that NYRA just won't address; they haven't to this point and they certainly won't in the future. Maybe new leadership will result in different/worse problems; maybe not. I'm tired of the same old shit. I suspect that quite a few others are as well.