New York Franchise Award Recommendation May Come Nov. 21

[OTM Al]

Not done quite yet, but finally a positive sign. That is Albany negotiating unfortunately.

[slewis]

OK Sheba,


I never said political hacks or any politician is pro-gambling of any sort.
It's political suicide if they admit they are, which is unfortunate because it can be great source of revenue for any state . But your missing my point here.

NYRA was in Bankruptcy, owed the state millions of dollars yet still managed to go out and hire top legal council (including trying to hire Gednick and Gednick!!!)
to defend their right to a franchise renewal.
With "political hacks" as you call them now on the board, situations like this, the mis-spent money in legal fees at taxpayer expense should never, ever, occur again. I'm sure the costs were in the millions. Tell you what.... take that money and hire 20 teachers or fix some roads.
I personally think NYRA is best suited to run the track in the near term...as incompetant as I think they are,because quite frankly there is no other entity qualified to step in in right now. Bruno tried to make it clear that it was going to be on the state's terms, not NYRA's and I agree 100%.
I truely wish this would have gone to court. Even if NYRA proved it was the land owner, then what?? Extort the state of New York for a deal THEY want?? Say "it's racing the way we see fit with our rules and us calling the shots or you guys can start construction on a new racetrack, maybe at thesite of the new Mets ballpark??" Was that the conversation with a judge? Dont be ridiculous. I'm not a lawyer but I've spoken to a few and the consensus was strong-arm tactics with the state is not a good idea and with their not-for profit status (meaning no financial gain or loss if the land is awarded to the state) and current financial situation..... Well, I guess that's why they took the best deal they could get.

[OTM Al]

Don't you love people who just join message boards and just start insulting people from their very first post.......

I think we will probably get an announcement today

[point given]

Everything gets done today. Will most likely be announced this afternoon , after the all important Roger Clemens drugs grilling on live TV. It must be true its in the Schenectady Daily Gazette. and if they got it, then everybody has got to have it.

http://www.dailygazette.com/news/2008/feb/13/0213_NYRA/

[OTM Al]

Yep, almost done

http://news.bloodhorse.com/viewstory.asp?id=43626

And here's the legislation. My eyes crossed after the first paragraph....

http://assembly.state.ny.us/leg/?bn=A09998&sh=t

[OTM Al]

The bill passed the senate a few minutes ago 39-17. It was facinating listening to the senators speaking on why they were casting their votes the way they did. Many were absolutely clueless about the modern racing industry and voted no on the basis of really bad info, but fortunately it was not close. The irony of it all was listening to Joe Bruno passionately defend the bill. He's good, that's why he is where he is. I still think he's a crook, but I resolve to not call him an a##clown for at least the next day in appreciation of finally getting this done. (Finally......finally. Its going to be hard to keep to that promise now that I think of it)

[highnote]

Here are questions I have from reading only the first couple of paragraphs... I'm sure I'll have more.

1. Who is the "empire state development corporation"?

2. If the empire state development corporation issues bonds for the "acquisition of certain racetracks and construction of video lottery terminal facilities...." -- who will receive the money that is used to acquire "certain racetracks?"

3. What "certain racetracks" are they referring to? There are only 3 that belong to NYRA -- why can't they just list them? Or are there other tracks -- like harness tracks?

[OTM Al]

The ESD is a state agency, whcih being a NY state agency...weeelllll I did promise to be nice for a day or so. You can learn about it here

http://www.empire.state.ny.us/Contac...Us/default.asp

There is some connection to standardbreds in the bill as well and Bruno did discuss a couple trotter tracks that had closed or were on the verge and how that was a negative thing for NY.

[highnote]

I get it. So ESD can issue bonds on behalf of NYRA since NYRA does not own any land. And by using ESD, NYRA can get a lower interest rate.

[Indulto]

http://news.bloodhorse.com/viewstory.asp?id=43634
NYRA Wins 25-Year Franchise
by Tom Precious

…

The deal, approved Feb. 13 by the state Legislature in New York, calls for $105 million in direct state aid, the writing off of about $120 million in past debts to the state, new oversight provisions, added money for purses and breeders, and an end to NYRA’s ownership land claims of the three tracks.

… The franchise for “a new NYRA,’’ as Senate Majority Leader Joseph Bruno called it, extends NYRA’s life until Dec. 31, 2033. A state panel that oversees NYRA Wednesday evening held an emergency meeting to temporarily extend NYRA’s ability to run racing at Aqueduct until March 7. That is two days after NYRA hopes to emerge from bankruptcy protection, which would legally begin the new franchise period, officials said.

NYRA and state officials believe the deal will not only help it satisfy its bankruptcy creditors, but craft a new business model to keep NYRA from returning to Albany on a regular basis for state bailouts as it has done for a couple decades. Between VLT casino proceeds from a future casino at Aqueduct, new provisions that include performance benchmarks and added powers to a state panel overseeing NYRA, officials say Thoroughbred racing has been reconstituted in New York.

… The agreement turns NYRA into a not-for-profit corporation, ending its days as a non-profit entity, but includes a provision authorizing the state comptroller with power to audit its books. As a not-for-profit, NYRA will also come more directly under the oversight of the state attorney general’s office.

… The legislation creates a 25-member board, down from the current 28 members. NYRA gets to select 14 members, giving it control, while the state gets to pick 11 members. The governor controls seven of those members, and one each will be made on the recommendation of the off-track betting community, breeders, horsemen, and the state AFL-CIO.

… A state oversight board created a couple years ago following a spate of legal and financial troubles by NYRA will remain in business and see new powers. Its current members will be replaced, giving Gov. Eliot Spitzer a majority of appointments to the five-member panel.

The legislation creates a formula by which NYRA will pay an annual franchise fee to the state by April 5 every year. But it also contains an escape clause that permits NYRA to ignore the payment schedule if it runs into future financial problems.

… The bill also calls for NYRA entering into simulcasting deals with the OTBs so the OTBs can enjoy the same price that NYRA does for simulcasting. The bill does not, however, let the OTBs opt out of simulcasting NYRA races, as was being sought. OTB officials, though, say the new provision will not benefit them since they already can buy out-of-state signals cheaper than NYRA.

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

… With no tracks to serve as assets against which to borrow, the legislation says the state’s economic development agency can float bonds on NYRA’s behalf – thereby securing lower interest rates, as well – for future construction projects, such as improvements at the tracks.

… The deal is silent on who will operate the Aqueduct casino. A decision is expected in about a month. But the bill says the VLT casino will need approval by the governor, Bruno and Assembly Speaker Sheldon Silver. It also says the state could approve the opening of a temporary VLT casino at Aqueduct while a permanent facility is built.

Some lawmakers hope Belmont will be approved for a casino, but Silver, who was credited by NYRA with brokering an impasse between Spitzer and Senate Republicans, said such a facility so close to Aqueduct would create a gambling “saturation.’’ He said bidders for Aqueduct’s casino have told him the Queens casino would be valued less if Belmont were also permitted a casino.

… “We got a resolution that I think puts New York state on the right track,’’ Spitzer said of the deal.

[NYPlayer]

Originally Posted by bigmack

The ol' squeeze play by Duncker worked...

It sure did.

Key terms of the new deal -

• 25 year franchise (Spitzer memo 30).
• Relenquish claims of ownership.
• 105m loan (Sptitzer memo called for 205m).
• Reduced NYRA control of the board.
• Performance Benchmarks which if missed can terminate the Franchise (The overisight board has jurisdiction over this process).

Yep. Looks like NYRA got everything they wanted.

[Indulto]

BgM and NYP,
NYRA was never going to get everything it wanted (or needed), but IMO there still would be no agreement if not for NYRA's willingness to take a stand (bluff?). Don't fret though, NYP. There's still ample opportunity for NYRA and horseplayers, generally, to be relegated to secondary status at both AQU and BEL.

http://www.drf.com/news/article/92269.html
NYRA reaches 25-year franchise deal
By MATT HEGARY

… the state will advance NYRA a maximum of $105 million to fulfill its financial obligations and to pay for its operations until 4,500 slot machines come on line at Aqueduct. The casino operator - which will be selected by the state - will be obligated to pay back the $105 million.

… In the next three weeks, NYRA is expected to work out a settlement with the state to transfer the titles of the tracks. NYRA will then seek final approval for a reorganization plan it filed late last year with the U.S. Bankruptcy Court for the Southern District of New York, and if the plan is approved, the terms of the legislation will go into effect.

The legislation is a patchwork of compromises designed to address a number of concerns of legislators and their constituents, and its impact on the fundamental weaknesses in the state's troubled racing model is unclear. The amendments include a raft of protections for unionized workers; a requirement that NYRA conform to unspecified performance standards; and shares from slot-machine revenues as subsidies for horse owners and breeders and as a source of cash for capital improvements and operations at the three tracks.

… Under the bill, the board will be pared from 28 members to 25. NYRA will control 14 appointments compared with 20 under the previous structure, and the state will control 11 appointments compared with eight previously.

Seven of the board spots will be appointed by the governor, including one each at the recommendation of the state's horsemen, breeders, unions, and OTB companies. Two spots will be reserved for appointments by the assembly speaker, and two others by the senate majority leader.

The bill does not address the state's antiquated system in which bets are taken at the facilities run by six regional offtrack betting corporations owned by counties, nor does it provide a long-term solution to NYRA's financial woes other than granting the association and its horsemen shares of the slot-machine revenues.

… the agreement will give legislators influence over the selection of a real-estate developer and a casino operator for Aqueduct - and for Belmont, if slots are legalized there.

The legislation allows the Non Profit Racing Association Oversight Board to select a casino operator …

… NYRA will receive 4 percent of the revenues from the slot machines to use for capital improvements and an additional 3 percent for operating cash.

Estimates for the revenue from the slot machines vary, but if each machine generates $300 in revenue a day - a conservative estimate for a casino in one of the country's largest metropolitan areas - total annual revenue would be $500 million. Many casino analysts predict that each machine will generate $500 a day. …

The article also includes a dated list of significant events in the franchise renewal process.

Will the current oversight board be replaced before or after the selection of the VLT operator?

http://www.newsday.com/news/opinion/ny-vpnyra145575293feb14,0,7272172.story
Editorial: New NYRA deal bad for state and Long Island

… This deal shuts out Long Island, where there was strong support for a "racino," a combination track and casino of video lottery terminals. Belmont, at the western entrance of Nassau County, would have been developed into a destination entertainment spot with restaurants and hotels.

Assemb. Speaker Sheldon Silver (D-Manhattan) adamantly opposed improving Belmont, demanding that only Aqueduct get the VLTs. It was Silver's valentine to his New York City coalition, who feared the competition from Belmont could hurt the Queens track. Senate Majority Leader Joseph Bruno (R-Brunswick) was content that Saratoga, located in his district, came out of the negotiations just fine.

The leading advocate for Belmont, Sen. Dean Skelos (R-Rockville Centre), pushed hard but in the end couldn't get even a few million dollars in community funds for the Elmont area, which has to put up with the traffic, crime and additional schoolchildren generated by Belmont.

Now the talk is that approval of Belmont's racino may come during spring budget negotiations, when Silver will be unable to pass up the $250 million franchise fee it could generate. Don't bet on it.

Does this "community-minded" editorial writer think those "problems" won't be exacerbated by slots at BEL?

[cj]

Early Quote of the Year:

Richard Dutrow Jr. said of NYRA: "I hope they do a better job than they've been doing. New York racing could be run a lot better than it's being run right now. They need to straighten a whole lot of things out. I hope they do."

Guys like him should be at the top of the list. How does the saying go about being careful for what you wish?

[rrbauer]

So after all of the hoopla for the past year or so, it all boils down to MOTS (more of the same). Status quo wins again in horse racing. NYRA gets their umpteenth repreive for no other reason than political expediency. I mean it plays like the Capones, the Gambinos, the Sopranos....no mystery here: The NYRA family makes Richard Daly and company look like a bunch of pikers.




RIP Friends of NY Racing!

[Indulto]

Originally Posted by rrbauer

So after all of the hoopla for the past year or so, it all boils down to MOTS (more of the same). Status quo wins again in horse racing. NYRA gets their umpteenth repreive for no other reason than political expediency. I mean it plays like the Capones, the Gambinos, the Sopranos....no mystery here: The NYRA family makes Richard Daly and company look like a bunch of pikers.

RIP Friends of NY Racing!

rrb,
You may be talking to soon. Bruno has one more board appointment to make. It could be Smith or Perlee.

You're probably right about the political expediency aspect, but I'd have suspected corruption if Empire or Capital Play had been awarded the franchise. I'd add cronyism if Excelsior with either of Spitzer's buddies, Field or Mulrow, had been the winner.

I don't think the result should be categorized as status quo unless nothing is ever done about the OTBs. It ocurred to me that if OTB is merged with NYRA, then perhaps the OTB parlors would be considered an extension of the track and thus potential sites for VLTs.