HOW INDUSTRY SALARIES STACK UP
It was a sure thing that New York politicians would complain about the annual compensations paid to New York Racing Association president Charlie Hayward and chief operating officer Hal Handel, who reportedly are paid $460,000 and $440,000 per year, respectively. And true to form, Democratic Assemblyman Gary Pretlow chimed in with the following comment to the New York Daily News when the salaries were disclosed in a letter from NYRA to the state’s Franchise Oversight Board: "They’re running an unprofitable business making exorbitant salaries."
Running NYRA is no easy task, especially when you are hamstrung by some of the most short-sighted legislators on the American political landscape. Those legislators, along with three New York governors, took nearly 10 years after enabling legislation to name a VLT operator at Aqueduct, a delay that created an enormous economic hardship on the racing association. And the recent controversial appointment of the Aqueduct Entertainment Group to operate the VLT franchise could be held up for the unforeseeable future.
Let’s also not forget that it isn’t Hayward and Handel’s fault the state is facing an $8.2-billion budget deficit.
In NYRA’s letter to the Franchise Oversight Board, it was stated that NYRA’s two top executives are underpaid in comparison to the association’s leading competitors in the racing and gaming world.
The Paulick Report examined Internal Revenue Service Form 990s from 16 different national or state non-profit associations involved in Thoroughbred racing and breeding to see how their executive compensations compare with those reported for NYRA executives. Following is the result of that salary survey. The survey looks strictly at non-profit associations, none of which are engaged in the operation of a racetrack or racing circuit. The compensation listed is base salary without regard to retirement benefits or additional compensation. The salaries reported are for the most recent year available at www.GuideStar.com, which monitors non-profit organizations.
Tags: Aqueduct Entertainment Group, charlie hayward, Form 990, Franchise Oversight Board, Gary Pretlow, GuideStar.com, Hal Handel, internal revenue service, IRS, New York Daily News, New York Racing Association, nyra, Ray Paulick
February 23rd, 2010 at 9:47 am
The ones I recognize are overpaid at eight bucks an hour.
February 23rd, 2010 at 10:41 am
Cut both $200K and reduce the NYRA loss by a bit.
February 23rd, 2010 at 10:52 am
They all need a raise.
February 23rd, 2010 at 10:58 am
Wow - The BCup fired Pam Blatz-Murf but they obviously had to keep Avioli at the overinflated salary - are you kidding me?? The good ole boy network is alive and well in racing circles, not just in KY.
February 23rd, 2010 at 11:12 am
Democratic Assemblyman Gary Pretlow’s proclamation sounds dangerously close to an armchair expert — criticizing others while using taxpayer money to pad his own cushions…has he ever held a job where decisions, actions, taking the risk and the responsibility is on his shoulders? Or has he made a career of wheezing out judgments of others?
Pretlow should have a stellar ethical performance, with roots in moral compost in order to point the proverbial finger…
I really don’t care how much anyone makes, as long as they make their money honestly. From businessmen to politicians…cut dishonesty and over regulation anywhere, and watch money really flow.
February 23rd, 2010 at 11:20 am
WOW — AVIOLI AT 500K a year — Obama only makes $400 K a year …
OBAMA VS AVIOLI — interesting –
NOW BREEDERS CUP GIVES NEW MEANING TO STIMULUS PACKAGE!!!!!
February 23rd, 2010 at 11:52 am
Looks like New York and Maryland are in the sme boat. Both states would not have the budget deficits they have if the legislators were on the ball.
February 23rd, 2010 at 12:29 pm
I could live with some of those salaries if racing wasn’t going down the toilet! Jocky Club’s Alen Marzelli was beyond obscene.
February 23rd, 2010 at 12:33 pm
Over $3.75 million a year and our industry has never been worse off… we have some great leaders!
February 23rd, 2010 at 12:59 pm
I BELIEVE THAT ALL PEOPLE LEADING INSTITUTIONS AND COMPANIES MAKE MORE MONEY THAN AVERAGE AND THAT IS FAIR….IF YOU DO WHAT YOU ARE SUPPOSSED TO DO. TO MY KNOWLEDGE, THE ASSOCIATIONS MENTIONED IN YOUR REPORT ARE GOOD FOR RACING. THE LEGISLATOR WHO COMPLAINED RUNS A BILLION DOLLARS DEFICIT GOVERNMENT, LET HIM COME TO THE PRIVATE SECTOR FOR SIX MONTHS SO HE LEARNS
February 23rd, 2010 at 1:05 pm
This is what you get when these people are accountable to pretty much NOBODY.
February 23rd, 2010 at 1:47 pm
Some of these top salaries appear excessive and bear no relation to performance.
February 23rd, 2010 at 2:09 pm
Great point Another Young Owner.
What exactly are we getting for all this money spent? Too many ABC groups and nothing gets done.e
February 23rd, 2010 at 4:30 pm
THE ONE THAT REALLY STANDS OUT ON THE LIST IS GREG AVIOLI,THATS A LOT OF MONEY AND ALL HE HAS DONE SO FAR IS TAKE THE BREEDERS CUP IN THE WRONG DIRECTION.IN FACT IF HE COMES UP WITH MANY MORE GOOD IDEAS[ SUCH AS MAKING SANTA ANITA THE PERMANENT HOME] THE BREEDERS CUP MIGHT BE A THING OF THE PAST.
WHEN HE FIRST STARTED TO FIX IT,NOTHING WAS BROKE-JUST LOOK AT IT NOW.
February 23rd, 2010 at 5:04 pm
It is interesting that the salary of the NY Thoroughbred Breeders executive director is not listed. Is NYTB not a non-profit?
February 23rd, 2010 at 5:08 pm
As Ray points out, that salary list, made up of not-for-profits, rather than race track operators, isn't really the best yardstick for comparing NYRA salaries (though NYRA has been pretty good at being not-for-profit).
Still, a few things stand out. Marzelli and Avioli are way out of line. True, the Jockey Club and Breeders Cup are bigger than most of the organizations listed, but even so, there's an embarrassment factor there that they should be feeling.
Second, Todd Mostoller in PA is way underpaid. Running a horsemen's organization is real work, and deserves a six-figure salary.
As for NYRA, they try to spin the salaries by comparing themselves to NYRA, Penn National and Churchill. Nice try, but NYRA is effectively a government entity, and nobody in government should make more than the prresident of the US. So how about a salary cap of $400K until they're making a profit again?
February 23rd, 2010 at 6:57 pm
most are proven failures at everything they ever did until they got in a position of power… could not successfully run a hot dog stand without being subsidized…. they all have deputies and assistants that do any actual work, and spend entirely too much time playing a bad game of golf…
February 23rd, 2010 at 8:19 pm
New NY Owner/Breeder….
You are correct that the NY Thoroughbred Breeders Inc. is a non-profit, but 2008 (the most recent year the IRS 990 is available) apparently was when the former exeuctive director left and the new one arrived, making it difficult to assess an annual salary. For the record, former exec director Jane Deceteau earned $47,533 and Jeffrey Cannizzo earned $39,523. It does not say what percentage of 2008 each of their salaries represents.
February 23rd, 2010 at 8:36 pm
Thank you, Ray, for the information on NYTB. I went to the website you mentioned .Thank you for giving this website which performs a community service by publishing the financial information of non-profits.
February 23rd, 2010 at 8:54 pm
Jeff Cannizzo is the best next generation Exec I've seen in NY in some time. And I've seen them come and go for over 20yrs here in NY. Very genuine and obviously in it for the right reasons.
February 23rd, 2010 at 9:45 pm
How about this turn this negative thing and make it positive. Racing can do this by realizing that all of the above names could be easily one national "Horse Racing Czar". This would eliminate all of the above positions. Racing can pay a single person probably under 400k per year to do a better job. These bozos would have hard times being qualified as hotwalkers on a backstretch. Racing's only hope is to organize as one.
February 23rd, 2010 at 10:11 pm
Avioli's salary is comparable to major track execs and a pittance compared to other sports/entertainment/gaming chief execs. If this industry wants to attract major talent from the "outside world," it better be ready to pay a lot more. And, Big Bro, while I don't agree with every decision, at least the Breeders' Cup has been trying to innovate over the last few years.
Some of these other people have been around since Secretariat…
February 23rd, 2010 at 10:23 pm
Alan Marzelli of The Jockey Club should be blamed for racing’s uninformed debacle. I would like to know the reasons he did not campaign for a league when he first started and especially when Equibase was formed? He may have done a good job overall at TJC, but he did no favors for racing. In retirement, he should speak up for a league office, now that he has no boss.
February 23rd, 2010 at 10:35 pm
Executive pay:
California Thoroughbred Breeders Association: $ 185k
Florida Thoroughbred Breeders and Owners: $ 165k
Kentucky Owners and Breeders: $ 211k
New York Thoroughbred Breeders Inc: $ 39k?
<applause> Cannizzo gets it DONE. Guy needs a raise! </applause>
February 23rd, 2010 at 10:48 pm
These aren't that egregious. Avioli's salary is commensurate with most major track execs and a pittance of what the people who run major sports or gaming properties make. This is another area where our industry is schizophrenic; we want to attract top talent from outside but think it's "obscene" to pay them.
February 24th, 2010 at 8:49 am
The one that sticks out for me is the California Thoroughbred Breeders Association. They have completely lost their rudder. Sixty thousand would be more appropriate.
February 24th, 2010 at 10:15 am
Thanks Ray,
Yes, the question is ; What have we bought here? If this does not call for a central office, we are lost.
February 24th, 2010 at 11:21 am
Ray, could you publish the salaries of top execs at Penn National, MTR, MEC, Harrah’s, Churchill Downs, Del Mar Thoroughbred Club, Greenwood Gaming, etc. with those of NYRA top execs in order to compare apples with apples?
The above salaries are interesting and disgusting: so much money, arrogance, avoidance of crucial issues like who/what let so many infirm horses race including graded stakes winners raced down to bottom-levels and why.
Grand poo-bahs, fat guys and well connected empty suits are more interested by pays, perks, golf junkets, pensions, future consultant fees, belonging to the fraternity and controlling public outrage than the health, reputation and future of their morbid industry, so they create no waves, continue to protect secrecy and evil by sticking to the code of silence and bathing in blind-deaf passivity.
Reforming racing would create financial disruption at least initially even though it is the only way to improve the industry and secure its future. Fat cats and empty suits choose to risk nothing especially not job, money and fraternity.
The only way to reform racing is by creating a central authority which would compromise or end the power, pays and perks of current racing powerbrokers. No accountability produces arrogance and inertia while racing desperately needs new vision and fresh energy to become more humane and safe and if not done for the horses and their jockeys, it must be done for horse racing.
Nothing stink more than huge consultant fees. D.G. VanClief rakes a pretty good one from the BC perennially. Are some “consultants” double or triple dipping between pay, pension and consultant fees? Are “consultants” and fees public information? Could we see the list of BC, JC, NTRA, TOBA and HBPA consultants and payola?
Money would be far better spent funding security and anti-doping measures, anti-injury measures, quality racing over quantity, frequent and super testing, severe penalties and bans, and the humane handling of spent, wounded, non-productive horses that are dumped by owners rather than on “consultant” fees, enormous pays and perks, regular feasts and luxurious junkets.
February 24th, 2010 at 11:43 am
The CTBA has completely lost its rudder? Nothing new. I remember when Brian Sweeney was its President and used the CTBA as its ATM machine and served himself with interest-free “loans” among other things. Has the organization really changed since then? It is about over-breeding and megalomania. While facing statewide financial catastrophy, it continued to push for over-breeding and mediocrity which has resulted in truck load after truck load of Calbreds sent to slaughter during the past two years alone. Latest Southern California “inventory” figs are 2,800 horses down from 4,000. That state ain’t seen nothing yet. Next year will be worse because of all the broodmares and babies that were sold by the pound or given away to killers. The going rate for a California stallion in good shape is $600 for fighting at Mexican rodeos, a whole 300 bucks above meat price. Bravo CTBA!
February 24th, 2010 at 12:40 pm
Ray,
Tried last night to make a comment, but there was a computer glitch.
Anyway, the point I wanted to make is -
About a year ago, when I submitted a commentary on the near-unbelieveable money taken by Marzelli and his pals at TJC, you refused to publish it.
Now that you have cautiously raised the whole subject of “profits from non-profits”, it is my hope you will kave the nerve to carry it through.