NEW YORK DAILY NEWS: NO MORE BAILOUTS FOR NYRA
You can only prod a hungry bear so many times before it begins to rip off your limbs and that seems to be what’s happening within the NY Daily News editorial staff in regards to the recent NYRA news.
Saying "the long decline in popularity of equine competition and the gambling that supports it has reached bottom", they use the recent claims by Charles Hayward to support not supporting any additional help. And aptly, Hayward’s threatening to cancel the Belmont Stakes is described as "an unconscionable act of extortion".
This accusation of extortion is exactly why we stated last week that perhaps the only thing worse than not running the Belmont this year might be running it. Not a good position to be in if you’re NYRA…or a part of horse racing at all.
Click here for the New York Daily News article
Then come back to the Paulick Report and let us know what you think.
Tags: belmont stakes, bradford cummings, charles hayward, New York Daily News, New York Racing Association, nyra, Paulick Report
January 4th, 2010 at 8:36 am
I hate reading “The long decline in popularity of equine competition and the gambling that supports it has reached bottom. There isn’t enough money to keep the nags running” anywhere, but in NY it’s extremely painful. To make matters worse: “And the president of the New York Racing Association, operator of the Aqueduct, Belmont and Saratoga tracks, says the organization will be broke by June. In an unconscionable act of extortion, NYRA, beneficiary of past bailouts, threatened to cancel the Belmont Stakes while balking at a state audit”. Sorry. You can’t have it both ways. You can’t plead for help and snub your nose at being held accountable. This was a PR fiasco. business as usual, expected and unimaginative.
We need leaders. Tough decisions need to be made, but as usual there are too many people with too many interests to make the really hard decisions… what usually happens is the takers and those with “annuities” keep scraping the barrel till there simply is no barrel. They cannot be trusted to chart a course of sanity, insanity rules the day.
It’s either the truth, or a lie. If NYRA WILL be broke by June, it’s time to do business different. Close Aqueduct. Change the OTB systems. Figure out what works and do it. Sadly, if we wait, decisions will be made based on panic, not opportunity.
January 4th, 2010 at 9:19 am
there is enough blame to go around on all parties
so fix the issues like your runnning a company(GOOD) and move on!
or go the way of the buffalo
January 4th, 2010 at 9:51 am
What is truly sad is that the editorial is so off base and filled with mistakes and untruths and yet people give it credence. The fact is that the audit requested is illegal under state law. The fact is that NYCOTB owes tens of millions of dollars to NYRA and doesnt want to pay. The fact is NYCOTB is govt at ist worst and the idea that anyone would buy one pennys worth of bonds backing NYCOTB is laughable. The fact is that the city and state have received billions of dollars over the years from horseracing and NYRA and the “bailouts” weren’t “bailouts” but barter in exchange for the land that the tracks sit on. The fact is that NYS lawmakers passed a law 9 years ago that allows for slot machines at Aqueduct and other tracks, most which are already in operation. The idea that there is a better place or NYRA doesnt deserve it flys in the face of the law. The fact is that the editorial board of the NY Daily News has failed to do it homework or wantonly disregarded the facts. Blaming NYRA for NYCOTB’s insolvency or the NYC slots debacle is stupid.
January 4th, 2010 at 12:23 pm
I was an avid supporter of NYRA but like others have come to the conclusion that this organization needs to be brought to account. NYRA’s stonewalling of Tom DiNapoli’s office is dumb to say the least and could be an attempt to cover up fraud in its books. I remember when NYRA stole the horsemen’s purse money in the recent past. The same management which stole the money then is still in place. I gave NYRA the benefit of the doubt then but no more. Tom DiNapoli, I applaud you for taking this action. We hard working horsemen need to know that the custodian (NYRA) of our sport in New York is honest.
I am glad to see Governor Paterson is close to announcing a VLT operator for Aqueduct. As we know this is long overdue and Thoroughbred Horseracing needs the money from the Aqueduct VLT revenue, not to mention the important role it will play for the finances of the State and education.
NYRA, as articulated by Charlie Hayward, has a definite favorite in the race, namely SL Green. Governor Paterson should therefore NOT choose SL Green and pick one of the other 4 bidders.
The OTB’s and NYRA should be merged into a private or public/private partnership entity, bring in good management and finally put Thoroughbred Horseracing on a firm financial footing.
January 4th, 2010 at 1:08 pm
In response to wesly - January 4th, 2010 at 9:51 am:
“The fact is that the audit requested is illegal under state law” - this statement is factually incorrect.
NYRA has made this allegation based on a NY State ruling relating to Charter Schools where the State Legislature directed Tom DiNapoli’s office to audit these schools. The court found this to be unlawful.
However, this law does not apply to Tom DiNapoli’s office lawfully auditing NYRA’s books itself per the 25 Year Franchise Agreement signed by NYRA.
The bottom line is that NYRA should not have a problem with DiNapoli’s office auditing its books if it has nothing to hide.
Remember President Reagan’s slogan: “Trust but Verify”
January 4th, 2010 at 1:59 pm
I am sure an audit is legal… but the real point is: if there is nothing to hide, they should be PROUD to show the books. If they are indeed simply the “injured party” and not the cause, as wesley stated above, an audit becomes a VERY powerful tool for them to prove their need, and position. Instead, more cover up and aspersions. It’s really getting old. Full disclosure shouldn’t be viewed as a threat. It should be viewed as proof of hardship.
January 4th, 2010 at 2:34 pm
Yes NYRA’s assertions that it is the injured party is getting old. NYRA, show you are honest and open your books.
Thoroughbred Horseracing is bigger than any one person and so the NYRA Board should fire those responsible for bringing allegations of a cover up of corruption which affects our whole industry. The negative press on this NYRA issue has undermined the Thoroughbred Horseracing in New York and across the country.
January 4th, 2010 at 4:53 pm
Why did former Governor Eliot Spitzer do the about face on the NYRA group anyhow? Remember, he said in late 2006 before he took office that if “the NYRA didn’t understand that they are just a pawn of the state that they should be thrown out on their ear,” to in mid 2007 that “the NYRA are the only ones with knowledge of NY racing and are the obvious choice to continue.” Nowhere have I ever read a reasonable explanation of Eliot Spitzer’s reversal on the NYRA. Just makes you wonder?
January 4th, 2010 at 6:12 pm
NYRA’s books are open to many state entities including the NYS Racing and Wagering board and NYS division of taxation. If you guys can’t see why they wouldn’t want DiNapioli’s boys to try to find any technicalities to use for political reasons you just dont understand politics, especially the dirty sort practiced in NY. The idea that NYRA’s books are shielded from the state of NY is wrong. It is easy for a guy like Dray to say that “if there is nothing to hide” yet think about all the lies and other damaging yet untrue things were said about NYRA in the recent past. Remember the “audit” that said that NYRA was spending too much money on Trophies? Or that the shuttle service between tracks was used”exclusively” by NYRA board of trustees horses? The fact is a wagering company with multiple contracts with out of state and international companies and murky wagering laws in some areas to begin with is bound to have areas which can be exploited politically. Remember this is the same state where NYCOTB states that the money it owes to NYRA for accpting bets on its races should not have to be paid. Basically NYCOTB wants to steal the signal from NYRA like some modern day pirates and they have the backing of the same politicians that want to look at NYRA’s books! And you want to knock NYRA for objecting?
And NY Horseman i hate to break it to ya but the head of the horsemans group let NYRA borrow the money, they never stole anything. Another fabrication. He may have denied knowledge but “wink,wink” he knew.
Sure NYRA has made mistakes and tactical errors but if you believe just about anything that comes from a NY pol’s mouth on the subject, you might as well believe in the tooth fairy as well.
January 4th, 2010 at 6:16 pm
And the idea that NYRA is pleading for help is a stretch as well. They are simply asking to be allowed to run their business as the state laws allow them to. That is not really help they are asking for but the end to the barriers continually put up by the states politicians, to the detriment of the state’s coffers of hundreds of millions of dollars.
January 4th, 2010 at 7:06 pm
DiNapoli wants to audit NYRA. NYRA is putting up a fight.
There is a question about whether or not DiNapoli has the authority to audit NYRA. NYRA cites a Court of Appeals case from last summer that said the state legislature did not have the authority to order the comptroller to audit a not-for-profit organization. In that case, it was charter schools. But the ruling never said that the comptroller, acting by himself, could not audit the organization, especially if that organization is the recipient of state funding. In addition there is a specific clause in the NYRA Franchise Agreement stating that the Comptroller’s office has the authority to audit NYRA.
NYRA’s books were open to its State appointed monitor Getnick & Getnick, the Racing & Wagering Board and probably other State agencies in 2005-2007. However it was only when the Comptroller’s Office did an audit did it detect the $54 million cover up and non-payment to the state of franchise fees, etc. In effect the Comptroller’s office was the only State agency to uncover NYRA’s corruption at this time.
The management at NYRA in the 2005-2007 period is essentially the same management that exists now, including Charlie Hayward and Steve Dunker and it is this management that is now blocking the Comptroller’s office from conducting another audit from 2007 to the present.
It would suggest that NYRA has something to hide from the one agency that can detect if corruption has occured or not.
January 4th, 2010 at 8:01 pm
Very interesting comments in the thread. Thank you, Wesly and NYorker for the point/counterpoint on whether NYRA’s books should be open or not and who has the authority to do so, but Al raises an intriguing question: why, when Spitzer wanted to throw NYRA out, did he suddenly reverse course?
January 4th, 2010 at 8:15 pm
As Wesley states, “the dirty sort of politics played in New York” is indeed the NYRA’s specialty. They have over 50 years of chits and markers to play when the going gets tough. Perhaps the state of NY, throug the DiNapoli audit, will finally get a real accounting of what this nefarious organization has been pulling off for decades.
If all is good as some believe, and nearly $4 billion in all sources handle on the New York racing signal makes you broke, then just prove it and all will be forgiven.
January 4th, 2010 at 10:29 pm
Let me get this straight, NYRA owed the state $54 million in “franchise fees” and it wasn’t until the state audited the books that this was discovered? Are we to believe that the merit system is how you do business with the state of NY? The state doesnt actually keep track of who owes them $54 million? Sure they dont…..
January 5th, 2010 at 9:04 am
Wesley
Stop being an apologist for NYRA. They were clearly guilty on the $54million fraud on NY State. Havesi was the Comptroller then and somehow Spitzer renewed their franchise agreement for 25 years. Seems weird but it did happen.
Tom DiNapoli is no push over and I suspect he will get his audit. What is most interesting is what will his auditors discover.