STATE SENATE TO CONDUCT HEARING ON NYRA
Ruh roh! Senator Craig M. Johnson, chairman of the Senate Standing Committee on Investigations and Government Operations, announced he will be holding a hearing on NYRA’s finances and how they used the taxpayer-funded bailout.
"NYRA’s threat to cancel the Belmont Stakes and greatly damage our local economy certainly raises questions about how they have spent their taxpayer-funded windfall," said Johnson.
While he may have been waiting in the wings for this moment (he voted against the original bailout), Johnson’s inquiry cannot be good news for NYRA.
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Tags: belmont stakes, bradford cummings, Craig Johnson, nyra, Paulick Report, Senate Standing Committee on Investigations and Government Operations
January 22nd, 2010 at 8:32 am
NYRA’s moronic threat has not surprisingly now resulted in an audit by the state comptroller (which NYRA characteristically resisted with bellicose public statements) and this investigation.
Unfortunately, neither the audit nor the investigation is likely to lead to any real improvement in the way NYRA is run.
It’s sad that the viability of 2 of the 3 jewels in the triple crown have been threatened by the operators of Belmont and Pimlico in connection with political maneuverings relating to slots–while many still tout slots as the savior of racing.
January 22nd, 2010 at 9:23 am
Johnson’s hearing probably has many motivations, one perhaps being stopping any Aquedcut VLT operator from being named and VLT construction beginning. It would be hard to get the State, NYRA and a new operator/developer together to negotiate lease agreements and untility sharing, etc. when the NYRA is under this dark cloud and investigations and audits are ensuing. Johnson’s self interested motivation may also come from the fact that holding up Aqueduct may be beneficial to whatever the parties may have ultimately planned for the development of Belmont Park into a full casino gaming location. If Paterson, Silver and Sampson don’t pick a VLT operator before February 3rd, it will be obvious what’s happening here. If Aqueduct is never converted to a racino because of plans for Belmont, what a shame for that community and all the bidders that spent the time and money to produce plans; a fool’s errand of the highest degree masterminded by the state of NY. Just a possible explanation for the delays and new investigations. I hope for the sake of Queens and horse racing I’m wrong.
Whatver the case, let’s hope the dialogue at the hearing is constructive, and the answers help find solutions, cooperation between the parties, and newly established state sanctioned support and direction for NY racing and breeding.
January 22nd, 2010 at 10:04 am
I suspect that NYRA’s support in Albany has waned considerably and that pressure will be applied for major changes. Ultimately it might mean NYRA being merged with OTB and partly privatized, however expect to see Charlie Hayward’s head roll in the immediate future followed closely by Steve Dunker’s. Some bloggers on this and other sites have referred to these two as “Dumb & Dumber,” an analogy which is totally appropriate.
January 22nd, 2010 at 11:46 am
And who is going to investigate the New York politicians in Albany?
January 22nd, 2010 at 12:17 pm
Love it D. Masters!! Wouldn’t it just be fascinating to know the real truth about the whole racing/gaming franchise procedures in NY along with the sleazy politics that have been played in Albany? I agree, investigate the state decision makers and the entire award process as well.
January 22nd, 2010 at 12:48 pm
How many NY pols and how much of NY racing are controlled by organized crime?
January 22nd, 2010 at 12:50 pm
D. Masters
I agree investigate the corrupt decision making where Spitzer awarded a 25 year franchise to a corrupt organization. I hope the Feds do look into this. This is the real corruption.
January 22nd, 2010 at 1:54 pm
NYRA clearly had the inside track on the racing franchise. Why?
There should be a full investigation as to why Spitzer gave NYRA a new 25 year franchise. It is time the truth emerged about this torrid affair.
January 22nd, 2010 at 2:10 pm
The outcome of the VLT decision at Aqueduct will indicate how NYRA is faring politically in Albany. Charlie Hayward has said publicly his choice is SL Green and not Aqueduct Entertainment Group. If SL Green wins, then NYRA’s political connections are alive and well. If AEG wins, it will indicate that NYRA’s fortunes are on the wane.
January 23rd, 2010 at 7:00 am
RICO, organized crime is exactly that, organized. This group (NY politicians and NYRA/OTB) wouldn’t last a week. Give the Mafia some credit for selectivity.
January 23rd, 2010 at 10:49 am
There is no mystery. NYRA got the franchise for one, overarching reason.
It had the deeds to the track properties in hand, and a significant number of legal experts believed their case for owning the land was either: 1) strong enough to prevail in court, or, 2) at least strong enough to create years of litigation if NYRA chose to fight a decision to give the franchise to anyone else.
Politicians may be stubborn and have an inflated view of their importance, but even in NY, which has dysfunctional state government, they were not stupid enough to bring NY racing to a halt while ownership was decided in court.
In addition, the other franchise contenders had their own issues. NYRA also claimed it owned the trademark race names in NY such as Travers, Alabama, etc.
January 23rd, 2010 at 12:18 pm
Excellent point Zak, the Mafia is seamless, vertically integrated, get things done well and now or else. No hope for transparency, integrity and pity toward the working horse though.
Nick: It HAD the deeds to track properties? Who has them now?
January 23rd, 2010 at 1:19 pm
Mr. Kling:
I surmise that your statements support my position that this industry needs a central regulating authority that can negotiate effectively with enforcement powers. There is something to be said for collective bargaining. The NYRA battle seems to be nothing more than the divide and conquer, turf wars with litigation stalemates, one after another. Anyone think that the NBA, NFL and MLB have these problems? They certainly have their share of ego maniacs, but they always seem to resolve for the betterment of their sport. And the legal betting on those sports compared to ours is what??????
RICO: With all due respect to the Mafia….they seem to have a very risky mortality rate versus level of effort and involvement. But in the Sport of Kings I guess the horses and honest participants become the fall guys. So maybe, it’s not too far off as a comparison.
January 24th, 2010 at 2:15 pm
Rico,
I assume the state holds them now, but I don’t know that for certain. Logic suggests they were transferred when the franchise agreement was finalized.