NYRA strikes back; Will float OTB takeover..

[Kasept]

On the heels of a vile anti-NYRA editorial planted in the NY Daily News by OTB head Sandy Frucher, the Association has rightfully come back swinging regarding the fallacies and inappropriateness of the NYC OTB bankruptcy. See the Matt Hegarty (DRF) and Tom Precious (Bloodhorse) pieces below...

The inequities and questionable legality of OTB's filing were pointed out weeks ago on ATR by Hegarty. As to the smear in the Daily News, I told ATR listeners what Ben Leibman (Executive Director of the Government Law Center of Albany Law School) correctly predicted as tactics that Frucher, a longtime Albany policy wonk and puppetmaster, would use on the editorial pages.




NYRA objects to OTB bankruptcy petition
By Matt Hegarty

http://www.drf.com/news/article/109927.html

The New York Racing Association and the New York Thoroughbred Horsemen's Associations are seeking to dismiss a bankruptcy petition by New York City Off-Track Betting Corp., according to objections the two groups have filed with the bankruptcy court.

The objections signal that NYRA and its horsemen are preparing for a drawn-out battle with New York City OTB as the company seeks to reorganize under a little-used section of the bankruptcy code, Chapter 9, which is reserved for municipalities. New York City OTB, which is owned by the state, filed for Chapter 9 bankruptcy on Dec. 3, listing NYRA as it second-largest creditor with a debt of $14.7 million.

In its objection, NYRA states that the court should dismiss the bankruptcy filing for several reasons, including its contention that the offtrack betting corporation did not obtain approval from the state legislature to file for Chapter 9 bankruptcy.

In addition, NYRA contends in the objection that OTB "failed to demonstrate in good faith over a plan of adjustment with its creditors" and that OTB is using the bankruptcy filing to put pressure on the state legislature to reduce its statutory obligations to the racing industry and other parties that have a share in the company's revenues.



NYRA: Toss Out NYCOTB Bankruptcy Petition
By Tom Precious

http://www.bloodhorse.com/horse-raci...uptcy-petition

The recent bankruptcy petition by the New York City Off-Track Betting Corp. should be tossed out of federal court, the New York Racing Association argues in a lengthy legal brief filed Jan. 4 in Manhattan.

NYRA, which is the second largest creditor of the NYCOTB, said the OTB failed to negotiate with any of its creditors before filing its Chapter 9 reorganization plan and is using the bankruptcy filing as a maneuver to try to get its way on its long-stalled legislative agenda at the state Capitol.

In a 23-page filing with the U.S. Bankruptcy Court in the Southern District of New York, NYRA’s lawyers argue that the OTB failed to meet the legal “good faith’’ provisions to seek bankruptcy protection.

The legal brief, continuing a long-running battle between NYRA and NYCOTB, states that the OTB over-stepped its legal authority to file the petition in the first place. It said an executive order from New York Gov. David Paterson permitting the Chapter 9 move was not enough, and that the filing needed authorization from the state legislature. NYRA also maintains that the OTB “strangely’’ left out of its filing some $200 million owed to other creditors.

[richard]

Thank you for the pieces Steve.

"OTB is using the bankruptcy filing to put pressure on the state legislature to reduce its statutory obligations to the racing industry "

As usual, OTB does not assume any financial risk as those in the industry do every day . OTB wants more money however.

[Kasept]

Originally Posted by richard

Thank you for the pieces Steve.

"OTB is using the bankruptcy filing to put pressure on the state legislature to reduce its statutory obligations to the racing industry "

As usual, OTB does not assume any financial risk as those in the industry do every day. OTB wants more money however.

Really well put..

[Kasept]

NYRA wants to take over NYC OTB
Bankrupt operation carries $228 million in debt

By JAMES M. ODATO, Capitol bureau
Last updated: 4:00 p.m., Friday, January 8, 2010

http://www.timesunion.com/AspStories...storyID=886659

ALBANY -- Despite its own fiscal problems, the New York Racing Association is proposing to take over the bankrupt New York City Off-Track Betting Corp.

NYRA President Charles Hayward got up at a hearing of the Assembly and Senate and revealed that his not-for-profit organization will introduce a plan to take over the OTB in seven to 10 days.

NYC OTB, with 1,381 employees, entered bankruptcy in December. Hayward began publicly declaring that the association expected to run out of money next year and may have to close the Belmont and Saratoga meets as a result. He emphasized that NYRA needs funds from the state because of the failure by state leaders to choose an operator for an Aqueduct racino. He also noted that NYRA is going to be hurt by OTB's bankruptcy because it is owed some $15 million.

NYC OTB entered bankruptcy protection to shield itself from $228 million in debts. That includes $42 million owed to the state's harness and thoroughbred tracks, about $14.7 million alone owed to NYRA, and between $30 million and $40 million owed to the state of New York.

Hayward initially hailed the move, saying he thought the OTB would emerge from the bankruptcy stronger -- just as NYRA had after its own bankruptcy, which ended after the state agreed to provide $105 million and help it wipe out its debt.

[gales0678]

steve , did you see patterson speech the other day

he effectivly says we are broke - ny state

when can we get the slots? , this will help nyra immensly

[the_fat_man]

Originally Posted by gales0678

steve , did you see patterson speech the other day

he effectivly says we are broke - ny state

when can we get the slots? , this will help nyra immensly

Yeah, it's not about all the people that can't pay their mortgages and lost their houses (especially in the area immediate to AQU), or those who have lost their jobs or the homeless BUT, as the urgency on this forum indicates: it's about GETTING SLOTS so some mismanaged entities can (then appear to) get their affairs in order.

How about the state legalizes DRUGS and PROSTITUTION as well? Then NYRA could sell DRUGS and have all the local women TURNING TRICKS (while they shoot up). And, of course, the state would then get its cut as well, and it'll all be fine. We can justify this, right? Why would we demand more efficient government instead of this alternative?

[johnny pinwheel]

Originally Posted by richard

Thank you for the pieces Steve.

"OTB is using the bankruptcy filing to put pressure on the state legislature to reduce its statutory obligations to the racing industry "

As usual, OTB does not assume any financial risk as those in the industry do every day . OTB wants more money however.

so true, but the otb up here does alright. i think nyra should take over the city district and open some simulcast outlets. not many because i think most people there bet on the internet. its probably whats killing nyc otb. the guys online are betting $$$$$$$ the people in the parlors are betting a fraction. otb might not even be feasable in the city.

[Cannon Shell]

Originally Posted by johnny pinwheel

so true, but the otb up here does alright. i think nyra should take over the city district and open some simulcast outlets. not many because i think most people there bet on the internet. its probably whats killing nyc otb. the guys online are betting $$$$$$$ the people in the parlors are betting a fraction. otb might not even be feasable in the city.

NYCOTB's problems have nothing to do with betting

[Kasept]

Judge rules for New York OTB
By Matt Hegarty

http://www.drf.com/news/article/111618.html

A New York Bankruptcy Court judge has overruled objections lodged by the New York Racing Association and its horsemen that challenged the legality of the Chapter 9 bankruptcy petition filed late last year by the state-owned New York City Off Track Betting Corporation.

In a ruling issued on Monday, Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York challenged the objections one-by-one and ultimately ruled that NYRA's arguments had no basis in law. As a result, NYCOTB will continue to enjoy the legal shelter of the court as it seeks to reorganize and lobby for changes to state laws that govern how its revenues are distributed to the racing industry.

[Kasept]

Who isn't 'little' when compared to someone like the great Sandy Frucher?

"This is about jobs and not just OTB jobs. It's horse farms and agri-jobs and a lot of little-people jobs." said OTB Chairman Meyer (Sandy) Frucher.


OTB: We'll close unless Albany rides to rescue
BY Kenneth Lovett and Erin Einhorn

Read more: http://www.nydailynews.com/ny_local/...#ixzz0j0Yg5xSl

The city's Off-Track Betting board voted Monday to send pink slips to all of its 1,300 employees - unless Albany quickly throws a lifeline. Without a rescue deal from the state, the struggling OTB says it will shutter its 66 betting parlors after close of business on Sunday, April 11.

[johnny pinwheel]

Originally Posted by Kasept

Who isn't 'little' when compared to someone like the great Sandy Frucher?

"This is about jobs and not just OTB jobs. It's horse farms and agri-jobs and a lot of little-people jobs." said OTB Chairman Meyer (Sandy) Frucher.


OTB: We'll close unless Albany rides to rescue
BY Kenneth Lovett and Erin Einhorn

Read more: http://www.nydailynews.com/ny_local/...#ixzz0j0Yg5xSl

The city's Off-Track Betting board voted Monday to send pink slips to all of its 1,300 employees - unless Albany quickly throws a lifeline. Without a rescue deal from the state, the struggling OTB says it will shutter its 66 betting parlors after close of business on Sunday, April 11.

someone said to me its not about betting $$$. how do they justify having 66 outlets, some with like 9 guys in them betting 10 cent supers? it does not even cover the pay for the people working there, let alone the expenses of the building. the parlors are a thing of the past, most people avoid them. the simulcast facilities are where its at and the computer. ez bet.

[Cannon Shell]

Originally Posted by johnny pinwheel

someone said to me its not about betting $$$. how do they justify having 66 outlets, some with like 9 guys in them betting 10 cent supers? it does not even cover the pay for the people working there, let alone the expenses of the building. the parlors are a thing of the past, most people avoid them. the simulcast facilities are where its at and the computer. ez bet.

What does having 66 outlets have to do with betting $$$? The betting public didnt hold a gun to their head to open those 66 outlets. NYOTB serves as a political patronage heaven which is why they are broke, not because their isnt enough money being bet.

[pointman]

Originally Posted by Cannon Shell

What does having 66 outlets have to do with betting $$$? The betting public didnt hold a gun to their head to open those 66 outlets. NYOTB serves as a political patronage heaven which is why they are broke, not because their isnt enough money being bet.

[richard]

Excellent post Cannon . Mr Frucher apparently has no idea what it takes to present a horse for a race . It is more involved than rolling out of bed and sitting behind a counter at otb .

[smuthg]

Originally Posted by Kasept

[b]

"This is about jobs and not just OTB jobs. It's horse farms and agri-jobs and a lot of little-people jobs." said OTB Chairman Meyer (Sandy) Frucher.

This sounds like a quote from Clark Griswald's boss at the end of Christmas Vacation... "the little people, like you..."

[Kasept]

Albany refused to cave in to Sandy Frucher's extortion plot for NYC OTB, and good for them. The situation could pave the way for NYRA to annex the online and telehone bet-taking portion of NYC OTB, but the 'governor' blocked that for now Friday.


NYCOTB to Close Down April 11
By Tom Precious

The Democratic leader declined to discuss the plan, but there were several competing measures floating around the state Capitol. One, according to sources, was an Assembly push to let NYRA take over the lucrative internet and phone wagering business of the OTB; it was unclear how that would solve the OTB’s cash problems, but would have gone far in addressing NYRA’s own fiscal headaches. Gov. David Paterson rejected the idea.

After the breakdown in talks, NYCOTB announced Friday night it had mailed layoff notices to its employees. “It was hoped that there would be a resolution by close of business on March 26, which would make it unnecessary to send the notices,’’ the OTB said in a statement.

But legislative sources say the OTB is bluffing on its closure threat, and that there are administrative avenues for it to get the money it needs to stay afloat for the next couple months. They also insisted the OTB has cash in reserves to avoid layoffs.


New York OTB to shut down after bailout fails
By David Grening

The New York Off-Track Betting Corp. plans to shutdown operations on April 11 after negotiations for a potential 11th-hour bailout with legislators in Albany fell through on Friday, the company said in a press release.

According to a published report, legislative leaders were discussing several scenarios on Friday as to how to keep OTB afloat for the next few months. One plan, according to Bloodhorse.com, was for the legislature to allow OTB to delay more than $1 million in some of its statutory revenue sharing distributions, such as to the New York Racing Association. OTB owes NYRA more than $15 million, according to OTB's Dec. 3 bankruptcy filing.