UPDATE: State meets obligation to NYRA; Legislature OK's advance

[mark2061mn]

http://www.bloodhorse.com/horse-raci...m_medium=email

Paterson says he expects the Legislature to approve a $17 million loan to keep the New York Racing Association afloat. Its cash flow is hurt by delays in getting video lottery terminals built and operating at Aqueduct.

[pointman]

Paterson to push for $17M loan for NYRA
By Matt Hegarty

New York Gov. David Paterson said on Tuesday that his office would push for passage of legislation that would loan the New York Racing Association $17 million to address the association's financial difficulties. Paterson made the comment during a press conference on Tuesday after being asked if NYRA would run out of money prior to the opening of its meet at Saratoga Race Course in Saratoga Springs on July 24.

"That's not going to happen," Paterson said. "We have a plan to loan NYRA, in the short term, money to get through Saratoga and we're working on a long-term plan to help beyond that."

NYRA officials did not immediately return phone calls on Tuesday afternoon, but on Monday, Charles Hayward, the president of the association, said that he was scheduled to meet with officials in Paterson's office on proposals for the loan. During the press conference, Paterson said he expected the legislature to approve a $17 million loan to the association, but he did not provide specifics on how the loan would be structured. NYRA has been seeking that amount under previous legislative efforts that have fallen short, in part because of legal complications that restrict how the state can loan money.

[hoovesupsideyourhead]

monmouth will be crazy..if this does happen

[pointman]

I have been wondering why the NY Post has not been more accurate with the NYRA situation considering they have Ed Fountaine on staff. After reading this, it appears that if Fountaine has spoken to the editors and/or reporters it has fallen on deaf ears. Here is Fountaine's take in todays NY Post:

http://www.nypost.com/p/sports/horse...mlliEOAIrUsF8H

[pgiaco]

Originally Posted by pointman

I have been wondering why the NY Post has not been more accurate with the NYRA situation considering they have Ed Fountaine on staff. After reading this, it appears that if Fountaine has spoken to the editors and/or reporters it has fallen on deaf ears. Here is Fountaine's take in todays NY Post:

http://www.nypost.com/p/sports/horse...mlliEOAIrUsF8H

A breath of fresh air after all the bullshiat coming from the NY papers.

[pmacdaddy]

http://www.nyra.com/belmont/stories/May212010.shtml

[the_fat_man]

Originally Posted by pmacdaddy

http://www.nyra.com/belmont/stories/May212010.shtml

zzzzzzzzzzzzzzzzzzzzz

Is this news? Since there's probably very little chance that the tracks or OTB will close, why must we be subjected to all this posturing? It really can't be this hard to run a track and show a profit. Then again, with all this BS, there's apparently a need to convey that it is. We get it: not only do we get to play the horses but we also get to feel xtra special since the state pols are so involved in our sport.

Why are there no 'special interest' groups whose sole function is to expose 'crooked' pols? Not like the resources aren't there. Now, THIS is something that would be very easy in NY (and elsewhere). As soon as they '**** up', get them the **** out of there. Maybe something might get done that way.

[parsixfarms]

As a result of the 2008 franchise process, NYRA is now a not-for-profit corporation instead of a quasi-state entity. Knowing that in Albany there will inevitably be some price to pay (i.e., lower long-term OTB payments to the racing industry) for the "loan" that NYRA is now seeking, why is NYRA even dealing with the legislature for these funds?

[pmacdaddy]

Originally Posted by parsixfarms

As a result of the 2008 franchise process, NYRA is now a not-for-profit corporation instead of a quasi-state entity. Knowing that in Albany there will inevitably be some price to pay (i.e., lower long-term OTB payments to the racing industry) for the "loan" that NYRA is now seeking, why is NYRA even dealing with the legislature for these funds?

I can't imagine who else would loan into this situation.

[parsixfarms]

Originally Posted by pmacdaddy

I can't imagine who else would loan into this situation.

Assuming they go cash-flow positive once Saratoga starts, we're only talking about a relatively brief period of time (and modest amount of $$) to get to July 23. And the amount we're talking about is chump change for the people sitting on the NYRA Board of Trustees.

[pmacdaddy]

Originally Posted by parsixfarms

Assuming they go cash-flow positive once Saratoga starts, we're only talking about a relatively brief period of time (and modest amount of $$) to get to July 23. And the amount we're talking about is chump change for the people sitting on the NYRA Board of Trustees.

Maybe, but that is a tough precedent to set given that everyone elses long term plan seems to involve screwing NYRA.

[Cannon Shell]

Originally Posted by parsixfarms

Assuming they go cash-flow positive once Saratoga starts, we're only talking about a relatively brief period of time (and modest amount of $$) to get to July 23. And the amount we're talking about is chump change for the people sitting on the NYRA Board of Trustees.

I would doubt that they immediately go into a cash flow positive position once Saratoga starts. It is my understanding that the vast amounts of money to be paid to tracks from the various outlets doesn't always come in a timely fashion. Not to mention the cash outlay they must incur in setting up shop there.

As for the Board, it would quite possibly be illegal for Board members to inject that kind of cash into a non-profit and like pmac said a terrible presendent wuld be set. It would be used as "proof" that NYRA is just a bunch of rich guys looking for a state "bailout".

[Kasept]

Originally Posted by parsixfarms

As a result of the 2008 franchise process, NYRA is now a not-for-profit corporation instead of a quasi-state entity. Knowing that in Albany there will inevitably be some price to pay (i.e., lower long-term OTB payments to the racing industry) for the "loan" that NYRA is now seeking, why is NYRA even dealing with the legislature for these funds?

Because the state made the commitment to provide any short-term funding support if the AQU VLT parlor was not up and running by September of last year. The bridge funding will be recouped by the state out of VLT revenues. There is no special pound of flesh involved in this. The state put the onus on itself.

NYRA isn't 'seeking' this funding out of some surprise shortfall they didn't anticipate. This was going to happen if the VLT's weren't in place... EVERYONE knew that. If the mainstream media had a clue and reported the story accurately, no one would question why the transaction is necessary.

[parsixfarms]

Originally Posted by Cannon Shell

I would doubt that they immediately go into a cash flow positive position once Saratoga starts. It is my understanding that the vast amounts of money to be paid to tracks from the various outlets doesn't always come in a timely fashion. Not to mention the cash outlay they must incur in setting up shop there.

As for the Board, it would quite possibly be illegal for Board members to inject that kind of cash into a non-profit and like pmac said a terrible presendent wuld be set. It would be used as "proof" that NYRA is just a bunch of rich guys looking for a state "bailout".

With most financially-challenged not-for-profits, if the Board is committed to the mission of the entity, the members of the Board are usually the ones that make the financial commitments necessary to keep the entity afloat. I know that it would bad precedent to look the other way at the State's failure to abide by its commitments, but a shut-down in this environment would be catastrophic. Is that worse than people thinking that those sitting on the NYRA Board are well-off (which they are)?

[Kasept]

Originally Posted by the_fat_man

Is this news? Since there's probably very little chance that the tracks or OTB will close, why must we be subjected to all this posturing? It really can't be this hard to run a track and show a profit. Then again, with all this BS, there's apparently a need to convey that it is. We get it: not only do we get to play the horses but we also get to feel xtra special since the state pols are so involved in our sport.

It isn't posturing. It's a compliance with state and federal law.

[Cannon Shell]

Originally Posted by parsixfarms

With most financially-challenged not-for-profits, if the Board is committed to the mission of the entity, the members of the Board are usually the ones that make the financial commitments necessary to keep the entity afloat. I know that it would bad precedent to look the other way at the State's failure to abide by its commitments, but a shut-down in this environment would be catastrophic. Is that worse than people thinking that those sitting on the NYRA Board are well-off (which they are)?

LOL. According to the pols ths mission of NYRA is first and foremost to create revenue for the state. I doubt anyone would be willing to pony up for that.

[parsixfarms]

Originally Posted by Kasept

Because the state made the commitment to provide any short-term funding support if the AQU VLT parlor was not up and running by September of last year. The bridge funding will be recouped by the state out of VLT revenues. There is no special pound of flesh involved in this. The state put the onus on itself.

NYRA isn't 'seeking' this funding out of some surprise shortfall they didn't anticipate. This was going to happen if the VLT's weren't in place... EVERYONE knew that. If the mainstream media had a clue and reported the story accurately, no one would question why the transaction is happening.

We all know "contractual obligations" mean little to the corrupt politicians in Albany. My point is that, rather than relying on the state to come up with the money (whether the state is legally obliged to pay NYRA the money is really irrelevant at this point in time), aren't there other ways of getting the needed short-term funds? It's scary to think that the hopes of the NY racing industry are totally dependent upon Patterson, Sampson and Silver agreeing to do anything, no matter how simple.

[parsixfarms]

Originally Posted by Cannon Shell

LOL. According to the pols ths mission of NYRA is first and foremost to create revenue for the state. I doubt anyone would be willing to pony up for that.

But what do the members of the NYRA Board of Trustees see the mission as being? I doubt Phipps sees the mission of NYRA to create revenue for the state.

[freddymo]

Originally Posted by Kasept

Because the state made the commitment to provide any short-term funding support if the AQU VLT parlor was not up and running by September of last year. The bridge funding will be recouped by the state out of VLT revenues. There is no special pound of flesh involved in this. The state put the onus on itself.

NYRA isn't 'seeking' this funding out of some surprise shortfall they didn't anticipate. This was going to happen if the VLT's weren't in place... EVERYONE knew that. If the mainstream media had a clue and reported the story accurately, no one would question why the transaction is necessary.

So NYRA told the State in advance that there plan for operating in 08-10 would fail to be cash flow positive and as such the state said don't worry about it you keep losing money and will fund it because you told us so..Is that the way it happened if so the idiots polictians that said that they would bankroll a flawed business should be arrested.

Come on first NYRA is getting money and the horrendous publicity they continue to spew is madding.. HI fans and gamblers we are going out of business after are biggest purse day of the year and if you want to deposit money in your NYRA account please dail 1800 BIG AVLT. How the heck do you run a business promoting its life and joy in one breathe and telling your fans and customers its dying on the other. Why are the publizing all this negative stuff with such vigor? I really hope NYRA gets to operate and be successful!! This stuff just is foolish

[Cannon Shell]

Originally Posted by parsixfarms

But what do the members of the NYRA Board of Trustees see the mission as being? I doubt Phipps sees the mission of NYRA to create revenue for the state.

Do you really think it is in the best interests of NYRA for its board to fund it in leiu of money owed to them from the state and OTB? That seems like political suicide.