A truly bad day for N.J.

[richard burch]

This is really one of the saddest days for me and many others. The thought that there may never be horse racing again in New Jersey was something I never thought could happen.

I will never understand how an industry could run for over 30 years and then be given up on so quickly and callously with disregard for people’s jobs and families.

I’ve seen them so many times at the track and they are always courteous and friendly to me. Now they too will join the 10% unemployed people of this state.

The horse farms spread out through central jersey will also take a hit from this incredibly bad decision.

What really gets me is that there doesn’t seem to be anyone fighting to save the industry in N.J. Not even to save themselves or their own jobs. Where is the response from the horse racing industry?

The only one who seems to know what the right thing to do was former Gov. R. Codey. He knows that the slots put in the tracks is the right idea and you will find that most people in northern New Jersey would support the it.

Instead our new Gov. created some puppet panel to research the casino and racing industries knowing full well what the outcome would be. He chose to sink more money into a corrupt, run down city and gambling industry that has 6 out of 11 casinos in bankruptcy. He told us about 38,000 people who would lose their jobs from A.C. but never once mentioned the thousands who work in the racing game that would lose their jobs. Now he wants to invest more into a multi billion dollar disaster named Xanadu that nobody in Bergen County even cares about. (More money down the toilet)

This is the same guy who shook one hand with the people in Monmouth Park and is now stabbing them in the back with the other

Knowing the history of A.C. it isn’t hard to see what happened here again. (Not that I would ever suggest that some criminal element would ever be involved with the N.J. gambling industry)

So here is the question:

What can we do to not let this happen? Is there anything we can do at all?

[joeydb]

Rich - I agree with you. Very sad day.

I used to go to Garden State Park a lot when I was a teenager and through college. Racing has been getting squeezed for a long time. Atlantic City wants to kill it and now they might have the perfect excuse: the screwed up budget -- which must be fixed. But there must be a way to make racing work and the slots sound like a good idea, given how far from A.C. the two operating tracks are.

[Princess Doreen]

http://www.derbytrail.com/forums/showthread.php?t=37270 for complete story and other comments on this.

[GoIrish]

From the biased articles I have been reading it seems that the Meadowlands is in the most danger of closing. There have been few details on MP other then the state would like to lease it or sell it. I'm not an accountant, but I am smart enough to suppose that there is some creative bookeeping going on here. I'd be willing to bet the state makes plenty of money from MP. It's beyond me how that operation could be losing $10 mil. I just do not buy it.

And all this bad press is not going to help. I'm so sick of hearing about how horse racing in NJ is dying. It's utter BS. Tell that to the thousands of people who have been enjoying weekends at MP this year. I'll be there Saturday for Rachel along with 15,000 others (guessing). This is typical of how this half-assed state does things. They kill everything I love(d) about it. My grandparents are rolling in their graves 5 miles from MP.

[GoIrish]

I encourage you to read the hoseracing section of the actual report here:

http://www.nj.gov/governor/news/repo...ent_final2.pdf

It's actually kind of positive regarding the thoroughbreds; not so much for the trotters. Not surprisingly the press has latched onto one segment of the report as if it's a done deal.

[joeydb]

I was a resident of South Jersey, and I haven't had the pleasure of going to Monmouth yet. I plan to sometime in the next few weeks.

But I remember Atlantic City Race Course, which is now open turf only for 6 days as a last ditch effort to keep it from closing permanently and becoming yet another shopping mall.

And Garden State Park, which used to have both trotters and thoroughbreds depending on what time of year it was. That's a shopping mall now too.

So from the south Jersey resident's point of view, racing has been dying in NJ. Of course we are closer to Atlantic City and our residents have fed that monster, so that's where the problem stems from.

[richard burch]

Originally Posted by GoIrish

From the biased articles I have been reading it seems that the Meadowlands is in the most danger of closing. There have been few details on MP other then the state would like to lease it or sell it. I'm not an accountant, but I am smart enough to suppose that there is some creative bookeeping going on here. I'd be willing to bet the state makes plenty of money from MP. It's beyond me how that operation could be losing $10 mil. I just do not buy it.

And all this bad press is not going to help. I'm so sick of hearing about how horse racing in NJ is dying. It's utter BS. Tell that to the thousands of people who have been enjoying weekends at MP this year. I'll be there Saturday for Rachel along with 15,000 others (guessing). This is typical of how this half-assed state does things. They kill everything I love(d) about it. My grandparents are rolling in their graves 5 miles from MP.

It's hard to see anyone buying either one of these tracks and making a profit if they are not allowed to install vlt's.

But I think they are selling them for 1$ each. If you want, I'll go in half with you!

[GoIrish]

I agree, and since AC controls all the politicos in NJ it ain't happening. I used to be a frequent visitor to AC, but no more. As much as I love gambling, I'll never spend another cent in AC if they end up running the tracks out of business by keeping away slots at the Meadowlands.

The $1 plan only applies to the Meadowlands. See option 3 from the report. I vote for option 1. 4 seems totally unrealistic.

2. Potential Options for the Future

a. OPTION 1: Thoroughbred racing at Monmouth and Atlantic City

This option would eliminate harness racing and thereby remove the largest
portion of NJSEA’s financial losses. Other elements of this option might include the following:
• Conduct a 50‐71‐day meet at Monmouth Park and potentially 10 days of
turf racing at Atlantic City.
• Allow Freehold to retain its OTW license and its right to build additional
OTW parlors. If Freehold declines its option to build additional OTW
parlors, the license would revert back to the NJSEA (time frames must be
established).
• Have the NJTHA agree to drop the contractual requirement for the NJSEA
to pay $4.7 million toward purses.
• Create a special fund for standardbred awards for owners and breeders
that win races out of state.
• Convert the front paddock area at the Meadowlands into a 50,000 square
foot OTW parlor and utilize the remaining paddock space for NJSEA office
space.
• Assume the Bayonne OTW parlor to be operational in 2012; assume one
additional OTW parlor to be operation in 2013 and one in 2014 with rents
above Woodbridge and below Bayonne, square footage the same as
Woodbridge and handle projected at $71 million.
• Treat all future OTW parlors as renovations.
• Develop a reuse for the Meadowlands racetrack consistent with sports,
entertainment or other public events or facilities.
• Grow account wagering by 3% ‐ 4% a year for the next five years.
• Remove Freehold from a share of account wagering profits based upon
an agreement that Freehold will retain and build out their OTW licenses.
There is currently a 70% ‐ 30% split between Freehold and NJSEA with
NJSEA being responsible for operating the entire business.

b. Option 2: Thoroughbred Racing at Monmouth and potentially 10 days at Atlantic City and 70 standardbred dates at Monmouth.

This option would relocate a shorter standardbred meet from the Meadowlands
to Monmouth Park:
• Legislation would be needed to change race dates as well as rules
governing OTW parlors and account wagering.
• Thoroughbred horsemen would have concerns about this option due to a
real or perceived change in the racing surface.
• Negotiations to rearrange live racing from Freehold would be challenging.
• There would be additional costs to add lights (track, building and parking
lots) to Monmouth Park to allow for night racing.
• A front paddock would have to be added at Monmouth to allow for
standardbred racing. The estimated cost of this addition is $8 million ‐
$12 million.
• Additional winterization of Monmouth may be necessary.
• Two harness tracks would be competing in the same market.

c. OPTION 3: Lease the Meadowlands Racetrack to the standardbred horsemen for $1 dollar a year for three years with early termination rights and an equity‐based share of the Bayonne OTW parlor.

This option provides the Standardbred Industry the opportunity to continue
racing at the Meadowlands:
• Standardbred horsemen would be responsible for all operating expenses.
• Standardbred horsemen would be responsible for the racetrack share of
the payments in lieu of taxes currently at a total level of $2.5 million per
year.
• Standardbred horsemen would be responsible for capital improvements
estimated to be in the range of $2 million.
• There would likely not be sufficient purse money in the State to support
quality racing.
• The NJSEA would lose the right to build a Meadowlands OTW parlor
resulting in an $8 million reduction in NJSEA income.
• The Commission proposes that the lease be for a three year term at
$1.00/year net (tenant pays all expenses).
• Standardbred horsemen could become equity investors in OTW facilities.
• Potential to convert the front paddock to an OTW parlor and run a 50‐day
championship meet at the Meadowlands Racetrack.

d. OPTION 4: Private entities could be encouraged to buy and convert to a
commercial use one of the standardbred farms in New Jersey that has a mile track, and build a 5,000 seat grandstand complete with all necessary amenities. Included in this option would be the construction of an OTW parlor at the Meadowlands so as not to lose the northern New Jersey standardbred market. The major difficulty with this option is the competition from Freehold and the challenge to work out agreeable racing dates. Freehold, unfortunately, has a ½ mile track with little room for expansion.

[philcski]

I didn't believe this article for one second so I ran the numbers myself for this year's meet thus far.
http://spreadsheets1.google.com/ccc?...cD&hl=en#gid=0

As you can see, at a blended takeout of 18% and a signal cost of 6% (and an assumption that 20% of off-track wagering made in-state; these numbers are not published for NJ but NY averages 25-30%) and $200k a day in purse supplements from the casinos, MP has made over $4 million this meet before expenses and inclusion of revenues from attendance and concessions, plus all of the profits from simulcast at MP both off-season and in-season.

Now, I realize that running a racetrack is a very expensive proposition, but you cannot tell me it's $50k/day when live racing is not being conducted and $100k/day when it is (which would add up to about $4MM since mid-May.) If the entity runs at a net zero it is a huge financial gain for the state in taxes on wagering, claims, and purse earnings- not to mention taxes on payroll, etc.

[blackthroatedwind]

Originally Posted by philcski

I didn't believe this article for one second so I ran the numbers myself for this year's meet thus far.
http://spreadsheets1.google.com/ccc?...cD&hl=en#gid=0

As you can see, at a blended takeout of 18% and a signal cost of 6% (and an assumption that 20% of off-track wagering made in-state; these numbers are not published for NJ but NY averages 25-30%) and $200k a day in purse supplements from the casinos, MP has made over $4 million this meet before expenses and inclusion of revenues from attendance and concessions, plus all of the profits from simulcast at MP both off-season and in-season.

Now, I realize that running a racetrack is a very expensive proposition, but you cannot tell me it's $50k/day when live racing is not being conducted and $100k/day when it is (which would add up to about $4MM since mid-May.) If the entity runs at a net zero it is a huge financial gain for the state in taxes on wagering, claims, and purse earnings- not to mention taxes on payroll, etc.

They are getting less than 4% for their signal.

[philcski]

Originally Posted by blackthroatedwind

They are getting less than 4% for their signal.

Depends on where it's coming from. 3-4% from other tracks, 7-8% from ADW's. NYRA gets the most preferred rate, obviously. I actually talked to Kulina about it.

[blackthroatedwind]

Originally Posted by philcski

Depends on where it's coming from. 3-4% from other tracks, 7-8% from ADW's. NYRA gets the most preferred rate, obviously. I actually talked to Kulina about it.

So, you talked to Kulina about this, and then represented it falsely at 6%. The blended number is below 4%.

[philcski]

Originally Posted by blackthroatedwind

So, you talked to Kulina about this, and then represented it falsely at 6%. The blended number is below 4%.

How am I representing it falsely? Like I said, their signal cost is based on what type of provider you are. NYRA gets the best rate, a track like Arlington would be next, a Sam Houston next; then the price jumps for ADW's because (in Kulina's words) "they don't provide a product to wager on in return."

If 50% of OTW is at 3-4%, and 50% is at 7-8%, that's about 5.5-6%. But we're all painfully aware that most wagering is off track these days.

[Antitrust32]

Originally Posted by blackthroatedwind

They are getting less than 4% for their signal.

do any tracks get 6%?

I remember this from the RTIP... I just cant come to grips on how ripped off tracks are from off track, out of state handle.

[Antitrust32]

Originally Posted by philcski

I didn't believe this article for one second so I ran the numbers myself for this year's meet thus far.
http://spreadsheets1.google.com/ccc?...cD&hl=en#gid=0

As you can see, at a blended takeout of 18% and a signal cost of 6% (and an assumption that 20% of off-track wagering made in-state; these numbers are not published for NJ but NY averages 25-30%) and $200k a day in purse supplements from the casinos, MP has made over $4 million this meet before expenses and inclusion of revenues from attendance and concessions, plus all of the profits from simulcast at MP both off-season and in-season.

Now, I realize that running a racetrack is a very expensive proposition, but you cannot tell me it's $50k/day when live racing is not being conducted and $100k/day when it is (which would add up to about $4MM since mid-May.) If the entity runs at a net zero it is a huge financial gain for the state in taxes on wagering, claims, and purse earnings- not to mention taxes on payroll, etc.

you do have to divide that final number you got in half though... horsemen get half the $ usually.

[Antitrust32]

also taxes.. lots of taxes out of those #'s.

[blackthroatedwind]

Originally Posted by Antitrust32

you do have to divide that final number you got in half though... horsemen get half the $ usually.

Yes. It's obviously a little more complicated, but you are essentially correct.

[blackthroatedwind]

Originally Posted by Antitrust32

do any tracks get 6%?

I remember this from the RTIP... I just cant come to grips on how ripped off tracks are from off track, out of state handle.

I'm not sure if " ripped off " is the right way to say it, as tracks negotiate their simulcast deals. It's obviously a major racing issue.

[blackthroatedwind]

Originally Posted by philcski

How am I representing it falsely? Like I said, their signal cost is based on what type of provider you are. NYRA gets the best rate, a track like Arlington would be next, a Sam Houston next; then the price jumps for ADW's because (in Kulina's words) "they don't provide a product to wager on in return."

If 50% of OTW is at 3-4%, and 50% is at 7-8%, that's about 5.5-6%. But we're all painfully aware that most wagering is off track these days.

If you want to quote Bob Kulina a link would be the best way to do him justice.

As for splitting it down the middle....that's an inaccurate representation.

[philcski]

Originally Posted by blackthroatedwind

I'm not sure if " ripped off " is the right way to say it, as tracks negotiate their simulcast deals. It's obviously a major racing issue.

I think it's a great way to say it. The off-track/on-track split is so far from equitable it's a joke, and a major drain on the industry. ADW's are nothing more than used-car dealers yet get paid as producers.