NYRA - The Bailout Check is in the mail

[GenuineRisk]

NYRA is not-for-profit, yes? Or am I completely wrong?

Yes, they are a not-for-profit and I agree with what you are saying. I do not mind at all if a Govt earmarks money to be sent to the NYRA. However, you really can't compare a zoo, museum etc etc to the NYRA. Admissions and costs are kept low for a zoo so everyone can enjoy them. They are essential to education. However, the NYRA has a steady income because of pari-mutual wagering. They take a % out for operating expenses. Now, you would never hear me say a word if they didnt have a take-out or if they takeout was like 5%. The NYRA does a great job at racing, a horrible job a business. And a not-for-proft needs to be run like a for profit business. If they make money then spend it at the end of the year or give it back to the state. The NYRA is vastly different from other non-profits.

[Cannon Shell]

Originally Posted by eurobounce

Maybe so...but please explain to me why this organization cannot run effectively with their currect business model. No one has ever been able to explain this to me. Why do they need VLT revenue to be effective--again, WHY?

Listen I will be brief. The system is broken because NYRA gets to keep ZERO money. ALL money is mandated for the state. The system that was put in place in the 50's predates OTBs(direct competition from state), Lotteries(dierect competition from state), simulcasting, internet, etc. The fact that NYRA was not designed with this kind of competition in mind, and add on the fact that they can not put any money away to combat slow runs due to weather, competition, rising employee costs like pensions and health care, etc you can not blame NYRA directly for its current cash crisis. For years NYRA used the horsemans account as a fund whenever they needed cash. Despite denials from the horsemans organization, they knew this was happening and allowed NYRA to do this. ALL money borrowed was paid back and the horsemans account was never in jeapordy of being depleted. When the state audited NYRA they discovered this and didn't allow them to do this any longer. Therefore the current situation that now exists.
BTW -all the money that NYRA earns but is not allowed to keep any of goes directly to the state's coffers. Billions of dollars.

Originally Posted by Cannon Shell

Listen I will be brief. The system is broken because NYRA gets to keep ZERO money. ALL money is mandated for the state. The system that was put in place in the 50's predates OTBs(direct competition from state), Lotteries(dierect competition from state), simulcasting, internet, etc. The fact that NYRA was not designed with this kind of competition in mind, and add on the fact that they can not put any money away to combat slow runs due to weather, competition, rising employee costs like pensions and health care, etc you can not blame NYRA directly for its current cash crisis. For years NYRA used the horsemans account as a fund whenever they needed cash. Despite denials from the horsemans organization, they knew this was happening and allowed NYRA to do this. ALL money borrowed was paid back and the horsemans account was never in jeapordy of being depleted. When the state audited NYRA they discovered this and didn't allow them to do this any longer. Therefore the current situation that now exists.
BTW -all the money that NYRA earns but is not allowed to keep any of goes directly to the state's coffers. Billions of dollars.

The NYRA shouldnt be able to keep any money. Hence the not-for -profit status. All money earned should go back to the state or be spent. Granted, this idea was done before all the competiton but the NYRA has done a poor job of adjusting. They need to adjust their business model to reflect current economic trends.

[GenuineRisk]

Originally Posted by eurobounce

The NYRA shouldnt be able to keep any money. Hence the not-for -profit status. All money earned should go back to the state or be spent. Granted, this idea was done before all the competiton but the NYRA has done a poor job of adjusting. They need to adjust their business model to reflect current economic trends.

You guys make good points (euro, thanks for your response, by the way)-- so it seems the big problem is revenue lost to OTBs, etc. is that what is being said? How does the NYRA address that? What do you all think?

Originally Posted by GenuineRisk

You guys make good points (euro, thanks for your response, by the way)-- so it seems the big problem is revenue lost to OTBs, etc. is that what is being said? How does the NYRA address that? What do you all think?

I wish I knew the answers.

[Revolution]

NYRA is a joke. I laugh how the state offers them money, but they insist they must get it all right now, instead of over 3 months. I guess the guys at NYRA must have had a tough weekend betting the NFL and their bookmakers are asking to collect right now. Oh, I forgot they are the mobsters. Maybe they got hit hard by the gamblers this weekend are tapped out.

Brilliant business plan on that NYRA. They claim their numbers are up again, but once again they don't have the money to stay afloat. Shocking!

[Revolution]

Originally Posted by eurobounce

I wish I knew the answers.

They hire consultants that show them how to run a business, but then they wouldn't be able to keep the corruption running rampant throughout the organization.

[Revolution]

Originally Posted by Cannon Shell

BTW -all the money that NYRA earns but is not allowed to keep any of goes directly to the state's coffers. Billions of dollars.

It does? How does a group that runs tens of millions in the red contribute billions to the state coffers? I can't wait for this brilliant answer.

[Antitrust32]

Originally Posted by Revolution

It does? How does a group that runs tens of millions in the red contribute billions to the state coffers? I can't wait for this brilliant answer.

I dont know if you understand this, but the state taxes the total handle. Something like 3% of All the handle that NYRA see's goes to the state. That is a HUGE amount of money.

[Revolution]

Originally Posted by Antitrust32

I dont know if you understand this, but the state taxes the total handle. Something like 3% of All the handle that NYRA see's goes to the state. That is a HUGE amount of money.

So you are saying without NYRA horse racing is leaving NY? NYRA doesn't run a for profit and get taxed. They are a non-profit and they can't even break even.

Just to let you know, there is a parimutuel tax, and it isn't 3% of pools. In fact it contributes some ridiculously low amount of like $10 million to the state. In fact if you read any reports, state pari-mutuel tax revenues fell almost in half, from $18.6 million in 1997 to $9.9 million in 2001. I will try to find how little they contributed this year.

[Cannon Shell]

Originally Posted by eurobounce

The NYRA shouldnt be able to keep any money. Hence the not-for -profit status. All money earned should go back to the state or be spent. Granted, this idea was done before all the competiton but the NYRA has done a poor job of adjusting. They need to adjust their business model to reflect current economic trends.

Well if you ran a business and were not able to keep any money on hand for operating capital, how do you suppose you would do? The state acts like the mob in shaking down NYRA for every penny that is brought in and not dedicated to current expenses or purses. So when they have a downturn in business they will wind up with a shortfall of cash. It is such a simple concept, I can't figure out why you have a problem understanding. It is not about making a profit , it is about being able to cover operating expenses with the money that they generate, BEFORE having to give it to the state. The state takes the money first now and makes them beg for it back.

[Cannon Shell]

Originally Posted by eurobounce

They need to adjust their business model to reflect current economic trends.

Where have you been? They are trying to change the business model, and have said that they can't continue with the current one but they cant change until the state govt changes the laws.

Originally Posted by Cannon Shell

Well if you ran a business and were not able to keep any money on hand for operating capital, how do you suppose you would do? The state acts like the mob in shaking down NYRA for every penny that is brought in and not dedicated to current expenses or purses. So when they have a downturn in business they will wind up with a shortfall of cash. It is such a simple concept, I can't figure out why you have a problem understanding. It is not about making a profit , it is about being able to cover operating expenses with the money that they generate, BEFORE having to give it to the state. The state takes the money first now and makes them beg for it back.

You live in a vacuum dont you!!!!

[Cannon Shell]

Originally Posted by Revolution

It does? How does a group that runs tens of millions in the red contribute billions to the state coffers? I can't wait for this brilliant answer.

Takeout from handle, genius.
Property tax, Einstein.

There are plenty of online GED programs available, maybe NYRA will give you some scholarship money and then get you to run the show after you get your certificate.

[Cannon Shell]

Originally Posted by eurobounce

You live in a vacuum dont you!!!!

It is better in my 'vacuum" than that rock that you must live under

Originally Posted by Cannon Shell

Where have you been? They are trying to change the business model, and have said that they can't continue with the current one but they cant change until the state govt changes the laws.

They have been trying for the past 20 years--laughable.

[Cannon Shell]

Originally Posted by eurobounce

They have been trying for the past 20 years--laughable.

You've never lived in NY have you?

[Revolution]

Originally Posted by Cannon Shell

Takeout from handle, genius.
Property tax, Einstein.

There are plenty of online GED programs available, maybe NYRA will give you some scholarship money and then get you to run the show after you get your certificate.

No genius, property tax=10 million, which they don't even have and need to borrow. READ THE ARTICLE. Takeout from handle is the pari-mutuel tax which brings in half of what it once did and that is also around $10 million. THAT IS IT. So you have $20 million, where are the billions? LOL.

And I guess if NYRA wasn't running this, there would be no property tax and no pari-mutuel tax? LOL.

Do you really just make up things and have absolutely no clue. My FACTS, come from the government report on NYRA, where do yours come from?

I am a senior in college and I think you are the one who might need to take the GED.

FACTS. STICK TO THEM.

The State cut taxes to help the racing industry. As a result of those changes and increased out-of-state betting on NYRA races via simulcast, NYRA’s gross handle increased from $2.8 billion in 1997 to $3.5 billion in 2001, an increase of almost 25 percent. Meanwhile, State pari-mutuel tax revenues fell almost in half, from $18.6 million in 1997 to $9.9 million in 2001.

$3.5 billion in handle and a whopping 9.9 million went to the state.

[Revolution]

Here it is

NYRA generates $31 million annually in taxes for state and local governments.


That is it. $31 million. Please. That is an absolute joke. $3.5 BILLION bet and the give less than 1% of it to the government.


http://albany.bizjournals.com/albany...3/daily27.html