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

[parsixfarms]

Originally Posted by pointman

If the State does not give NYRA the money, they really have nowhere to get the money from. Hence, their only real option is to shut down. I can assure you owners and trainers will not race their horses with the promise that they will be paid in the next 6 months to 1 year. I fail to see where you think NYRA can drum up the money to continue operating when they are not receiving money they are entitled to from NYC OTB which would float their operations.

I guess I find it hard to believe that shutting down is their only option.

Purse levels are contractually dictated by agreements between NYRA and the horsemen; they are a function of handle and the amount of money that flows from handle into the purse account. Horsemen would not be "running for nothing" unless NYRA were using such funds, as they did about 7-8 years go, to cover operating expenses (and on this point, I believe that there is now complete segregation of accounts because of this prior episode).

As large as NYCOTB is, it still generates only a percentage of NYRA's total handle on a given day, so it's not as if the organization has no revenue coming in.

[pointman]

Originally Posted by pmacdaddy

Nick,

I believe NYRA is now a Not-for-Profit organization, no longer a state entity. Accrodingly, they can certianly access working capital given collateral and cash flow. However, the current state of limbo leaves them with much on neither...

I am not positive, I believe they are still a municipal not for profit corporation. And yes, when they deeded $1 billion worth of land to NY State they certainly compromised their collateral, not to mention having just come out of bancruptcy does not help either. Regardless, as a not for profit there is no room in the budget for interest. I still don't know where the money to pay that is supposed to come from.

[pmacdaddy]

Originally Posted by pointman

Regardless, as a not for profit there is no room in the budget for interest. I still don't know where the money to pay that is supposed to come from.

This is survival, not a balanced budget excercise. Not to say things are sustainable without VLT's coming to fruition or some other changes to the current situation.

[freddymo]

Originally Posted by pointman

Unlike some of schools and cops, NYRA has been paying a vig to the State for years just for the privilege of operating which is why they are entitled to help from the State. Even the dumb idiots NY State has elected know they cannot let NYRA fail. Don't think for a second that the State hasn't gotten its cut of the betting action for a long time.

Further, cops and schools have created much of their problems through their unions which refuse to let go of unproductive employees and refuse to renegotiate ridiculous benefits which they do not deserve in this economy.

Are the toll collectors on highways much different then NYRA when it comes to giving money to the State. Isn't NYRA a business designed by the state to collect revenue for the State. I am all for NYRA succeeding because I love racing but effectively they are wards of racing appointed by the state to manifest the industry while taking a rake. I never understood NYRA's claim that they owned the land because they paid (or short paid) the property tax for years. Wasn't that the point of the A in NYRA? Wasnt it an assc. chartered to create revenue not its bottom line? How the heck did that become we own the land because we paid the tax?

[Princess Doreen]

Steve Crist speaking to the NYRA/NYS crisis:

http://www.drf.com/drfNewsArticle.do...5&subs=0&arc=0

[Kasept]

Originally Posted by Princess Doreen

Steve Crist speaking to the NYRA/NYS crisis:

http://www.drf.com/drfNewsArticle.do...5&subs=0&arc=0

While touching on the NY situation momentarily, Crist is addressing the sustainability of the Monmouth meet concept with the column.

[Princess Doreen]

Originally Posted by Kasept

While touching on the NY situation momentarily, Crist is addressing the sustainability of the Monmouth meet concept with the column.

Well, true, but he sounded pretty optimistic that things will work out for NY racing.

For whatever his opinion is worth.

[the_fat_man]

Originally Posted by Princess Doreen

Well, true, but he sounded pretty optimistic that things will work out for NY racing.

For whatever his opinion is worth.

What did he think when Charlie Sheen stated that he was done with 2 1/2 men? Was he optimistic that Sheen was coming back (as he has agreed to)?

[Cannon Shell]

Originally Posted by freddymo

2001 is forever ago. You have to let this go quoting 2001 laws that have not been implemented is crazy. The world has changed so much since what was passed in 2001. What good is saying abortion is legal if nobody got one for 10 years because of one thing or another?

BTW NYRA didnt give the government a PENNY gamblers did all NYRA did was oversee the transfer from pocket A to pocket B... Giving them a bunch of credit for there horrible operations 9 years ago is invalid.. The current guys have been ok but lets not forget just how sorted NYRA PAST is!

Stop mixing meds. The law is the law period. The law HAS been implemented in the state yet NYRA has been prohibited from implementing VLT BECAUSE of the action of the state. That is not my opinion, it is the facts. NYRA operated a business for 1/2 a century that has poured billions of dollars into the state coffers. Another fact. Giving credit or assigning blame to NYRA or its management is a moot point. The state has created this mess and done a huge disservice to the people of the state of NY. Now they want to not live up to its commitment. Sure Freddy, its all that bad management at NYRA that has caused the state of NY to elect morons.

[Cannon Shell]

Originally Posted by parsixfarms

NYRA is no different from any business with cash-flow problems. In this regard, it really isn't relevant who's not paying them. It's really a simple question: either NYRA and its board can be completely dependent upon the State to solve their short-term cash problem, or they can try to address their cash issues through other means. Having fought as hard as they did for the franchise, I can't believe that the only answer to their current situation is to shut it down if the State doesn't come through with the cash.

NYRA is dependant on the state because the state has not honored its commitment AND the state owned OTB has not lived up to their commitment. It is different than any other business because the same people who owe them the money are the ones that regulate them! Name me another business that could fall into that quandry?

[Cannon Shell]

Originally Posted by freddymo

You right but you make it sound like the State is holding up there obligation in every other arena. They aren't! schools are failing people are losing there jobs and basic things are being washed away. Because NYRA has a piece of paper that saying the State is obligated to fund them is different then basic implied financial obligations of State government.. Come on cops schools and teachers have to go behind NYRA because they have a piece of paper.

Apples and oranges. C'mon you know this isn't relevant.

[Cannon Shell]

Originally Posted by pmacdaddy

Nick,

I believe NYRA is now a Not-for-Profit organization, no longer a state entity. Accrodingly, they can certianly access working capital given collateral and cash flow. However, the current state of limbo leaves them with much on neither...

What collateral do they have? The state owns the land. They arent getting paid by NYCOTB (owned by the state) which is chapter 11 and are required by law to continue to send them the signal. There is a big chunk of the cashflow. Who is going to risk any money in this scenario? Sheikh Mo?

[pmacdaddy]

Originally Posted by Cannon Shell

What collateral do they have? The state owns the land. They arent getting paid by NYCOTB (owned by the state) which is chapter 11 and are required by law to continue to send them the signal. There is a big chunk of the cashflow. Who is going to risk any money in this scenario? Sheikh Mo?

That's what I am saying. The current situation leaves them without collateral or cash flow. Even though they are technically "allowed" to borrow as a NFP.

[parsixfarms]

Originally Posted by Cannon Shell

NYRA is dependant on the state because the state has not honored its commitment AND the state owned OTB has not lived up to their commitment. It is different than any other business because the same people who owe them the money are the ones that regulate them! Name me another business that could fall into that quandry?

School districts in NY, for example, are putting out budgets without knowing state aid figures. And health care facilities may see reimbursement rates cut by the state, after budgets have been prepared.

[freddymo]

Originally Posted by Cannon Shell

Stop mixing meds. The law is the law period. The law HAS been implemented in the state yet NYRA has been prohibited from implementing VLT BECAUSE of the action of the state. That is not my opinion, it is the facts. NYRA operated a business for 1/2 a century that has poured billions of dollars into the state coffers. Another fact. Giving credit or assigning blame to NYRA or its management is a moot point. The state has created this mess and done a huge disservice to the people of the state of NY. Now they want to not live up to its commitment. Sure Freddy, its all that bad management at NYRA that has caused the state of NY to elect morons.

The Highway Authority has operated a business that has poured money to the state. You know the guys that take the toll money. I havent blamed the current NYRA managemment once. The states in trouble that means NYRA is in trouble period. BTW laws get chaged all the time..Look NYRA will get the hand out they are requesting. I never thought for a minute they wouldnt..It is sad to see the negative "we are goiing out of business" publicity

[parsixfarms]

Originally Posted by freddymo

The Highway Authority has operated a business that has poured money to the state. You know the guys that take the toll money. I havent blamed the current NYRA managemment once. The states in trouble that means NYRA is in trouble period. BTW laws get chaged all the time..Look NYRA will get the hand out they are requesting. I never thought for a minute they wouldnt..It is sad to see the negative "we are goiing out of business" publicity

On the heels of NYCOTB "bluffing" the pols in Albany, if NYRA does not get the cash from the State, they have really backed themselves into a corner where, from a political standpoint, they probably have to shut-down (or else their credibility in Albany will be same as that of NYCOTB).

My cynical fear is that (1) there are still a number of people in Albany who think NYRA never should have received the franchise extension in the first place, and (2) if this Albany-created "cash crisis" results in a cessation of racing, that may be used as a back-door way to try to take the franchise away from NYRA. The litigation that would result from that would cripple NY racing for a long time.

[pointman]

Originally Posted by parsixfarms

On the heels of NYCOTB "bluffing" the pols in Albany, if NYRA does not get the cash from the State, they have really backed themselves into a corner where, from a political standpoint, they probably have to shut-down (or else their credibility in Albany will be same as that of NYCOTB).

My cynical fear is that (1) there are still a number of people in Albany who think NYRA never should have received the franchise extension in the first place, and (2) if this Albany-created "cash crisis" results in a cessation of racing, that may be used as a back-door way to try to take the franchise away from NYRA. The litigation that would result from that would cripple NY racing for a long time.

Save for the fact that we all know that NYRA will get the cash, what has NYRA done so bad since being awarded the franchise that would concern the morons who were against them, let alone try to void NYRA's franchise agreement?

[pointman]

Originally Posted by freddymo

The Highway Authority has operated a business that has poured money to the state. You know the guys that take the toll money. I havent blamed the current NYRA managemment once. The states in trouble that means NYRA is in trouble period. BTW laws get chaged all the time..Look NYRA will get the hand out they are requesting. I never thought for a minute they wouldnt..It is sad to see the negative "we are goiing out of business" publicity

If NYRA doesn't have the cash to operate after the Belmont, how can you criticize them for handing out legally mandated warn notices in the minimum period of time required to cease operations at that time? The bad guy is the Legislature for allowing both themselves and OTB to put NYRA in this position.

[the_fat_man]

Originally Posted by pointman

The bad guy is the Legislature for allowing both themselves and OTB to put NYRA in this position.

One would think that after all those years of dealing with the Legislature the NYRA camp would have a clue. Like, maybe they shouldn't have given up the rights to the land for what, effectively, is looking like a big, fat NOTHING. Who exactly is responsible for that decision?

So, say the state loses the gambling revenue. They still have the land. And this is a lot better than some promises from douchebags.

[freddymo]

Originally Posted by pointman

If NYRA doesn't have the cash to operate after the Belmont, how can you criticize them for handing out legally mandated warn notices in the minimum period of time required to cease operations at that time? The bad guy is the Legislature for allowing both themselves and OTB to put NYRA in this position.

Stop you can give outthe notice and you can give out the notice.. NYRA is being ridiculous they should be saying.."we understand the State is in intense budget talks and we respect that the State has major issues, yet we will need them to honor their commitment to fund NYRA especially enlue of the OTB crisis which has drained 18 million in revenue from NYRA. NYRA will require the State to honor their commitment and finance NYRA until VLT's at Aqueduct are operational" Instead we got "hi the Belmont stakes is June 5th deposit money immediately to play the big pik 4's and 6 and we will be out of business on the 6th have a nice day."