QUIT HORSING AROUND!

Will NY Politicians Allow A Shutdown of Racing?

 The racing industry has its eye on New York, and not for a good reason.  There is a very real possibility that racing at New York's major tracks will stop come January 1st, 2008.  And we have the Three Stooges of New York State politics to blame for it.

Where to begin this tale?  In a nutshell - New York Racing Association, a non-profit organization, has been running the franchise to New York's three major tracks - Aqueduct, Belmont, and Saratoga - since 1955.  That franchise expires December 31, 2007. Now, there are many who would say NYRA has done a piss-poor job of running the business of racing, with various scandals, charges of corruption, bankruptcy, IRS problems, audits showing underpayment of franchise fees, and a lawsuit claiming ownership of the 3 major tracks.  I'm sure I'm missing one or two things, but you get the picture.

Besides NYRA, there are three other bidders for the franchise, and the potentially lucrative Video Lottery Terminals approved for Aqueduct. They are Capital Play, Empire Racing Associates and Excelsior, with Excelsior being the choice of the former Governor Pataki (R).  The one major sticky issue was NYRA's claim that they own the properties, and no racing will be done on their property without their say so. That matter currently is in the NY courts, and on it's own could take years to resolve.

Enter stooge number one, Governor Elliot Spitzer (D), former Attorney General of New York, who went after NYRA, and once said that NYRA was "indifferent to corruption."  Gov. Spitzer decides he doesn't like the former governor's choice and disregards it totally.  He decides to open a new round of bidding, and then decides to change the rules halfway through the new process. While this new round of bidding goes on, he is negotiating with NYRA in secret.

Early this past September Gov. Spitzer announces that he has decided that a (Note: BUZZ word)  "reconstituted" NYRA should operate the racing franchise for the next 30 years, while a separate entity control the VLTs. What is a "reconstituted" NYRA - hell if I know, that point is still a little bit fuzzy.  In addition to running racing, NYRA would get help bailing out of bankruptcy upwards of $200 million dollars, much at taxpayer expense.  NYRA would also have to relinquish all present and future claims of ownership to the racetracks.  Interesting that the governor should pick the very same people he claimed were indifferent to corruption.

Enter stooge number two, Joseph L. Bruno (R), State Senate Majority Leader, and the most powerful Republican in Albany, and involved in NY politics since we bought Manhattan in exchange some nifty beads. He also has had an ongoing feud with the governor since Spitzer took office.  His district includes Saratoga, so he is getting a lot of pressure to make this work.  Initially Joe wanted the creation of a Republican-controlled public authority overseeing racing and the slot machines.  That was in October.

His idea was pretty much killed by Sheldon Silver (D), Assembly Speaker, former trial lawyer and second highest-ranking Democrat.  Oh, and Mr. Silver is stooge number three in this political triangle. Mr. Silver said the Republican's plan had "no details" and "no clear vision" and "no substance."  He then quickly jumped on the governor's bandwagon and endorsed NYRA 2.0.

Senator Bruno came back in true NY political fashion by calling Silver "the biggest wimp on earth,." and claiming the governor and Silver were at fault for stalling on an agreement. He then promptly changed his mind, becoming more open to NYRA "reconstituted," but suggesting that the simulcasting and tote be open to outside interests.

But wait, a week later Bruno changes his mind yet again, and the former NYRA supporter blast them, saying "the slate needs to be wiped clean," and calls for NYRA's board to resign (which he let slip out of the bag the week prior stating Spitzer had quietly gotten the NYRA board to resign).  Bruno indecision could be seen as political jockeying, or it could that he simply wants to be contrary to Spitzer, with whom he has been publicly feuding.

Albany is playing politics without consideration of the consequences of the thousands of jobs that would be affected if racing shuts down:

• Not only would the 1500 NYRA employees' jobs be in peril, but several thousand horse related jobs will be affected;
• Trainers must move their horses off the property come January 1st to other tracks, and some may not come back;
• Other businesses that benefit from their proximity to race tracks will lose business;
• A shut down of Aqueduct could produce a ripple effect felt at tracks throughout the county, affecting handle from simulcasting;
• Not to mention the lose of racing dollars going into the state treasury

Enough is enough. The NY legislator needs to make real and hard choices, and they need to make it now.  It's 28 days and counting.  Time to stop the political circus and get on with the business of racing.