SARATOGA SPRINGS, NY, July 13, 2010--Maybe it’s because George Steinbrenner; owner, breeder, philanthropist, died today, but when I put his passing and the above-the-fold lead story in the Saratogian in perspective, the first thing that came to mind were Casey’s words: “Can’t anybody here play this game?” It’s a question that’s remarkably apt when describing the state of New York racing.

On Monday, an audit from New York State Comptroller Thomas DiNapoli’s office warned that unless VLT revenue or some derivative thereof, such as upfront money tended by the eventual winning franchise bidder that might provide a bridge for the immediate future, the road that the New York Racing Association must traverse without it would be a bridge that leads to nowhere.

Further complicating the issue--and a very real concern given how glacially wheels of justice turn and a track record of complete and total failure by state government to govern and problem solve--is a galling court injunction brought by the disqualified Aqueduct Entertainment Group, a suit that could delay or even derail the selection process which is down to a single remaining bidder.

There’s free money in the form of VLT revenue out there for the taking but precious few willing to become embroiled in New York State politics, no matter how potentially lucrative the project. All the gaming giants who wanted in since the process began nine years ago are on the sidelines now, wanting no part of the capricious and cavalier nature of how business is conducted in this state.

Clearly, AEG, which won the bid but was disqualified because the taint of back-room dealing wreaked of cronyism, wants back in the game. At this point they apparently figure they’ve got nothing left to lose but time and court costs for another shot at a brass ring, especially since the lone remaining bidder, Genting New York LLC, isn’t exactly floating anybody’s boat over at the State Lottery division.

According to the Saratogian story, the NYRA, which lost $9-million in 2009 is on track to more than double those losses this year. DiNapoli, to his credit, lays much of the blame where it belongs; on the state. The association is owed $30 million by New York State for failure to award a franchisee in a timely manner, this according to the terms of its own franchise renewal agreement that turned the deed to its three tracks over to the state, among other considerations.

Bankrupt New York City-Off Track Betting Corporation, now a ward of the state, also owes the NYRA $20 million. The NYRA might not be a model of efficiency and accountability, and also showed bad taste by rewarding its top executives with raises during difficult times, but math shows that $50 million minus $19 million worth of real and projected dollars more than balances NYRA’s books.

So the $25 million loan floated it by the state, enabling the NYRA to, among other things, open the gates of Saratoga Race Course July 23, is little more than a down payment on what they are owed. The NYRA, which had refused to open its books, later complied to a DiNapoli subpoena and received the loan that’s enabling them to operate.

But DiNapoli also painted NYRA with the same brush. He believes that the association should have restructured, cutting costs more aggressively, pointing out that payroll was up nearly $2 million, much of that from union contracts. But the more disturbing figure, however, was $6 million termed personal and miscellaneous services, whatever that is.

Included in that figure should be $125,000 a month it pays the firm of Getnick & Getnick for providing security services for NYRA’s three highly controversial detention barns. Those barns have proven bad for business by discouraging those who would ship in to race, and the real possibility that it wreaks havoc with form. It’s so unpopular with local horsemen (HRI archives: “Horsemen Term Detention Barn a Failure,” Pricci June 11 column) they are threatening to boycott the entry box for Sunday's races, the final day of the Belmont summer meet.

The Comptroller has instituted an on-site audit beginning with Saratoga meet for an indefinite period. The auditors are to monitor cash flow and note a willingness from NYRA to follow recommended audit procedures. Then DiNapoli overstepped by showing his lack of racing expertise, questioning the $900,000 NYRA spends annually to shuttle horses between racetracks. DiNapoli recommends that NYRA charge a fee or discontinue the service. Considering 90 percent of owners lose money, this would be, at best, extremely counterproductive.

The entire mess could have been completely avoided, but nothing goes right in the Roman Empire State. The state could be devoting its efforts on straightening out their other massive problems and the citizens of New York already would be benefiting from VLT revenues for a few years now.

In November of 2006, the Ad Hoc Committee on the Future of Racing in New York voted overwhelmingly to award Excelsior Racing Associates the franchise to run racing in New York. But a few months later newly-elected Governor Eliot Spitzer gave the franchise back to NYRA for 25 years, forgiving NYRA’s debt to the state, but taking title to its three racetrack properties. This is part of what Excelsior brought to the table:

* A pledge of $175 million for badly needed capital improvements, including $75 million in the first year.

* $35 million in capital improvements for the backstretch alone in the first three years.

* The pledge to create backstretch villages at all three racetracks, including new groom's quarters, apartments for trainers, medical and dental clinics, commissary services for backstretch workers with hours of operation that met their needs.

* New, state-of-the-art television infield screens and monitors that can be viewed no matter where fans would be seated.

* All racing to be broadcast in Hi-Definition.

* The construction of all-weather broadcast studios in the paddock area of each racetrack.

* Sixty percent additional VLT revenue for the NY State Breeding Fund.

* Three $1 million New York-Bred showcase days at all three tracks.

After NYRA won back the franchise, the troubled organization was given an opportunity to partner with the Excelsior group by Richard Rifkin, special counsel to Gov. Spitzer.

Rifkin asked Excelsior if they could work with NYRA. They not only said yes but offered to absorb 100 percent of NYRA’s workforce. The NYRA said no. Now it’s fighting for its life with a potential VLT operator with warts, while another threatens to blow up the whole process. No need to worry about playing the game if there’s no game left to play.