But hasn’t that always been the common wisdom; that the people who run the Thoroughbred industry don’t know enough about how to manage the business they’re in? Is racing even a sport, or is it strictly a betting vehicle meant to sustain itself while simultaneously filling the coffers of state government?
Everywhere in this country, especially here, New York was universally regarded as the nation’s capital of American Thoroughbred racing. But much has happened to and in the gambling business in the last 55 years. No one thinks that these are the good old days.
It was against this backdrop that Skorton was introduced to not only the racing world but to anyone with an interest in Thursday’s NYRA Board of Directors meeting in Manhattan, held in open forum and webcast via the world wide web on the NYRA’s own website. The association’s founders never could have envisioned anything like this.
When NYRA was conceived 55 years ago, Thoroughbred racing was the Sport of Kings and the moneyed class. Back in the day, the only lottery anyone talked about was the Irish Sweepstakes, betting off-track was still 20 years away, casinos only could be found in the Nevada desert or Monte Carlo.
And the NFL, the current 2000-pound entertainment and wagering gorilla, was nowhere near becoming a national pastime that would supplant baseball, where it says “no betting allowed” in every locker room.
Today, no one waits for a horse-drawn cart to deliver ice or sharpen kitchen utensils and now an entire country awaits the result of a national Powerball lottery--especially when there’s a carryover, just like in racing--nine of every 10 dollars are bet away from the track and there are mom and pop casinos on virtually every street corner in states that permit it and more money is bet illegally on football than is wagered legally on horse racing. The new normal seems to be anything but.
While it might help, it’s unnecessary for Skorton to know anything about horse racing to fix what’s wrong with the racing business in New York. Admittedly, he knows nothing about race horses but doesn’t that beg a question? Why is an industry that’s been run by experts in New York and everywhere for so long falling from favor so precipitously?
Skorton does not get paid to find the answer to all these mysteries, only to come up with practical business solutions for a local agribusiness that survives by riding the backs of American Thoroughbred racehorses--healthy ones--animals that can’t refuse to take an aspirin even if it wanted to. Gov. Andrew Cuomo thinks he was the right man for the job. And he just may be right.
Handicapping qualifications notwithstanding, who would be more qualified than the President of Cornell University, an academician who enlisted Michael Kotlikoff, Dean of Cornell’s College of Veterinary Medicine, as a special advisor to provide a knowing set of eyes to see that a new, shorter version of the NYRA Mission statement that includes the welfare of the animal in the front row stays the course.
At the Board meeting, it was suggested the mission should be “meeting the highest standards of racing and horse safety,” which is what it was in the glory days. Skorton then said that the statement wasn’t a notion he wanted to ram through and asked for feedback. At that point, a board member was heard to say “perfect.” And it was, an appropriately short and correct response to an appropriately short and correct idea. Standards matter.
Even amid server interruptions, the web coverage provided more than was ever previously witnessed at a NYRA Board meeting in about 67 years. One sensed a spirit of cooperation free of ego and acrimony, as if the newness of transparency would provide a light to lead the troubled organization out of the wilderness and on a path to a brighter future for New York racing, the animals, and, by extension, the Empire State. Alas, political theater at its finest.
Skorton, who said he was honored by Cuomo’s suggestion that he head the Board, strongly suggested that NYRA make its third-quarter receipts available to the press, a sharp right angle from the secretive manner the association most often conducted itself in the past. When business is conducted according to the State Open Meetings Law and the Freedom of Information Law, good things can happen.
Other agenda items were approved such as prohibiting NYRA officers from making political contributions and even making a bet. The same applies to horsemen's groups but Board members may continue doing both. At first, the prohibition of wagering seemed a bit overwrought until Skorton explained that NYRA officers represent the state which is charged to serve the public. He hinted that betting could be a distraction.
Transparency and accountability together might take some getting used to.
Apropos, too, is the idea that the new NYRA should no longer do business as a “not for profit” institution but rather as a public benefit corporation, at least for three years when, as promised by Gov. Cuomo, NYRA becomes eligible for privatization. New York racing will need those three years. There’s much to be accomplished before profit again can incentivize good racetrack management.
The issues discussed were both quantitative and qualitative: How to restore New York racing to preeminence instead of being “somewhere in the middle,” according to a board member who added that an infrastructure needed to be built in support of the racing product sooner than later. “We have this money, let’s use it well.”
After having very little to smile about following the takeout scandal, Thursday’s board meeting was a promising start, a new beginning with hope that the positive energy, spirit, and cooperation on display Thursday will not lose momentum. The Board knows it must be ready for the next legislative session. There’s no time to waste in what promises to be a long, difficult road.
So far, I’m inclined to bet that Mr. Skorton and friends are capable of getting the job done. It’s day one at the new NYRA and everyone starts out even.


13 Dec 2012 at 11:34 am | #
The New NYRA Mission statement can be found in this PDF which also includes the 2013 stakes schedule prior to Saratoga:
(Please copy/paste the URL into a new browser window as link doesn’t display properly when clicked on.)
http://www.nyra.com/boardmeetings/documents/Meeting Book 12-12-12.pdf
“New NYRA also recognizes that there is a strong interdependence among those members who contribute to the racing experience. New NYRA’s success is inextricably bound with the success of owners, breeders, trainers, jockeys, and the racing fans. It is important to promote collaboration among these group in order to maintain a strong positive thoroughbred racing experience in New York and to serve the best interests of the state agricultural industries, owners, breeders, patrons, and all other stakeholders, including the State of New York.”
Did anyone here feel Old NYRA viewed us as collective stakeholders whose best interests should be served? That objective is probably byond reach, but I’m optimistic that more of an effort will now be made to strike a workable balance among the interests of all NY racing’s stakeholders, and at least now we officially are one.
13 Dec 2012 at 02:48 pm | #
JRP,
I have only one small quibble with your otherwise fine commentary.
You said, “Why has an industry that’s been run by experts in New York and everywhere for so long falling from favor so precipitously?”
At the recently-concluded Belmont Fall meet, there was a total of $9.3 Million bet EVERY DAY, on average, at that meet.
There are thousands of businesses in America, many of them considered highly successful, that would beg for $9.3 Million in sales every day.
Has NYRA racing slipped from the heights? Of course. Is it near-death? By no means.
13 Dec 2012 at 05:38 pm | #
NK. “Fallen from grace” has much less to do with success at the bottom line as it does how racing is no longer viewed as mainstream except for a handful of days per year.
Remarkably, their numbers, as well as racing’s in the overall--up a percent nationwide through Nov.--are trending upward. Hopefully the momentum will carry into 2013.
I believe racing, led by New York, will not only survive but have a bit of a renaissance. First, though, a little more contraction, a little more pain.
13 Dec 2012 at 05:45 pm | #
Yup, back in the day when 50,000 people rushed through the turnstiles at NYRA; back in the day when the only legal gambling venue outside of Las Vegas was gambling on the ponies; back in the day when stake races were sustainable, financed from takeout.
And today, Thorougbred racing across the country, except for five or six Saturdays is about as popular as church bingo. Wha happ’in? Competition for the gambling dollar!!! Thoroughbred’s gambling monopoly went poof! How can things possibly change if casino dole is withdrawn?
Mr. Kling: $9.3 million is not the measure of a successful company. A lemonade stand with sales of $1000 could attain a higher profit to sales ratio than Apple. A company with millions in sales could be on the verge of bankruptcy (K-Mart, JCPenny). If casino dole is eliminated, Thoroughbred racing is dead. To survive, purses and operating expenses must be determined by the income derived from takeout and signal fees, which would reduce stake purses 90% (the races would still look and be the same for the gambler, fortunately); this won’t happen, though, as breeders and owners would rather go down with the ship.
Cuomo needs the President of Cornell to state the obvious cause and solution?
13 Dec 2012 at 06:11 pm | #
Believe it or not, WMC, can’t disagree at all, except for this: NYRA has proven in the recent past that it needs a steady, independent hand to help steer the way. And never before have the fans been fitted into the equation. It’s only fair to take a wait and see posture.
13 Dec 2012 at 07:21 pm | #
JP--
I couldn’t agree with you more that yesterday’s public NYRA Board meeting was like a breath of fresh air. Reminded me of the song from “Hair"--"Let the sunshine in....”
Doing business in the open for all to see is definitely the beginning of a new era...perhaps this is the dawning of the Age of Aquarius?
Hmmm, why do I suddenly feel that I am stealing the schtick of one of your other lyrically inclined loyal followers?
13 Dec 2012 at 11:27 pm | #
Hope you guys are right; I’m a jaded old man from Missouri.....
TTT
13 Dec 2012 at 11:39 pm | #
Preeeeeeeech,
Ed Norton err David Skorton? Hallelujah!
A new NYRA? Hallelujah!
Did you see the 12-12-12 concert last night? What a show! The Boss, The Who, The Stones, A Beatle, Slowhand, Pink Floyd and the Piano Man! Took me back to the 70’s. The golden age of music....and horseracing too IMHO. Big Red, Forego, Seatle Slew, Affirmed, Alydar and the buzzzz at the track.
Chairman Skorton and the New NYRA Board: A Perfect Pitch? I hope it’s not a knuckleball. I hope the first pitch is a cupcake right down the middle...No race day Lasix starting in 2013 for two year olds! Then I will really say hallelujah!
Good stuff Chuck from the Spaaaaaaaah… Keep the beat going on.....
“Hallelujah / Sandy, screw ya / We’ll get through ya / ‘Cause we’re New Yorkers!”
14 Dec 2012 at 02:04 am | #
My two wishes for the NEW NYRA:
1 - Media campaign to attract new players
2 - Lower takeout to mske old ones happy
14 Dec 2012 at 03:11 am | #
John:
I agree with you that Dr. Skorton is a breath of fresh air. Opening the doors and windows never fails to deodorize the foul smelling air that has accumulated for the past half-century.
However, as always, there is still the one cause for Concern ( remember the Holy Bull Travers). Not a word about the absurd Catskill OTB takeover bill. If the freshening of the NYRA air includes “Catskill-on-the-Grand-Concourse”, please count me out. If Mario, JR and Dr. Skorton want to start on a clean slate, they should have taken the gimme putt and put this inane notion to bed.
14 Dec 2012 at 03:36 am | #
On Steve Byk’s show today, Dave Grenig said that after yesterday’s NYRA Board meeting, he spoke with Bob Megna (Cuomo’s budget director and NYRA Board appointee)on the topic of the Catskill OTB bill.
According to Grenig, Megna indicated that he was not supportive of the Catskill OTB bill. So it appears likely that Cuomo will be vetoing it......
14 Dec 2012 at 05:11 pm | #
From the above comments, it is desired that the ‘new’ NYRA develope a media campaign to attract neebies, eliminate lasix, and lower takeout; are these the solutions? Doing such would certainly help, but when is the real problem going to be addressed: the fact that NYRA hasn’t operated profitably in years. How will NYRA wean itself from casino dole and operate profitably on its own, as all corporations in the country are suppose to do to stay in business.
The fact that the former NYRA management ‘borrowed’ money from the Capital Investment Fund and the horsemens’ purse account to fund stake races, used the organization as a personal candy store, and was secretive with their financial statements are not the reasons why NYRA today cannot operate on its own without casino dole.
An open door policy also will help, but NYRA to move forward need three things to happen: a) it must receive a higher percentage of the 90% handle that is wagered off-track, b) convince people gambling elsewhere to gamble on the ponies, and c) allow no race to be run that is not self-sustainable.
Receiving casino dole is a crutch that simply makes management lazy and creates an attitude that ‘we are entitled’.
Priority number one, two, and three must be to get together with other racing associations an meet with wagering hubs and OTBs to discuss the signal fee rate. Theatening to stop the transmission of the signal fee would be costly to both the tracks and the wagering hubs and OTBs, but both sides should see the necessity to agree on a fairer rate for the tracks that are providing the races.
14 Dec 2012 at 07:42 pm | #
Agree with wmcorrow that NYRA’s top priority should be profitability--through whatever means it is achieved.
I took offense that in NYRA’s Third Quarter Report (which was released to the public by NYRA only after strong prodding from the Board/Governor’s Office), NYRA repeatedly used the term “earned” when discussing the VLT revenues. NYRA did nothing to “earn” these revenues, unless putting your hand out and begging constitutes a well “earned” dollar....
14 Dec 2012 at 10:28 pm | #
In addition to Robert Megna’s comments on the Catskill “Fix Six” OTB takeover of the old NYC-OTB operation, someone at the Board meeting, when the topic was broached Wednesday, said “we’ve shown our discomfort” with that.
The quote stuck because I had not heard such terminology before. Considering the history of all OTBs and Catskill’s PPs in particular, I’m thinking “utterly uncomfortable” with that idea.
15 Dec 2012 at 02:22 am | #
Can’t recommend anything about Catskill OTB.
The one I go to is in pretty bad shape - broken machines, worn-out carpeting, etc.
Still, I hope it stays open. But often wonder for how much longer it will as there’s a lot less people. Sometimes there’s barely any customers.
The Interbets web site isn’t that great either.
15 Dec 2012 at 09:16 pm | #
I agree with JP’s overall sentiments with Mr. Skorton. From what I have read, he has many positive qualities and experiences that could help horseracing out quite a bit. I wish him well.
#12 WMC - The NYRA’s 2012 budget planned for a operations profit for this year. I suspect it is on target. This included about $8 million is statutory fees for taxes and support for the NYSRWB. But, their non-operating costs for pension and retirement benefits do put them substantially in the red. The slots revenues help them overcome these expenses. I am not sure how these expenses are funded.
If the state does not give them slots relief, then they should allow them to compete in the slots market. They have got to be allowed to comptete effectively in a regulated market.
16 Dec 2012 at 06:20 pm | #
Tobasco, god speed for the spelling of “hallelujah”, on numerous occasions...you have my uttmost respect. However one should not praise the ‘70;s albeit music or ponies, and not recognize the Dylans,Santana,Clapton,King etc., and the Fagers’, Damascus and Buckpassers that paved the way...aside, cudos to the board to include a guy like Flay who has proven his heart and soul is spread out to include this great game
16 Dec 2012 at 08:01 pm | #
WMC, I wanted to clarify what I wrote. The NYRA was planning for a $1 million operating profit for 2012 without the slots revenues. Their expenses included about $8.5 million of pari-mutuel taxes and fees for the NYSRWB. I would be hard for them to make the racing operation profitable with these types of onerous statutory taxes and fees. Finally, the pension and retirement expenses amounted to about $18 million in 2012. With this type of expense, it would be very difficult for the NYRA to reach full profitability. The slots revenues do cover these expenses though. Finally, I am not sure how the NYRA pays for the retirmenet and pension costs. I am not sure if this comes out of pension fund. If it doesn’t then without slots revenues it will be difficult for them to survive this type of cash outlflow.