I’m a little confused about this new plan to cut the racing baby in half. I fear I am not alone. Perhaps you’re a little unsure yourself. Am I wrong in assuming that the latest trial balloon launched to gauge the reaction of parties tethered to New York racing hasn’t worked because, instead of satisfying as many groups as possible, it served to unite those with objections?
As stated in our last letter, we know this about New York politics: When we try to please everyone we please no one. And now, with the Legislature in recess, we’ve run out of racetrack. Whatever the solution, it’s odds-on it won’t happen by the time the current franchise expires. While you ponder the solution, here’s some background you might find helpful.
Racing is a niche sport--if niche is defined by total annual U.S. handle of $15 billion. New York racing is responsible for $2.7 billion of that handle, making the product the industry’s leader. Simulcasting comprises 85 percent of the $15-billion, and the percentage grows every day. The international market is ready to explode.
So the product matters. It cannot be overstated that a sufficient amount of VLT revenue must be earmarked for purses and capital improvements; not simply to maintain but to solidify New York’s preeminent position.
Racing is a niche in New York only if you consider the state’s huge agri-business and 40,000 jobs to be of little or no consequence. But cultural fabric matters, too. Reiterating, New York without its industry-leading thoroughbred sport would be like major league baseball without the Yankees, the NFL without the Giants, the NHL without the Rangers and the NBA without the Knicks.
What confuses me is that your latest proposal has Aqueduct remaining as a VLT-facility-only with the remaining land sold off to satisfy NYRA’s debt. There would be no VLTs for Belmont Park. Originally you proposed to shut Aqueduct, sell all the land, and build an entertainment destination with VLTs at Belmont. If I were so inclined, I’d rather drive or ride the Long Island Railroad to Belmont than take the A train to Aqueduct. But I prefer a little thinking with my gaming; that’s just me.
As far as who would run the gaming-only operation, does this mean that the Excelsior group must compete all over again with the Empire and Capital Play organizations? That doesn’t seem right but it’s your call.
Now you realize that Empire gets its strength from out of state organizations that recently banded together in an attempt to corner the betting-platform market, right? Why would Churchill Downs and Magna suddenly turn altruistic when it comes to doing what’s best for New York?
Capital Play? They conduct themselves as representing the best elements of Australian racing. Do your people realize they’re little more than a betting platform that happens to be based in Australia?
Beyond equitable revenue sharing between the casino and racing interests that would guarantee not only racing’s survival but its stature going forward, none of your proposals address the off-track betting situation.
We’ve all seen what happens when on-track and off-track interests work at cross purposes. Fixing New York racing must include the resolution of a system that creates senseless competition through duplication. There must be a way to fix this and assure the state’s counties their cut.
Your own past performances indicate that you believe in reforming troubled industries through changes in operational procedures and management or by rewriting bylaws and reconstituting boards. Clearly, the NYRA board as presently constructed could use some house-cleaning.
On their watch, NYRA’s former president was allowed to resign before “the culture of corruption” investigation embarrassed him, or worse, and he’s currently receiving $7,000 a month in benefits. His successor subsequently was sent packing with $500,000 in his kick.
All this while two mid-level executives were scapegoated and sent to jail and two other loyal employees had their reputations permanently tarnished and still remain in legal limbo, denied their right to a swift and speedy trial. To paraphrase the fictional Willy Cicci, the family has a lot of buffers, governor.
But please be careful not to overload the board with appointments who know little or nothing of racing, i.e., anyone not in the racing business in this state.
If Aqueduct were eliminated, many changes would be needed for Belmont to work as a stand-alone downstate facility. You would need five different surfaces over which to race and train; a spring/summer/fall surface, a winterized track, two turf courses (or two enlarged into one very wide course) and a year-round training track. And that’s before the heating bill gets paid.
Of course, there exists a separate training track at Belmont. But I was thinking of the 550 head now stabled at Aqueduct. Where would they train, or live? If perhaps you or your advisers were thinking of Saratoga as a possible solution, think again. With burgeoning growth of the town and region comes a growing dearth of affordable housing. The additional stall space provided by the Oklahoma training facility is already in use to maintain quality.
This year, however, Saratoga lost much of its off-season horse population because trainers of “good-horse” stables from Kentucky and California that come to New York for its cache have remained behind because the artificial surfaces there are safer and more consistent for training. The quicker an artificial surface is installed at Oklahoma, the better. Without it, the Saratoga boarding experience eventually will become irrelevant as an eight-month facility.
I’ll allow your appointed staffers to advise you on how disparate franchise holders, one for gaming and one for racing, would share revenue. Safeguards for racing’s continued growth must be put in place. One need only visit the backstretch of the Saratoga Gaming and Raceway to see what happens when VLT operators continue to invest in their gaming facilities while ignoring the racetrack that allowed them to operate in the first place. The stalls are a disgrace.
So, please, Governor, take these things into account. I know you want to find as much new revenue as possible, preferably upfront. You owe that to all New Yorkers. But a major industry and prominent taxpayer that provides jobs and priceless prestige has been waiting five years for help. If dividing the baby is what it takes, do it. In a perfect world reasonable people could make it work.
Respectfully,
John R. Pricci


22 Jun 2007 at 04:21 pm | #
Mr. Pricci,
Once again you have struck a nerve in my horse racing heart and soul. It would be wrong of me to continue with pursuing the purchase of the New York Yankees. I am humbled. You are correct. There is a niche and a gem sport in New York that is called Horse Racing. Your state officials seem confused as to how to advance from a predicament. From afar, it seems an easy solution. However, as you point out, up close the situation is not clear.
You, Mr. Pricci, have caused a great turn around in my keenness of insight and judgment concerning racing in New York. I will examine more closely your State’s horse racing quagmier. I shall seek council from a geographical racing scholar and delve into the possibility of purchasing New York Racing.
Thank You Mr. Pricci.
You are an ebullient scribe.
Sheikh Mo
22 Jun 2007 at 05:48 pm | #
Dear Sheikh Mo,
I’m sorry to be the bearer of such bad tidings, but you just might be the solution NY racing needs.
I’m glad you’ve ceased to pursue the Yankees. No team you own should ever by swept by the lowly Rockies; way, way below your lofty standards.
I am troubled, however, that you no longer seem interested in buying my website. But the NYRA situation clearly is more dire than my own and I’ll take this hit for the good of the sport.
Now I know I can rest easy should CD Inc. and Magna continue their attempt to corner the betting-platform market. Once you take over NY racing, you could simply nullify the opposition by assimilating them into your vast empire.
Finally, when you speak to New York’s leading citizen, please tell him I meant no disrespect.I was only trying to help.
Your humble narrator and faithful servant.
JP
22 Jun 2007 at 09:19 pm | #
John, don’t know if you remember me. Former Press Box mutuel clerk, fired on 5/21/05 for calling in sick. John, why are you addressing Governor Spitzer? He knows diddley about racing as did his predecessors, Governors Pataki and Cuomo.The press and i mean all of you should address the members of the State Legislature.When Spitzer appointed Getnick and Getnick to monitor NYRA, they also had two accountants with them.Didn’t they know that NYRA was i dire straits at that time.Even after they received a clean bill from the monitor, Management again screwed up by firing 58 employees who won the arbitration costing NYRA millions.NYRA does not deserve to keep the franchise. They owe the State over 12 million to be paid back by 12/31/07. How , John, How?
23 Jun 2007 at 04:56 am | #
Since the reign of Kenny Noe, Jr., NYRA has lost money measured in millions. The sorrowful management stole millions from the horsemen’s purse account, failed to repay millions borrowed from the Capital Investment Fund, ignored the employees pension fund, didn’t pay taxes, and yet paid themselves handsomely and enjoyed wonderful expense accounts. Yet throughout the past ten years, the comotose board of directors, the governor, the state comptroller, and legislators failed to ask management two simple questions? 1)why is the franchise losing money year-after-year, and 2)why is the franchise continually offering six-figure purses that can clearly cannot be afforded?
Lets face a couple of facts: 1) every six-figure purse race presented by NYRA is a financial disaster; takeout and signal fees do not even come close to covering the purse, and 2)thoroughbred racing is a gambling entity, not a sport; meaning that the only way that the industry can possibly gain new bettors is when a national marketing program is launched that will promote racing as a gambling option to people sitting comotose in front of slot machines.
To believe that the triple crown races and the Saratoga meet will restore racing to its former glory is pure fantasy. Thoroughbred racing coast-to-coast is on life support, being kept alive by a share of slot revenue.
Governor Spitzer should award the slots to a private operator, and they should be required to fund NYRA in a reasonable manner. To allow for NYRA’s management to get their paws on any of the slot revenue would be like kids in a candy store. NYRA’s management for decades has never cared about the bottom line, about operating profitably; this is what you get when there are no stockholders that demand profitability.
23 Jun 2007 at 09:20 am | #
Dear Mr.Pricci, While I appreciate the comprehensive nature of your 2 letters to the governor, I believe you are overreaching. You are putting too many complex issues in front of someone with no subtle knowledge of the racetrack. They are informative, but for consideration down the road, not now. I think you would do better to keep it simple and just address the really broad issues that someone like the Governor should be focusing on. For example, first and foremost, make the decision that Aqueduct stays and give the ball to someone to get the casino going and the revenue producing. This seems a no brainer. Steve Wynn [Excelsior] has thrown his hat in the ring. Why would you hire anyone else? He is one of the premier casino operators in the world. It would be like turning down Warren Buffett to manage your investments.
Second, turn the racing franchise over to a reconstituted NYRA. Hire an executive search firm to go out and find a hands on manager with a proven record of success. Racetrack experience desireable but not necessary. If Boeing can hire a ceo with no aerospace experience I think the NYRA could certainly consider doing the same. The only certainty is that the current guys have to go. Their record of nonperformance is unassailable.
Third, let the governor appoint a political honcho to work with the legislature and try to get the 3 groups[casino, racetrack, legislature] on the same page, especially the revenue sharing.
I believe for starters this is all the governor should focus on. Everything else can flow from this structure if it is established. To put these three things in place would be no easy task in the dysfunctional environment of New York politics. Plus trying to get someone like Elliot Spitzer to make even these decisions is not going to be easy. We’re talking about a guy coming from a dictatorial executive position to one in which he actually has to show leadership and be clever for people to respond. The tasks will be formidable. Nonetheless, please keep pounding the table. Hopefully, someone will listen.
23 Jun 2007 at 12:51 pm | #
Your open letter to the governor is simply a powerful piece that is without fluff and in a small amount of words covers the chaotic situation like a glove.
The question is will the state listen to the facts as you have brought out or will political patronage and subjectiveness pervail?
I have had the pleasure of reading your articles on the all aspects of thoroughbred racing for twenty five years and I will state very clearly that your opinions are greatly valued.
In my opinion you are very well versed on the facts that concern each issue relating to racing in the state of new york and nationally. At no time in the past have you strayed from the facts of each issue concerning the survival of the thoroughbred racing industry in the state.
Furthermore you have no private agenda that motivates your comments on these very important issues.As was stated from the dragnet television series from the 1960’s...JUST THE FACTS!
SINCERELY JACK
26 Jun 2007 at 01:53 pm | #
Gentlemen--and you, too, Sheikh Mo--thank you all for taking time to post your thoughts and well reasoned comments.
Without addressing any of the specifics--fodder for three more columns, at least--suffice it to say no sports fans are as passionate and dedicated as racing people.
The level of knowledge and sophistication never fails to amaze me. You’d think I’d know better by now.
I can only hope you folks continue to care and I pledge I’ll continue to work in your best interests, to the best of my ability. Thanks again.
Yours in racing,
JP