NYRA placed under "temporary public control"

Horse 1.JPGAndrew Cuomo and the legislative leaders announced today that they've agreed to create a "NYRA Reorganization Board" that will place horse racing org under direct state control. From the press release:

The NYRA Reorganization Board will be comprised of a majority of publicly appointed directors, with a Chair nominated by the Governor. The Board will be in effect for 3 years to restructure and reorganize NYRA, following which NYRA will revert back to majority private control. The current NYRA Board will be dissolved. The NYRA Reorganization Board will go into effect when a majority of the new public directors are appointed. Once appointed, the new board will conduct a national search for a new CEO and General Counsel for NYRA.

The short story behind all this: NYRA has been a train wreck.

The racing org was indicted by the feds on fraud and conspiracy charges in 2003, but worked out a deal to escape trial. It filed for bankruptcy in 2006 -- it emerged in 2008 thanks to the state waiving $200 million in debt and giving the org about $100 million for the deeds to race tracks at Saratoga, Belmont, and Aqueduct. It had to be propped up with a $25 million loan from the state in 2010. More recently, it was predicting that it was finally afloat for good (first profit in 11 years -- for an org that makes money from gambling) thanks to an infusion of cash from the Aqueduct racino deal -- but there were concerns NYRA would figure out a way to screw it up again. [BloodHorse] [BloodHorse] [Biz Review] [ESPN] [YNN] [NY Post] [Biz Review]

And then there's the takeout issue. Late last year it came out that that NYRA had been improperly withholding winnings from bettors. NYRA said it had done so as an "unintentional oversight." An investigation by the state's Racing and Wagering Board concluded it was actually the opposite. [TU] [NYT]

It was right about then that Andrew Cuomo apparently was honing his "You have failed me for the last time" speech. [TU]

So, what? Mismanagement, public benefit corporation, the state, blah blah blah -- what's all this matter to most of us? Well, NYRA pretty much is horse racing in New York. It operates the Saratoga Race Course, which is not only a good time for a lot of people in this area, it's also an important economic engine in this region. And it's been seriously broken.

While we're talking about horse racing: The NYT has an ongoing series about "death and disarray" at race tracks around the nation. It's sobering.

Comments

Applying more state workers to it won't fix it. It needs to be totally privatized and run like a business.

@Ron - How could a private race track or casino operator possibly work? Can you give me a single example of a private sector success in that market?

What is that you say? There are hundreds of example of profitable non-state race tracks and casinos? Well I'll be a monkey's uncle!

Say Something!

We'd really like you to take part in the conversation here at All Over Albany. But we do have a few rules here. Don't worry, they're easy. The first: be kind. The second: treat everyone else with the same respect you'd like to see in return. Cool? Great, post away. Comments are moderated so it might take a little while for your comment to show up. Thanks for being patient.

The Scoop

Ever wish you had a smart, savvy friend with the inside line on what's happening around the Capital Region? You know, the kind of stuff that makes your life just a little bit better? Yeah, we do, too. That's why we created All Over Albany. Find out more.

Recently on All Over Albany

Capital Region high school graduation rates 2014

The state Department of Education released its annual collection of data about high school graduation rates around the state on Thursday. The statewide graduation rate... (more)

Holiday gifts: Daniel B.

Gifts and giving are on most everyone's mind this month. So we thought we'd ask a few people to share some thoughts on presents, past... (more)

Warmth with flair

Historical object gawking: We came across this photo of a 19th century stove in the Albany Institute collection. It was made by a Troy company... (more)

Crisp Cannoli storefront closing

The Crisp Cannoli in East Greenbush -- you know, the bakery that makes croissant donuts, including an apple cider version -- is closing its storefront... (more)

Local food gifts

We're into the stretch run for December holidays, so we asked Deanna for a few stocking stuffer-type local food gift ideas. Stockings are my favorite... (more)

Recent Comments

... I tend to ask questions that make the person think about what they just said. I ask it sweetly and in a tone that notes confusion on my part. I have been called honey in the office and asked the person, " Can I ask what you mean when you call me honey? Because you don't call John honey." It calls out that he's treating you differently for being a woman. If he still doesn't get it, you can be more direct: "I appreciate that you respect my work and treat me equally, but I wouldn't want others to think otherwise based on how you address me."

Fracking to be banned in New York

...has 3 comments, most recently from Mike

Holiday gifts: Erin Pihlaja

...has 1 comment, most recently from Jennifer

New Amsterdam State

...has 5 comments, most recently from Ellen

Local food gifts

...has 3 comments, most recently from Ellen

Where to get latkes?

...has 10 comments, most recently from E