- bets on out of state tracks when Andrew Cuomo may be in church. See NY Const. Art.1 , Sec 3
- NYRA the next Detroit
Racing to Get NYRA Back on Track
As Saratoga Meet Begins, the Future Remains Muddled
more in New York-Sports
»
![[image]](http://si.wsj.net/public/resources/images/NY-CL710_SP_RAC_G_20130718164908.jpg)
Associated Press
Saratoga Race Course begins its 150th anniversary season Friday.
Related
Today, NYRA is governed by a 17-member reorganization board formed in October 2012 by Gov. Andrew Cuomo with a clear purpose: to sort out the muddle by 2015 so that New York can potentially privatize its racing operations. NYRA's task is to align real-estate assets, capital improvements and the racing calendar so private enterprise is attracted—and the state doesn't lose out.
"Everything is on the table right now about the future of NYRA," said board chair and Cuomo appointee David Skorton.
Skorton and his cleanup crew, which includes 12 government-appointed members, are nearing the end of their first year in operation. So far, the biggest move was installing a new president and chief executive Christopher Kay, effective July 1. Kay has business chops—having served as chief operating officer of the Trust for Public Land and Toys 'R Us—though he has little horse-related experience. In this situation, that inexperience may be a plus that frees him from pre-existing agendas.
What's also in the works is a roughly $5 million capital improvement plan for Saratoga facilities. But even just fixing up dormitories for track workers illustrates how complicated this situation is: Capital improvement funding comes from the video lottery terminals (VLT) machines at Resorts World Casino New York City, run by Genting New York at Aqueduct Racetrack. A 4% cut of VLT revenues goes to NYRA capital expenses.
While some cash is budgeted in 2013 for projects at Belmont and Aqueduct—which have facilities that range from antiquated to decrepit—the long-term solutions are still to come.
"It's a much more strategic analysis that we need to conduct with respect to Aqueduct and Belmont," said Kay, who sets up the question as: "How can we bring the best out in both of them and continue our success in Saratoga in such a way to have a dynamic public-private partnership?"
To put it simply, Aqueduct, located in South Ozone Park, Queens, is desperate for improvements. Genting's arrival has been lucrative on the books, but when a visitor passes between the casino and track clubhouse, he steps from glitz to grit instantly. By late afternoon, the typical Aqueduct patron is uniquely resentful.
Cleaning up the "Big A" raises the question of the racing calendar. Aqueduct's winterized track can host racing from November to April but is there a need for winter racing in New York? The matter is hotly debated among industry participants. Top racing talent often ships to the warmer climate in Florida, and smaller foal crops have meant there are fewer horses running. Attendance is lean on cold December days (though online-gambling keeps the tills rolling).
If the industry determines that it needs to be racing nearly year-round (245 days in 2012), should Aqueduct be improved? Or would another situation play out: winterize Belmont, vaporize Aqueduct. That would be a massive undertaking, and would likely mean relocating the Belmont Stakes during renovations (for which there is precedent).
Belmont itself is no Barclays Center, but it's hardly the dirty ashtray that is Aqueduct. The problem is that Belmont was built to fit nearly 100,000 people. On Belmont Stakes day, it works. On a regular day, it feels like an airplane hangar. Could Belmont be renovated to be smaller and more modern? Yes, especially with the possibility of a soccer stadium for the New York Cosmos across the way in Elmont, N.Y. But in that case, what's the point of Aqueduct?
Aqueduct is currently attached to a cash-cow: Genting's casino has sent more than $170 million to the equine industry since the deal began in October 2011. The 30-year arrangement started with a series of percentages going to NYRA that increased gradually. In year three, which starts in October, Genting will give 4% of VLT revenue for capital expenses, plus 7.5% to race purses, 1.5% to a breeders incentive fund, and 3% to NYRA operations.
Commercial entities that could snap up NYRA are already interested, according to Skorton, who started fielding interested parties (which he didn't disclose) upon his appointment. Skorton and Kay, though, emphasize that the timeline is far from a bidding process.
What's happening now is a deep think—at a steady pace. "There are two outcomes I would like to avoid," said Skorton. "One, we come up with a short-term solution that doesn't have the staying power for the long run," Or Skorton noted, if at the end of year three, "we're still messing around with this."
Until then, Saratoga, where races will be run six days a week (Tuesdays are dark) through Labor Day weekend, remains the jewel. It's where, as social doyen Marylou Whitney coos in a video to celebrate the 150th season: "Everyone loves a party, darling."
Write to Pia Catton at pia.catton@wsj.com
No comments:
Post a Comment