This is not true any more. Before 2008, they were a quasi-state agency. Now, they are a not-for-profit. I do not believe there is any legal impediment to NYRA getting a loan from a private institution (subject, possibly, to any oversight boards). As for how would they pay the interest, I'm sure there are expenses that could be cut (d-barn, off-season training facilities are two that have already been discussed but not implemented).

Nick,

I believe NYRA is now a Not-for-Profit organization, no longer a state entity. Accrodingly, they can certianly access working capital given collateral and cash flow. However, the current state of limbo leaves them with much on neither...

I guess I find it hard to believe that shutting down is their only option.

Purse levels are contractually dictated by agreements between NYRA and the horsemen; they are a function of handle and the amount of money that flows from handle into the purse account. Horsemen would not be "running for nothing" unless NYRA were using such funds, as they did about 7-8 years go, to cover operating expenses (and on this point, I believe that there is now complete segregation of accounts because of this prior episode).

As large as NYCOTB is, it still generates only a percentage of NYRA's total handle on a given day, so it's not as if the organization has no revenue coming in.

I am not positive, I believe they are still a municipal not for profit corporation. And yes, when they deeded $1 billion worth of land to NY State they certainly compromised their collateral, not to mention having just come out of bancruptcy does not help either. Regardless, as a not for profit there is no room in the budget for interest. I still don't know where the money to pay that is supposed to come from.

This is survival, not a balanced budget excercise. Not to say things are sustainable without VLT's coming to fruition or some other changes to the current situation.

Are the toll collectors on highways much different then NYRA when it comes to giving money to the State. Isn't NYRA a business designed by the state to collect revenue for the State. I am all for NYRA succeeding because I love racing but effectively they are wards of racing appointed by the state to manifest the industry while taking a rake. I never understood NYRA's claim that they owned the land because they paid (or short paid) the property tax for years. Wasn't that the point of the A in NYRA? Wasnt it an assc. chartered to create revenue not its bottom line? How the heck did that become we own the land because we paid the tax?

Steve Crist speaking to the NYRA/NYS crisis:

http://www.drf.com/drfNewsArticle.do...5&subs=0&arc=0

While touching on the NY situation momentarily, Crist is addressing the sustainability of the Monmouth meet concept with the column.

Well, true, but he sounded pretty optimistic that things will work out for NY racing.

For whatever his opinion is worth.

What did he think when Charlie Sheen stated that he was done with 2 1/2 men? Was he optimistic that Sheen was coming back (as he has agreed to)?

Stop mixing meds. The law is the law period. The law HAS been implemented in the state yet NYRA has been prohibited from implementing VLT BECAUSE of the action of the state. That is not my opinion, it is the facts. NYRA operated a business for 1/2 a century that has poured billions of dollars into the state coffers. Another fact. Giving credit or assigning blame to NYRA or its management is a moot point. The state has created this mess and done a huge disservice to the people of the state of NY. Now they want to not live up to its commitment. Sure Freddy, its all that bad management at NYRA that has caused the state of NY to elect morons.

NYRA is dependant on the state because the state has not honored its commitment AND the state owned OTB has not lived up to their commitment. It is different than any other business because the same people who owe them the money are the ones that regulate them! Name me another business that could fall into that quandry?

Apples and oranges. C'mon you know this isn't relevant.

What collateral do they have? The state owns the land. They arent getting paid by NYCOTB (owned by the state) which is chapter 11 and are required by law to continue to send them the signal. There is a big chunk of the cashflow. Who is going to risk any money in this scenario? Sheikh Mo?

That's what I am saying. The current situation leaves them without collateral or cash flow. Even though they are technically "allowed" to borrow as a NFP.

School districts in NY, for example, are putting out budgets without knowing state aid figures. And health care facilities may see reimbursement rates cut by the state, after budgets have been prepared.

The Highway Authority has operated a business that has poured money to the state. You know the guys that take the toll money. I havent blamed the current NYRA managemment once. The states in trouble that means NYRA is in trouble period. BTW laws get chaged all the time..Look NYRA will get the hand out they are requesting. I never thought for a minute they wouldnt..It is sad to see the negative "we are goiing out of business" publicity

On the heels of NYCOTB "bluffing" the pols in Albany, if NYRA does not get the cash from the State, they have really backed themselves into a corner where, from a political standpoint, they probably have to shut-down (or else their credibility in Albany will be same as that of NYCOTB).

My cynical fear is that (1) there are still a number of people in Albany who think NYRA never should have received the franchise extension in the first place, and (2) if this Albany-created "cash crisis" results in a cessation of racing, that may be used as a back-door way to try to take the franchise away from NYRA. The litigation that would result from that would cripple NY racing for a long time.

Save for the fact that we all know that NYRA will get the cash, what has NYRA done so bad since being awarded the franchise that would concern the morons who were against them, let alone try to void NYRA's franchise agreement?

If NYRA doesn't have the cash to operate after the Belmont, how can you criticize them for handing out legally mandated warn notices in the minimum period of time required to cease operations at that time? The bad guy is the Legislature for allowing both themselves and OTB to put NYRA in this position.