NYRA - The Bailout Check is in the mail
 

This is unreal. The tax payers (at all levels) are bailing out the NYRA once again. The figure this time is $19mm. The NYRA is like a little kid that keeps begging his parents for money. I think they should be embarrassed and ashamed that they cannot stand on their own two feet. How in the world do they keep blowing their money. I swear they must have the most inept people running the NYRA.

The beauty in all of this is that the NYRA "condemns" the deal. The NYRA doesnt like "conditions" the state put on the money. The conditions are that the NYRA doesnt file for bankruptcy protection within the next 6 months and all the money isnt provided up front. It is going to be paid in 3 installments over the next 2 months.

Ok this is hilarious. You ask for money but you dont want the money to come with any conditions. You know, beggers cannot be choosers. What a bunch of clowns.

One board member went as far as saying that they $19mm wont be enough and that they will need more money in 30 days--WHAT!!!!! Freaking Unreal.

The taxpayers aren't losing anything. The money that is being given to NYRA is just sitting there in the state's vault waiting for some politicians pork project. The fact that the slots aren't up and running is where the real crime is. How come Yonkers is allowed to bend the law and offer slots even though the racing has been held up for months and months? Because Rooney is a Democrat and NYRA has always been run by Republicans. Simple politics as usual in the Empire state.

Well how do you think that money got into the vault. Do you think it just appeared their magically? Do you think the state had a bake sale to raise the money. Come on--the state operating budget is based on tax revenue. Some can have a bond issue or something like that.

$19 Million to a State like NY, that's nothing, big story about nothing...

Do you understand this situation at all?

Do you understand that the state lends money to state related organizations, like NYRA, in these situations with regularity?

Do you understand they were given the money and are now being strung along for political reasons?

Do you understand the amount of money the state is denying its taxpayers simply out of some perverse spite?

How well acquainted with the NYRA/NY State political situation are you?

It isnt about the money. It is about a business not being able to operate efficiently. Why arent other non-profits getting $19mm. Do you think that if some non-profit hospital went to the state and asked for $19mm they would get it. No they wouldnt. The bail out amount is going to get close to $50mm when it is all over. And tell the tax payers that $19mm is nothing.

Yes...and it happens all the time.

BTW you can spin this all you want. I know states (not just New York) lends money to state regulated orgainizations. But not to the tune of $30mm. I love the "political" reason excuse. The point is all this is that they cannot run the organization effectively. Why is that? If I run a business and I am not making enough money to operate then I need to change something. There is something I am doing that is not working. I need to find a fix. VLT revenue is not a fix. The NYRA should be able to operate without VLT revenue. Explain to me why they cannot operate effectively.

Because it's the government.

/thread

Kentuckycherub,

You have no understanding of how things work, not to say I do, but I don't pretend to...Your bashing of the NYRA was the same thing you did on the ESPN site, now it's over here...Please stop it, it's old and you have no point...$19 million is nothing to a state like NY, do you understand how much wealth is in that city and state?

I am shocked at your level of ignorance here. I don't mean this to be nasty, honestly, but this is a surprising level of naivite coming from someone as knowledgable as you.

Do you understand the political environment NYRA is, and has been, operating under? I am NOT saying they have been run perfectly, far from it, but I really think you have NO idea of the situation.

By the way, in these situations, $30 million is nothing...and if the State hadn't been screwing NYRA over as regards to the slots, which EVERY OTHER TRACK AWARDED THEM IN NY STATE has been granted State approval ( and some years ago ), then this money would hardly be necessary.

I will be happy to enlighten you at Churchill. I am tired of writing the same old obvious stuff.

I happen to like the NYRA. I think they do the best job in the world when it comes to producing the best product. However, their business plan is a joke. I want them to retain the license cause I think they are the best. If you actually think $19mm is nothing to any state they you really dont know what is going on. And Yes I do know how it works. And for the last time I am not kentuckycherub and I have no clue who he is.

I hope they don't sell. And if they do please don't sell to the group that includes MAGNA and Churchill.

Maybe so...but please explain to me why this organization cannot run effectively with their currect business model. No one has ever been able to explain this to me. Why do they need VLT revenue to be effective--again, WHY?

I will say this...I also think that the state is wrong by putting a 4% interest on the money loaned. No way should that be the case. If they are going to give them the money then it shouldnt be paid back with interest.

I dont mean to bash the NYRA, cause I like them. However, I am sensitive to organizations of any kind not fiscally responsible. If you have $100 a month in income and your expensives are $300 a month, well you need to find a way to cut off $200 a month. I dont understand why they continue to alway need money. Please, someone explain this to me.

Not a question of bailing out, it is a question as to why they do not want to stand on their own two feet with or without VLT revenue. You think pride would come into play but I guess it doesnt.

I think beacuse you could generate the 19mil you need without going to the taxpayers. And stay out of the red.

Again, where do you think the $19mm came from? The money came from taxes. Wether is be taxes from payroll, sales, real estate etc etc it came from some sort of tax.

Another thing I dont understand is why the NYRA is paying property tax. Most companies are exempt from property tax. I know Eli Lilly in Indy doesnt pay property tax but they have to employ a certain amount of people that live in a low income district.

Euro, I find it hard to believe an organization that deals with gambling doesn't make money, too, but the NYRA is a not-for-profit, remember. So it's not supposed to be making a profit. I work for a not-for-profit; we run four zoos and one aquarium here in NYC and would not be operating those zoos if not for a sizable chunk of money given to us each year by the Parks Department. We're never going to be a profitable enterprise. Our ticket prices are pretty low (costs less to go to the Central Park Zoo than it does to go to a movie) and our operating costs are pretty high-- can't cut back on the polar bear feed; they get kinda grumpy. We do our utmost to bring in as much revenue as possible each year (and the Parks Department expects us to-- we are required to give a lot of that money back to them), but we'll never be profitable. And we wind up in political bargaining, too-- Bloomie threatened to close the Queens and Prospect Park Zoos a few years back because they are the zoos with the lowest attendence and it was a huge to-do here, though in the end it was just political manouvers.

I know jack diddly about the inner workings of the NYRA, so to some extent I am talking out of my behind, and yeah, I'm skeptical when gambling is involved, but they are not-for-profit and as such shouldn't be berated for not making a profit; it's not their mission. Yes, it's easier to understand a museum or a zoo not making money than a racetrack, but it's the same principle.

If you want to grouse about taxpayers' money going where it shouldn't, let's talk about the several hundred million the new Yankees stadium is going to cost New Yorkers. THAT makes me mad...

NYRA is not-for-profit, yes? Or am I completely wrong?

Yes, they are a not-for-profit and I agree with what you are saying. I do not mind at all if a Govt earmarks money to be sent to the NYRA. However, you really can't compare a zoo, museum etc etc to the NYRA. Admissions and costs are kept low for a zoo so everyone can enjoy them. They are essential to education. However, the NYRA has a steady income because of pari-mutual wagering. They take a % out for operating expenses. Now, you would never hear me say a word if they didnt have a take-out or if they takeout was like 5%. The NYRA does a great job at racing, a horrible job a business. And a not-for-proft needs to be run like a for profit business. If they make money then spend it at the end of the year or give it back to the state. The NYRA is vastly different from other non-profits.

Listen I will be brief. The system is broken because NYRA gets to keep ZERO money. ALL money is mandated for the state. The system that was put in place in the 50's predates OTBs(direct competition from state), Lotteries(dierect competition from state), simulcasting, internet, etc. The fact that NYRA was not designed with this kind of competition in mind, and add on the fact that they can not put any money away to combat slow runs due to weather, competition, rising employee costs like pensions and health care, etc you can not blame NYRA directly for its current cash crisis. For years NYRA used the horsemans account as a fund whenever they needed cash. Despite denials from the horsemans organization, they knew this was happening and allowed NYRA to do this. ALL money borrowed was paid back and the horsemans account was never in jeapordy of being depleted. When the state audited NYRA they discovered this and didn't allow them to do this any longer. Therefore the current situation that now exists.
BTW -all the money that NYRA earns but is not allowed to keep any of goes directly to the state's coffers. Billions of dollars.

The NYRA shouldnt be able to keep any money. Hence the not-for -profit status. All money earned should go back to the state or be spent. Granted, this idea was done before all the competiton but the NYRA has done a poor job of adjusting. They need to adjust their business model to reflect current economic trends.

You guys make good points (euro, thanks for your response, by the way)-- so it seems the big problem is revenue lost to OTBs, etc. is that what is being said? How does the NYRA address that? What do you all think?

I wish I knew the answers.

NYRA is a joke. I laugh how the state offers them money, but they insist they must get it all right now, instead of over 3 months. I guess the guys at NYRA must have had a tough weekend betting the NFL and their bookmakers are asking to collect right now. Oh, I forgot they are the mobsters. Maybe they got hit hard by the gamblers this weekend are tapped out.

Brilliant business plan on that NYRA. They claim their numbers are up again, but once again they don't have the money to stay afloat. Shocking!

They hire consultants that show them how to run a business, but then they wouldn't be able to keep the corruption running rampant throughout the organization.

It does? How does a group that runs tens of millions in the red contribute billions to the state coffers? I can't wait for this brilliant answer.

I dont know if you understand this, but the state taxes the total handle. Something like 3% of All the handle that NYRA see's goes to the state. That is a HUGE amount of money.

So you are saying without NYRA horse racing is leaving NY? NYRA doesn't run a for profit and get taxed. They are a non-profit and they can't even break even.

Just to let you know, there is a parimutuel tax, and it isn't 3% of pools. In fact it contributes some ridiculously low amount of like $10 million to the state. In fact if you read any reports, state pari-mutuel tax revenues fell almost in half, from $18.6 million in 1997 to $9.9 million in 2001. I will try to find how little they contributed this year.

Well if you ran a business and were not able to keep any money on hand for operating capital, how do you suppose you would do? The state acts like the mob in shaking down NYRA for every penny that is brought in and not dedicated to current expenses or purses. So when they have a downturn in business they will wind up with a shortfall of cash. It is such a simple concept, I can't figure out why you have a problem understanding. It is not about making a profit , it is about being able to cover operating expenses with the money that they generate, BEFORE having to give it to the state. The state takes the money first now and makes them beg for it back.

Where have you been? They are trying to change the business model, and have said that they can't continue with the current one but they cant change until the state govt changes the laws.

You live in a vacuum dont you!!!!

Takeout from handle, genius.
Property tax, Einstein.

There are plenty of online GED programs available, maybe NYRA will give you some scholarship money and then get you to run the show after you get your certificate.

It is better in my 'vacuum" than that rock that you must live under