I don't have a dog in this specific fight, but I race horses in NY so I do have a vested interest.
I think many people tend to look at the present situation -- and then often collapse the present situation with blame. I am not inferring that the present is an inherited situation. I am also not saying NYRA is an "angel" and has never done anything wrong; nor am I saying that everything is their fault. However, everything we see today is not due to NYRA, corruption, management, etc. What we see today, in my opinion, is an accumulation of numerous aspects -- not only of NYRA, management, etc. -- but of the industry in general.
The business model in NY, NY racing as a business and as a sport, has been broken for years. I didn't see any bidders hanging around and pushing for the franchise until the VLT legislation got passed. They didn't start pushing until the VLT deal was made. (I think we can all agree that is the VLT's were not approved -- nobody would be pushing, bidding, etc. on the franchise unless the land was up for grabs as well; or perhaps OTB).
Now, in my opinion, this is reflective of a bigger issue -- alternative revenue source(s) being available to fund the racing business. Keeneland gets a tremendous amount of money, revenue, directly from the sales company. Alternative revenue sources are very often an ancillary, then becoming a primary solution to a present problem -- a problem where a business model is broken. Now that doesn't mean that VLT's are the solution to the racing industry because we know it is not. VLT money will find its way into purse accounts, but we know the trickle-down, trickle-over, etc. effect will not happen. VLT players do not become fans nor do they become visitors to the windows -- not to any significant degree.
What will still hurt is that the tax rate (for the VLT dollars) in NY is extremely high.
You want to argue about non-profit vs. for-profit? Here is what most people do not understand -- non-profit is a tax status, not a management style.
What about Woodbine? What does their business model look like? A partnership between the government and the track, and it has proven successful. It has had a very positive impact on purses. What has it done for pure racetrack attendance, handle, etc.? This is very dangerous -- so at Finger Lakes management decides to invest $4m or so into the VLT side of the facility and goes against getting a turf course. Management said it was a "business" decision, a ROR/ROI decision, etc. But Woodbine has put money into the racetrack side of the facility.
This business and this sport -- not only in NY, but all over -- needs to reinvent itself. Not drastic change that completely changes the business and sport, but change the mindset and management style of running a track as a business and running a business in and around this sport.
Eric
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