I think this situation has many complexities and nuances that most of us are completely unaware of. First, let me say that I am not a banner waving member of the NYRA fan club. I do think and want them to retain the franchise -- but under certain conditions; more on that later. Second, I do think NYRA has done some terrible things, mostly in the past. When they tapped into the NYTHA/horsemen's accounts -- that was unacceptable and unjustifiable. It was downright wrong. No excuses. NYRA also has never offered "transparency" in several areas and were not cooperative in any way, shape or form when it came to negotiating with the NYTHA regarding the VLT revenue split deal. They refused to work with and negotiate with the NYTHA. Of course there is more, but that's history.
Now, let me clarify something about this nonprofit topic -- nonprofit is a tax status it is not a management style. In addition, there is no blanket law or section of the tax code that states a nonprofit doesn't get to "keep" money. There are many types of nonprofits. You cannot compare NYRA to a hospital, school system, an endowment or an operating foundation. They are entities of a totally different nature and breed (no pun intended).
As far as NYRA retaining the franchise, personally, I think it is best for bettors, owners, trainers, and racing in general. However, I think they need to change their mindset. They need to be more cooperative and open. They need to get rid of the arrogance and isolationism. They need to be more of a team player. Plus, they need a new business model. If VLT's weren't coming to NY -- nobody, absolutely nobody would be bidding on the franchise. Tax rates and certain mandated and legislated fees must be changed. Other fees and charges that must be paid to the state must be changed. It was more feasible and viable to pay these dollars out in pre-OTB days as well as pre-simulcasting days. The simulcasting model is also not in line vis a vis internet betting, telephone wagering, etc.
VLT's are not the answer. However, what is is the "alternative revenue" model. Look at where Keeneland gets major dollars from -- not VLT's, but from revenue that is generated from the sales company. That subsidy, for lack of a better word, is thrown back into the racing side of the game -- purses, facility, backstretch, etc. The Woodbine model, economically works. A quasi-partnership between the racing industry, the VLT partner, and the provincial government.
The other bidders for the franchise are taking a totally different approach. There is nothing wrong with that and that doesn't make it wrong. However, there is no history there. The other bidders are the upstarts -- yes, with allegedly plenty of money -- and are looking to make this their "first" time. That's an important aspect to remember.
I don't think it's exactly applicable -- however, let's remember that the devil you know is far less dangerous than the devil you don't know.
Eric
|