NYC OTB pleads its case

[pointman]

NYC OTB pleads it case to the public in the NY Post as to why they are a losing operation.

http://www.nypost.com/p/news/opinion...mMb9Wih8GJI4uL

Seems to me that they are not being up front with all the facts from what has been posted on this board. By lumping the racetracks with the city and state without stating who gets what amount it seems to me they are trying to play victim by munipulating the facts.

[Kasept]

Originally Posted by pointman

Seems to me that they are not being up front with all the facts from what has been posted on this board. By lumping the racetracks with the city and state without stating who gets what amount it seems to me they are trying to play victim by munipulating the facts.

Yup.. Frucher in a nutshell:

"We'd be making a lot more money if we didn't have to pay those damn winning bettors, those greedy racetracks where they run the races we take bets on or that pesky state that mandates our existence."

[pointman]

Originally Posted by Kasept

Yup.. Frucher in a nutshell:

"We'd be making a lot more money if we didn't have to pay those damn winning bettors, those greedy racetracks where they run the races we take bets on or that pesky state that mandates our existence."

It makes you wonder how the greedy racetracks which OTB wants to give less money too and from which OTB receives its largest source of revenue, NYRA, and who has its own expenses to put on the product that OTB is allowed to show and profit from, happens to be in bancruptcy as well. Frucher seems to care less about that or what it costs to make the product he sells.

I love how he makes the numbers so simple, $1 billion taken in, 75% to bettors leaves $245 million in revenue of which $129 million goes to the racing industry, city and state leaving poor old OTB only $116 million which cannot cover its $134 million in operating expenses. No mention as to why they have that much in operating expenses or why they aren't shutting down parlors left and right at a time when the focus should be on internet gambling which could reduce their expenses tremendously, or the prior mismanagement that has gotten their operating expenses so bloated, etc.

I suppose we should just assume that $134 million figure is a legitimate operating cost for this business and feel sorry for and support NYC OTB!!!!

[Kasept]

How about this gem:

"Some say we should just let OTB die, but they ignore the far-reaching consequences. If OTB operations ceased, the city and/or state government would be on the hook for $600 million in pension obligations. Tracks around the state might close. Nearly 40,000 New Yorkers who make their livelihood on the racing industry could lose their jobs. And the upstate agricultural industry, home to generations of horse breeders and farmers, would take another serious hit."

"Wha-wha-wha-what???"

[philcski]

I had no idea it cost $134 million to run 55 insane asylums, err, empty boxes that offer no other services beyond processing wagers. (The remaining eleven locations have virtually no overhead as they are covered by the restaurant/bar.)

With an average of 5 employees on staff at any given time at each location, let's say for argument's sake there's 10 per location. At an average pay level of $50k per employee times 55 locations, that's $27,500,000 in payroll.

Let's say for argument's sake the average rent per month is $5,000 per location (it's significantly lower than that in the outer boroughs.) That's $3,300,000 in rent.

Let's say for argument's sake there are 50 additional employees at headquarters, for human resources, management, etc. at an average wage of $100k per year. That's $5,000,000.

Let's say for argument's sake the cost of business supplies (terminals, website, paper, etc.) is $20,000,000.

WHERE'S THE REMAINING $60 MILLION, GUY???

[freddymo]

Originally Posted by philcski

I had no idea it cost $134 million to run 55 insane asylums, err, empty boxes that offer no other services beyond processing wagers. (The remaining eleven locations have virtually no overhead as they are covered by the restaurant/bar.)

With an average of 5 employees on staff at any given time at each location, let's say for argument's sake there's 10 per location. At an average pay level of $50k per employee times 55 locations, that's $27,500,000 in payroll.

Let's say for argument's sake the average rent per month is $5,000 per location (it's significantly lower than that in the outer boroughs.) That's $3,300,000 in rent.

Let's say for argument's sake there are 50 additional employees at headquarters, for human resources, management, etc. at an average wage of $100k per year. That's $5,000,000.

Let's say for argument's sake the cost of business supplies (terminals, website, paper, etc.) is $20,000,000.

WHERE'S THE REMAINING $60 MILLION, GUY???

I am 100% sure they HAVE 134mil in operating expense. Do you think the CPA firm that signs the audit can't justify the operating expense? The question that need be asked is WHY is it 134mil, and what can you do to get that below the 116mil fig.

I know OTC management is full of it ,but it is going to take a lot digging to get to the root of the issues. Maybe Steve could have them on ATR?

[pointman]

Originally Posted by Kasept

How about this gem:

"Some say we should just let OTB die, but they ignore the far-reaching consequences. If OTB operations ceased, the city and/or state government would be on the hook for $600 million in pension obligations. Tracks around the state might close. Nearly 40,000 New Yorkers who make their livelihood on the racing industry could lose their jobs. And the upstate agricultural industry, home to generations of horse breeders and farmers, would take another serious hit."

"Wha-wha-wha-what???"

That one really got a laugh out of me as well, as if the racetracks, horsemen and breeders benefit from OTB as opposed to the reality of OTB siphoning money from them!

How can racetracks possibly be profitable if OTB can't when the racetracks have the expense of maintaining the facilities, paying their own employees and paying purses with less takeout than OTB who has far less expense?

One of the main reasons I posted this B.S. is in hopes that someone who knows more than me will really call Frucher out in letter to the editor to the Post so the public that reads it is not moved by these misleading general figures.