NYC-OTB: Understanding the phony 'crisis'

America BROKE

[pointman]

Maybe the real problems can be addressed such as the end of putting people in positions at OTB based on political connections instead of merit (how can any of us forget the highly qualified Hazel Dukes' tenure?)

Maybe the State can take less or no money and stop using it as a piggy bank and allow OTB and the racetracks to run as a profitable model.

Maybe the State can allow customers to get simulcasts of racetracks across the country at home even when NYRA is racing so OTB can shut down parlors and concentrate more on on-line betting, or better yet, maybe shut down OTB altogether and allow the racetracks to run off-track betting on-line while giving customers access to tracks around the country and take another hand out of the racetracks cut and possibly even reduce takeout to some extent.

Just a few ideas off the cuff that the legislators should consider.

[Kasept]

Do not be taken in by Sandy Frucher's ploy in this. As with their bogus claims last year, NYC OTB is NOT bankrupt or in any short term danger of collapse. They are using a phony accounting charge off which Matt Hegarty identified a year ago, to make it look like they are in far worse shape than they are.

This is a political dodge Frucher is utilizing to try to re-position NYC OTB's obligations to Albany and NYRA in advance of the VLT parlor at Aqueduct.

The key elements from Hegarty's piece:

Frucher said that he expected to ask the legislature to scuttle provisions that require OTB to pay distributions to the racing industry and state and local governments off its gross revenue.

Frucher also indicated that the company would seek to change its relationships with state racetracks by negotiating with the tracks for the rights to their signals, instead of having statutes determine how much the tracks get paid.

Note that NYC OTB is current with their payments to OUT OF STATE racetracks and have been withholding their payments to NYRA. And they have blatantly been ignoring any directives from the State Racing and Wagering Board on any matter. Frucher is going to try to screw NYRA over the rake and will use his political connections and relationships with editorial boards to garner support.

But do not for a minute believe NYC OTB is bankrupt, because they aren't... other than morally at least.

[gales0678]

Originally Posted by Kasept

Do not be taken in by Sandy Frucher's ploy in this. As with their bogus claims last year, NYC OTB is NOT bankrupt or in any short term danger of collapse. They are using a phony accounting charge off which Matt Hegarty identified a year ago, to make it look like they are in far worse shape than they are.

This is a political dodge Frucher is utilizing to try to re-position NYC OTB's obligations to Albany and NYRA in advance of the VLT parlor at Aqueduct.

The key elements from Hegarty's piece:

Frucher said that he expected to ask the legislature to scuttle provisions that require OTB to pay distributions to the racing industry and state and local governments off its gross revenue.

Frucher also indicated that the company would seek to change its relationships with state racetracks by negotiating with the tracks for the rights to their signals, instead of having statutes determine how much the tracks get paid.

Note that NYC OTB is current with their payments to OUT OF STATE racetracks and have been withholding their payments to NYRA. And they have blatantly been ignoring any directives from the State Racing and Wagering Board on any matter. Frucher is going to try to screw NYRA over the rake and will use his political connections and relationships with editorial boards to garner support.

But do not for a minute believe NYC OTB is bankrupt, because they aren't... other than morally at least.

someone will go to jail for cooking the books steve?? who goes how much time?

[Kasept]

Originally Posted by gales0678

someone will go to jail for cooking the books steve?? who goes how much time?

They aren't cooking the books in that fashion Mart... I'll find the details from last December that Matt Hegarty uncovered, but they are including a charge ($10-12 million annually) that amounts to putting money from one pocket to another. They are showing it as a liability when in fact it isn't. (I have to dig out my notes/file on it from last year. I think I saved it but can always get it from Matt.)

(HERE IS CRIST'S COLUMN FROM 2/22/09: From Steven Crist's 2/22/08 column: OTB makes plenty of money for the city, even beyond all its jobs, but its accountants state its complicated revenue streams in a disingenuous way that makes profits appear to be losses. It collects over $10 million a year alone in "surcharge revenue," the dimes and dollars it filches from horseplayers by paying only $3.80 on a $4 winner, and that money goes straight to the city. Yet OTB categorizes this windfall as an expense, and then the city claims OTB is not giving it any money.

More from Crist's piece below...

And I asked Hegarty last week on air about the $600 million in 'obligations' of the benefits and pensions. That's only at the current level of employees. If they cut the 50%+ in union dead weight, that figure of course plummets. Everything they're doing in this phony 'reorganization' could have been done without the Chapter filing. The shuttering of useless storefronts, etc...

But now they get to hang up NYRA further on what they owe them, and will try to get the weasels in Albany to back them up. Frucher will then see to it that he is hailed as the guy that came in and 'saved' the OTB... And mark my words, when NYRA requires the state or the designated VLT Parlor permitee to make the payments they will need next fall, Frucher will point at NYRA and say how it was their fault all along. The guy is Snidely Whiplash.

[gales0678]

Originally Posted by Kasept

They aren't cooking the books in that fashion Mart... I'll find the details from last December that Matt Hegarty uncovered, but they are including a charge ($10-12 million annually) that amounts to putting money from one pocket to another. They are showing it as a liability when in fact it isn't. (I have to dig out my notes/file on it from last year. I think I saved it but can always get it from Matt.)

(HERE IS CRIST'S COLUMN FROM 2/22/09: From Steven Crist's 2/22/08 column: OTB makes plenty of money for the city, even beyond all its jobs, but its accountants state its complicated revenue streams in a disingenuous way that makes profits appear to be losses. It collects over $10 million a year alone in "surcharge revenue," the dimes and dollars it filches from horseplayers by paying only $3.80 on a $4 winner, and that money goes straight to the city. Yet OTB categorizes this windfall as an expense, and then the city claims OTB is not giving it any money.

More from Crist's piece below...

And I asked Hegarty last week on air about the $600 million in 'obligations' of the benefits and pensions. That's only at the current level of employees. If they cut the 50%+ in union dead weight, that figure of course plummets. Everything they're doing in this phony 'reorganization' could have been done without the Chapter filing. The shuttering of useless storefronts, etc...

But now they get to hang up NYRA further on what they owe them, and will try to get the weasels in Albany to back them up. Frucher will then see to it that he is hailed as the guy that came in and 'saved' the OTB... And mark my words, when NYRA requires the state or the designated VLT Parlor permitee to make the payments they will need next fall, Frucher will point at NYRA and say how it was their fault all along. The guy is Snidely Whiplash.

steve i don't see any deadweight in the parlors i got to , where is the deadweight at corporate hq?

[pgiaco]

Dead weight are all the "managers" installed as political favors by the city and state hacks.