NYC OTB pleads its case

[pointman]

Originally Posted by freddymo

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?

I don't think anyone doubts that they actually had $134 million, I am sure they can document that, the question is why? As Phil rightly points out, how is that figure so high when their likely overhead seems to not support that? Where is that $134 million going?

I refuse to accept that they need that amount of money to legitimately run this operation. Most likely a vast amount of that is waste that no profitable company would allow or would be expensed by a private for profit company. If he wants to cry poverty, than put it all out on the table. But to just simplify the numbers like that in a deceiving way, suggest that the loss of NYC OTB puts the racetracks, horsemen and breeding industry at risk of survival and suggest we should just accept that they need to spend that kind of money to operate is pure BS.

[freddymo]

Originally Posted by pointman

I don't think anyone doubts that they actually had $134 million, I am sure they can document that, the question is why? As Phil rightly points out, how is that figure so high when their likely overhead seems to not support that? Where is that $134 million going?

I refuse to accept that they need that amount of money to legitimately run this operation. Most likely a vast amount of that is waste that no profitable company would allow or would be expensed by a private for profit company. If he wants to cry poverty, than put it all out on the table. But to just simplify the numbers like that in a deceiving way, suggest that the loss of NYC OTB puts the racetracks, horsemen and breeding industry at risk of survival and suggest we should just accept that they need to spend that kind of money to operate is pure BS.

5000 a month rent in manhattan.. Phil have a heart.. Employees have benefit packages of 15 to 20k a year never mind their salaries. Once some forensic accountants rip thru the numbers will have a better clue what is BS. This story will have some legs for sure..

[philcski]

Originally Posted by freddymo

5000 a month rent in manhattan.. Phil have a heart.. Employees have benefit packages of 15 to 20k a year never mind their salaries. Once some forensic accountants rip thru the numbers will have a better clue what is BS. This story will have some legs for sure..

How long did I live in the city and frequent said locations? I think I have a good handle on what things go for. $50k would be INCLUDING a $15k benefits package. These are employees that should make little more than minimum wage, yet make $15 an hour. NYRA pays less. As for real estate, their average storefront is roughly 600 square feet. Here are a couple similar locations available RIGHT NOW:
Manhattan:
http://www.selectapartmentsny.com/in...l_detail&id=59
http://www.selectapartmentsny.com/in...l_detail&id=64
http://newyork.craigslist.org/mnh/off/1514691969.html

Brooklyn:
http://www.nestseekers.com/20422/RET...SBURG_LOCATION
http://newyork.craigslist.org/brk/off/1514797158.html
http://newyork.craigslist.org/brk/off/1514765965.html

Queens:
http://newyork.craigslist.org/que/off/1514647644.html
http://newyork.craigslist.org/que/off/1513176326.html
http://newyork.craigslist.org/que/off/1512321167.html

[Kasept]

The best part of this is their admission that they are shortfalling about $18 million. It's already been established that they misreport their surcharges of $10-14 million annually... so they really are pretty close to being a breakeven operation with only the most modest hedge-trimming of $5 million annually. They needed a big dramatic bankruptcy for that? Frucher is so full of crap that his eyes are brown.

[freddymo]

Originally Posted by Kasept

The best part of this is their admission that they are shortfalling about $18 million. It's already been established that they misreport their surcharges of $10-14 million annually... so they really are pretty close to being a breakeven operation with only the most modest hedge-trimming of $5 million annually. They needed a big dramatic bankruptcy for that? Frucher is so full of crap that his eyes are brown.

"misreport" what does that mean that the CPA that signs the audit committing fraud or does it mean that they are accurately reporting the surchase per GAP and you don't concur with the methodology. Do you have an experts in accounting that are willing to speak on the subject factually or are we just going to rep stuff we heard secdond hand??

Again I realize Frucher is full of it and I recognize its a ploy..How about exposing it with facts from authorities save Phil?

[Kasept]

Originally Posted by freddymo

"misreport" what does that mean that the CPA that signs the audit committing fraud or does it mean that they are accurately reporting the surchase per GAP and you don't concur with the methodology. Do you have an experts in accounting that are willing to speak on the subject factually or are we just going to rep stuff we heard secdond hand??

Matt Hegarty and Steven Crist

HERE IS CRIST'S COLUMN FROM 2/22/09:

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.

[freddymo]

Originally Posted by Kasept

Matt Hegarty and Steven Crist

Matt Hegarty is a reporter and Crist is a publisher..How about a Forsenic accountant who understanding GAP as it relates to this "Surcharge"..

So in brankrutpcy court you figure Hegarty and Crist will be called to serve as experts on accounting practices.. I respect Crist as much anyone and I am sure he is well versed on the subject but he is not the person to rebut OTB's assertions that it is losing money

[Kasept]

Originally Posted by freddymo

Matt Hegarty is a reporter and Crist is a publisher..How about a Forsenic accountant who understanding GAP as it relates to this "Surcharge"..

So in brankrutpcy court you figure Hegarty and Crist will be called to serve as experts on accounting practices.. I respect Crist as much anyone and I am sure he is well versed on the subject but he is not the person to rebut OTB's assertions that it is losing money

It was Matt Hegarty who did the forensic accounting that uncovered the unusual treatment of the surcharge.

[freddymo]

Originally Posted by Kasept

Matt Hegarty and Steven Crist

HERE IS CRIST'S COLUMN FROM 2/22/09:

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.

Well "its accountants" are either criminals or are doing exactly what they are suppose to under GAP. Surely their is more proof then Crist suggesting this in a column..Again, I don't doubt they are playing a game