Quote:
Originally Posted by parsixfarms
NYRA is no different from any business with cash-flow problems. In this regard, it really isn't relevant who's not paying them. It's really a simple question: either NYRA and its board can be completely dependent upon the State to solve their short-term cash problem, or they can try to address their cash issues through other means. Having fought as hard as they did for the franchise, I can't believe that the only answer to their current situation is to shut it down if the State doesn't come through with the cash.
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NYRA is different because they are a State entity. Unlike other businesses, I doubt NYRA can go just to a bank and take out a $17 million loan. And if they did, where in their budget will be the money to pay the interest? When I joined the board of the organization I was on, we were in serious cash flow problems for two reasons, first the County significantly delayed payments forcing the organization to take out loans which created interest which was not in the budget. They had to pay salaries somehow. Second, a creative head of the day to day operations had just been fired who had cleaverly (and legally) pilfered the organization out of money. We got the county to agree to pay the interest in return for a promise of timely payments and were forced to make severe budgetary restrictions including many layoffs that were painful for years until we righted the ship.
If the State does not give NYRA the money, they really have nowhere to get the money from. Hence, their only real option is to shut down. I can assure you owners and trainers will not race their horses with the promise that they will be paid in the next 6 months to 1 year. I fail to see where you think NYRA can drum up the money to continue operating when they are not receiving money they are entitled to from NYC OTB which would float their operations.
05-21-2010, 04:20 PM
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