NYC OTB: Court dismisses bankruptcy case..

[Kasept]

Originally Posted by freddymo

If the guy making 150k a month thought so I would think we would have said as much..These 1.8mil jobs in companies earning 12 mil a year aren't bad.

Not sure what you're saying here Freddy. The numbers that Crist and Hegarty presented, and Pretlow backs up, say that OTB basically had been breaking even WITHOUT applying the surcharge (typically worth about $12 million annually, the $1,000,000/month net).

Now fold in the $40-50 million in operational savings Pretlow proposed to Sheldon Silver, (that have gone ignored by Albany), and you can see where NYC OTB's entire premise of insolvency is bullschit.

[freddymo]

Originally Posted by Kasept

Not sure what you're saying here Freddy. The numbers that Crist and Hegarty presented, and Pretlow backs up, say that OTB basically had been breaking even WITHOUT applying the surcharge (typically worth about $12 million annually, the $1,000,000/month net).

Now fold in the $40-50 million in operational savings Pretlow proposed to Sheldon Silver, (that have gone ignored by Albany), and you can see where NYC OTB's entire premise of insolvency is bullschit.

Because if it was this easy then why screw with 1500 jobs, most of which are cream puffs, especially given the difficulty of retraining such people to earn what they do. It doesnt make sense to have all of this BS for a entity earning 12 mil a year. Even if the NYCOTB past idiot caretakers(Furcher) didnt think the payment structure was fair why in the world would he stand on ceremony while he and his were earning and 1500 people had cushy jobs.

Don't you think Rooney and NYRA tried to present the Crist/hegarty math to the proper authorities namely the bankrupcy judge etc? Rooney is making millions at Yonkers you dont think the family was capable of hiring a professional firm both legal and accounting to present such SIMPLE (What do you have to know) facts..

I suggest Hegarty and Crist are 100% correct in their concept but apparently that concept either doesnt follow GAP or hold water? Why in the world would have the past caretakers rocked the boat and faced such turmoil if all they had to do was simply advise their professional CPA team that Crist and Hegarty didnt feel they were accounting for a surcharge correctly? Seriously Steve if it was that friggin simple the tragedy is more heinous then is being repped..

If Crist, someone we all respect immensely, could have saved 1500 jobs with a simple written legal opinion from a forensic accountant I am quite sure he would have found the bucks somewhere to save NYCOTB.. My point is simple it isnt as simple as a surcharge being in the wrong column on a tax return.

NYCOTB is in bankruptcy as a result of several million dollars of professional services being spent to secure its place as such. I am sure creditors such as NYRA and Yonkers etc have had enormous expense to professionals which they retained to support their interests. Creditors were given every opportunity to fly the "Crist/Heggarty" accounting theorem and for whatever reason it didnt seem to reverse the judges mind. Perhaps these two well meant men are right in spirit but technically WRONG.

[classhandicapper]

I am very informed on this issue and Crist pretty much has the entire story correct.

In a perfect world there would be one OTB corporation in the state that is given more freedom to operate itself like a business instead of being regulated to death by imbeciles that don't know anything about racing and being used as a political patronage dumping ground. However, there is still a role for branches in this industry. So there's no reason to liquidate NYCOTB, stick the state with all the pension and health care liabilities for former employees, and lay off 100 employees. The goal should be to fix it and eventually merge all the OTBs.

[freddymo]

Originally Posted by classhandicapper

I am very informed on this issue and Crist pretty much has the entire story correct.

In a perfect world there would be one OTB corporation in the state that is given more freedom to operate itself like a business instead of being regulated to death by imbeciles that don't know anything about racing and being used as a political patronage dumping ground. However, there is still a role for branches in this industry. So there's no reason to liquidate NYCOTB, stick the state with all the pension and health care liabilities for former employees, and lay off 100 employees. The goal should be to fix it and eventually merge all the OTBs.

I am assuming then you can you expand upon why this 12mil surcharge which seems to be the white elephant is accounted for as such and please feel free to apprise us why the Crist/Heggarty simple accounting resolution couldn't keep NYCOTB out of bankrupcy?

BTW I don't doubt Crist and Heggarty hearts are not in the very best of place..I find it "simply" silly that if the fix to solvency was so simple it would not have been mandated a long long time ago!

Perhaps since you are so well versed you can expose the legal/GAP flaws in the bankruptcy judges decision and then feel free to expand on why the judges decision was not appealed by creditors that have millions owed to them, especially the Rooney's who have the financial resources to easily contest any decision that was so simply incorrect.

I certainly dont suggest I am well versed on the NYCOTB situation, but if someone owed me 40 mil I might invest in a few professionals to unearth a simple accounting irregularity, especially since well respect Steve Crist and matt Heggarty already did the footwork and were 100% correct..How about you?

[Alan07]

NYRA: Regional OTB Provisions Will Harm The Tracks

The New York Racing Association, Inc. (NYRA) announced today that the provisions being sought by the regional off-track betting corporations (Regional OTBs) as part of the legislation to permit New York City OTB (NYC OTB) to emerge from bankruptcy would force NYRA into bankruptcy once again.

The legislation being sought by the Regional OTBs would reduce NYRA’s revenues from the regional OTBs in excess of $11 million. When combined with the revenue reductions provided to NYCTOB pursuant to the re-organization plan, NYRA’s revenues would be reduced by more than $20 million.

"NYRA cannot sustain a revenue reduction of $20 million and continue to operate the three racetracks" said NYRA's President and CEO Charles Hayward. "The consequence of the legislation being advocated by the Regional OTBs is that NYRA would be forced to close."

[Alan07]

An idea if NYCOTB closes shop!
http://twitpic.com/13yqba/full

[randallscott35]

Originally Posted by Alan07

An idea if NYCOTB closes shop!
http://twitpic.com/13yqba/full

Why does the rat from Jersey have to be losing? Upsetting.