The Mother Goose Stakes

[Storm Cadet]

Originally Posted by Cannon Shell

The money all comes from the purse account. The amount for stakes races is negotiated by the track and the horsemans organization. That is why you see races like the Pimlico Special being cancelled. The horseman cry foul if a few big dollar stakes cause there to be a deficit in the purse account. The track is not actually putting up any of the money. And when you see a race is 'guaranteed', it another way of saying "the track is going to keep all the entry and nomination fees". When you see 'added', the track puts the money in the purse which actually makes the race worth more. The year I won the West Point Hdcp the purse was $100k added. The final purse was close to $120k. Obviously it is better for the horseman when you are running not only for the purse but to get your own money back.

But in this case, NYRA only got 10,000 in entry fees and pays out 250,000. The Suburban got only $24,000 in entry fees but shells out $400,000 guaranteed. WHERES does this extra $$$$ come from? Does NYRA take the hit?
I'm sure they would have liked to have at least 10 starters in each to reduce their purse layout or do they have this build in in some purse reserve account?

Thanks for your input!

[philcski]

Originally Posted by Storm Cadet

But in this case, NYRA only got 10,000 in entry fees and pays out 250,000. The Suburban got only $24,000 in entry fees but shells out $400,000 guaranteed. WHERES does this extra $$$$ come from? Does NYRA take the hit?
I'm sure they would have liked to have at least 10 starters in each to reduce their purse layout or do they have this build in in some purse reserve account?

Thanks for your input!

It's called takeout from handle. That's what pays every (non-slot fueled) purse in the world...

[Storm Cadet]

Originally Posted by philcski

It's called takeout from handle. That's what pays every (non-slot fueled) purse in the world...

Phil,

I know that the handle pays, but how many 1/4 million hits can they absorb from the takeout with all their other funding issues as we see these short fields and dwindling attendance? I know they don't have a balanced budget, but I'd sure hate to be the accountant who does financial projections on race purse and takeout for NYRA.

SC

[philcski]

Originally Posted by Storm Cadet

Phil,

I know that the handle pays, but how many 1/4 million hits can they absorb from the takeout with all their other funding issues as we see these short fields and dwindling attendance? I know they don't have a balanced budget, but I'd sure hate to be the accountant who does financial projections on race purse and takeout for NYRA.

SC

Quite a few... the handle on Saturday for NYRA racing alone will probably be around $7-8MM. Their blended take is probably around 12%, factoring in off track percentages kept. That's $1,000,000, which is plenty enough to cover the purses if they did a better job with efficiency. The problem with short fields is they're a LOT less attractive to bet, which decreases handle.

On top of that, they simulcast other facilities, which is basically "free money" from their perspective.

[Cannon Shell]

Originally Posted by Storm Cadet

But in this case, NYRA only got 10,000 in entry fees and pays out 250,000. The Suburban got only $24,000 in entry fees but shells out $400,000 guaranteed. WHERES does this extra $$$$ come from? Does NYRA take the hit?
I'm sure they would have liked to have at least 10 starters in each to reduce their purse layout or do they have this build in in some purse reserve account?

Thanks for your input!

The money that pays for the purses is not their money, it is the horsemans money derived as a cut from the handle. The tracks just hold the money. One of the big issues that the investigations uncovered was NYRA using the horsemans account to pay operating expenses. They always replaced the funds but it really was a scary situation for the horsemen, most of whom had no idea that this was happening. In fact the head of the horsemans group claimed he didnt know either but I am skeptical of that claim.

[iceman967]

How can Cotton Blossom's connections dodge the Mother Goose? After 15 years, the public demands a triple tiara winner.

[Storm Cadet]

Originally Posted by Cannon Shell

The money that pays for the purses is not their money, it is the horsemans money derived as a cut from the handle. The tracks just hold the money. One of the big issues that the investigations uncovered was NYRA using the horsemans account to pay operating expenses. They always replaced the funds but it really was a scary situation for the horsemen, most of whom had no idea that this was happening. In fact the head of the horsemans group claimed he didnt know either but I am skeptical of that claim.

Then do the horsemen or NYRA set up the purse structure of how much each graded race is carded for? Seems to me, most of the horsemen who I've come into contact with ARE NOT good business men/women. How could they ever plan a budget of that magnitude? They have a tough time balacing their own expenses weekly of their barns.

So since the track actually holds onto the cash from handle and pays out trainers/owners from the horsemen's bookkeeper, all the horse men are TRUSTING NYRA not to cook the books? (in simple terms). Beside an independent auditor, who is keeping a fine eye on handle receipts at most tracks? Do the horsemen have their own accountant?