NYC OTB pleads its case

[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

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

Wow the case revolves around the expert opinion of a columnist vs. partners at a highly respected accounting firm, which is paid 1/2 a million bucks to do an audit. I didn't realize Hegarty was an CPA in his past life.You learn something everyday. Which firm did Hegarty work for when he was in the accounting field, Delotte? This "unusual treament" must have escaped the teams of accountants that audit OTB financials.. Steve perhaps it would serve the community well if the facts were repped appropiately. Hear say from columnists isn't responsible even if they prove to be 100% correct in their assessment.Again, I am with you in your disdain for the ploy just think there is way more to it.

[pointman]

Originally Posted by freddymo

Wow the case revolves around the expert opinion of a columnist vs. partners at a highly respected accounting firm, which is paid 1/2 a million bucks to do an audit. I didn't realize Hegarty was an CPA in his past life.You learn something everyday. Which firm did Hegarty work for when he was in the accounting field, Delotte? This "unusual treament" must have escaped the teams of accountants that audit OTB financials.. Steve perhaps it would serve the community well if the facts were repped appropiately. Hear say from columnists isn't responsible even if they prove to be 100% correct in their assessment.Again, I am with you in your disdain for the ploy just think there is way more to it.

Freddy, you don't think that OTB's accountants message the numbers most favorable to OTB? Any businessman knows that just because expenses are written as off does not mean that the money is necessarily lost or unavailable for use. When Donald Trump was bancrupt, do you think he couldn't write checks to his employees, stay in first class hotel suites or ride around in limosines?

Why shouldn't people, including columnists, analyze the claims by OTB, isn't this done all the time? Don't we see columnists analyzing the proposed healthcare bill to find its hidden costs on a daily basis?

People have a right to question whether OTB is actually in a dire situation and if so, what the cause of it is. For example, OTB has been a place for politicians to stick their friends, relatives and supporters for years who were unqualified and paid unreasonable salaries, shouldn't such bad business practices be taken into consideration when they are asking others to take less to try to solve their problematic bottem line that they created themselves?

[Kasept]

Originally Posted by freddymo

Wow the case revolves around the expert opinion of a columnist vs. partners at a highly respected accounting firm, which is paid 1/2 a million bucks to do an audit. I didn't realize Hegarty was an CPA in his past life.You learn something everyday. Which firm did Hegarty work for when he was in the accounting field, Delotte? This "unusual treament" must have escaped the teams of accountants that audit OTB financials.. Steve perhaps it would serve the community well if the facts were repped appropiately. Hear say from columnists isn't responsible even if they prove to be 100% correct in their assessment.Again, I am with you in your disdain for the ploy just think there is way more to it.

Freddy,

Hegarty is racing media's single top business correspondant. His accumen on these topics is unquestioned. Do you think Steven Crist would base his columns on the topic on faulty, shoddy or uncertain conclusions? Come on...

[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