NYRA - The Bailout Check is in the mail

Originally Posted by blackthroatedwind

Do you understand this situation at all?

Do you understand that the state lends money to state related organizations, like NYRA, in these situations with regularity?

Do you understand they were given the money and are now being strung along for political reasons?

Do you understand the amount of money the state is denying its taxpayers simply out of some perverse spite?

How well acquainted with the NYRA/NY State political situation are you?

BTW you can spin this all you want. I know states (not just New York) lends money to state regulated orgainizations. But not to the tune of $30mm. I love the "political" reason excuse. The point is all this is that they cannot run the organization effectively. Why is that? If I run a business and I am not making enough money to operate then I need to change something. There is something I am doing that is not working. I need to find a fix. VLT revenue is not a fix. The NYRA should be able to operate without VLT revenue. Explain to me why they cannot operate effectively.

Originally Posted by eurobounce

Explain to me why they cannot operate effectively.

Because it's the government.

/thread

[blackthroatedwind]

Originally Posted by eurobounce

BTW you can spin this all you want. I know states (not just New York) lends money to state regulated orgainizations. But not to the tune of $30mm. I love the "political" reason excuse. The point is all this is that they cannot run the organization effectively. Why is that? If I run a business and I am not making enough money to operate then I need to change something. There is something I am doing that is not working. I need to find a fix. VLT revenue is not a fix. The NYRA should be able to operate without VLT revenue. Explain to me why they cannot operate effectively.

I am shocked at your level of ignorance here. I don't mean this to be nasty, honestly, but this is a surprising level of naivite coming from someone as knowledgable as you.

Do you understand the political environment NYRA is, and has been, operating under? I am NOT saying they have been run perfectly, far from it, but I really think you have NO idea of the situation.

By the way, in these situations, $30 million is nothing...and if the State hadn't been screwing NYRA over as regards to the slots, which EVERY OTHER TRACK AWARDED THEM IN NY STATE has been granted State approval ( and some years ago ), then this money would hardly be necessary.

I will be happy to enlighten you at Churchill. I am tired of writing the same old obvious stuff.

I hope they don't sell. And if they do please don't sell to the group that includes MAGNA and Churchill.

Originally Posted by blackthroatedwind

I am shocked at your level of ignorance here. I don't mean this to be nasty, honestly, but this is a surprising level of naivite coming from someone as knowledgable as you.

Do you understand the political environment NYRA is, and has been, operating under? I am NOT saying they have been run perfectly, far from it, but I really think you have NO idea of the situation.

By the way, in these situations, $30 million is nothing...and if the State hadn't been screwing NYRA over as regards to the slots, which EVERY OTHER TRACK AWARDED THEM IN NY STATE has been granted State approval ( and some years ago ), then this money would hardly be necessary.

I will be happy to enlighten you at Churchill. I am tired of writing the same old obvious stuff.

Maybe so...but please explain to me why this organization cannot run effectively with their currect business model. No one has ever been able to explain this to me. Why do they need VLT revenue to be effective--again, WHY?

I will say this...I also think that the state is wrong by putting a 4% interest on the money loaned. No way should that be the case. If they are going to give them the money then it shouldnt be paid back with interest.

[kgar311]

Originally Posted by eurobounce

Maybe so...but please explain to me why this organization cannot run effectively with their currect business model. No one has ever been able to explain this to me. Why do they need VLT revenue to be effective--again, WHY?

I think beacuse you could generate the 19mil you need without going to the taxpayers. And stay out of the red.

Originally Posted by kgar311

I think beacuse you could generate the 19mil you need without going to the taxpayers. And stay out of the red.

Again, where do you think the $19mm came from? The money came from taxes. Wether is be taxes from payroll, sales, real estate etc etc it came from some sort of tax.

Another thing I dont understand is why the NYRA is paying property tax. Most companies are exempt from property tax. I know Eli Lilly in Indy doesnt pay property tax but they have to employ a certain amount of people that live in a low income district.

[Cannon Shell]

Originally Posted by eurobounce

Maybe so...but please explain to me why this organization cannot run effectively with their currect business model. No one has ever been able to explain this to me. Why do they need VLT revenue to be effective--again, WHY?

Listen I will be brief. The system is broken because NYRA gets to keep ZERO money. ALL money is mandated for the state. The system that was put in place in the 50's predates OTBs(direct competition from state), Lotteries(dierect competition from state), simulcasting, internet, etc. The fact that NYRA was not designed with this kind of competition in mind, and add on the fact that they can not put any money away to combat slow runs due to weather, competition, rising employee costs like pensions and health care, etc you can not blame NYRA directly for its current cash crisis. For years NYRA used the horsemans account as a fund whenever they needed cash. Despite denials from the horsemans organization, they knew this was happening and allowed NYRA to do this. ALL money borrowed was paid back and the horsemans account was never in jeapordy of being depleted. When the state audited NYRA they discovered this and didn't allow them to do this any longer. Therefore the current situation that now exists.
BTW -all the money that NYRA earns but is not allowed to keep any of goes directly to the state's coffers. Billions of dollars.

Originally Posted by Cannon Shell

Listen I will be brief. The system is broken because NYRA gets to keep ZERO money. ALL money is mandated for the state. The system that was put in place in the 50's predates OTBs(direct competition from state), Lotteries(dierect competition from state), simulcasting, internet, etc. The fact that NYRA was not designed with this kind of competition in mind, and add on the fact that they can not put any money away to combat slow runs due to weather, competition, rising employee costs like pensions and health care, etc you can not blame NYRA directly for its current cash crisis. For years NYRA used the horsemans account as a fund whenever they needed cash. Despite denials from the horsemans organization, they knew this was happening and allowed NYRA to do this. ALL money borrowed was paid back and the horsemans account was never in jeapordy of being depleted. When the state audited NYRA they discovered this and didn't allow them to do this any longer. Therefore the current situation that now exists.
BTW -all the money that NYRA earns but is not allowed to keep any of goes directly to the state's coffers. Billions of dollars.

The NYRA shouldnt be able to keep any money. Hence the not-for -profit status. All money earned should go back to the state or be spent. Granted, this idea was done before all the competiton but the NYRA has done a poor job of adjusting. They need to adjust their business model to reflect current economic trends.

[GenuineRisk]

Originally Posted by eurobounce

The NYRA shouldnt be able to keep any money. Hence the not-for -profit status. All money earned should go back to the state or be spent. Granted, this idea was done before all the competiton but the NYRA has done a poor job of adjusting. They need to adjust their business model to reflect current economic trends.

You guys make good points (euro, thanks for your response, by the way)-- so it seems the big problem is revenue lost to OTBs, etc. is that what is being said? How does the NYRA address that? What do you all think?

Originally Posted by GenuineRisk

You guys make good points (euro, thanks for your response, by the way)-- so it seems the big problem is revenue lost to OTBs, etc. is that what is being said? How does the NYRA address that? What do you all think?

I wish I knew the answers.

[Cannon Shell]

Originally Posted by eurobounce

The NYRA shouldnt be able to keep any money. Hence the not-for -profit status. All money earned should go back to the state or be spent. Granted, this idea was done before all the competiton but the NYRA has done a poor job of adjusting. They need to adjust their business model to reflect current economic trends.

Well if you ran a business and were not able to keep any money on hand for operating capital, how do you suppose you would do? The state acts like the mob in shaking down NYRA for every penny that is brought in and not dedicated to current expenses or purses. So when they have a downturn in business they will wind up with a shortfall of cash. It is such a simple concept, I can't figure out why you have a problem understanding. It is not about making a profit , it is about being able to cover operating expenses with the money that they generate, BEFORE having to give it to the state. The state takes the money first now and makes them beg for it back.

Originally Posted by Cannon Shell

Well if you ran a business and were not able to keep any money on hand for operating capital, how do you suppose you would do? The state acts like the mob in shaking down NYRA for every penny that is brought in and not dedicated to current expenses or purses. So when they have a downturn in business they will wind up with a shortfall of cash. It is such a simple concept, I can't figure out why you have a problem understanding. It is not about making a profit , it is about being able to cover operating expenses with the money that they generate, BEFORE having to give it to the state. The state takes the money first now and makes them beg for it back.

You live in a vacuum dont you!!!!

[Cannon Shell]

Originally Posted by eurobounce

They need to adjust their business model to reflect current economic trends.

Where have you been? They are trying to change the business model, and have said that they can't continue with the current one but they cant change until the state govt changes the laws.

Originally Posted by Cannon Shell

Where have you been? They are trying to change the business model, and have said that they can't continue with the current one but they cant change until the state govt changes the laws.

They have been trying for the past 20 years--laughable.

[Revolution]

Originally Posted by Cannon Shell

BTW -all the money that NYRA earns but is not allowed to keep any of goes directly to the state's coffers. Billions of dollars.

It does? How does a group that runs tens of millions in the red contribute billions to the state coffers? I can't wait for this brilliant answer.

[Antitrust32]

Originally Posted by Revolution

It does? How does a group that runs tens of millions in the red contribute billions to the state coffers? I can't wait for this brilliant answer.

I dont know if you understand this, but the state taxes the total handle. Something like 3% of All the handle that NYRA see's goes to the state. That is a HUGE amount of money.

[Revolution]

Originally Posted by Antitrust32

I dont know if you understand this, but the state taxes the total handle. Something like 3% of All the handle that NYRA see's goes to the state. That is a HUGE amount of money.

So you are saying without NYRA horse racing is leaving NY? NYRA doesn't run a for profit and get taxed. They are a non-profit and they can't even break even.

Just to let you know, there is a parimutuel tax, and it isn't 3% of pools. In fact it contributes some ridiculously low amount of like $10 million to the state. In fact if you read any reports, state pari-mutuel tax revenues fell almost in half, from $18.6 million in 1997 to $9.9 million in 2001. I will try to find how little they contributed this year.

[Cannon Shell]

Originally Posted by Revolution

It does? How does a group that runs tens of millions in the red contribute billions to the state coffers? I can't wait for this brilliant answer.

Takeout from handle, genius.
Property tax, Einstein.

There are plenty of online GED programs available, maybe NYRA will give you some scholarship money and then get you to run the show after you get your certificate.