Message to NYRA or its Private Successor

[richiebee]

That message would be: Do not waste another dollar marketing the racing product to \"families\" or \"casual fans\".

Next week at Monmouth, there will be lunch trucks and craft brewers on the grounds. Apparently there is a mini golf course/putting range adjacent to the track now. About seven minutes from the main entrance at Monmouth is Seven Presidents State Park, a very serene and beautiful beach, especially at this time of year. The restaurants and taverns in Monmouth County have always been friendly to your correspondent. Drive about 20 minutes from the track out on Rte 537, pull your vehicle over, watch the thoroughbreds frolicking in the fields, maybe go to one of the local farm stands and get some excellent Jersey corn or tomatoes. Within about 30 miles of Monmouth\'s gates, there are any number of golf courses which are open to the public and quite playable.

I could write a chamber of commerce friendly paragraph, like the one above, about Saratoga. Monmouth County and Saratoga Springs are family friendly places, and I might say that with the amount of memories I\'ve accumulated in both of these spots, I always feel like I am among family there, even when alone.

But what about Aqueduct and Belmont, where the majority of NYRA racing is conducted? Yeah, sure, family comes to mind at these places. The Manson family. The Addams family. The five traditional NYC organized crime families.

The fan base is not at the track where the races are being run anymore. The fan base is at other tracks and OTBs and living room downs like facilities all over the country, all over the world. In none of these places does NYRA have any kind of exclusive, however. If I drove to the Meadowlands or Winners in Bayonne, or just dropped my butt on the comfy couch at Living Room Downs, I might have a choice of what, ten or twelve tracks running at the same time as NYRA. NYRA is wasting any money they spend to get fannies in the seats at the NYRA facilities, yet they are doing nothing to make loyal customers out of the tens of thousands of people who are wagering remotely each day.

Let me repeat: Without any marketing effort on the part of NYRA, tens of thousands of people are attending simulcast facilities, OTBs, and logging on for one purpose: to bet on horse racing. The idea is for NYRA to improve its racing product and its image so that folks like Fairmount\'s regular Saturday crew over in Collinsville want to bet most, if not all, of their bankroll on the NYRA product.

And this is simple addition by subtraction (reduction): Start by reducing the takeout, even slightly, on all wagers. On track, reduce the nagging incidental costs like parking and admission, like overpriced concessions and programs; let this money stay in the customer\'s pocket and it will somehow find its way to the mutuel windows. Be the industry leader in chasing off the crooks, the chemists and the gyps. Show a little concern for the downtrodden backstretch help. Give the impression you care about the customer. Stop catering to a group of insiders (New York Greeders) who have continued to devalue the breed by operating a self serving program built on restricted races.

It should not be so difficult to be an industry leader in an industry which is in such a state of disarray, so dysfunctional.

If Ward, June, Wally and the Beaver wander into Belmont or Aqueduct, hell, show \'em a good time, but they are not the future of racing. The future of racing will be heading to simulcast facilities, and firing up the hardware at Living Room Downs.... TODAY. Could somebody please do anything to improve something TODAY, rather than whining about political uncertainty and how racing is going to be wiped out by casinos?

[ColonelShillito]

Ha! That\'s a funny joke you just told. I laughed from start to finish!

Let me give you an example that is similar to the NYRA situation. I have a friend that works for a banking institution. He makes loans for a small community bank. He has discovered over many years of service that the less he does for his employer, the better treatment he receives. He does not work on a commission, yet every loan that he originates is subject to scrutiny and, God forbid, the loan goes bad, he has to collect the loan personally, has to endure the internal embarassment of not making the proper judgment, and risks his job if too many loans go bad.

However, he has discovered that flying under the radar and doing the bare minimum is the best avenue for success for him. By saying no to potential loan customers, he eliminates paperwork, he avoids the scrutiny, and a loan that is never made can never go bad. He knows by now, through years of experience, that he is not going to get a raise, regardless of his efforts, so he does the minimum and actually enjoys his job now, rather than giving his all (high risk, no reward).

It is obvious from a non-New Yorker\'s standpoint (me) that those at the top of the NYRA food chain have no interest in, loyalty to, or understsanding of the sport. How, then, can you expect the people that they hire to go the extra mile? What is their reward? Those employees, like my friend, are rewarded the most by the status quo. Just maintain. Why go out on the proverbial limb at the risk of getting it chopped off if your thirst for excellence is not executed properly?

I admire your ideas and your love for the game, but your words will always fall on deaf ears, at least until NYRA is privatized, and by then, it may be too late.

[magicnight]

Colonel, regarding \"privatization\" ... isn\'t it already too late?

Who the hell would pay anything for NYRA as strictly a racing enterprise?

Mike may have an opinion here.

[miff]

\"Mike may have an opinion here\"

Bob,

Me with an opinion? During the attempted privatization sales of NYC OTB/NYRA just about all the main gaming players showed up.A Wall Street lawyer friend landed one the the 7-8 consulting jobs handed out by the various bidders. I assisted on the gambling side of the equation while the bean counters analyzed the numbers, projections and assumptions.

Very long story short, no consultant firm came up with a single reason to purchase any ongoing racing venue/otb involving thoroughbred racing as a stand alone operation(i.e OTB or NYRA)Not much has changed since then.With the NY casino referendum getting heavy support in Albany,a buyer would have to be delusional to \"buy\" NY racing without guarantees/subsidies from NY State as to handle decline from other forms of competitive gambling(numbers, lotteries, casinos, Island OTB\'s et al)

A recent potential NY racing \"buy\' model shows that within 3-5 years, subsidies will be discontinued in NJ,PA,Canada and several other states, creating perhaps a more captive business climate for NY racing.The discontinued subsidies in those states would cause racing to shut down at those venues.

Said before,but with absolute certainty now, Gov Cuomo does NOT want NY State to continue to be the absolute insurer of the ongoing viability of thoroughbred racing.If casinos open in NY, as planned, racing will be on its knee\'s and without continued subsidies will not make it.Like to think a deal will be made to save racing but the disdain which Gov Cuomo has for NY racing is of great concern.

Mike

[magicnight]

\"Me with an opinion?\"

Yes, but \"Mike has an opinion here\" sounded presumptuous.

Here in the newspaper business, we have this lovely, hopeful plan for the future called \"last man standing\". The idea is that, as other papers shrivel to a slow death, the stronger ones will eventually have what remains of the market all to themselves. I\'m not so sure how viable that plan is for the newspaper business, but the corrolary in racing would be \"strength = all sources handle\", which would seem to give NYRA a long-term edge (as racing in NJ, PA & Canada dwindles). But, like you say, that prospect is down the road, and there are plenty of bridges for our politicians and industry leaders to drive off of before we get there.

It\'s funny how the \"horseplayer tax\" is never mentioned (except by horseplayers) as an onerous burden that is helping to smother an industry that still provides lots of jobs and drives a great amount of economic activity. Would NYRA need subsidies if these taxes (put in place when the business was much healthier) were cut in half? This money could not be made up elsewhere? And how will you replace it when the whole enterprise goes belly up? But that would require looking beyond the next budget, and the next election.

[miff]

Bob,

Now matter how you slice it, from a pure business investment viewpoint,NY racing is unattractive as it presents itself today.New NYRA is burdened with pensions,taxes, union trouble and big brother looking over its shoulder at every move.Take a look at NYRA\'s financial on their website,they tell much.

So a new NYRA CEO(racing neophyte Chris Kay) is brought in, his board is stacked with many Cuomo appointees,he has to deal with a FOB(Franchise Oversight Board, more Cuomo appointees) and lastly the VERY powerful NYS Gaming Commission(yet more appointees by Cuomo)

How is it remotely possible, with that bureaucratic anti racing organizational chart, that NYRA/racing can succeed or be profitable?

Paesano Cuomo has kidnapped NY racing and what will follow will be mostly a matter of political expediency, whatever that is deemed to be.


Mike

[magicnight]

Mike;

Don\'t disagree with any of that. I have two speculative questions:

What is the \"politically expedient move\" when there are no legitimate takers in the NYRA auction?

And, after that question is answered ...

What is the politically expedient move when the \"new NYRA\" (or the old NYRA) goes belly up?

My point is that political expediency goes only so far. At some point harsh reality intrudes. What then?

[miff]

Bob,

What is generally thought is that Cuomo will do whatever gets him the most political capital.Suppose it comes down to keeping senior citizen centers open,for example, or discontinuing racing subsidies, what\'s your guess on what will happen?

No one really knows, but for certain Cuomo holds most of the cards regarding the future of NY racing.

Mike

[twoshoes]

Mike -

Agree he holds the cards, but there really shouldn\'t be a question there as to what is entitled. NYRA gave up claim to the land, which by the way they paid 15M in taxes on last year as a \'component of the state\', madness in my estimation, in exchange for the 25 year charter with the subsidies spelled out in a contract. Of course this wouldn\'t be the first time the Cuomo administration ran roughshod over anybody\'s rights. Worst thing NYRA board could have ever done was to capitulate when threatened. They had grounds, and capital, to stand their ground. Let a bully push you once............ I would be eager to know how many prominent players involved in oversight that were aware of the takeout issue well prior to public disclosure. 1/9 it was more than two.

[Lost Cause]

richiebee Wrote:
-------------------------------------------------------

> The fan base is not at the track where the races
> are being run anymore. The fan base is at other
> tracks and OTBs and living room downs like
> facilities all over the country, all over the
> world.

No NYC OTB presence is terrible and seemingly a huge problem.  Lost revenue as people are not willing to take the trek to the track.  It is expensive and time consuming.  Why not have one or two teletheatres in every borough?  I know NYC OTB of old was burdened with ridiculous overhead but I would think that does not apply anymore.

[miff]

NYRA has planned for some time to open up to 8 Super Off Track Betting parlors in the 5 boroughs. Nyra also trying to open some of the former Restaurant OTBs that were located in the boroughs.

It seems that after Cuomo kidnapped NYRA, many things went on hold.


Mike

[miff]

Very early, but the word out of Albany is that Cuomo has no intention of giving a piece of the new casino money to racing(doesnt even want to continue present subsidies)So if 4 casinos open, surely some discretionary gambling money will find it\'s way to casinos instead of the betting windows/adw a/c\'s related to TB racing.Probably a fight lies ahead regarding the splitting of the casino pie.


pressconnects.com


Cuomo\'s Casinos

ALBANY — Allowing four casinos in upstate New York would generate $430 million in annual revenue for the state, according to an estimate Wednesday from Gov. Andrew Cuomo’s budget office.

The funds would be split up among the state and local governments, with 80 percent earmarked for education aid or lowering property taxes and the remaining 20 percent slated for counties and municipalities who host or are near potential casinos.

The estimate marks the first time the Cuomo administration has put a dollar amount on the impact of the Upstate New York Gaming and Economic Development Act, which would allow for four casinos to be sited in the Catskills, Southern Tier and the Capital Region along with 2,000 video lottery terminals on Long Island.

The casinos, however, are contingent on whether voters approve a change to the state constitution in November. Cuomo was a major supporter of the gambling bill, which he says would help bring downstate tourists further upstate.

“The act would result in new revenue for all regions of the State,” Cuomo’s budget division wrote in its estimate.

If the constitutional change is approved Nov. 5, the casino-siting law would require an up-front franchise fee from private casino developers, as well as a state cut of slot revenue.

Of the 20 percent slated for local governments, 10 percent would go to the counties and municipalities that host the casinos. The remaining 10 percent would be slated for nearby counties in the region.

The ballot referendum was the subject of a lawsuit Tuesday from a Brooklyn attorney, who challenged whether its rosy language touting the potential for education aid and property-tax relief should be put to voters.

Jason McGuire, executive director of the conservative Monroe County-based group New Yorkers for Constitutional Freedoms, said the Cuomo administration\'s estimates don\'t take potential costs into account. Specifically, he pointed to issues with problem gambling and increased crime that casinos in other states have attracted.

[PapaChach]

I think the referendum lingo doesn\'t quite promise ponies for all kids and the ability for adults to begin crapping out gold coins at will, but it\'s not far off. A total joke. Here\'s hoping Cuomo\'s hubris gets the best of him and he resigns to make his sure-to-be doomed run for the Presidency.

[Topcat]

PapaChach Wrote:
-------------------------------------------------------
> I think the referendum lingo doesn\'t quite promise
> ponies for all kids and the ability for adults to
> begin crapping out gold coins at will, but it\'s
> not far off. A total joke. Here\'s hoping Cuomo\'s
> hubris gets the best of him and he resigns to make
> his sure-to-be doomed run for the Presidency.


President of what? . . . the Suck-Up To Casino Interests Club? He\'ll win that, by acclimation.