Harsh words for NYRA by several powerful upstate politicians. Grumbling began some months ago and it seems that Charle Hayward and Co better duck to avoid having their heads cut off.One strong rumor has present NYRA management replaced by years end.Time to bring some real business executives to NY racing!! Interesting stuff.
From the TB Times:
N.Y. lawmaker calls for NYRA to be managed by state
by Paul Post
A New York lawmaker says the state legislature should discuss putting New York Racing Association into legal receivership, managed by a state agent such as the comptroller’s office.
NYRA has come under criticism since declaring Monday it would go to court rather than release its financials and submit to a state audit. Reports circulated that NYRA was about to change course Wednesday, but NYRA President and Chief Executive Officer Charles Hayward said no such announcement is planned.
“When an entity holds a public license, as NYRA does, they also hold a public trust,” said John Bonacic (R-Mt. Hope), the ranking Republican on the Senate Racing, Wagering and Gaming Committee. “NYRA’s arrogant refusal to be transparent, when combined with their threat to cancel the Belmont [Stakes (G1)], makes clear that they are disregarding their public trust.”
Last week, NYRA said it might be forced to shut down before the Belmont Stakes unless the state moves quickly to name an Aqueduct gaming operator, giving NYRA a fresh supply of cash. In September 2008, the state gave NYRA $30-million to keep operating until Aqueduct’s racino opens. NYRA has said that money is almost gone. State Comptroller Thomas DiNapoli wants to know where it went, but NYRA has refused to comply with his request for an audit.
“Individually, those statements are concerning,” said Langdon Chapman, Bonacic’s general counsel. “Together, they’re alarming.”
Bonacic has asked committee Chairman Eric Adams (D-Brooklyn) to invite legal scholars to testify about putting NYRA into a receivership. The practice is commonplace, he said. For example, if a hospital is deemed incapable of operating, the state Health Department might take over its management.
NYRA could not immediately be reached for comment.
NYRA had appeared to turn a corner since getting a new 25-year contract to run Belmont Park, Saratoga Race Course, and Aqueduct about 15 months ago and said earlier this year that it expected to close out 2009 with a modest profit. But recently, Hayward said NYRA would have a $1-million operating loss and its threat to close down by June, while refusing to open its books, has created a firestorm.
Both the New York Daily News and New York Post ran strong editorials condemning NYRA’s position on Wednesday.
“Gov. [David] Paterson and the legislature cannot succumb to such extortion tactics,” the Daily News editorial said. “They should tell NYRA to get lost. If that means the end of the Belmont Stakes, a 105-year tradition, so be it.”
Bonacic also questioned why NYRA is accepting money for season tickets for Saratoga when at the same time saying the 2010 summer meet is in jeopardy.
“I hope to hear from NYRA that they are escrowing those funds to be repaid if NYRA either goes bankrupt or does not run this year,” he said.
