Photo Finish - NYRA reaches 25-year deal

Governor Eliot Spitzer, Senate Majority Leader Joseph Bruno and Assembly Speaker Sheldon Silver all chipped in to give New York State the perfect Valentine’s Day present—an agreement on the state’s racing franchise.

On Wednesday, Feb. 13, the three politicians reached an agreement with the New York Racing Association, awarding the non-profit organization a 25-year franchise to operate Thoroughbred racing at Aqueduct Racetrack, Belmont Park and Saratoga Race Course. Aside from ensuring that racing will continue, the deal also allows for the installation of a Video Lottery Terminal facility at Aqueduct.

Under the agreement, NYRA will relinquish all its land claims, and the State will advance $105 million to assist NYRA in emerging from bankruptcy proceedings. This advance will be recouped by future VLT revenues from a new VLT facility at Aqueduct.

The agreement also includes increased transparency and accountability measures. Every four years, a Franchise Oversight Board composed of governmental appointees will evaluate NYRA’s operations to assess whether it has met certain financial and performance benchmarks.

“This plan really came together in the last two days through the diligent efforts of State government: in particular, Speaker Silver and his staff were tireless in their efforts to make this significant piece of legislation a reality. We especially appreciate the tremendous work of the Governor and his staff as well as the Senate Majority leader and his staff,” said NYRA Chairman C. Steven Duncker. “This legislation contains the key components for us to emerge from bankruptcy and to improve upon what is already the best racing in the world.”

NYRA President and CEO Charles Hayward said all the parties involved in this decision worked very hard to put the legislation together. He believes the breakthrough moment came on Monday, Feb. 11, after a nearly five hour session of going through the bill page by page.

“This a great day for Thoroughbred racing in New York and for all the people involved with the State’s vital Thoroughbred industry,” Hayward said. “I especially want to thank and acknowledge all the NYRA employees who worked so hard to put on the best racing in the country, despite the uncertainties and distractions of this process.”

Hayward believes the reason it took so long for an agreement to be reached was the complexity of the situation. He said he is looking forward to focusing his attention on improving racing.

“It’s certainly a relief,” he said of the decision.

In addition to the deal, Hayward said the organization has accepted a short-term franchise extension through March 6. This will allow them time to achieve the settlement agreement with the State and confirm their bankruptcy plan.

The board of the newly reconstituted New York Racing Association will include 25 members. Fourteen will be appointed by the existing NYRA Board of Directors, while the other eleven will be governmental appointees.

The governor will select seven of those appointees, and the Senate Majority Leader and the Speaker of the Assembly will each choose two. Among the governor’s appointees will be one representative each from four important stakeholder groups in the racing industry: breeders, horsemen, organized labor and the OTBs.

“Thoroughbred racing plays an important role in our economy, employing thousands of New Yorkers around the state,” Spitzer said in a statement. “Today we have reached an agreement that represents the best vision for the future of the horseracing industry, and will ensure that operations at these tracks will continue uninterrupted and have the financial resources they need to thrive in the future.”

Dan Weiller, Speaker Silver’s press secretary, said Silver and Assembly Racing and Wagering Committee Chair Gary Pretlow have remained committed since last summer to bringing about a sensible and fiscally sound agreement on the future of thoroughbred and harness racing that provides for greater accountability and transparency and firmly establishes state ownership of Aqueduct, Belmont and Saratoga. Weiller added that Silver worked hard to bring the parties together and to keep them talking.

Sen. Bruno joined leaders from the Saratoga community on Thursday, Feb. 14, at the National Museum of Racing and Hall of Fame. He expressed his happiness that a final agreement was attained, though he said he would have liked to have gotten it done sooner.

Bruno said the NYRA deal isn’t and never was a political issue. Rather, he believes it was a matter of doing what’s right.

“We got it done,” Bruno said. He added that nothing happens in the world of government without cooperation.

Bruno called the announcement “welcome news” for horse racing enthusiasts, the City of Saratoga Springs and the 40,000 workers employed by the horse racing industry in New York.

“It truly is a new day, a new era,” he said. “This truly is a new NYRA.”

Assembly Minority Leader Jim Tedisco shared his feelings on the matter as well.

“I am pleased that after a year and a few months, we have finally reached what I and others believe is an agreement on NYRA. It is good news for local taxpayers, the horsemen, the breeders, racing enthusiasts and for the future of racing in New York State,” Tedisco said.

“Especially important is that this agreement reflects fundamental core values, including protecting Saratoga taxpayers and the integrity of our local racing product, along with preserving the cultural and historical character of our race track.”

Saratoga Springs Mayor Scott Johnson said the agreement addresses many of the concerns that local people had. He believes the new deal will benefit the Spa City both economically and in preserving the track’s architectural heritage.

“Today, the entire community of Saratoga Springs can breathe a collective sigh of relief. I was confident all along that Senator Bruno would come through for us, as he has countless times to date. Thanks to his leadership, racing in Saratoga will continue seamlessly and we remain the home of the best racing worldwide,” Johnson said.

Johnson said he looks forward to partnering with NYRA to make the track and city attractions better than ever. He stressed that the economic impact that racing has on Saratoga Springs can’t be overemphasized.

“As a community known for health, history and horses, it is racing that has both kept us in the world’s eye and drives our fiscal strength,” Johnson said. “Many of those dependent on our tourism industry were understandably anxious over the negotiation stalemate. Now, the vitality of our economy will not be at the mercy of the Legislature and Governor Spitzer. Sometimes you have to wait longer than comfort dictates in order to achieve a better product and long term result for the industry.”