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The New York Racing Association agreed Friday to a memorandum of understanding, which outlines the terms of an up to $30 million state financial assistance package that will permit the continuation of thoroughbred racing operations at Aqueduct, Belmont Park and Saratoga Race Course through 2006.
The announcement of the $30 million state bailout come as NYRA was preparing for file for Chapter 11 bankruptcy protection from escalating debt.
The bailout was strongly promoted by Senate Majority Leader Joseph Bruno (R-Brunswick) whose district includes Saratoga Race Course.
The $30 million package includes three elements:
--Land sale proceeds in the amount of $5 million from the Port Authority with $1 million transferred immediately to NYRA and the remaining $4 million balance payable at closing.
--A $5 million loan to NYRA from Empire State Development Corporation (ESDC), which is secured by future Aqueduct VLT revenues.
Legislation to be proposed by Gov. George Pataki providing an up to $20 million loan to NYRA to finance services and expenses associated with the operation of NYRA's three racetracks and to facilitate the timely opening of a VLT facility at Aqueduct Racetrack.
"We particularly appreciate the efforts of the Governor and his staff in working with NYRA to complete this package under tight time constraints," said NYRA President and CEO Charles Hayward. "Moreover, we appreciate the efforts of Governor, Sen. Bruno and Assembly Speaker Sheldon Silver in rallying to the support of the New York racing industry during this critical period. This is a very important day for thoroughbred racing in the great State of New York.
"We look forward to legislative action that completes this agreement in early session with a satisfactory result," continued Hayward. "Once that is achieved, we can look at the new year with renewed optimism as NYRA can continue to present the best racing in the nation while our long-awaited Aqueduct VLT facility begins construction."
Earlier this month, Hayward had estimated that $20 million was need to keep NYRA in operating while awaiting the opening of the VLT facility.
Aqueduct's VLT facility will feature 4,500 gaming machines and is expected to generate over $400 million annually for the State.
Earlier this year, the Governor and state Legislature had created an oversight board to monitor NYRA which lost more than $15 million in 2004 and $22 million in 2003.
NYRA has applied for 257 racing dates in 2006. Key dates on the schedule include the Wood Memorial at Aqueduct on April 8, the Belmont Stakes, third leg of racing's Triple Crown, at Belmont Park on June 10, and the entire 36-day Saratoga season, which runs from July 26 through Labor Day and features the Travers Stakes on August 26.
Bruno began lobbying in October for a new thoroughbred racing franchise which would end the NYRA's decades-long racetrack operation. NYRA's franchise expires Dec. 31, 2007.
The New York Racing Association Inc. (NYRA) is a private, non-profit racing association established in 1955, which owns and operates the three largest racetracks in New York - Aqueduct, Belmont Park and Saratoga Race Course. It is a non-profit, non-dividend paying corporation governed by a Board of Trustees, whose members, by law, receive no compensation or dividends. Since its inception, NYRA has contributed more than $3 billion in direct tax revenue to the State of New York. 12-30-05
© 2005 North
Country Gazette
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