As the clock ticks off the last remaining moments of 2009, horseracing fans are afraid it could be marking the end of horse racing’s fabled Triple Crown – because the New York Racing Authority (NYRA) is running out of money.
According to published reports, NYRA President Charles Hayward said that the authority, which operates New York State’s Saratoga, Belmont and Aqueduct thoroughbred race tracks will be out of cash “in the May-June timeframe.”
Belmont Park, at the Queens-Nassau border has been the site of the “Third Jewel” of the three-race series – the Belmont Stakes – since 1905. Traditionally the race is on the first Saturday in June.
“If we can’t make payroll, we have to shut down,” Hayward said. “There is certainly a possibility that Belmont may not open and there will be no third leg of the Triple Crown,” he added.
At issue is the non-existent revenue NYRA had been promised from the operation of 4,500 Video Lottery Terminals (VLT) at Aqueduct Race Track in Ozone Park – authorized by the state Legislature in the wake of the terrorist attacks of September 11, 2001.
Eight years and three administrations later, the triumvirate of the Governor, Assembly Speaker and Senate Majority Leader – currently David Paterson, Sheldon Silver and John Sampson, respectively – have yet to select from among five groups bidding on the franchise to operate the Aqueduct “Racino.”
A third of the predicted $1 million in daily revenue from VLT operations was to support NYRA’s track operations. Other recipients include schools around the state, with a projected $125 million – $53 million for New York City schools alone – and recipients of the roughly 1,000 permanent jobs the project is supposed to create.
“Legislative sources” are quoted in published reports as calling the process “a giant mess,” and offering no hope for a decision any time soon.
In the meantime, at least two of the five bidders still in the hunt say they have “shovel-ready plans” based on blueprints created by the very first “front runner” in the process, hotel-casino powerhouse MGM.
Although favored by Governor George Pataki, they walked away from the project after disgraced former Governor Eliot Spitzer decided to restart the selection process from scratch.
After nearly two years, a new winner emerged, led by Delaware North, only to stumble when they couldn’t come up with their entire $370 million in “up front money” at one time.
Now, Governor David Paterson also managed to chase off casino mogul Steve Wynn, after altering the terms of the deal in November. According to published reports, the leadership has yet to meet since then.
The statehouse took a measured view of latest warnings.
“The Governor and legislative leaders are continuing discussions to determine which bidder will operate the VLT facility at the Aqueduct Race Track. This is a critical decision for the state, and requires careful consideration,” said Paterson spokesperson Morgan Hook.
“While we are still awaiting final information from NYRA on their 2010 budget and cash-flow assumptions,” Hook said, adding pointedly, “something they have yet to provide to the state – we will evaluate that information and work closely with NYRA to navigate any potential fiscal difficulties.”
Published reports suggest that some of the impetus to make a selection was lost after Paterson and the leadership agreed on a budget deal.
But the clock is ticking –to the end of the fiscal year, at midnight on March 31. That’s when $200 million of the still-unpicked VLT operator’s down payment will officially blow a hole in the current budget – if Albany hasn’t banked the money.
Stay tuned.
