by Pete Denk and Paul Post

Jeff Perlee, chief executive officer of Empire Racing, has accused the New York Racing Association and Excelsior Racing of collusion in their bid for the right to run New York’s racing franchise.

In a letter sent to New York Comptroller Thomas DiNapoli and special counsel to the governor Richard Rifkin on Wednesday, Perlee said NYRA President Charles Hayward and Excelsior’s Richard Fields met in recent weeks to discuss dividing up operations and components of the franchise.

Perlee said such a meeting would violate state procurement rules and has requested an investigation. The bidding process has ended and the parties are awaiting a decision from New York Governor Eliot Spitzer.

Perlee claims the secret meeting produced a plan under which NYRA would run the racing side while Excelsior would handle gaming. Perlee said the two companies have formed a plan to divide video lottery terminal revenue between them.

“This violates state procurement rules designed to prevent collusion,” Perlee wrote. “Further, as each bidder for the franchise, including NYRA and Excelsior, was obligated to attest and sign a non-collusion certification as part of the state’s procurement process, substantive communication between them violates the spirit of competitive bidding and fair competition set forth to ensure the integrity of the process.”

Hayward fired back at Perlee on Friday, accusing him of “consistently and inappropriately” misrepresenting NYRA’s business operations and practices.

“Jeff Perlee’s letter alleging recent meetings between the New York Racing Association and Excelsior Racing in violation of anti-collusion provisions of the New York State thoroughbred racing franchise review process is a complete fabrication,” Hayward said. “No NYRA executive or board member has engaged in discussions with anyone from Excelsior with regard to the franchise review process since bids were submitted to the state in August 2006.”

Excelsior spokeswoman Katie Burke told the Associated Press that no violation occurred.

“This allegation is categorically false,” Burke said. “Excelsior has fully complied with the rules set forth by the panel and remains ready and willing to work in partnership with the state of New York to ensure the best possible future for racing.”

NYRA’s current operating agreement expires on December 31. Reports have circulated recently that Spitzer is considering a plan to let NYRA keep part of the franchise, presumably Saratoga, while awarding the downstate tracks to another bidder.

Spitzer told the Associated Press on Thursday that he would not rule out closing Aqueduct.

Pete Denk is a Thoroughbred Times staff writer

Paul Post is a New York-based Thoroughbred Times correspondent