NEWS
N.Y. officials subpoena NYRA financial records
Posted: Tuesday, December 29, 2009 2:48 PM
by Paul Post
The New York Racing Association apparently has landed in hot water with the state comptroller’s office after claiming it could run out of cash and be unable to hold the 2010 Belmont Stakes (G1).
NYRA recently said that it would run out of money by June unless the state names an operator to run Aqueduct’s proposed racino, adding that the spring Belmont Park and summer Saratoga Race Course meetings both are in jeopardy.
The threat garnered front page headlines in the New York Daily News, a possible attempt by NYRA to pressure state leaders into making a gaming decision. On Monday, however, Comptroller Thomas DiNapoli subpoenaed NYRA’s financial records, which NYRA has refused to turn over.
“Less than six months ago, NYRA said it was financially stable,” DiNapoli said in prepared statement. “Now NYRA says without VLT money, it may not be able to stay in operation until the Belmont Stakes. In the meantime, it’s been trying to hide its books from my auditors. It’s the same old NYRA in new sheep’s clothing, trying to shortchange taxpayers again.”
“NYRA operates for the benefit of New York. Taxpayers have a right to know what’s going on, and we’re going to audit NYRA and find out.”
In September 2008, when NYRA was given a new 25-year racing franchise, the state awarded the organization $30-million to use for operations until VLTs were up and running. The state also forgave $75-million worth of NYRA’s debt. In return, NYRA gave ownership of its three racetracks—Aqueduct, Belmont, and Saratoga—to the state.
NYRA President Charles Hayward has said that the organization will end 2009 with a $1-million operating loss and that only half of the $30-million from the state remains. The rest will be gone by June because of rising costs and declining handle, he said.
NYRA released its own statement, saying it does not have to submit to an audit because it is a non-profit organization.
“If NYRA and the comptroller cannot agree amicably on the clear meaning of the Court of Appeals decision, we should agree to immediately seek a declaratory judgment from the judiciary to quickly resolve this matter,” NYRA officials said.
DiNapoli said his audit will try to determine what happened to the millions of dollars the state has given NYRA during the past two years.
NYRA said that it is not operating with any kind of state subsidies.
“The revenue NYRA received as a result of the franchise renewal in 2008 was consideration paid to NYRA by the state in exchange for over $1-billion worth of real estate,” NYRA said in its statement. “The franchise renewal was not a ‘bailout’ of NYRA.”
Paul Post is a New York-based Thoroughbred Times correspondent
