NEWS

Industry News

Most Popular Stories

Most E-mailed Stories

New York breeders make statement at OTB hearing

Posted: Friday, January 08, 2010 2:24 PM

by Paul Post

New York breeders made a dramatic statement during Friday’s state hearing on the future of New York City Off-Track Betting Corp.

New York Thoroughbred Breeders Executive Director Jeff Cannizzo was accompanied by a four-foot tall mock headstone representing the state’s Thoroughbred breeding industry to underscore his testimony that if New York City OTB is allowed to reduce payments to breeders, it will threaten the very existence of Thoroughbred racing in New York.

New York City OTB has filed for Chapter 9 bankruptcy and wants the state to change its system of statutory payments to racetracks and breeders as well as state and local government. Officials claim that distributions should be based on net income instead of gross income.

“This accounting trick will dramatically reduce revenues to those who are at the heart and soul of Thoroughbred racing, remove OTB accountability, and create a death spiral for an industry that employs tens of thousands of New Yorkers,” Cannizzo told state lawmakers.

“If OTB distributions to Thoroughbred breeders disappear, on top of the current financial distress breeders are suffering, the breeding industry will be decimated, putting the racing industry here in New York out of business. Without the product—the horses—there will be no race to hold, no ticket to wager, and no handle to disburse.”

The hearing on Friday before the Assembly and Senate Committees on Racing, Wagering, and Gaming was held in Manhattan. The New York Racing Association already has filed a legal objection to OTB’s bankruptcy petition, charging that it was not filed in good faith and should be thrown out of federal court.

NYRA also is concerned about the possibility of reduced OTB payments. New York City OTB already owes NYRA and the New York State Breeding and Development Fund, which distributes breeder awards, more than $14.7-million and $1.8-million, respectively.

Cannizzo said three of New York’s largest commercial Thoroughbred farms have closed in the past year, resulting in the loss of 400 broodmares, or about 15% of producing mothers. Many breeders are leaving New York for Pennsylvania because its breeders’ awards program, boosted by gaming revenues, is more than 36% higher than New York’s ($21.7-million in 2008), he said.

“Most important, the 2009 foal crop in New York was down 15% from the previous year and 21% from just five years ago,” Cannizzo said. “The result is that in two years time there will be 500 fewer horses in New York than are available today. This will have a proportionately and significantly negative impact not just on Thoroughbred racing, but on the economy of the State of New York.”

Paul Post is a New York-based Thoroughbred Times correspondent