NEWS
N.Y. breeders president says Saratoga meet in peril
Posted: Friday, March 12, 2010 9:34 AM
by Paul Post
The failed Aqueduct gaming deal and New York City Off Track Betting Corp.’s fiscal woes have put the Saratoga Race Course season in jeopardy, New York Thoroughbred Breeders Inc. President Barry Ostrager says.
Two of New York’s top breeding farms have already closed and many owners are taking their horses to Pennsylvania, where slots have boosted purses and breeders’ awards. The New York Breeding and Development Fund, which administers breeders’ awards, cannont send out last year’s withholding checks—$2.4-million—this month as scheduled because New York City OTB owes it so much money. Checks will not be distributed until OTB emerges from bankruptcy or the state approves its restructuring.
Likewise, competing race meets in Canada and at Monmouth Park are now offering higher purse structures, fueled by gaming revenues, inspiring more owners to send their horses out of state, Ostrager said.
He said the Saratoga Springs area is faced with a financial “tsunami” if the historic track does not open this year.
"Not only are farms in Saratoga County closing and farm employees losing their jobs, but people involved in all aspects of the Thoroughbred industry are suffering, including veterinarians, people involved in horse transportation, people involved in supplying hay, straw and grain, exercise riders, grooms, and farriers,” Ostrager said. “It is not a foregone conclusion that there is going to be a Saratoga Thoroughbred meet this summer. It’s time that the Saratoga community gets more invested in what is not happening in Albany,” Ostrager said.
NYRA President and Chief Executive Officer Charles Hayward said he believes NYRA can get through Saratoga with a number of emergency cost-cutting steps, such as elimination of training at Aqueduct. However, NYRA would have less than $5-million of available cash on hand.
If New York City OTB closes, “all bets are off” for Saratoga because NYRA needs the statutory payments it receives from OTB, Hayward said. Last year, before declaring bankruptcy on December 3, OTB failed to make such payments and owes NYRA $15-million.
Now, because it is in bankruptcy, OTB must make reasonable payments to NYRA. However, OTB Chairman Meyer Frucher has said the company might close by the end of this month unless the state legislature acts quickly to restructure OTB’s business model.
