Written by Mike Ryan   

Earlier this week, Gov. Eliot Spitzer recommended that the New York Racing Association (NYRA) continue to do what it’s done for more than 50 years—run thoroughbred racing at Saratoga Race Course, Belmont Park and Aqueduct. The non-binding memorandum of understanding which NYRA signed with the state of New York on Tuesday, Sept. 4, would give the organization a 30-year franchise extension and forgive them of approximately $130 million of debt. In return, NYRA would relinquish all its land claims.

“Today’s announcement is the culmination of NYRA’s efforts over the past several years to reinvent itself,” NYRA Chairman C. Steven Duncker said in a statement. “The governor’s support is a testament to the efforts undertaken by NYRA to become the racing industry leader in integrity and corporate governance. NYRA remains committed to continuing this effort while at the same time retaining its position as the producer of the best racing product in North America, as exhibited by the recently concluded Saratoga race meet.” 

NYRA President and CEO Charles Hayward had a difficult time holding back tears during Tuesday’s press conference at the racetrack. At one point, he even had to excuse himself from the podium to regain composure. 

Hayward touched upon the “tremendous” amount of momentum the organization now has and the success of the recently ended racing season, but said “the real winner here is the racing industry.” 

Despite having served on former Gov. George Pataki’s Ad Hoc Committee on the Future of Racing, which recommended Excelsior Racing Associates as their preferred racetrack operator in November 2006, Saratoga Springs Mayor Valerie Keehn said she has no problem with NYRA running racing. 

Keehn said she looks forward to seeing what the rest of the decision will be. The details of the contract are of particular interest to her. 

“I will continue my dialogue with the governor’s office, the Horsemen’s Association and the legislators,” Keehn said. “I want to make sure they know our position, and I want to make sure we don’t lose any revenue.”
  
Last week, Republican mayoral candidate Scott Johnson delivered roughly 2,700 signatures in favor of NYRA retaining its franchise to the governor. Johnson said the organization’s problems appear to be behind them, and he’s confident in their ability to run racing, especially with the new management in place.

“I’m pleased the governor listened to the voice of the people. However, there are some issues that still need to be ironed out,” he said.

Democratic mayoral candidate Gordon Boyd said he was pleased NYRA was chosen to continue operating racing, but added that some elements of the deal are disconcerting to him.

“The governor has started the ball rolling on the right track, but there are still details I hope the legislators will tune in on,” Boyd said.

Boyd mentioned the importance of protecting the historical properties and the continued utilization of the track for stabling and training during off months, but his biggest concern was something brought up by both Keehn and Johnson as well. All three want a guarantee that the racetrack will continue to provide the city with property tax revenue.

Johnson believes this issue to be of great significance because a sizable amount of money could be at stake. He estimated that $1.25 million a year in city, county and school taxes could potentially be lost.

While the governor’s decision has left far more questions unanswered than definitively resolved, a few things are certain.

First, Spitzer’s recommendation has to be approved by the state Legislature to finalize the deal. Then there’s the matter of selecting a franchise to run the video lottery terminals at Aqueduct, which NYRA officials estimated would hopefully be done within the next 60 days. Lastly, and no matter what else transpires over the next few months, NYRA’s present contract expires Dec. 31.

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