NY racing chief confident NYRA on right track; $25M state loan providing much-needed boost

NY racing chief confident NYRA on right track

ALBANY, N.Y. — The chief executive of the New York Racing Association said Monday he’s confident an infusion of state cash and the impending selection of a bidder for operating a casino at Aqueduct Racetrack indicate NYRA’s financial problems are over as the lucrative Saratoga racing season approaches.

NYRA President and CEO Charlie Hayward and other racing officials were in Albany to preview Saratoga Race Course’s 142nd meet, which opens July 23 and runs through Labor Day, Sept. 6.

There were concerns that Saratoga’s season could be in jeopardy because of NYRA’s financial woes. But the Legislature approved a $25 million loan late last month to keep Saratoga and NYRA’s downstate tracks, Aqueduct and Belmont, open.

Hayward had said NYRA was running out of money and hinted of an unprecedented shutdown unless the state came through with a loan.

“The good news, we did get the $25 million loan,” Hayward said.

The loan would have to be repaid by March 31 or within 30 days of a state agreement with a contractor to install video lottery terminals at Aqueduct in Queens. NYRA is waiting for the state’s recommendation, expected Aug. 3, of a firm to develop and operate the Aqueduct racino.

NYRA officials have said revenue from that project is “fundamental” if the organization is to meet its 2008 franchise agreement with the state.

Responding to recent criticism from some in the racing and gaming industries who say NYRA’s year-round racing schedule spread over four separate seasons held at three tracks is outmoded, Hayward acknowledged that the organization’s business model is “challenged.”

Yet he dismissed suggestions that Aqueduct’s winter meet should be eliminated.

“On a good weekend day, we’ll handle $10 million, which isn’t too much less than what we’ll handle at Belmont,” Hayward said. “So Aqueduct is going to be around for a while.”

NYRA says more than 1.6 million people attended races at its three tracks last year, and the average daily handle, including nationwide off-track betting, was more than $9.3 million.

The agency estimates the thoroughbred racing business contributes more than $2 billion annually to the state’s economy.

A big chunk of that comes out of the Saratoga meet, which will have purses topping $10 million in stakes races alone this summer. This year’s meet has been increased from 36 days to 40 days for the first time since the early 1880s. The 147-year-old track continues to be a money machine for NYRA, attracting more than 900,000 fans and taking in $513 million in total on- and off-track handle in 2009.

The highlight is the $1 million Travers Stakes on Aug. 28, with the winners of the Triple Crown races — Super Saver (Kentucky Derby), Looking At Lucky (Preakness) and Drosselmeyer (Belmont) — possible starters in the Midsummer Derby.