ALBANY, N.Y. -- The new NYRA is out of the starting gate. The New York Racing Association gets out bankruptcy after finalizing its 25 year deal with the state to run Aqueduct, Belmont and Saratoga.
"This is going to enhance thoroughbred racing in our state, which definitely impacts the entire country and internationally," said Steven Duncker, NYRA Chairman of the Board.
"This is a new beginning. Hopefully, that one will benefit the state of New York better than prior arrangements have," said John Sabini, Racing and Wagering Board Chairman.
Those new arrangements required approvals from numerous agencies, including the Racing and Wagering Board. The board signed off on the agreement that was passed by the legislature and signed by then Governor Eliot Spitzer earlier this year. In it, NYRA agreed to hand over the deeds for the three tracks and end any litigation it has with the state. In exchange, the Association gets $105 million, making it able to pay off creditors and fund its employee's pensions and $30 million of that keeps NYRA up and running until VLTs are operating.
It's a new day for the new NYRA. The groups that runs New York's big three tracks has come out of bankruptcy and as Curtis Schick reports, leaders say don't bet on having to bail out NYRA anymore.
"We have been waiting for this since 2002. I think the Paterson administration has moved with some speed to get this done as the last two administrations didn't," said Sabini.
Sabini said he's expecting the VLT operator named within the next few weeks. NYRA said it is making small upgrades like new flat screen TVs you saw this summer at Saratoga and said until VLT money is rolling in, larger projects like new backstretch dorms are on hold.
NYRA President and CEO Charlie Hayward said the franchise agreement also opens the door to a possible closer relationship between the Association and the six Off Track Betting systems.
"With Governor Paterson taking over New York City OTB, which makes up 50 percent of the OTB business, the idea of the tracks and the OTBs working together would be a significant thing for the industry," said Hayward.
Significant to the communities where the three tracks call home is who is paying the property taxes now that NYRA is leasing them for a dollar a year. Well, now that the state owns them, you are.