Harness horsemen reinforce support for Pretlow proposal
March 22, 2010,from the SOA of New York
Yonkers, NY — In response to today’s bankruptcy court ruling to uphold the proposed bankruptcy of New York City Off Track Betting, the Standardbred Owners Association of New York reinforced their support for a restructuring proposal released last week by NYS Assembly Racing & Wagering Committee Chairman Gary Pretlow.
The following was the decision released today by the bankruptcy court: “Protected for now by chapter 9 of the Bankruptcy Code, NYCOTB will either reorganize or liquidate under the watch of this Court, depending on the actions of the New York State Legislature and NYCOTB’s further negotiations with each of its important constituencies.”
The SOA strongly believes that the only reorganization plan presented thus far that is either “achievable or industry-friendly” is Assemblyman Pretlow’s.
SOA President Joe Faraldo said, “Overall, Chairman Pretlow’s plan reflects the staunch belief of our horsemen — and numerous stakeholders throughout the racing industry — that NYC OTB’s own restructuring proposal is unrealistic and would have significant negative impacts across New York’s racing, breeding and agricultural industries. NYCOTB’s suggested elimination of legislatively required payments to the racing industry, their scheme to shift from a “gross to net” model and their apparent continued refusal to commit to supporting or promoting our own New York State racing product in a substantive way are just a few of the components that make this proposal disastrous for our industry, and thus counterproductive to New York’s overall economy.
“We believe that Chairman Pretlow’s decision to focus on long-needed administrative improvements and cost containment at NYCOTB — including reducing administrative payroll, shedding unnecessary leases, consolidating branches, reining in overtime, adjusting staffing levels, changing work rules and giving up vehicles — makes much more sense for the long-term well-being of New York racing than simply eliminating legislatively mandated payments to the industry (payments, it should be noted, that were deemed necessary by the Legislature as a direct result of NYCOTB’s own counterproductive decision to import competing racing signals). Furthermore, we wholly agree that the need for such payments could be mitigated simply by requiring NYCOTB to show and promote New York’s own local racing product and we believe that New York State OTB operations should be required to carry/display the New York State racing product first on all of its wagering outlets/vehicles (including, but not limited to, in-parlor, television broadcasts, and any and all past, present or future wagering platforms it or its agents employ), with out-of-state signals to be allowed only when not enough in-state signals are available to fulfill said programming needs.
“We believe NYCOTB has no unity of interest with New York State horse racing and the notion of being able to “fix” it — without jeopardizing the well-being of a harness racing industry that generates 40,000 jobs for New Yorkers — appears to be a challenge of the highest order. The vast majority of NYCOTB’s problems can be linked directly to their own flawed business decisions and a demonstrated lack of support for New York’s racing product, and within such a context it has been amazingly ironic that NYCOTB has continually sought to remedy its ills on the backs of New York horsemen, breeders and farmers who are just now experiencing a long-anticipated renaissance. Though we continue to have reservations about the long-term prospects of leaving pari-mutuel wagering in the hands of entities with the track records and histories of the New York State OTBs, the fact of the matter is that Chairman Pretlow’s plan represents the most rational, achievable, industry-friendly proposal we have seen yet. We look forward to working with him and stakeholders throughout Albany and New York State to make it a success.”
- SOA of New York conditionally supports NYCOTB plan (Wednesday, March 17, 2010)
SOA of New York President Joseph Farlado outlined support for a plan to restructure the New York City Off-Track Betting Corporation.
- Thoroughbred groups join SOA in seeking OTB restructuring (Monday, March 29, 2010)
Two Thoroughbred groups have joined the Standardbred Owners Association of New York in supporting Assemblyman Gary Pretlow’s plan to restructure the New York City Off-Track Betting Corporation.
- Faraldo calls for no short term bailout of NYCOTB (Thursday, April 08, 2010)
The SOA of NY president feels it would do long term damage to the New York State harness racing industry.
- New York City OTB remains open (Monday, April 12, 2010)
The New York City Off Track Betting Corporation decided to postpone yesterday’s planned shutdown by one week, after citing that progress has been made on its fiscal problems.
- NYC OTB aid plan collapses (Thursday, April 15, 2010)
As of right now help for desperate New York City OTB is gone.
- NYC OTB to remain open for another year (Monday, April 19, 2010)
An interim plan was announced over the weekend that would keep New York City OTB open and alive for another year.
- SOANY responds to proposed recommendations of NYCOTB Creditors Committee (Tuesday, July 27, 2010)
The following memorandum was sent today to members of the New York State legislature by the Standardbred Owners Association of New York.