Oversight Panel Approves NYRA Spending Plans

A New York state oversight panel has approved major spending plans for 2017 by the New York Racing Association, though not before an annual disagreement surfaced about whether NYRA runs a surplus or deficit from its racing operations.

NYRA, whose board has been controlled since 2012 by appointees of Gov. Andrew Cuomo, projected $2.1 million operating income from racing operations, compared with $2.3 million in 2016. The numbers were presented this week to the state's Franchise Oversight Board.

Steve Newman, a member of the oversight panel, said NYRA is again leaving out some expenses in its calculations. He estimated the surplus claimed by NYRA is really an $8 million deficit.

"I'm not going to argue with you, sir,'' NYRA president Christopher Kay said to Newman. Kay promised to set up a separate meeting with Newman and others, including NYRA's accountants, to try to resolve the annual dispute.

The oversight board's powers are limited to just reviewing and commenting on NYRA's annual operating budget. But it has approval or rejection powers over its annual capital budget.

The board this week approved NYRA's proposed spending of $27.5 million on new capital expenditures, as well as $8.3 million in carryover funding from 2016 that can be spent this year.

The varied capital program includes a new training track safety rail at Belmont Park, a new track cushion at Belmont, and design work on a proposed three-story, At the Rail facility near the clubhouse at Saratoga Race Course—an idea that still needs final state approval.

NYRA also is planning to construct a new pony barn at Belmont, replace fire suppression systems in barns, and to renovate four dormitories at Saratoga. Also at Saratoga, NYRA is looking to create "junior boxes" to be located at the east end of the grandstand that Kay believes will be "conducive to attracting a younger audience." The boxes would be suites with chairs and sofas able to accommodate eight people, Kay said, with a food and beverage area located nearby.

A NYRA plan also was approved to replace an existing patio canvas roof at Saratoga with cooper, which caught the attention of one oversight panel member. Kay said NYRA wants to use copper for the "historic issues" associated with the racetrack. The capital plan also includes everything from standardizing type fonts and colors on signs scattered around the tracks and $100,000 on new tables and chairs for the club terrace and porch at Saratoga.

The 2017 NYRA operating budget projects small declines in gross revenues from on-track, export signal, and OTB wagering. Its net revenue from racing operations is projected to decline 1.6% to $159.8 million in 2017. Total operating expenses is projected at $157.7 million. Total race days at all three tracks is projected at 226 dates in 2017, down four dates from 2016 and 14 dates from the most recent five-year average.

Total handle is projected to drop, again, by 2% from 2016 to $2.5 billion. NYRA officials say that comes from budgeting conservatively, a lower handle from OTB operators in New York. and "strategic changes" to reduce race dates to maintain field sizes during the winter meet at Aqueduct and fall meet at Belmont.

Revenue sharing payments distributed from the Resorts World Casino at Aqueduct will decline 3.3% in 2017 to $118 million from 2016. That will reduce casino revenue sharing payments for purses by $2.1 million to $61 million.