Spitzer will not re-bid Franchise
Ad Hoc Committee recommends Excelsior Racing
Awarding of NYRA Franchise proceeds with Excelsior Racing being chosen by Ad Hoc Committee. Empire Racing is still a contender.
New York racing took a significant step forward today, when Governor Eliot Spitzer and his administration declared they have absolutely no intention to require the NYRA franchise proposals to be re-bid. It had been speculated that since the requests were received and evaluated prior to his election, Spitzer might have opted to have the process scrapped and renewed. Fortunately this is not the case, and the process can, at least for now, go forward. Despite the many choices and political battles that are foreseen for the future, today’s decision provides a glimmer of hope, and fans of New York racing can breathe a little easer.
The Ad Hoc Committee on the Future of Racing in New York released its full written report concurrently with this announcement. The report solidified the Committee’s recommendation that Excelsior Racing Associates be granted control of the state’s horse racing franchise, a conclusion first released in November 2006. The Committee consists of members appointed by former Governor Pataki and members of the state Senate and Assembly. While the recommendation is non-binding, it does carry with it some weight, as Committee members are very well respected in the racing community.
It was feared that the original Request for Proposals issued in June 2006, which asked for three separate options to be delineated, might be questioned by Governor Spitzer, and the entire process be scrapped. The three options were based on different scenarios of New York racing laws and how each bidder would run the franchise under these conditions. Spitzer is also on record as being critical of the way the bidders were ranked by the Committee. Luckily, the recommendation is now final and the process can continue.
Steve Swindal, Chief Principal of Excelsior Racing Associates, announced “The Excelsior team is delighted that a bipartisan panel of experts recommended that Excelsior assume leadership of the New York racing franchise. We are even more excited that New York racing fans and taxpayers will now be able to see what we have long known: Excelsior’s proposed plan for the future of horse racing in this great state is the best choice for horsemen, taxpayers, and fans alike.” Furthermore, he boasted, “Excelsior’s total investment in New York racing amounts to more than one billion dollars. Our team has guaranteed a five year, $300 million capital improvement plan, and has committed to keeping the pension plan solvent for the hard-working men and women currently employed by New York racing, the only bidders to do so. We believe our team’s leadership, experience, and vision are unparalleled, and are confident that the legislature and the Governor will give the Committee’s recommendations the full weight they deserve.”
Another representative of the team, Jerry Baily, was a little more subdued, saying “Excelsior’s commitment to the horsemen and fans of New York is unparalleled, as the Committee’s recommendations today confirm. In addition to guaranteed race days, vast improvements to the backstretch, and higher purses, Excelsior is steadfast in its commitment to ensuring that horsemen and women have a voice in the future of the franchise.”
Paul Larabee, a spokesman for Spitzer stated “It is not his intention to re-bid the entire proposal.” Of the Committee‘s non-binding recommendation of Excelsior Racing Associates, Larabee stated of the Governor “He does not feel bound by it.” Excelsior Racing’s bid was judged to be preferable to that of Empire Racing Associates, a group comprised of horsemen, owners and industry giants from Churchill and Magna. Empire’s scoring was found to be only slightly less than Empire’s winning bid. Upon hearing the decision, Empire released a statement, stating “To put New York Racing back on top, the next track operator will be the entity that includes New York’s horsemen, and the entity that is judged to be the strongest in the areas of integrity, experience, and economic development. These are the priorities identified by Gov. Spitzer, and these are the areas where Empire Racing has been judged superior. We expect these crucial issues will assume a greater importance, not less, going forward.” Empire may still be a player, for the group has the exclusive endorsement of the New York Thoroughbred Association.
The remaining bidders are non-contenders. The New York Racing Association, the current franchise owner, is currently bankrupt and will be in court on Thursday to acquire a loan. The state has filed a petition to dismiss the bankruptcy claim. In dispute here is who owns the race track land. Needless to say, it appears that NYRA’s days are numbered. The final bidder, Capital Play, was disqualified months ago for failing to post a bidder’s bond in a timely fashion.
The road ahead will be long, hard and politically charged, as the state officially awards the final bid, and there are many complex issues to be resolved, such as land ownership, legal changes to existing racing laws and the presence of video lottery terminals at Aqueduct. Many obstacles lie ahead, but today’s announcements were a much needed step in the right direction.
