OFF WITH CONCERNS
Change may be slow for new NYRA board
SARATOGA SPRINGS, N.Y. >> The long- awaited reprivatization of New York Racing Association contains many of the provisions Assemblywoman Carrie Woerner hoped for.
The compromise agreement was part of the state budget lawmakers approved recently.
But Woerner, D-Round Lake, has concerns about the new 17-member board’s makeup because it’s expected to include many of the same government appointees that were on it before.
“I’m pleased that reprivatization happened, that the financing of NYRA is secured and that we’ve gotten horsemen and breeders represented
on the board,” she said. “It’s a bit concerning that membership of the board won’t change overnight, but it will over time.”
Also, it’s uncertain if a Saratoga Springs resident will be on the new board.
The law allowing for reprivatization says “knowledge of the marketplace and communities” in which NYRA operates must be included as a “factor in board selection.”
It doesn’t specify that a board member must come from Saratoga, or the communities Belmont Park and Aqueduct Racetrack are located in.
Recently, Georgeanna Nugent Lussier has been the lone Saratoga Springs resident on the board.
Since October 2012, the board has been comprised of 12 state appointees and five private members. The new makeup calls for six state appointees -- two each by the governor, assembly and senate -- eight
executive committee picks, plus the NYRA president (Chris Kay), and one representative each for horsemen and breeders.
But the executive committee is comprised mostly of state appointees, and several of their new “private sector” picks reportedly are celebrity chef Bobby Flay, Marc Holliday and Joseph Spinelli -- who first joined the board as state appointees.
So, for the time being, Gov. Andrew Cuomo’s influence over the board remains pretty much the same. Cuomo also gets to nominate the board chairman.
Under terms of NYRA’s 25-year franchise agreement, only private- sector board members were supposed to select new private members.
Last year, Cuomo advanced a plan that would have given a state Franchise Oversight Board, which monitors NYRA’s business activities, expanded powers including the right to withhold casino gaming revenues if NYRA doesn’t meet cer- tain financial goals.
Woerner said this provision was “slowed down,” but not eliminated under the new reprivatization plan.
NYRA would have to fall short of financial benchmarks for two consecutive years before the Franchise board could impound money, and the Franchise board would have to approve such action unanimously, Woerner said.
The main advantage of reprivatization is that NYRA now has the ability to pursue strategic, longterm planning, which it couldn’t do under state control. As a state entity, NYRA was subject to open meetings law provisions, which allowed competitors
to listen in on everything NYRA was doing.
“That doesn’t create an atmosphere where you can have a free and open discussion,” Woerner said.
Now the board can get to work on serious decision making, she said.
The new board comes into existence when a majority of members (9) are appointed. This is expected fairly soon, meaning NYRA’s reprivatization should be complete before the 2017 Saratoga Race Course meet begins on Friday, July 21.
“We thank the governor and legislature for their support in returning the New York Racing Association to private control,” said Kay, NYRA’s president and chief executive officer. “NYRA is the cornerstone of an industry responsible for more than 17,000 jobs and $2 billion in annual economic impact across our state. As a private entity, we look forward to continue to grow interest in our racing, expand our fan base, and promote New York’s important tourism and agriculture sectors.”
“That doesn’t create an atmosphere where you can have a free and open discussion.” — Carrie Woerner, Democrat — Round Lake