The NTRA has budgeted $4.7M in revenues from the
voluntary 1% surcharge levied on the buyers of horses at
auction sales through April 1 to "fill a funding hole" in
its FY 2000 budget, according to Matt Hegarty of the DAILY
RACING FORM. The $4.7M figure would require an estimated 65%
"participation rate" in paying the surcharge. Hegarty noted
that if its budget "does not hit its marks," the NTRA "faces
a further increase in its deficit -- $2.9 million since
start-up." The NTRA is "projecting a surplus" of $1.5M this
FY. Hegarty noted disagreement over the willingness to pay
the tax, which has become a "lightning rod" for owners.
West Point Thoroughbreds Syndicate's Terry Finley: "We're
paying it, absolutely. I wish these other people would stop
digging in their heels and start giving these people a
shot." Team Valor racing syndicate head Barry Irwin: "I'd
like to be a lot more impressed with the leadership before I
commit any of my clients' dollars." NTRA VP/Communications
Chip Tuttle, asked if the NTRA "expected to revise" its
budget numbers: "We're going to have to take a look at the
level of participation after the invoices start coming back.
... It's too early to tell until then." Tuttle adds, "The
people we've heard from, it's not a matter of not wanting to
support the NTRA. It's knowing who else is contributing and
what they are contributing" (DAILY RACING FORM, 8/29).
MONEY, SO THEY SAY: The SPORTSBUSINESS JOURNAL's Liz
Mullen reports that Salomon Smith Barney "is estimating"
that the TV Games Network "could be worth" $1.9-2.1B by 2005
(SPORTSBUSINESS JOURNAL, 8/30 issue).
