Pataki Proposes $250M Fee For Thoroughbred Franchise

Pataki Floats $250M One-Time Fee For Thoroughbred Franchise

A plan proposed by New York Gov. George Pataki would require the new holder of the state’s Thoroughbred franchise, now held by NYRA, to “pay the state a one-time fee” of $250M, according to Tom Precious of BLOODHORSE.com. In addition to the $250M fee, the buyer would be “required to pay annual fees to the state.” Pataki also called for the creation of a Non-Profit Racing Association Oversight Board “to make recommendations regarding the franchise.” NYRA’s franchise to run Aqueduct, Belmont and Saratoga expires December 31, 2007. The lengthy bidding process “could begin as early as this year” (BLOODHORSE.com, 1/18).

INTERESTED? While there has been “considerable speculation that an undetermined number of members of NYRA’s board of trustees might create a for-profit corporation to bid on the franchise,” NYRA President & CEO Charles Hayward said that the “current setup is best for racing in New York.” Hayward: “I don’t think privatization is the best option. The whole point is that private companies run their racetracks for shareholders, not necessarily to run the best product. Despite all the deficiencies on the business side, NYRA has demonstrated without question the ability to run a top-level racing program” (THOROUGHBRED TIMES, 1/18).

CRIME WATCH: In N.Y., Sherry Ross reports NYRA “is terminating simulcast agreements” with U.K.-based Euro Off-Track, Curacao-based Int’l Racing Group & Elite Turf Club, and Oklahoma-based Tonkawa Indian Reservation, all of which “were named in the indictment handed down last week” as part of an investigation into a race-fixing scandal. Hayward: “NYRA is undertaking an aggressive and expedited review of a number of selected secondary parimutuel organizations” (N.Y. DAILY NEWS, 1/19).