Faraldo on SOA of NY deals with NYRA and NY OTB

In the Sunday July 30 edition of Harness Racing Update a statement appeared blaming the SOA of New York for its role in negotiating with NYRA and the NY OTB’s establishing various benchmark revenue protections for the NY harness racing industry. Those protections, were negotiated to insure that NY’s revenue stream remained in place, or were added, when NYRA and the NY OTBs wanted to take out of state thoroughbred signal at night. That would have hurt New York harness racing which traditionally operated in the sole New York market — nighttime. All New York state harness track operators and horsemen supported those protections.

Those negotiated deals brought protections in the form of a maintenance of an effort provision from the OTBs and the provision that does not authorize NYRA BETs to take other than NYS harness signals at night. These safeguards are in place, not solely for the benefit of the SOA of NY, but were done, and with the approval of, the NYS harness track operators and upstate horsemen’s’ associations.

The results, brought, over many years, and, continue to bring, tens of millions of dollars split equally between various NYS track operators and NYS horsemen’s associations today.

In addition, and as part of an OTB initiative, the NYS harness tracks and their horsemen share in a percentage of a surcharge levied upon all out of state ADWs that take wagering action from NYS residents. That revenue, supplies Yonkers and MGM and other NYS harness tracks and their horsemen, including NYRA, with, millions of dollars. NYRA is not prohibited from taking action from NYS residents and does so through its separately created own out-of-state ADW which is either based in Oregon or Idaho. The NYRA out-of-state ADW, like all others is subject to the levied surcharge, while NYRA Bets, a NYS ADW, would not be. If NYRA Bets were to be relieved of its responsibility to the NYS harness racing industry it would benefit NYRA and The Meadowlands at the expense of NYS harness racing in multiple ways.

I can, from experience, acknowledge that The Meadowlands has connections to NYRA and its Fox Sports network. Last year, Fox Sports indicated an interest, at the request of the SOA of NY, to televise the International Trot (IT), but that was inappropriately tied to the SOA of NY’s giving up the protections it helped put in the law, especially to remove the agreed upon protections, and allow NYRA to abandon its commitment to NYS harness racing that funnels money to MGM, Yonkers purses and similarly, all the other NYS tracks and their horsemen at our expense. The SOA of NY alone does not have the right to negotiate or give away other people’s money – think Saratoga harness for example – money which helps the NYS harness industry and NYS Agriculture by providing revenue to these harness tracks.

Sadly, The Meadowlands, in lock step with NYRA, saw fit to interfere with an opportunity for that international harness racing event, the IT, to be showcased on Fox Sports TV last year unless the SOA of NY succumbed to giving up every NYS harness tracks benefits, the net result of which would add revenue to both NYRA and The Meadowlands’ coffers at New York’s expense.

Additionally, and equally as sad, some highly-invested foreign amateurs drivers looking for a much coveted chance to race at The Meadowlands, as was the case in the past, were in the 11th hour summarily excluded and denied that experience, unless those concessions from the SOA of NY, affecting the economic interests of all NYS harness tracks, were made to both The Meadowlands and NYRA. Make no mistake about it, all this took place last year.

The SOA of NY is proud to have played a vital role in negotiating, on behalf of its members and all NYS tracks, things like statutorily protected revenue from VLTs and casinos, as well as minimum race days, something vehemently opposed by one NYS track operator in particular.

It is unfortunate that this was brought up at this time, before the Hambletonian, in last Sunday’s Harness Racing Update, but something like this needed to have all the details filled in. I am very sorry to have been forced to respond. I am proud of what has been done over these many years to protect the harness industry in NYS.

Joe Faraldo / president SOA of NY

Gural: Faraldo may be right, but…

I saw that Joe Faraldo had an explanation (published elsewhere) for why it is in the best interests of the horsemen at Yonkers not to allow NYRA Bets to take wagers on out of state harness tracks. To be honest, I was at Saratoga last week and met with the NYRA TV people and they brought this to my attention, and I just assumed their complaint had merit.

As far as I know, Joe may be right, but it does seem a little strange now that we have this strong relationship with NYRA and NYRA Bets that it is in our best interest of the horsemen at Yonkers not to allow them to take wagers on out of state harness racing.

One thing I do know is that when I reached out to the people at Yonkers to see if they would help me catch the drug users and share some of the costs, they told me they were not interested. We already know that Joe’s trainer, Richie Banca is in prison and Allard who was the leading trainer at Yonkers is also incarcerated so you would think they would have wanted to help clean it up but that is not the case.

In any case, as far as I know Joe may be correct with his analysis because it is not very important to us at The Meadowlands and, as I said, it just seems foolish now that we have such a strong relationship. The only reason the Hambletonian was on national TV is because of the strong relationship we have with NYRA and NYRA Bets. Obviously, you will not see any stakes races from Yonkers on national TV anytime soon.