State takes reins at NY Racing Association
The troubled nonprofit will see its 25-member board replaced by 17 new directors to be appointed by Gov. Andrew Cuomo and state legislators. Its chief executive recently exited over misappropriation of funds.
The New York Racing Association will be controlled by state government for the next three years, announced Gov. Andrew Cuomo, who outlined an agreement Tuesday with the two top state legislators to reign in the embattled organization.
Currently under investigation by the state for alleged corruption, NYRA's 25 board of directors will be replaced by 17 directors, seven of whom will be appointed by the governor. The rest will be selected by state legislators and the current NYRA board members.
The nonprofit organization, which operates the three largest horse racing tracks in New York— Aqueduct Racetrack, Belmont Park and Saratoga Race Course—fired its CEO Charles Hayward along with chief counsel Patrick Kehoe on May 4 for misappropriating $8.6 million in wagers.
There is separate investigation into an alarming number of equine deaths at Aqueduct Racetrack this year.
"New Yorkers can be assured that the NYRA Reorganization Board will act in the interests of the members of the public who enjoy horse racing, the taxpayers who support it and the horses themselves, to make racing in our state the strongest, safest and most enjoyable in the country," said the governor in a statement.
Assembly Speaker Sheldon Silver and Senate Majority Leader Dean Skelos each signed on to the agreement with the governor, which will require legislation to implement.
"Within the next week you can expect the legislature to pass a bill authorizing the takeover," predicted Jerry Kremer, former chairman of the New York State Assembly Ways & Means Committee, who was involved in horse racing legislation during his tenure in Albany.
Mr. Kremer, who runs a government relations firm, Empire Government Strategies, added that "the state is moving quickly."
Several NYRA board members were quoted in the governor's press release, including board chair Steven Duncker who said, "I thank the members of the current NYRA Board for supporting the changes announced today and together we will work to ensure a smooth transition and bright future for New York racing."
The board will be in effect for three years to restructure NYRA. The new board, once appointed, will begin a search for a new CEO and general counsel.
The move comes just two weeks before the Belmont Stakes on June 9. There is heightened interest this year in the race since the horse "I'll Have Another" won both the Kentucky Derby and Preakness Stakes, making it a Triple Crown contender.
The Belmont Stakes sold out of its 120,000 tickets in 3 minutes, according to a spokesman for the National Thoroughbred Racing Association.
"As the upcoming Belmont Stakes shows, the racing industry is a vital part of the New York State's culture and economy, attracting millions of dollars in tourism revenue from across the nation and supporting thousands of jobs," said the governor.
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