Skorton Signs Off From NYRA Board
The New York Racing Association (NYRA)’s Board of Directors held its final meeting of 2014 in midtown Manhattan Wednesday morning, and marked the final time the meeting was led by Dr. David Skorton, who confirmed he will be leaving his role as chairman as he prepares to transition from president of Cornell University to becoming the head of the Smithsonian Institute.
As was announced during its most recent Board meeting in New York City, NYRA Chief Executive Officer Christopher Kay confirmed that the association will report an operating profit of $1.5 million in 2014 and projects a gain of $2.1 million for 2015 exclusive of VLT operating funds. According to Kay, NYRA has “identified a number of strategic initiatives to enhance revenues and reduce expenses.” Among the strategies to be employed to increase revenue, NYRA will look to enhance its ADW technology and other customer relationship management platforms, as well as looking into increase sponsorship revenue. NYRA remains focused on the rollout of a national ADW platform as a means for long-term growth, while it also plans to selectively increase prices for admissions, box seats, and parking in addition to increased fees for its simulcast signals. It will also continue to focus on big race days, similar to the Belmont Festival and Stars and Stripes Festival in 2014.
NYRA will also attempt to grow its business by reducing operating expenses. It plans on closing the Aqueduct training center during non-racing months, reduce costs relating to the phone wagering operation by negotiating a new cable contract with the City of New York and by closing the Belmont Cafe on dark or unprofitable days. The organization will also effort to reduce overall labor expenses.
NYRA anticipates that due to less racing and projected field size, handle on its product will decrease by 3% versus 2014. For the Aqueduct winter meet, field size is projected a 6.85 horses per race (up from 6.6 in 2014), while Belmont Spring is anticipated to remain steady at 7.5. Saratoga is expected to attract an average of 7.8 runners per race–a slight downtick from 7.9 in 2014–while Belmont and Aqueduct Fall are projected to have an average field size of 7.7, down from 7.9 at each meet in 2014.
A total of 250 racedays are scheduled for 2015 compared to 252 for 2014. The Aqueduct winter meeting will feature 74 live racing days (Jan. 1-Apr. 26) with a week-long break programmed for the end of March. There will be 59 live dates at the Belmont Sprint Meet (Apr. 29-July 19), an increase of five days due to a shift in the racing calendar. Saratoga will conduct 40 live days of racing (July 24-Sept. 7), before racing returns to Belmont for 38 days (Sept. 11-Nov. 1). There are 39 days scheduled for the Aqueduct Fall Meet (Nov. 4-Dec. 31), one day fewer than 2014.
Prior to a discussion of the financials with Kay and Chief Financial Officer Suzanne Stover, Board Member Bobby Flay broached the raceday medication issue, imploring NYRA to institute 2-year-old races exclusively for horses who race without Lasix. Flay noted that the United States is the only racing jurisdiction in the world which allows the use of raceday medication and that “taints” American bloodstock. Fresh off his re-election as the president of the New York Thoroughbred Horsemen’s Association, Rick Violette Jr., an ‘ex-officio’ member of the Board, took up the defense, saying that Lasix is not the issue while suggesting to Flay that the sale of American bloodstock to overseas interests is up, not down. Board member Leonard Riggio, for whom Violette Jr. trains several horses, admitted that he understood Flay’s argument, but suggested that the Board of Directors should be invested with some authority in drug-related issues. Currently, the power is invested with that authority. Playing the role of mediator, Skorton said that one thing that could be agreed upon as it relates to raceday medication is that “the perception is negative.”
With NYRA expected to emerge from its government oversight next October, the next meeting of the Board is not scheduled until March 2015, though Kay told those on hand more meetings could be scheduled as discussions over the future shape of NYRA take place.