Derby Countdown: NYRA & Legislative Leaders Reach Agreement

After two days of negotiations in Albany, New York, the NYRA and state legislative leaders reached an agreement. (AP Images)

After two long days of fervent negotiations in Albany, New York, the New York Racing Association and state legislative leaders finally reached an agreement which extends NYRA’s franchise for 25 years.

The agreement, which includes the state taking arbitrary title to the three NYRA’s racetracks, will close a stormy ongoing battle for the past three years deciding the fate of the franchise rights to operate Aqueduct, Belmont and Saratoga.

As stated several days ago, NYRA is operating under a short-term extension that expires today. The Non Profit Racing Association Oversight Board is scheduled to meet on Wednesday night to discuss another short-term extension until March 6, during this time period NYRA is preparing to strike a deal with the state and make the land transfer official.

NYRA has filed a reorganization plan with the bankruptcy court and under the plan NYRA will receive $75 million to help fulfill its financial obligations. NYRA filed for bankruptcy late in 2006. If necessary, the association will also receive $30 million from the state to fund its operations during 2008.

Another requirement of the bill is the state chooses an operator for the Aqueduct casino which has had construction blocked by state officials due to NYRA’s legal and financial problems. The 2001 bill legalized slot machines at eight tracks in the state.

Also under the bill, the make up of members of the board had become a significant sticking point in the negotiations over the final two weeks. Get your 2008 Kentucky Derby futures in the Bodog Racebook today.