NYRA officials are warning that if a resolution to the dispute over thoroughbred horse racing in New York is not reached by Dec. 31, racetracks could go dark starting on New Year's Day.
While some critics dismiss the prediction as political posturing, New York Racing Association head Charles Hayward insisted it is a real possibility. And he says it grows more real as each day passes without a solution to who will run the state's three largest thoroughbred race tracks: Belmont, located in Elmont; Aqueduct in Jamaica, Queens; and Saratoga in upstate New York.
"The last thing we want to do is to have to have racing stop," Hayward said. But "it's certainly possible."
NYRA's franchise to run thoroughbred racing expires Dec. 31. Under state law, a state racing oversight board could temporarily take over running the tracks.
But Hayward said NYRA would fight any attempt to place another entity in charge of racing because it owns the land where the three tracks are located. Hayward said the land is worth at least $1 billion.
He said NYRA would not voluntarily give up its claim to the land or let another entity take over racing on it without receiving compensation.
Some NYRA competitors for the franchise bid said Hayward is blowing smoke to pressure state officials to grant NYRA a new franchise for 30 years.
"That sword of Damocles - it's a fictitious sword," said Karl O'Farrell of Capital Play, one of the entities vying to run racing in the state and operate video lottery terminals at some tracks, including Aqueduct and possibly Belmont.
"I think NYRA would destroy themselves forever" if they shut down the tracks, O'Farrell said. "It would be very upsetting for the industry. It's not the sort of thing to say lightly."
Racing has shut down before in the state - including in 1911-12, when wagering was outlawed; during World War II, when travel restrictions closed Saratoga; and after the Sept. 11 attacks for a few days.
Bennett Liebman, an Albany Law School professor and racing expert, said technically NYRA might have the capability to assert its land claim and block the oversight board from taking over.
Still, he added, he doubts that politically a shutdown could happen. "Closing off racing could potentially be a very risky political strategy" because of the backlash, he said.
Gov. Eliot Spitzer's spokesman said the governor is committed to resolving the dispute and avoiding any shutdown. Spitzer "believes that it is in the interest of racing ... for there to be a seamless transition" from the current NYRA franchise to whoever gets the new one, spokesman Paul Larrabee said.
If no deal is reached by Dec. 31 and the oversight board moves to take over the tracks, the dispute over what happens next likely will land in federal bankruptcy court, where a judge is overseeing NYRA's case. NYRA entered bankruptcy proceedings last November.
Critics contend NYRA's claim to the land is baseless, although Hayward said the association has held the deeds for more than 50 years and paid property taxes, though it failed to pay all taxes in Nassau County during the past few years.
[Aqueduct Racetrack, Ozone Park, NY 11417]
