New York Racing Association releases information to Franchise Oversight Board
Charles Hayward, Chief Executive of The New York Racing Association (NYRA) apologized to the Chairman of Franchise Oversight Board, Robert Megna, in a press event for not appearing in front of the oversight board meeting.
The issue concerned the lack of fiscal transparency NYRA showed and on 21 June NYRA was issued a letter from the Franchise Oversight Board stating that if NYRA does not come out on in the open, regarding their race group’s finances then a panel would be set up to investigate the association.
Charles Hayward was summoned to a meeting by the state panel for questioning, regarding the issue. However, Hayward failed to make it to the meeting, thus apologized, and, added that he was swamped with all day meetings with pre-existing commitments.
NYRA has assured to disclose the salary information that the oversight board so eagerly wanted and further pledged to work alongside the board on a long term financial basis.
Disclosure came with conditions. NYRA did not want the board to make public the information regarding the salaries of senior officials but to display whatever other material NYRA provided to the Franchise Oversight Board.
NYRA salaries were attacked by political leaders and the press last year and the same scenario occurred at that time when the oversight board asked for similar kind of details from NYRA.
The New York Racing Association held back even then but due to public pressure gave away the information regarding the salaries of higher officials and responded to the call.
The association gained 5.5 percent raises last year for its executives and the rest of the association gained 3.3 percent raises.
Another important piece of information was pried out of the association. Chief Executive, Charles Hayward, was receiving $460,000 in compensation, making him the highest paid individual. The second highest would be Hal Handel, chief operating officer, who was receiving, $440,000 in compensation.
The oversight board raised questions regarding the loss incurred by NYRA in 2010, which was approx $17.1 million due to a slight reduction in betting revenue, and, that there was 7.9 percent worth of expenses made despite the major loss.
In defence, Hayward states that the association is bound to make large profits in the coming years. Hayward pointed out the casino, which is to open at Aqueduct, and, the revenue percentage that NYRA will receive from the revenue generated by the casino.
Money will be injected in the form of subsidies through the casino and a total of 7.5 percent will be received by NYRA, which mean $30 million, in additional revenue.
It was a busy and somewhat embarrassing day for the Charles Hayward of NYRA, where he had to apologize and admit that he made mistakes but promised that from now on, NYRA will not keep information hidden.
Tags: