NYRA chief defends execs' raises
Charles Hayward, president and chief executive of the New York Racing Association visits Belmont Park Racetrack. (Oct. 4, 2007). Credit: Newsday / Michael E. Ach
Executive compensation at the New York Racing Association increased this year despite a projected two-year operating loss of nearly $29 million, the head of the state franchise that operates the Aqueduct, Belmont and Saratoga racetracks confirmed Monday.
The 3 percent raises that took effect in January were justified because the executives haven't had raises in three years, while their health insurance payments have doubled over that time, NYRA chief executive and president Charles Hayward said at a news conference in Albany to tout the Saratoga season.
Hayward estimated NYRA's projected operating loss for 2011 at $11.6 million, a year after the organization lost $17.3 million.
NYRA, plagued for years by poor management and sinking revenue, emerged from Chapter 11 bankruptcy protection in 2008 with the help of a state bailout that gave NYRA $30 million to tide it over until the Aqueduct racino opened.
Hayward also addressed a complaint by the state's Financial Oversight Board about the organization's finances.
The board cited "significant and unacceptable gaps" hampering its efforts to obtain and analyze information about NYRA's proposed budget, Robert Megna, the state budget director and the head of the board, told Hayward in a letter last week.
NYRA officials didn't comment on the executive raises at the time.
On Monday, Hayward said NYRA provided its executive compensation plans to the board Thursday. He refused to release details of the information and said if anyone wanted to find out how NYRA executives are compensated, they could contact the oversight board. A call left with a spokesman for Megna's office wasn't returned.
NYRA still expects the first phase of the racino at Aqueduct to open in September or October, Hayward said.
NYRA and the state are banking on the racing association's share of revenue from the 4,500 video lottery machines eventually to be installed at the Queens track to pump millions of dollars into the NYRA's coffers.
That will allow NYRA to boost race purses and keep attracting the sport's top horses and trainers, he said.
"We will definitely be in the black in 2012," Hayward said.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
