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Posted on Tuesday, December 5th, 2006
(AP) Owners and trainers at the New York Racing Association tracks have sued the track operator, claiming it diverted $15 million to $20 million to operational costs that should have gone to winnings. The horsemen filed suit Nov. 30 in U.S. Bankruptcy Court in Manhattan, where NYRA filed for Chapter 11 protection in November.
The suit claims NYRA, which operates three tracks in New York state, is in violation of multiple sections of state racing law, which requires that certain percentages of bets placed go directly to purses.
The horsemen argue that in preparing its books of betting estimates, NYRA deliberately underestimated the total amount wagered. The horsemen further claim NYRA didn’t put the actual difference between what was taken in and then paid out in winnings, called the purse cushion, toward future purses.
The horsemen estimate the purse cushion is at least $15 million and could be as high as $20 million. They say the purse cushion should only be used to fund purses.
The horseman want the bankruptcy court to bar NYRA from using the purse cushion to fund its business during its bankruptcy case. A hearing hasn’t yet been scheduled on the suit.
The suit has been tacked on to NYRA’s bankruptcy case, which the non-profit filed when the state withheld $30 million in operating funds in an attempt to block the association from installing video-lottery machines at its tracks.
NYRA says the machines are needed to cover costs. NYRA, which has been in charge of the three premier tracks in New York, Saratoga, Belmont, and Aqueduct, since 1955, filed for Chapter 11 Nov. 2 with assets of $153.3 million and debts of $309.9 million.
"Horsemen Sue NYRA For Mishandling Funds" was posted on Tuesday, December 5th, 2006 at 10:04 am and is filed under Aqueduct, Belmont Park, Horse Racing Industry, Race Tracks News, Saratoga, USA Horse Racing. You can follow any responses to this entry through the RSS 2.0 feed. Leave a response, or trackback from your own site.
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