NYRA achieves third consecutive operating profit

by Pat McKenna

The New York Racing Association (NYRA) reported today that it forecasts to conclude 2016 with a third consecutive operational profit based on income from racing operations. The announcement was made at this morning's Reorganization Board of Directors meeting in New York City, which was open to the public and streamed live on NYRA.com.

During the meeting, the board voted to approve the 2017 NYRA budget, which builds upon the success of the prior three years and reflects NYRA's focus on its strategic priorities: to enhance the guest experience; improve the quality of racing and continue to develop a strong financial foundation for NYRA.

Capital projects approved under the 2017 budget include:

Aqueduct:

• Guest area improvements

• Upgraded, improved signage throughout the facility.

• Installation of a new track cushion to enhance the safety of horses and jockeys

• Continued security and safety upgrades to the facility and backstretch.

 Belmont Park:

 • Construction of a new dormitory on the backstretch.

• Improvements to existing barns

• Upgrades to the heating and cooling systems throughout the facility

• Continued security and safety upgrades to the facility and backstretch.

 Saratoga Race Course:

• Upgrades to existing barns.

• Design phase and permitting process for the "At the Rail" pavilion.

• Installation of a new passenger elevator in the grandstand.

• Construction of additional boxes in the grandstand.

• Continued restroom and ADA upgrades throughout the property.

• Additional upgrades to the irrigation systems on the Mellon and inner turf courses.

• Continued security and safety upgrades to the facility and backstretch.

 The board heard from Chris Kay, NYRA President and CEO, who described the successes achieved in 2016. Kay reviewed race meets across all three NYRA tracks and pointed to another record-setting Saratoga season which featured the launch of NYRA Bets and the expansion of NYRA's live television offerings. Looking forward to 2017, Kay noted the continued emphasis on the transformation of NYRA's digital properties and upcoming launch of new applications to better serve horseplayers and fans.

 The Board also received reports from senior executives at NYRA directly responsible for areas critical to the continued transformation of NYRA. 

 David O'Rourke, Vice President and Chief Revenue Officer, addressed the launch and ongoing expansion of NYRA Bets. O'Rourke noted that NYRA Bets was successfully launched in August and provided an update on overall market conditions. 

 Tony Allevato, President of NYRA Bets, and Executive Producer of NYRA TV, addressed the strategic link between NYRA Bets and NYRA's signature Live shows. Allevato noted that NYRA Bets continues to expand its operations into new markets while effectively expanding the customer base. Allevato provided an update on the strength of NYRA's television offerings as a driver of wagering, noting that the initial rollout of NYRA Bets has exceeded expectations.

 Glen Kozak, Vice President for Facilities & Racing Surfaces, provided the board with an update on various capital improvement projects either completed or upcoming. Kozak noted that NYRA has:

 • Completed and opened a brand new, 47-room dormitory on the backstretch at Belmont Park and will break ground on Dorm 2 in Q1 of 2017

• Completed a renovated, greatly expanded training track and clocker's stand at Belmont Park

• Continued a commitment to providing the best, most modern facilities for the backstretch community 

 During the meeting, the board received an update from Joe Lambert, Senior Vice President, and General Counsel for NYRA, regarding compliance with New York State performance standards for 2015. Lambert noted that NYRA is in compliance with the Performance Standards as detailed in the Franchise Agreement between NYRA and New York State.