Franchise Bidders in Glass Houses...

Empire Racing steps up the propaganda campaign against NYRA with a press release citing 'disappointing' attendance figures at the 2006 Saratoga meet.

Total attendance at Saratoga Race Course has fallen each year since 2003, from a peak of 1,049,309 in 2003 to 908,569 in 2006 – a total decline of 13%, according to NYRA figures cited in the Empire Racing release.

NYRA's own spin notes that on-track average attendance was actually up very slightly in 2006: 25,939 fans per day, compared to 25,914 fans per day in 2005. Overall handle increased 5%, and Saratoga continues to top all other racetracks in attendance, handle and purses.

Empire, not surprisingly, fails to acknowledge the attendance problems of Churchill Downs and Magna Entertainment, the two largest 'for-profit' racetrack operators in the U.S. and key supporters of Empire's bid for the NYRA franchise. At Churchill's signature spring meeting average daily attendance in 2006 slipped 11%, to 12,319.
And, as Bill Finley notes on ESPN.com, what racetrack has not seen on-track declines since 2003? He makes particular note of Magna's performance at Gulfstream Park.

"Perhaps no track in the nation has seen more severe declines in on-track attendance in recent years than Gulfstream Park, which is run by Magna Entertainment. That's the same Magna Entertainment that is partnering with Empire it its bid to take over New York racing. Funny how Empire has failed to put out a press release castigating Magna for its many failings."

Empire Building toward New York Racing Franchise

Churchill Downs and Magna Entertainment announced this week that they have joined Empire Racing’s bid to takeover the New York racing franchise currently held by NYRA. Empire Racing has previously announced the support of Delaware North (operator of Finger Lakes); Woodbine Entertainment (the Canadian racino operator); and Scientific Games (a pari-mutuel systems supplier). Empire Racing bills itself as “a group of visionary New York horsemen and breeders seeking to revive New York racing by securing the exclusive right to operate the three New York Thoroughbred racetracks (Aqueduct, Belmont and Saratoga1:place>).”
What’s not clear (at least I haven’t seen it reported anywhere yet) is who or what is the true financial power behind the folksy Empire Racing façade. What force has managed to bring all these competing interests to heel behind the bid? New York State comptroller Alan Hevesi put the value of the state racing franchise at $1 billion or more last September (which exceeds the combined market capitalization of both Churchill and Magna Entertainment). Who is ready to front this type of money for Empire Racing? Are New York horsemen and breeders sitting ready with access to a $1 billion warchest? None of the Empire Racing ‘supporters’ identified to date have been willing to discuss the terms of their involvement, but it doesn’t they are committed to putting major cash behind the bid. The parties simply seem to accept Empire as the inevitable winner of the franchise, and are just lining up behind the bid to gain whatever benefit they can. Who’s really pulling the strings at Empire Racing?

TBA blogger and Racing Saratoga correspondent Alan (of Left at the Gate) has some excellent points on the issue over at Saratoga Racing Daily.