They're Off In The Senate

- The State Senate conducted their first hearing on Spitzer's NYRA proposal, and a lot of what we read in the papers today really could have been written last week. That particular House of the legislature is the last corner of state government still controlled by Republicans, if just barely, and given the current tensions in Albany, it's little surprise that they expressed skepticism over the plan, complaining that they weren't consulted and that it was put together hastily.

I think that, at this point, if Spitzer came out and said he was now against any campaign reform and that special interest money (like that which he received from the franchise bidders) is good, Joe Bruno would then put on the Governor's corruption buster helmet and launch investigations of himself. So while I'm not alarmed to hear Bruno say “I can tell you now that what the governor submitted is not going to be the final product,” for him to say that it's “not appropriate” to deny other bidders a portion of the franchise is just patently absurd.

He speaks as if they have some kind of guaranteed right to get a piece of the action solely by virtue of having made a bid. I mean, what if the Friends of Barbaro lunatics threw their lobotomies into the ring and proposed to turn Saratoga into a dead horse shrine? “Just to sort of leave everyone by the wayside I’m not sure is appropriate....What we need is imagination, creativity, innovation." [Bloodhorse] Well, I'll tell you what Joe; if any of the other bidders had shown any of those things - aside from giant signs on buildings, helmet-cams and horse parks in Saratoga - perhaps they would have gotten the franchise!

And why does he keep mentioning Magna and Churchill, as he was again reported to have done in the Saratogian? What makes him so beholden to those companies, especially now that his buddy Jared Abbruzzese is no longer connected (or so we're told) to Empire? Bruno is supposed to be a racing guy, so what could he possibly see in a company that is desperately selling its racing properties to cover for its gaffes? It's like Canada thinking of having George W. Bush come to run their foreign policy! I just don't get that. And to think, I wrote not long ago that it might be a good thing to have Bruno in the room where the decision will be made; now I'm thinking that it's time for him to do the perp walk.

In response to that nonsense, Charlie Hayward told the Saratogian, correctly I believe:

"It is not in the interest of out-of-state racetrack operators, who are NYRA's competitors, to preserve and enhance the preeminence of New York racing. Their for-profit structure will result in more revenue leaving New York for Kentucky and Toronto, and less revenue being reinvested into purses and breeder awards for New York horsemen."

And indeed, revenue leaving NY and going to TrackNet Media among others is written in black and white, right there in Empire's bid. So, why the counsel to the committee chairman would assert that all of the bidders are still in the running is just beyond me, and, as related specifically to Empire (and even though I don't believe it for a second), makes me wanna puke.

- The NY Post reports that the Weightgate case is not going well for the prosecution...at least according to one of the defense attorneys.

"The way the evidence has unfolded, we feel the prosecution is in serious, serious trouble at this point," [Mario] Sclafani's attorney, Todd Greenberg, told The Post yesterday. "The videos that were shown (by prosecution) have established everything the defense has been saying: That the methodology used (by investigators) was terribly flawed and inaccurate." [NY Post]

- The Green Monkey is entered in the 4th at Belmont on Saturday. Judging from the interest I'm seeing and hearing about this longest of long-awaited debuts, you might want to head down to the paddock now. Looks like just another high-priced horse debuting for a trainer who's 1 for his last 34 with his first-timers in NY to me!

No Spectacular Bids

- In September of 1980, Spectacular Bid ran unopposed in the Woodward Stakes at Belmont, the last walkover of any significance to occur in New York State. Until now. 27 years later, in the end it was NYRA in a walkover. This was due of course in great part to the land claim that this governor didn't seem to want to bother to contest. But also because in this case, there were no other Bids that seemed the least bit Spectacular.

Empire Racing, for all their arrogance and childish vitriol directed at their rivals, proved to be far more incompetent and cynical than those they accused of being the same. They said that "New York racing should be run by New Yorkers," yet would have contracted 100% of its management services and half of its simulcast revenues to out-of-state corporations, including our benevolent friends at TrackNet Media. And the Inspector General's report offered a seedy version of how the supposedly non-partisan Friends of New York racing grew to become Empire Racing; one, I might add, that has not yet had one shred disputed or refuted by any of the parties involved as far as I've seen. The fact that they continue to issue attack press releases and carry on as if they weren't unceremoniously dumped by the NYTHA is just unbelievable to me. The mainstream press can only handle a certain amount of alleged scandals I suppose, and this story isn't nearly significant enough to gain any traction. It shows you how people can act with impunity when operating in a media vacuum, and I have to honestly say that I think they have a lot of fucking nerve.

Excelsior earned its recommendation from the Ad Hoc Committee (remember that?) with a well-crafted proposal with a lot of detail and initiative if not any particularly innovative ideas. It also had the Steinbrenner family and its media holdings behind it, and some street cred with Jerry Bailey aboard for the ride. But Excelsior's hopes essentially ended on an early February morning when er....(this guy has disappeared from the scene so quickly and completely, I had to look up his name, seriously!!)...yeah, Steve Swindal, that's it....was arrested for drunk driving in St. Petersburg, Florida. Shortly thereafter, the Boss' daughter filed for divorce, Swindal was out in the Bronx, and the Steinbrenners were gone from Excelsior. I think they lost a lot, if not all their panache at that point, and the comedic appearance by Steve Wynn before the Rifkin Committee certainly didn't help. With no racing experience to speak of on the team, they became a non-starter, at least for that side of the equation.

I don't think Capital Play, despite their enormous financial backing and a credible list of stateside investors, were ever really in the race. I can't imagine that any governor or legislature would have awarded the franchise to a foreign-held entity, even if they had the best proposal. They may have made the highest financial offer (and a large increase in takeout) as they say - I stopped paying attention to all the counter-offers long ago and just presume that they were all offering boatloads of money (don't want to curse twice in one post). I have to admit that I found their stated central goal of reviving the live sport to be appealing and that I did get a sense that there was some genuine enthusiasm to do so. But the idea of turning Aqueduct and Belmont into teeming single bars, while apparently successful in Australia, is just unlikely to fly here no matter how many giant banners they hang from buildings.

So we're left with NYRA, which hardly made a bid at all; just went through the motions, as if conserving something for the home stretch. Charlie Hayward will be criticized by some for giving up the land claim, and thereby selling out the racing franchise to the state in order to remain in place. Without knowing the details of the negotiations and legal proceedings (transparency, my ass), I can't really form an opinion on that. Who knows, maybe NYRA's lawyers believed that the state's case was rock solid and were flabbergasted when the state started to relent. Perhaps they were giddy to get anything in return, no less 30 years and a complete bailout! And besides, it's hard to criticize people for playing the game and fighting to hold on to what they have. If the state thought it had a compelling case, which Spitzer seemed to believe a few months ago, then it was up to it to pursue the land, if, in theory, it felt the industry would benefit. If the state had succeeded, they'd sure be getting a lot more in annual lease money than three bucks! Really, it would be a lot to ask of a man in Hayward's position, on the cusp of a success few could have foreseen just a year ago, to jeopardize a deal by refusing to drop the land claim for the good of the sport in New York. Perhaps at least he did us all a service by making sure that none of the other three prevailed.

- Check out this video from Common Ground (hat tip to the Albany Times Union's Capitol Confidential blog).



- From the NY Daily News, here's a statement by Bruno:

"The Senate's priority is to ensure the strongest racing industry possible," Bruno said in a press release. "That's why the Legislature and Executive put a process in place two years ago to determine who would be best suited to run a world-class horse racing industry. Unfortunately, Governor Spitzer bypassed that process and, with just four months until the current franchise expires, his announcement today still leaves more questions than answers."

More Scrutiny for Spitzer, NYRA/Getnick Deal

- On the eve of Governor's Spitzer's franchise announcement, the NY Post is reporting exclusively today that Senator Bruno and Senate Republicans are about to launch new investigations of the governor intended to reveal what the senator refers to as questionable or "illegal" activities. In addition to the governor's possible role in the Troopergate affair, Bruno is targeting areas not yet before the public, including NYRA's proposed contract with its former monitor Getnick and Getnick.

"We believe there are ties between Getnick & Getnick and the governor which must be explored," said a source close to Bruno (R-Rensselaer). [NY Post]

That lucrative contract - said to be for $125,000 a month and awarded on a no-bid basis - has already been the subject of much discussion due to its appearance of conflict between the firm and NYRA, considering that it was Getnick and Getnick that gave NYRA the clean bill of ethical health that has it poised to receive an extension of its franchise. This new and potentially explosive accusation, if proven to be substantive, would certainly explain the silence on the matter from a governor who has been insisting on its franchise applicants being totally free of questions of integrity (even as he accepted over $600,000 in campaign donations from them). The Racing and Wagering Committee will handle the investigation.

According to the Post, The Investigations Committee will probe the Troopergate matter, which Bruno is convinced will be whitewashed by current investigations by the Democratic DA of Albany, and by an Ethics Committee chaired by a person described by the Post as a longtime Spitzer ally. And a third panel, the Elections Committee, will investigate multi-million dollar loans that Spitzer received from his father in conjunction with campaigns in 1994 and 1998.

And this is the rapidly deteriorating atmosphere into which Spitzer will announce his franchise decision tomorrow. As far as the chances of a rapid conclusion that would allow us to move on and tackle the critical OTB situation, rots of ruck, as they say.

- Linda Rice spoke to the NY Daily News about her fine Saratoga meeting.

"I moved my second division out of New Jersey here to Saratoga from Miami during the off-season....This is the first time I've stabled here six months of the year at Saratoga. I've had more horses ready to run for the meet, which creates more opportunities. I think that's made a big difference for me." [NY Daily News]

Her six race win streak went largely unnoticed, according to reporter Sherry Ross; not, of course, if you were reading this blog!

- Three horses suffered fatal injuries on the Del Mar Polytrack over the weekend; two during races, and one during a morning workout.

The three catastrophic injuries doubled the total on Polytrack, installed over the winter, to six in 41 days of a 43-day meeting.....There were 18 horses euthanized here last year, 14 as the result of injuries incurred on the dirt main track and four from the turf course. [San Diego Union Tribune]

And a clarification from a previous post in which I wrote that the Form had reported 14 fatalities on the Poly at Arlington this year - a long and extremely worthwhile piece on the surface and its results thus far, written by Gregory A. Hall in the Louisville Courier-Journal, puts that figure at 12, one of which was from a pulmonary hemorrhage.

- And surprise, surprise, at least to anyone following the sport via the New York media - the Meadowlands opens this afternoon for its thoroughbred meeting, and with nary a mention in the local press. The meeting always used to open on Labor Day, but had been shortened and moved back to October in recent years. It will run through Nov 10 this year, with a brief break for the special Breeders Cup mini-meeting at Monmouth. So indeed there is live thoroughbred racing on Labor Day in the NY metropolitan area this year.

Spitzer Neutral on Franchise, Goes to Whip on Bruno

- Saratoga mayor Valerie Keehn told a City Council meeting on Tuesday that she was told by Governor Spitzer's counsel Richard Rifkin that the plan to split the franchise into racing and gaming parts is not set in stone.

"His statement to me was that there is a lot of information coming out of the press that is not actually accurate with regard to what the governor would like to see happen...The reality is that he’s not leaning one way or the other. He’s trying to get the proposals out there that might be potentially feasible on how the racetracks would be run." [Glens Falls Post Star]

The New York Post reported exclusively today that the allegations regarding the improper use of state helicopters and police escorts by Senator Bruno was the result of an unprecedented State Police surveillance program ordered by Governor Steamroller.

A senior state official familiar with the surveillance program told The Post that he believed the governor and his aides had sought to "set up" Bruno by having the State Police keep track of his travels.

"Why else would they do it if not to set up Bruno - by getting on him something they thought was incriminating - when they weren't doing it to anyone else?" said the official.

Bruno himself said "it appears" Spitzer and his staff used the State Police to try to obtain negative information on him in an effort to "set up an officeholder" with whom the governor disagrees.
.....
A Bruno aide contended Spitzer's actions "are reminiscent of Richard Nixon with his 'enemies list.' " [NY Post]

- Philadelphia Park, buffeted by a drastic decrease in attendance and handle since herding its customers onto the 4th floor, is raising its purses drastically; its second increase of the year.

Purses will jump from $175,000 a day to $210,000, the highest level in track history. Philly Park opened in 1974 as Keystone Race Track.

“With this increase, we tried to address some of our key races,” Philly Park director of racing Sal Sinatra said. “For instance, the maiden special weights have gone from $28,000 to $34,000, and the first-level allowance races will jump from $30,000 to $37,000.” [Bloodhorse]

After an outcry from horsemen, fans, and politicians alike, the track withdrew its application to make the present temporary slots facility permanent, and it will now presumably proceed to build the standalone building it had promised.

- And Frankie Dettori has been suspended for overuse of the whip on the winning Ramonti during the Queen Anne Stakes. The two week suspension will expire in time for him to ride Authorized in the King George VI and Queen Elizabeth Diamond Stakes on July 28. Dettori struck Ramonti 25 times inside the final 2½ furlongs at Royal Ascot. [BBC Sport] Ramonti said that he had no hard feelings, and that it was "all in a day's work."

Notes - July 5

- Stewards in Kentucky refused to comment on Wednesday's report in the Daily Racing Form that cobra venom was found in the barn of Patrick Biancone when it was searched on June 22. They would only acknowledge that a post-race test of one of his horses yielded a positive; but that a second sample has not yet been tested at a different lab for verification. According to the Form, the sample tested positive for a derivative of caffeine and for a derivative of an inhalant. Marty McGee writes in the Form that until Biancone is brought before the KHRA for a hearing, Biancone is free to run horses in Kentucky and elsewhere.

At the time of the search, he had about 75 horses spread among three barns at Keeneland. With racing at Churchill set to end Sunday, he soon will shift his main base of operations to Saratoga while also maintaining a string at Keeneland.

Of course, any track has the right to ban people from their private property, as several tracks have done over the last few months to the jockeys implicated by the TRPB in a vague race-fixing scheme that we still have few details about. And again, without making any assumptions about Biancone's innocence or guilt, I don't understand how it's in the betting public's interest that his horses should be allowed to be entered to race at this point. I just don't get it.

- A comment by NYTHA president Richard Violette had caught my attention the other day. He was talking about the purse increases for Saratoga and the last three weeks of the Belmont meeting.

“It is good to see that the lines of communication between NYTHA and NYRA are open and the immediate results are purse increases which will benefit every segment of the thoroughbred racing community. ” [Glens Falls PostStar]

The reason I found that notable is that the NYTHA hadn't had anything nice to say about NYRA ever since it hooked up with Empire. That was just not part of Empire's playbook. So in retrospect, that quote was an indication that the group was already on its way out from the group.

- I have to say that I sympathize with Joe Bruno when he said he was "outraged that the governor’s staff members moved so swiftly to refer the matter to investigators," with that matter being the taxpayer-financed trips to New York City reported by the Albany Times-Union. That was in the Sunday edition, and to wake up on Monday and already be reading statements by the governor's staff in the Times is pretty outrageous. It takes something pretty momentous to get a response from the government on a Sunday, and it seems as if the governor's staff is in a 24/7 attack mode that is bordering on childish.

The Associated Press on Tuesday produced several people, including a spokesperson for Mayor Michael Bloomberg, who attested to meeting with Bruno on official state business during those trips, and accounting for all three.

The night of May 24, Bruno attended a fundraiser for himself, after being dropped off by state police at City Hall where he met with..Bloomberg. "It was about the city's legislative agenda in Albany," said Stu Loeser, a spokesman for Bloomberg, a Bruno ally and campaign contributor. "The meeting happened." [AP]

And it's exactly that sequence of events, a mix of personal fundraising and state business, that would appear to make the trips legal.

An opinion issued in 1995 by the state Ethics Commission appears to also approve the use of state aircraft for travel that includes "political functions" as long as there was some legitimate state purpose, as Bruno maintains.

Bruno is now accusing the Times Union of attempted extortion, claiming that an ad salesperson pressured him to buy ad space in return for more favorable coverage.

The newspaper’s publisher, Mark E. Aldam, said in a statement that the senator’s staff had mischaracterized the call. Mr. Aldam said the salesman had merely offered Mr. Bruno the chance to respond to a campaign advertisement taken out on the newspaper’s Web site by the state Democratic Party, attacking Mr. Bruno and Senate Republicans. [NY Times]

But Bruno's office counters that there was never any mention of the Democrats' ads, and that the pitch was only "in the context of his newspaper’s negative coverage of the senator.” Bruno has canceled his subscription to the newspaper.

Empire Exposed by IG Report

- I didn't really expect much from the Inspector General's The Report to the Governor on the Integrity of Those Seeking to Operate the Racetracks At Aqueduct, Belmont Park and Saratoga. (Big PDF document, but a pretty quick load). I certainly didn't expect such a long name! And as expected, it contains a lot of detail which may or may not be relevant to the situation at hand. It rehashes NYRA's indictment and all of the lawsuits and judgments involving the various bidders, their partners and officers. It mentions Gary Contessa's drug suspensions (not updated for the latest), a rebate shop partner of Woodbine investigated for child pornography, and a NYRA board member sued by shareholders of Barnes and Noble for backdating stock options. It is critical of all four bidders, and adds up to a big mess. So Spitzer put on his Corruption Buster helmet and issued a statement which said:

The IG's report released today illustrates why racing is one of the most heavily regulated industries in the nation. History has shown that the large amounts of cash at stake in racing pose risks for illegal activities including money laundering at rebate shops, tax schemes and race fixing.

Oh, but thank goodness we have the all-knowing Governor of Goodness to save us from this evil industry! "Indeed, this is why I required an integrity review in the first place," he reminds us.

But the report also contained detailed investigations of matters that I frankly doubted it would. There are in-depth reports on the political conflicts of interest regarding all the bidders (save Capital Play); even the ones involving Richard Fields and the Governor himself. And no, Jared Abbruzzese and Empire did not get off the hook because he's severed his ties from the company. There are four pages devoted to Abbruzzese's connections to Joe Bruno, largely referencing newspaper articles previously linked to here. (The IG could have saved some time had she done her searching here!)

And, most surprisingly to me, the report not only addressed the question of the origins and intentions of Empire Racing, it did so in extensive detail. In fact, the section of the report addressing the connection between Friends of New York and Empire is the only one that Inspector General Kristine Hamann farmed out to a private company to write. Thacher Associates is a New York-based security firm, comprised of experienced, highly qualified fraud detection and risk-management experts armed with state-of-the-art electronic intelligence and information retrieval systems. The conclusion of the report has had immediate consequences, prompting the prompt withdrawal of the New York Thoroughbred Horsemen's Association (NYTHA) from Empire Racing. Thacher wrote:

For the present, the weight of the evidence supports the conclusion that Empire was not created by New York horsemen for the benefit of New York horse racing. If Empire were to be awarded the franchise, the horsemen would likely lose control to the investors representing out-of-state horse racing interests, namely Canadian-based Magna...and Woodbine, and Kentucky-based Churchill Downs.

Thacher reveals that a Memorandum of Understanding (MOU), dated August 2006, 'requires Empire to retain the services of OperationsCo, a joint venture owned 50% by DNC, 25% by Churchill, and 25% by Magna, to provide management services with respect to the Racing Franchise.' (DNC is presumably Delaware North, though they're not referenced by those initials elsewhere in the report; they do specialize in hospitality services.)

In addition, Empire agreed to the formation of a second company, referred to as DistributionCo, in which they would be a 50% partner with Magna and Churchill (25% each).

'Churchill and/or Magna will be designated as DistributionCo's exclusive agent for "licensing and distributing the Content Rights to all domestic and international distribution channels."'

Now, this was previously reported in Empire's revised franchise bid, by which time DistributionCo had become the real life TrackNet Media (and we now know more about the seeds of that venture, apparently planted long before it's formation and perhaps for an entirely different purpose than stated).

But while Empire revealed in that document that Churchill and Magna would control the simulcast signal, it did not provide the exact financial arrangement. Thacher does:

Initially, Empire will receive 100% of DistributionCo's earnings until a threshold is reached, and afterwards Empire will be entitled to 50% of the earnings and Churchill and Magna will be entitled to receive 25% each.

At some point, Empire was going to be giving away half of the simulcast revenue to TrackNet Media. There may (or may not) be more giveaways in the various agreements with Empire's investors; but we don't know, because Empire released only the signature pages for the subscription agreements with Magna, Delaware North, and Scientific Games.

Even more damning in my opinion are the findings regarding Empire's predecessor organization Friends of New York Racing (FNYR), and the circumstances under which many investors of the latter, billed as a non-partisan group, went on to bid for the franchise as Empire. The report discusses the stormy Albany Law School conference last August, when Charles Hayward confronted FNYR chief Tim Smith, demanded to know just when Smith had invested in Empire, and accused him of using Friends to pave the way for Empire. In response, Smith wrote a letter claiming that 'around the first three months of 2006, as FNYR was winding down, "the concept of a New York industry-centric bidding group, including the horsemen's association, began to take shape.'

But, according to Thacher, a full two years beforehand, Smith, at the time under consideration to be the new CEO of NYRA, told Neil Getnick, the federal monitor assigned to the association, about plans to 'privatize NYRA by a broad coalition of businesses, including Churchill Downs, Scientific Games and Woodbine..' Smith was dropped from consideration for the job when Getnick told NYRA's Steve Duncker about the conversation.

And in August 2005, still a full year before Smith's explicit denial, according to the report he approached New York Thoroughbred Breeders (NYTB) president Barry Ostrager on behalf of FNYR and told him of plans to take NYRA private and asked for his endorsement. Ostrager turned him down. The report continues:

Over time, Ostrager formed the opinion that Smith's investors were a coalition of "carpet baggers and opportunists." In Ostrager's view, Smith's non-profit group was ostensibly making non-partisan, bidder-neutral recommendations on NYRA's future as a public service. However, Ostrager believed that Smith's non-profit group had a hidden agenda to personally profit from the fruits of their labor. FNYR was not interested in advancing the public interest. Instead, Ostrager felt FNYR's undisclosed objective was to promot its backers' financial self-interest, and everything it did was to further this undisclosed objective.

Smith of course had more luck with the NYTHA. At the March meeting which he addressed (an event that Hayward specifically cited as proof of Smith's and FNYR's duplicity), it is Gary Contessa's recollection that Smith mentioned that an investment of $50,000 would "probably get back $1 million." The board ultimately agreed to endorse Empire in return for a 3% stake; it was later disclosed that two board members, including West Point Thoroughbred president Terry Finley, already had financial stakes.

Empire later exaggerated NYTHA's financial involvement; the questionnaire that Empire completed for the Ad Hoc Committee stated that the organization had invested $123,098. In fact, they had invested nothing, only their endorsement.

Now, they are not invested in any way.

"From the horsemen's perspective, we believed it was necessary to re-establish our independence as an organization so that we can represent our membership in the best interests of itself and racing," [NYTHA President Richard] Violette said.
.....
Asked whether NYTHA's board felt that Empire failed to represent horsemen's interests, Violette said "there wasn't any one issue" that led to the decision. [Daily Racing Form]

As recently as this past April, Empire was still insisting, to the Rifkin committee, that it was formed by New York horsemen for New York horsemen. Now, with that lie having been exposed, the New York horsemen are gone. And it's Tim Smith who is portrayed as the original mastermind behind the plan, with help from Abbruzzese and Robin Palatino, Empire's original Managing Members (the latter was one of four investors to reduce their stakes below the level at which they would have had to submit to the IG report). 'Smith told an acquaintance that he would not take the fall for what had happened,' Thacher reports. And of the former NTRA commissioner, the report concludes rather ominously: 'In time it may become clear what Smith was talking about.'

News, Briefly...

- Still on the road, up in Oneonta for my daughter's college orientation, and will be busy and traveling for most of the day on this big Hollywood Carryover Monday.

With wagering similar to yesterday when an additional $3.4 million was thrown into the pot, the Pick Six pool could threaten the North American mark of $7,303,848 set at Santa Anita on March 3, 2004. [NY Post]

Here's some news items of interest:

- More trouble for Joe Bruno, and Governor Spitzer is wasting no time in taking the opportunity to turn the heat up on his nemesis. The New York Times reports that Spitzer is likely to ask state investigators to look into three trips that the Senate Majority Leader took from Albany to New York City.

“We signed off on the use of the helicopter with the assurance that it was for legislative business,” said Darren Dopp, a spokesman for the governor.

He said it was “extremely likely” that the matter would be referred to either the attorney general, the inspector general or a local district attorney — or a combination of such officials — as early as today. [NY Times]

On Sunday, the Albany Times-Union reported that Bruno has traveled to New York City on personal business at taxpayer expense, utilizing state helicopters, and receiving ground transportation courtesy of the State Police.

Three of Bruno's 145-mile, one-hour helicopter flights to Manhattan in May were on dates that Republicans hosted major fund-raisers, two of which featured Bruno, the effective head of the state GOP.
.....
The Code of Ethics of the State Public Officers Law prohibits a public official from using or attempting to use his official position to gain unwarranted privileges "for himself of others." Violators are subject to fines, removal from office or suspension, or a civil penalty of up to $10,000 and the value of the gift or benefit. [Albany Times Union]

Bruno's office claimed that each of the trips contained an element of state business; the Times states that state law does not spell out how official business and fund-raising might intersect on such trips. Bruno's office also cited security reasons for the police escorts, effectively blaming the press!

"As he has, and continues to receive, death threats and other threats to his safety, based on what people read in the Times Union and other negative reports, he is provided with State Police protection when traveling." [Albany Times Union]

So I guess it's the upstate newspaper's fault for Bruno's being under investigation by the FBI with respect to possible conflicts between his private business and his role as Senate Majority Leader.

One of the trips, on which Bruno hosted a $5,000 per plate reception, included a stop at the Big A the next morning. His spokesperson James McArdle told the Times that the visit to the track related to the state bidding process for the rights to run the Aqueduct, Belmont and Saratoga racetracks. If so, he must have been conducting some early morning business with trainers and/or their horses - state records show that he was picked up in midtown at 7 A.M. for the trip to the Big A, and was at LaGuardia for his helicopter trip home, paid for by the taxpayers, by 10 A.M.

- Florida Governor Charles Crist, by taking no action, allowed new laws that will benefit Broward County's racinos to go into effect. The facilities will each be permitted to add 500 machines, add ATM machines (though not in the VLT rooms themselves), expand hours, allowing 24 hour operation on weekends, and increases the stakes in the poker rooms.

- Voters in Hancock County in West Virginia approved table games at Mountaineer Race Track and Gaming Resort, giving advocates of the gambling expansion a 2-1 lead in the referendums thus far, with one more to go.

Voters gave the nod to resort officials Saturday with 5,021 votes, or 69.8 percent, for and 3,506 votes, or 30.2 percent, against the measure.
....
“This is a watershed moment and a chance to create new jobs in Hancock County instead of losing them, and we now have a lot of responsibility,” Ted Arneault, president of the resort said late Saturday night. “It’s now on our shoulders.”

"This is good news.....Let’s get rocking and rolling." [The Review]

I need to get rocking and rolling myself, so have a good day, and good luck if you're playing the Pick Six.

Friday Notes - June 29 [UPDATED]

- Check out this statement from Spitzer's spokesperson Paul Larabee:

"For the first time in 50 years, we have a chance to evaluate racing in New York, and that just doesn't include the racing that happens at the tracks, it's also the chance to look at the assets and think about other ways in which they could be used." [Daily Racing Form]

Oh, so that's the historic opportunity we have here!? Not one to update the laws, bring the OTB system into the 21st 20th century, and move forward with newfound vigor as the top racing program in the country...but a chance to think about other ways the assets could be used!!?? OH, I MUST HAVE MISUNDERSTOOD, EXCUSE ME!!

Let's move on before I start sending profanity the governor's way. I'm hoping to get out to Belmont today for at least the late pick four, and that's gonna be it for racing this weekend for me, as I'll be on the road Saturday through Monday, taking my daughter up to her college orientation in Oneonta. I don't think there are any tracks there. It's near Cooperstown though, so a trip to the Hall of Fame is a possibility. Here's a look at the last four at Belmont:

- In the sixth, we have the scary sight of not one, but two off the layoff entries from Godolphin, and our main man bin Suroor Saeed. The binster. The little b. Oh Saeed, can you see....him finishing one-two? Godolphin is five for ten at the meeting; four for six with layoff horses ranging from 201 to 622 days off! Leo makes his first start since running 9th in the 2005 BC Juvenile; that after taking a Grade 2 in England. I guess the Juvenile didn't really work out for Leo, but who's going to doubt him now? True Cause hasn't been out since last August. He doesn't have the graded stakes credentials of his stablemate, but he edged Leo out in a listed contest in Sept, 2005. He's by Storm Cat, out of a half sister to the fleet Balletto. Leave them out of the Pick Four opener at your own risk. Silver Timber is actually the 9-5 ML favorite for Linda Rice off of a close third in his seasonal debut a couple of weeks ago; but that was against a weak field, and Ms. Rice has gone a bit cold with an 0 for 18 streak. [UPDATE: This race has been taken off the grass (sorry Michael). No rain here today, but they must have gotten a deluge out at Belmont last night. But we still like the bin entry with True Cause out, and Minefield in. The latter returns off a layoff too, and is two-for-two on the dirt; he makes the switch from the Toddster to the binster.]

In the 7th, I'm not thrilled by either of the morning line choices; Cateleisha comes off a decent second for Contessa Laudati against an uninspiring field; and Montauk Daisy comes off a layoff. That's no big deal these days, but she fell short twice after graduating to entry level allowance company last fall and doesn't look inspiring here, particularly at her 9-5 morning line. Mt Langfuhr has improved in 2007, especially in her last, her first off the claim for the John Toscano barn. She wired the field against what is arguably better company than this, turning back the challenge of a Contessa dropper who was 3-5, and finishing up strongly in the 7th furlong, which could be key against these at that distance. Lady Elaine goes back to the dirt after a futile grass effort, and her experience at longer distances could help her stick around at the end, especially if she doesn't end up in a speed duel with Mt Langfuhr.

The 8th is a nice grass allowance race, and..... Oh fuck! Another Godolphin entry?? Mr. bSS again?? Oh man.... Well, Mathematician is one that didn't win off a long layoff, fading to 5th at 3-1 just 12 days ago in his first race since October, 2005. What to do with him I'm not quite sure. But Palace Episode, by Machiavellian out of a half-sister to Derby runner-up Tejano Run, is a freaking Grade 1 winner in the UK, having won the Racing Post Trophy in October of 2005! His next race was a disaster the following May, and this is his first outing since then. This entry isn't quite as inspiring as the one in the 6th, but I wouldn't dare leave it out. Giant Basil is the morning line fave for Frankel, coming off a nose win over a moderate allowance field at Hollywood; a string of solid workouts indicates that he's held his form. He figures to be overbet stepping up in class off a gaudy Beyer however. I'm also not that inspired by Rock Lobster, who has just never seemed to be the same since winning the Saranac last year; nor Woodlander, in for a tag after two poor efforts for Contessa following his win in the Fort Marcy.

So let's try 12-1 El Prado Rob. He has generally good grass form, albeit against a bit cheaper, at least in New York. He won in these allowance conditions at the Meadowlands last fall and gains entry courtesy of his $75,000 tag. This is his first start since a poor try on the Woodbine Poly last fall, but his last two starts off layoff lines have been excellent, and he gets Channing Hill, who rode him to victory last year.

In the 9th, Party Jones seems to have no excuses here, getting the rail in this nw2 claiming condition in which he missed by a nose to Exton last time out. The main concern is that he has tended to fall a bit short more often than not, with three close seconds (and a win) in his last four starts. Lets Get Going is equally logical to complete the exacta, with two recent seconds in this class; if the post positions were reversed (he starts from the eight hole with the start close to the turn), I'd consider the race more of a toss-up. As it is, I feel timid about singling the top choice.

So let's try this for the cheap man's Pick Four - add horses such as Silver Timber, Montauk Daisy, and Giant Basil as you wish...but to me, there just doesn't seem to be enough value in the series to spread around and make a big investment. So I'll try a smaller wager and leave them out.

Race 6 - bin entry
Race 7 - Mt Langfuhr, Lady Elaine
Race 8 - bin entry, El Prado Rob
Race 9 - Party Jones, Lets Get Going

Spitzer vs Bruno Gets Nasty and Personal

- The stormy relationship between Governor Spitzer and Senate Majority Leader Joe Bruno has moved into the no-holds-barred stage as the two have made their dislike for each other quite public in the wake of the legislature's adjournment last week. Spitzer blasted Senate Republicans, and Bruno in particular, on Wednesday during a speech to a broadcasters group in Lake George, during which he chided the GOP for thwarting his initiatives, especially his campaign finance legislation (an issue on which the U.S. Supreme Court is going in the opposite direction.)

"We're going to play 'Where's Waldo' and ask, 'Where's your senator?' " Spitzer declared as he flayed Bruno - and displayed his picture on a large screen - in a speech to the media executives.

He accused Bruno and the Senate's Republican majority of leaving the Capitol last week with major work undone, although he said they still found enough time to make it "a priority to raise their own pay."

"What should New Yorkers do?" Spitzer continued. "Tell your senator to come back and finish the people's business," he said. [NY Post]

The governor singled out Bruno on the campaign finance reform issue, displaying a slide quoting the senator as saying: "I laugh when I read that people gain access by their contributions. So what? So what?" [NY Sun]

"He's worried that if we change the rules, he won't be able to hold onto his majority," Spitzer said. "Joe Bruno's statement to me is, 'We need that money.' That was when they walked out. That was a direct quote: 'We need that money.'" [NY Daily News]

As you might expect, the feisty Bruno fired back, echoing a complaint by his Senate Republican constituency that the governor has reneged on campaign promises to embark on an upstate restoration plan (a sentiment certainly shared by Jeff Perlee and Empire Racing).

“There was a rare sighting of Governor Spitzer in upstate New York,” adding that Mr. Spitzer had “delivered more empty political rhetoric” instead of “hope that he might actually deliver on his campaign promises to create jobs upstate.” [NY Times]

And oh yeah, it's getting personal too.

"He's too temperamental. He can be charming, he is extremely bright, he's very personable, he's very articulate, when he wants to be,” said....Bruno. “But just as soon as you're telling him things that are disagreeable to him well then you can see the change take place in his face. He flared up with me a couple of times on the phone and in person in a very unbecoming way. All I could think about was some little rich kid having a tantrum. I almost expected him to be wandering around stomping his feet." [NY1]

Of course, the instances when the governor is talking about horse racing and the franchise situation are not among those times Bruno referred to when Spitzer wants to be articulate. Once again, he babbled on almost incoherently to reporters on the subject he knows little about.

“There are three tracks. Saratoga is the gem of the racing establishment in the nation. Belmont is one that still draws a fair crowd. Aqueduct, I think, people have had meaningful conversations about whether having the track there is the best use." [Bloodhorse]

I'm not really sure who these "people" are who he keeps referring to as "having conversations" about closing Aqueduct. It sure ain't anyone in the racing industry. And it's certainly not Joe Bruno.

"I'll give you my own personal impression. Aqueduct is not for sale," Bruno said. "Aqueduct is going to be a race track and it is destined to have VLTs (video lottery terminals or video slot machines) there. And that's what the Assembly members want, and that's what my Senate members want ... I'm hearing that Aqueduct is critical to horse racing in this state." [Saratogian]

In the past, that would be it as far as this discussion goes; as one of the three men in a room, Bruno's opposition would be more than enough to kill this ridiculous plan. Who woulda thunk that we'd be counting on Bruno to save us from Spitzer? But Bruno is under the cloud of a federal investigation that could still result in his indictment; so we don't know just how long he'll be in that room.

And, if it's at all possible, the situation took an even more bizarre turn, as reported by Tom Precious on Bloodhorse.com.

Spitzer said his aides have been trying to sort out whether it makes sense to have three different entities – one for racing, one for casinos, and one for real estate development – involved in a future franchise.

“There is significant real estate development opportunities at Belmont, at Aqueduct, even at Saratoga. These are issues that have to be thought through. And those who know how to run a race course don’t necessarily know how to run a real estate company,’’ Spitzer said. He did not elaborate.

Huh? Did he really say that about Saratoga? As even the clueless Spitzer should know, Saratoga is hallowed ground. What politician in his right mind would suggest, even tangentially, tampering with the property in any way? Wait until this quote makes its way into the Saratogian; mayor Valerie Keehn may threaten to secede from the state!

Perhaps Spitzer is just trying to get under the skin of Bruno, a strong Saratoga defender who represents the area, and who will certainly be apoplectic when he hears of this statement. I can't possibly imagine that even Governor Steamroller would be stupid or arrogant enough to propose any kind of development at the upstate track. But if he's serious about adding yet another component to the deal, no need to split the franchise up into real estate, slots, and racing. He can make a single phone call to Mr. Frank Stronach. He should be sitting on a pile of cash now that he's not buying Chrysler, and he has plenty of experience fucking up all three.

- Spitzer's slide show attack on Bruno and the Republicans can be seen here (pdf document)

Big A Closure May Be Closer to Reality

- The NY Daily News is reporting exclusively this morning on the first comments by Governor Spitzer directly acknowledging that he is seriously considering the closure of Aqueduct.

"Whether or not you have racing at Aqueduct, you have an enormous piece of land there that can and should be used for some other things," Spitzer told the Daily News Editorial Board. "That's a remarkably valuable piece of land from a public perspective."
.....
"You may decide you want to make it a park. Okay, that's one option....You may decide it should be a convention center. You may decide it should be some combination of all sorts of obvious things. But some way, those options need to be confronted."

(For a guy who's supposed to be so smart, Spitzer sometimes comes off as not being that articulate, doesn't he? Especially when he's talking about things he knows nothing about. I don't think you "confront" options; rather you "consider" them.) An anonymous "expert" told the News that the land could fetch up to $1 billion due to its location, and that is obviously what the governor is thinking. Assemblywoman Audrey Pheffer expressed her concern and that of the neighborhood.

"But it seems like no one is listening because they must have this preconceived plan to bring in developers to take it over. All we hear is that it's a valuable piece of real estate."

Spitzer also told the paper that he may seek a new set of bids for the franchise. Charles Hayward, however, says that he's hopeful that NYRA will retain at least the racing portion of the franchise.

"We are hoping to get with the Governor's people now that things have settled down with the legislative session ending. But I'm optimistic with the way things are headed." [Capital News 9]

Perhaps Hayward should tell the governor that there's no deal unless Aqueduct remains open. Why would he be in position to do so? Because I don't think the governor really has any desire nor intention of re-opening the bidding, and just wants to get VLT money rolling in as soon as possible - remember, his 2008 budget includes racino money from the Big A. Retaining NYRA and disposing of the land claim issue is the easiest way for him to do so. Since NYRA is a non-profit which doesn't stand to be enriched by slots, if Hayward's goal is really to do whatever is necessary for the good of the sport in New York, as stated, I think that, knowing how ludicrous the idea of year-round racing at Belmont is, he should go to the mat with the clueless governor on this issue.

Patrons at Saratoga can expect $1.2 million worth of improvements paid for by a loan from the state; they include a new floor on the first floor clubhouse and five renovated barns around the Oklahoma training track. In addition, the track will host early morning maniac wagering starting at 7 A.M for those interested in playing the ponies from the U.K.

- 30 days for Victor Molina for kicking a horse, and getting caught doing it on TVG. The latter part of that is likely the reason for the length of the suspension.

"There's not many guys who have been around 27 years and have not had a hearing with the stewards over anything of substance," said Molina's agent, Dave Yannuzzi. "I thought this was overkill. If you look at all the punishments doled out for this type of infraction, [a judge] might say, 'Why did you get this and everybody else got that?'"

A phone call to track officials was not returned. Stewards have been told by the Pennsylvania Racing Commission never to comment about anything. [Philadelphia Daily News]

Molina said he may volunteer with the SPCA during his time away.

NYRA Rewards and Other Ramblings

- I opened up my NYRA Rewards account and now have internet wagering for the first time ever. This could be a problem I think. My OTB phone account, in which I'm down to a balance of 65 cents, has served me well. It also has some problems - a balky automated system that takes forever to repeat back the bets - I've agonized over that many times as the horses are loading into the gate - occasional trouble getting through during busy periods, and they don't take every track. On more than one occasion I've devoted a chunk of time and effort into a race only to discover that the track is not on the menu. In other words, sometimes I got shut out, and over the long run, that's a good thing.

But this NYRA platform seems to take every track (though apparently, no harness) - right now, at 7:30 PM in the east, I could bet on Colonial Downs, Yavapai, the ill-fated Great Lakes Downs, Indiana Downs, and something called the PM Mixed Meet, perhaps some kind of international political contest between some Prime Ministers. Though I haven't made a bet yet, it seems ridiculously easy, and if that last click to Submit Wager is as quick as all the others, I don't think I'm going to get shut out much more. And that could be a bad thing. Hmmm, I'm tempted to take a look at the last three from Colonial Downs right now... OK, I don't like the 7th, so I'll forge on here for now.

But there's no video, so I'm still at the mercy of TVG and Churchill Downs/Magna. NYRA's is the only advance deposit wagering platform that offers both, as reported by Gregory A. Hall in the Louisville Courier-Journal last week. Churchill and Magna were trying to gain the exclusive rights for NYRA itself through its participation in Empire Racing's bid for the New York franchise. Though Empire last week issued a call to keep the Video Lottery Terminal (VLT) program at New York State’s race tracks in the hands of the New York thoroughbred industry, it was willing to give control of that industry's simulcast signal, arguably the lifeblood of any racetrack in this era, away to Churchill and Magna. And I wonder if the apparent failure of Empire's bid had any effect on Churchill's purchase of those ADW's last week, in terms of either timing or price?

Sometimes it takes me a while to muddle through all the details and figure things out for myself, but this whole franchise thing is coming into focus. I recall that a Spitzer spokesperson recently said that MGM's pulling out of the Aqueduct racino "changed the landscape." If the state had ever reached an agreement with MGM, or NYRA, or whoever the hell they were even negotiating with, the racino would have started to go up immediately. Whoever got the franchise would have been stuck with them. So, with MGM, it didn't really matter to Spitzer when a new operator was chosen. But when MGM pulled out, the racino, which is budgeted to start producing revenue by next spring, was pulled with it. So now, Spitzer wants to just get this done now, forget about fighting over the land. Yeah, the hell with it, just give the racing to NYRA, who cares about that anyway?

And though I would imagine that Spitzer, who is quite conscious about his image, really would rather not award the gaming to Richard Fields' Excelsior, he probably sees it as the most expedient solution, as well as one he can explain away. After all, Excelsior has the most gaming experience of the three. Empire does have Delaware North, but what, we're going to put the VLT program in the hands of a dog track operator? Besides, Spitzer has the cover of the Ad Hoc Committee recommendation to rationalize the selection. Sheldon Silver called for a rebidding of the VLT's, not a bad idea, and something that Spitzer might actually prefer; but I don't think it will go anywhere if it delays the process any further.

By the way, has anyone ever seen a picture of Richard Fields? This guy must have a dozen websites about himself. There's richardfields.org, richard-fields.org, richardtfields.com, richardfields.net, richardfields.us, richardtfields.biz, richardfields.biz (without the 't'), richard-fields.biz, richard-fields.info, richardfields.info. They all link to news stories about him, but none have his picture. A couple of the sites have a picture of a guy - like this one - but I saw the same picture in a magazine ad for something entirely different. It must a stock photo that you get if you order 'rich looking middle age white guy giving a thumbs up.'

OK, enough of this; time to check out that internet wagering...