Rescue deal in the works, but NYRA still warns workers they could face layoffs in June

Rescue in the works, but NYRA warns of layoffs

ALBANY, N.Y. — Despite a deal in the works to save the state’s thoroughbred racing season, the New York Racing Association is still warning employees they could face layoffs as early as June 9 if it has to shut down.

NYRA said Friday a legally required notice was sent to more than 1,400 workers as the cash-strapped racing operator said it might have to close the Belmont, Aqueduct and Saratoga tracks after the Belmont Stakes. NYRA told The Associated Press it had no comment.

Gov. David Paterson said Tuesday he expects the Legislature to approve a loan of $15 million to $25 million to keep NYRA operating until it gets a share of revenue from video slot machines planned for Aqueduct. Lawmakers return to session next week.

NYRA, plagued for years by poor management and sinking revenues, emerged from Chapter 11 bankruptcy protection in 2008 with the help of a $105 million state bailout that sent $75 million to creditors and $30 million to help NYRA until the Aqueduct “racino” opened. At the same time, its state franchise to run racing was renewed for 25 years.

But the long-delayed plan to put 4,500 video slots at Aqueduct foundered again earlier this year after criticism of how the contract for the project was awarded. The Paterson administration dropped its support of the winning bidder and state officials reopened the selection process. Paterson has said a new developer is expected to be chosen by Aug. 1.

NYRA has run Aqueduct, Belmont and Saratoga since 1955.

The Belmont meet ends July 18. Racing then shifts upstate to the lucrative Saratoga session from July 23-Sept. 6.