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CapitalPlay applauds NY racing franchise decision

NEW YORK – (PRESS RELEASE) -- CapitalPlay Consortium, one of the four bidders for the New York State Racing Franchise said it was delighted by news today that Gov. Eliot Spitzer wouldn't be bound by a Pataki committee's recommendation to award the franchise to Excelsior Racing. Karl O'Farrell, CapitalPlay's chief executive officer, said its bid was far superior to one submitted by Excelsior Racing, and almost $1 billion higher than all the other bidders.

O'Farrell pointed out that an Associated Press story quoted a spokesman for Gov. Spitzer as saying that the governor is not bound by the recommendation by the ad hoc committee formed by former Gov. Pataki. He noted that his consortium's $1.8 billion bid was close to $1 billion higher than any of the other bidders. However, based on a technicality, the bid was not considered by the ad hoc committee formed under former Gov. Pataki.

"There's every indication now that our bid will be considered fully with the other bidders."

"We believe we've got the best bid," said O'Farrell, noting that while CapitalPlay's bid over 20 years would put over $1 billion into the state coffers, Excelsior promised only a one-time payment of $200 million.

"That is ridiculously low," he said. "Excelsior's bid in no way adequately compensates the taxpayers of New York given the value of the franchise and the amount of money that the racetracks will generate if they are properly run."

He also said that CapitalPlay's bid included paying up to $110 million of the cost of the New York State Racing Association's under funded Pension and Post Retirement Plan. He noted that Excelsior, in a press release today, had erroneously said that only Excelsior's bid included funding the pension plan for NYRA, which presently runs the three tracks. Excelsior has indicated that it will fund $50 million of the Pension Plan.

O'Farrell said that CapitalPlay's bid included $500 million in track improvements and $200 million for VLT Parlors.

"No one is better equipped to run New York Racing than our team," O'Farrell said. He noted that CapitalPlay, a combination of Australian and U.S. participants, had the expertise, experience and skill based on hugely successful horse racing in Australia.

Said O'Farrell, "Our team has the experience and skill to turn New York horse racing into a financially successful sport. We intend to revitalize the industry by focusing on integrity and by bringing the key 18-34 year olds back to the sport."

He added, "We intend to work closely with the OTB network to ensure that the Racetracks and the Distribution Network are fully aligned to enhance the experience for all racing fans and to maximize the return to all stakeholders including horsemen and governments."

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