NYRA gets $30 million bailout

The New York Racing Association (NYRA) will be able to keep operating after

agreeing to a plan with Gov. George Pataki and other state officials on Friday.

The memorandum of understanding gives the financially threatened organization up

to $30 million in financial assistance.

The $30 million package is structured as follows:

-- A total of $5 million in land sale proceeds from the Port Authority, with

$1 million transferred to NYRA on Friday and the remaining $4 million to follow

at closing.

-- A $5 million loan from the Empire State Development Corporation to NYRA,

secured by future revenues from video lottery terminals (VLT) to be installed at

Aqueduct.

--  Legislation to be proposed by Gov. Pataki providing a loan of up

to $20 million to NYRA to finance services and

expenses associated with the operation of NYRA's three racetracks (Belmont Park,

Saratoga and Aqueduct) and to

facilitate the timely opening of the VLT facility at Aqueduct.

Aqueduct's VLT facility will feature 4,500 gaming machines and is expected to

generate more than $400 million annually for the state.

"We particularly appreciate the efforts of Gov. Pataki and his staff

in working with NYRA to complete this package under tight time constraints,"

NYRA President and CEO Charles Hayward said. "Moreover, we appreciate the

efforts of the governor, Senator (Joseph) Bruno and Assembly Speaker (Sheldon)

Silver in rallying to the support of the New York racing industry during this

critical period. This is a very important day for Thoroughbred racing in the

great state of New York.

"We look forward to legislative action that completes this agreement in early

session with a satisfactory result," Hayward continued. "Once that is achieved,

we can look at the new year with renewed optimism as NYRA can continue to

present the best racing in the nation while our long-awaited Aqueduct VLT

facility begins construction."