NYRA cautious despite big start to Saratoga meet

SARATOGA SPRINGS, N.Y. – Despite a fabulous start to the 2015 Saratoga meet, New York Racing Association officials don’t expect the good times to roll all summer long, the NYRA board said in a Wednesday meeting here.

Through the first 16 days of the meet (through Monday), all-sources handle was $260.4 million, a 19.1 percent increase over last year and 17.9 percent ahead of what NYRA budgeted for the season.

The weather has been superb, and average field size is up to 8.89 from 8.07 during the same period last year, but NYRA officials were more wary of the fact that Labor Day is Sept. 7 – as late as possible – potentially leading to flat business later in the meet. Last year, Labor Day was as early as possible, Sept. 1.

“I’m telling you the difference in calendar is significant,” NYRA board member Len Riggio, chairman of the Barnes & Noble book chain, said after the meeting. “I objected to leaving alone the idea that we’re [19 percent] ahead. I don’t want to make anyone think that’s going to hold.”

NYRA, at the beginning of the year, budgeted for a slight decline in handle for the Saratoga meet. NYRA president and chief executive Chris Kay said he and his staff err on the conservative side when making projections, and he doesn’t expect NYRA to give back all of its gains but will reserve judgment until the meet is over.

While Kay acknowledged that the start of the Saratoga meet has been great for NYRA, he said he doesn’t expect the 19 percent increase in handle to hold over the entire meet.

“That’s all we really said,” Kay said. “We’ll know at the end of the meet what our actual numbers are. That’s when it’s really important to take a look at it.”

In addition to all-sources handle being up, ontrack handle is up 17.9 percent. Food and beverage sales are up 25.6 percent, and merchandise sales are up 27.4 percent compared with last year at this time. For the first time, NYRA is charging fans to sit at some picnic tables this year as well as at reserve tables at the new lower-carousel sports bar.

While Saratoga is off to a stellar start, NYRA has incurred a loss of $6.1 million from racing operations through the first six months of 2015. When revenue from Aqueduct’s casino is factored in, NYRA has net income of $2.4 million.

Total handle on NYRA’s races through June 30 was $1.013 billion, down 3 percent from last year’s figure of $1.045 billion. Inclement weather forced 16 Aqueduct cards to be canceled during the winter. NYRA has conducted 104 days of racing this year compared with 111 through the first six months of 2014.

NYRA rebounded in the second quarter in large part due to Belmont Stakes Day. NYRA enjoyed $1.7 million more in net revenue that day compared with the previous year.

Kay said NYRA has drafted a reorganization plan that he is ready to share “with key stakeholders including government officials to discuss, refine, and agree to changes if any are necessary in order to make this plan a reality as soon as possible.”

No details of the plan were available.

Also at the meeting:

◗ For the second straight year, Kay was awarded a $250,000 performance bonus. He and other top administrators were approved for a 3 percent raise.

◗ Chris Mara, senior vice president of player personnel for the New York Giants and a partner in Starlight Stables, was named to the board, filling a vacancy left by the resignation of Barry Ostrager.

◗ Kay said that as of noon Wednesday, 5,867 general-admission tickets remained for the Travers, which will have a paid admission cap of 50,000. The cap does not include children 12 years old and younger, who get in free when accompanied by an adult.