NYRA Projects Sufficient Liquidity In 2021 While Facing COVID-19 Obstacles

While many racetracks could face liquidity issues due to the obstacles of COVID-19, the New York Racing Association informed a state oversight board that it could operate through much of 2021 without the threat of serious cuts or closure under the current set of conditions, the Daily Racing Form reports.

In a Tuesday presentation to the New York Racing Association Franchise Oversight Board, NYRA chief financial officer Renee Postel said the company could run “cash-positive” to the end of 2021 if conditions continued as they currently are due to COVID-19 restrictions.

Those restrictions include operating live meets without spectators – and the bigger cut of the on-track handle they produce – and without the subsidies provided by Resorts World Casino New York City, adjacent to Aqueduct, which has been closed for months due to the pandemic. Monies from the casino provide about one-third of NYRA’s purse account in a year, along with operating funds.

David O’Rourke, NYRA’s CEO, was more conservative with his estimate, saying he was confident in the company’s liquidity through the first six months of 2021, if all conditions stay the same.

NYRA’s bottom line was helped this year by a $13-million insurance payout for event cancellations, helping cover lost income from the rescheduled and spectator-less Belmont Stakes, along with major dates at Saratoga Race Course affected by the closure to the public. The policy is not expected to be renewable for 2021.

In another effort to keep the company and its tracks sustainable, O’Rourke also said NYRA has negotiated with the horsemen to reduce dates at the upcoming Belmont Park fall meet and Aqueduct winter meet in order to keep purse levels steady.

Read more at Daily Racing Form.

The post NYRA Projects Sufficient Liquidity In 2021 While Facing COVID-19 Obstacles appeared first on Horse Racing News | Paulick Report.

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