Monticello accord reached

On Thursday morning, the New York State Racing and Wagering Board, acting in the capacity of an arbitrator, rendered its decision in the long-simmering dispute between the management of Monticello Raceway and its horsemen. The arbitration was the result of a consensual submission made by both parties in February of this year regarding several key issues which divided the parties, preventing the execution of a new horsemen’s agreement for a period in excess of two years.

Among the key issues decided by the Board were:

1) Term: The new agreement expires 12/31/07.
2) Video Gaming Machine Commissions: The Board awarded the horsemen 8.25 percent of the first $100 million of net win from Monticello’s video gaming operation, and 9.25 percent over $100 million of net win. On the table from Management was a much lower percentage.
3) Minimum Race Dates: The Board established 200 as the minimum race days Monticello management is required to offer its horsemen. In the past, management was only required to race only 120 days by contract.
4) Health Insurance and Administrative payments: The Board awarded the horsemen $20,000.00 per month as a direct management contribution, plus 3.5 percent of revenue from all sources (VGMs, racing, simulcasting) an increase from the past which only included 3.5 percent on racing revenue. In 2007, the horsemen will receive a 4.5 percent of revenue from all sources. Under the previous agreement, the horsemen received $20,000 directly from management and a 3.5 percent contribution from the horsemen’s purse account. In September 2005, management unilaterally curtailed these payments, giving the horsemen only one percent purse payment with no management contribution.
5) Maintenance Fee: A one ($1.00) dollar per stall, per day fee will be assessed from the purse account to offset Management’s expenses in maintenance of the barn area.

“It’s not everything we wanted, but it’s a lot more than was offered to us,” indicated Al DeSimone, president of the Monticello Harness Horsemen’s Association (MHHA). “Obviously, the Racing and Wagering Board should be commended for offering their tremendous assistance in bringing our disputes to a livable conclusion. Our one regret is that the negotiating process was not embraced by the parties themselves, which would have brought us to an arms length agreement without so much bitterness, uncertainty and possible harm that could have been caused to the racing industry. That said, the conclusion reached by the NYSR&WB recognizes the horsemen's stake in the operation of the VLTs in NYS, and goes far to solidify the interests of the hard working horsemen in this new enhancement to our industry's future."

Joe Faraldo, MHHA’s attorney, pointed out the manner by which the resolution of the dispute was achieved: “The independent horsemen’s group presented its position to the NYSR&WB, as did the track, and the result is that the horsemen now have a more favorable agreement from the arbitration award. During the entire process, live harness racing continued at Monticello in unabated fashion. The sky didn’t fall because the horsemen had to take dramatic steps in order to focus attention on the crisis created, but it did lead to a resolution based on fairness. Without the commitment of Al DeSimone, the entire MHHA Board of Directors and the membership, this could not have been accomplished. Fairness to the horsemen is never simply handed over; it takes tenacious arms length negotiation, mediation and sometimes arbitration between the parties". (MHHA)

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