The New York Racing Association (NYRA) and the Horseracing Integrity and Safety Authority (HISA) have settled a financial disagreement that had escalated into legal action. The dispute involved how HISA calculated fees for racetracks, but both organizations have now reached an agreement, signaling a renewed commitment to the sport’s integrity and welfare. Here’s what you need to know.
What Was the Dispute About?
The disagreement centered on HISA’s method for determining fees that racetracks must pay. According to NYRA and Churchill Downs Inc. (CDI), HISA broke its own rules by charging fees based on 50% purse size and 50% race starts, instead of only using race starts. This formula led to higher fees for tracks with larger purses, such as those in New York and at Churchill Downs.
HISA claimed that NYRA owed $3.9 million, while CDI owed $1.9 million. Together, this represented about 7% of HISA’s annual budget. The organizations took legal action to contest these fees, creating a standoff that put millions of dollars at stake.
The Settlement Agreement
NYRA and HISA have now resolved their dispute. Here’s what’s been agreed:
- NYRA Withdraws Its Lawsuit: NYRA has agreed to drop its legal case filed in Kentucky.
- HISA Ends Enforcement Actions: HISA will no longer pursue actions against NYRA for unpaid fees.
- Confidential Terms: The details of the agreement remain private and were not disclosed by either side.
Churchill Downs Inc., however, has not settled and will continue its separate legal action against HISA. CDI’s Vice President, Tonya Abeln, emphasized the importance of ensuring that HISA operates in a lawful and fair manner.
Comments from Leaders
NYRA and HISA expressed optimism about their renewed partnership:
- David O’Rourke, NYRA President and CEO: “HISA’s mission is crucial for horse racing’s future. Resolving this financial issue helps us move forward for the sport’s benefit.”
- Lisa Lazarus, HISA CEO: “While unfortunate, this issue was a minor setback. We’re thrilled to resume our partnership, focused on horse welfare and racing integrity.”
Why This Matters
The settlement allows NYRA and HISA to focus on their shared goal: protecting the welfare of horses and ensuring the integrity of Thoroughbred racing. Disputes like this, if unresolved, can hinder progress in a sport that depends on strong partnerships to thrive.
HISA plays a critical role in creating safety standards and maintaining fairness in the industry. Resolving this financial issue clears the way for both organizations to collaborate on improving the future of horse racing.
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