Another day, another crisis for embattled New York City OTB. Its new $125,000-a-month turnaround specialist, Greg Rayburn, has set tomorrow as a deadline for acceptance of his bold new plan for saving the ailing betting giant
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Included in the plan are previsions for employees to sign up for early retirement to cut costs; retention and refurbishing of 50 of the city’s 61 OTB parlours; possible voiding of union contracts, which might be accomplished under OTB’s bankruptcy protection if the proposals are not accepted; turning over internet and phone account betting to a consortium of New York’s tracks; and reduction of staff by 400 employees.
Rayburn says these moves, if accomplished, would turn New York City OTB into “a viable structure under which it can prosper.”
According to Bill Finley’s story in The New York Times, Rayburn says rejection of his proposals by creditors, union officials or state lawmakers could lead him to close the corporation or slash wages. He wants to retain the OTB neighborhood shops which he says “have become social clubs that provide us with a significant piece of handle,” and predicted that if the tracks take over account wagering that $150 million a year business could be profitable for them, without expenses and other inefficiencies that OTB faces. Debts to NYRA, Yonkers and others will account for $60 million by year’s end, Rayburn said.
Finley quoted Rayburn as saying he was optimistic about his plan and that the status quo was not an option. He told Finley, “What I have tried to make clear to the constituents I have dealt with is that people should not sit back and expect the state will bail out OTB to keep OTB in business. There might be people out there who still harbor those thoughts. It is foolish to think that we wouldn’t liquidate if we can’t get one of these plans to become a reality.”
(Harness Tracks of America)