🇺🇸United States

Unbilled NYRA backstretch stall rentals despite formal rental policy

1 verified sources

Definition

The New York Racing Association (NYRA) was found by the New York State Comptroller to be providing backstretch stall space during the training season without consistently billing trainers, even though a rental policy requiring such billing was in place. This created a systematic loss of potential stall rental revenue across multiple seasons.

Key Findings

  • Financial Impact: Low-to-mid six figures per year (State audit flagged it as a material control weakness over a multi‑year period, with several hundred stalls affected, implying hundreds of thousands of dollars in forgone rent annually by reasonable extrapolation).
  • Frequency: Seasonal and recurring every training season until controls are fixed
  • Root Cause: Breakdown between written stall rental policy and operational execution: NYRA maintained backstretch stabling for trainers but did not have a reliable process to track occupancy and issue invoices for stall space during the training season, leading to systemic under‑billing and free use of stalls.

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Racetracks.

Affected Stakeholders

Racetrack finance director, Backstretch operations manager, Stall superintendent, Accounts receivable / billing staff, Trainers and owners using stalls

Deep Analysis (Premium)

Financial Impact

$100,000–$200,000 per year in non-collection from vendors + compliance risk exposure • $100,000–$200,000 per year in non-collection of stall fees from vendors and contractors • $150,000–$250,000 per year in lost stall revenue from informal/unbilled occupancy

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Current Workarounds

Backstretch and racing office staff rely on manual stall lists, paper binders, whiteboards, and ad‑hoc spreadsheets to track who is occupying each stall, then try to reconcile these records with the separate billing/horsemen’s books at month‑end or season‑end; gaps are informally patched by staff memory and phone calls/texts with trainers to verify occupancy when discrepancies appear. • Compliance Officer issues exception reports; escalates to Track General Manager; manual enforcement of billing via separate communication • Compliance Officer manually reconstructs billing records from stall assignment logs, trainer agreements, and historical occupancy data; generates exceptions list; relies on Stable Manager interviews

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Industry-wide undercharging or failure to implement stall rent programs

Hundreds of thousands to several million dollars per year per mid-to-large track (e.g., Pompano Park’s 800 stalls at $900/year represent $720,000 in annual stall rent; tracks with similar or larger inventories that do not charge or do not bill consistently bleed comparable sums).

Weak stall rental receivables controls delaying collection

$50,000–$150,000 per year in financing cost and bad-debt exposure for a large track (derived from delayed collection on hundreds of thousands of dollars of stall fees, increasing days sales outstanding and write-off risk).

Poor visibility into backstretch cost vs. stall rent revenue leading to suboptimal facility decisions

Seven-figure impact over several years per track (e.g., carrying hundreds of underutilized stalls with maintenance, utilities, and labor but limited or no rental recovery can easily exceed $1,000,000 over a multi‑year horizon).

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