Senator Kevin O’Toole, a member of the Senate Budget and Appropriations Committee, called on Governor Corzine to expand the mandate of his Commission on the Horse Racing Industry to include finding solutions to the problems of New Jersey’s entire sports entertainment industry. O’Toole expressed alarm over published reports that New Jersey’s sports entertainment industry is near collapse. Horse racing, pro-football, basketball and hockey attractions are all facing economic and cultural challenges that were not evident a decade ago, threatening vitally needed jobs and economic growth during this recession.
“Overnight it seems, the state’s many sports venues have started hemorrhaging customers and revenue,” O’Toole stated. “Teams are threatening to leave, and the horse racing industry is running up massive annual losses. “If this trend continues, New Jersey taxpayers will be faced with the choice of subsidizing sports venues and race tracks or losing their benefits forever.”
According to the Star-Ledger the New Jersey Sports and Exposition Authority (NJSEA) is “essentially running at a deficit.” Financial troubles at the NJSEA are expected to increase when revenue from the Xanadu complex vanishes and the cash flow from payments by users of the current Giants Stadium dramatically drops next year. The new Giants/Jets stadium is contracted to pay only a fraction of the revenue that the current stadium supplies.
According to the same article, more than $71.3 million in outstanding debt from sports venues will be assumed by the state this year. Additionally, debt payments will increase dramatically because some bonds for sports authority projects will lose their tax exempt status.
“It is clear that unprecedented action must be taken to ensure that our stadiums, arenas and racetracks remain attractive destinations to residents and visitors alike,” O’Toole continued. “It is equally important that they don’t become drains on the public treasury. Too many jobs are at stake, especially in these recessionary times, to delay action on a long-term fix of the NJSEA.”
“Sports and horse racing are vibrant, vital components of New Jersey life and culture. Attending these events unites as well as entertains us.
“It is incumbent upon the Legislature that the New Jersey Sports and Exposition Authority be reorganized so that it can become the economic and cultural driving force it once was in our state,” O’Toole continued. “The Nets are already leaving for Brooklyn. We must take bold, decisive action now before we suffer additional losses to our sports heritage.
“If the governor won’t act, the Legislature should convene a commission over the summer to create a holistic, long-term plan to manage and restore the appeal of our sporting venues. The commission should supplement the Governor’s Commission on the Horse Racing Industry to ensure that all of our sports industries are managed in a coherent manner with the capability of expanding in the state.”
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June 29, 2011
