SOA of NY and MGM Yonkers Raceway Contract Negotiations Update as of May 27

SOA of NY and MGM Yonkers Raceway Contract Negotiations Update as of May 27:

Dear Member,



We would like to update you on the status of contract negotiations with MGM. As many of you know, the current contract was entered into in 2021 and is due to expire on May 31, 2025.

The SOA and MGM commenced negotiations in February of this year. The parties discussed their respective proposals at two separate negotiating sessions, including their views on the term of a new agreement. While MGM suggested a three year contract, the SOA proposed a six year deal. MGM only indicated that they could not agree to anything more than a five year deal. There were also a handful of unresolved issues to be negotiated. Both sides expressly agreed that it was in all parties' best interests to reach an agreement expeditiously.

However, at a third negotiating session held in early April, MGM abruptly stated that they were not in a position to negotiate a new contract. Instead, MGM incredulously took the position that MGM, one of the largest casino operators in the world, purportedly did not have the "bandwidth" to even participate in negotiations with the SOA at this time, citing MGM's need to file an RFA by June 27 in connection with its application for a casino license. MGM took the position that all they would be prepared to do was to extend the current contract until the end of the year -- not engage in good faith negotiations.

Since MGM walked away from negotiations for a new contract, the SOA has repeatedly urged that the parties meet. Indeed, the current contract specifically requires MGM to meet with the SOA on a monthly basis to discuss current racing matters. Despite repeated efforts by the SOA to schedule the required meetings in April and May, MGM has breached our existing contract by flatly refusing to even meet with the SOA.

Clearly, there is no justification for MGM's refusal to engage in contract negotiations (or for its breach of the current contract) and valuable time -- essentially the entire months of April and May -- has already been wasted due to MGM's withdrawal from negotiations. There is no legitimate reason to delay negotiations until the end of the year. The idea that MGM lacks the necessary resources to even engage in negotiations is, to say the least, absurd and instead suggests that MGM is just not giving the need for an agreement between the parties the proper attention and priority which are due to the racing operations at Yonkers Raceway.

Nonetheless, since MGM claims the impending June 27 RFA deadline to be a factor which prevents it from participating in negotiations, the SOA has gone the extra step of suggesting that the parties extend their agreement for two months (which would be a full month after the cited RFA submission date) to allow time for the parties to continue and complete negotiations. This would be consistent with what transpired in 2021, when the parties negotiated their current contract. The prior contract had been due to expire on May 31, 2021, and the parties extended the agreement at that time to allow for further negotiations, resulting in successful discussions concluded at the end of July 2021 which produced the four year agreement between the parties. As was demonstrated in 2021, the parties can reach an agreement in the next two months if they are diligently working towards that goal. The SOA, for its part, is ready to do so. We have notified the Gaming Commission of the current situation, and we have reiterated our proposal that the contract be extended for two months and that the parties be required to engage in good faith negotiations.

In the last few days, MGM has finally agreed to meet regarding the contract -- on June 4th, after the termination of the current contract. Given the obvious importance of the matter, we have urged that a meeting be held this week, before the termination of the current contract The SOA's negotiating team is ready to proceed as soon as possible.

We will, of course, keep you informed as to further developments. In the meantime, you should be aware that there are significant protections in the law which address any interim period where a contract is not in place. It is our belief that this should be unnecessary and it is our hope that those protections do not actually need to be invoked, but we have worked with the legislature and other government officials over the years to ensure that horsemen's rights and interests are protected in the event a contract is not in place due to one party's refusal to negotiate.

Regards,

SOA of NY Contract Negotiating Team