| Giants, Jets, Devils, and Nets games. Going to the races. Springsteen, Bon Jovi, the Circus. We all have memories of fun times spent with family and friends at the Meadowlands Sports Complex and other sites developed by the New Jersey Sports and Exposition Authority.
Last week, as Chair of the Senate Legislative Oversight Committee, I took the opportunity to explore the current financial condition of the NJSEA, whether it still serves as an economic engine for our State, and what its future plans are for economic viability. Right now, we know the agency is operating at a deficit, the State pays most of its long term debt, and many wonder if they are using a 1970's business model in 2010. |
| My interest in the NJSEA dates back to my time as Chair of the Senate Wagering, Tourism & Historic Preservation Committee, when I gained a great deal of insight into both the origin and purpose of the Sports Authority. To understand the situation facing the NJSEA, we must first delve into the intended goal of the Authority and the sites it operates and developed. When the Legislature first created the Authority in 1971, it was tasked with the specific mission of overseeing the construction, operation and maintenance of a sports complex in the Meadowlands. It was meant to be a financially self-sustaining government entity. The key to the Authority's operations was the horse-racing tracks, whose revenues were to be used to cover track expenses, the entire complex, the payment of interest and principal on the bonds, and costs for the land. Any funds remaining were to go to the State.
Supporters believed the complex's completion would make New Jersey the preeminent "sports capital of the world." For a while it was a great success, and not just in terms of victories by the teams who called it home. Since 1993, however, because of both declining revenues and political pressures on the NJSEA to finance the building of facilities across the State, the NJSEA racked up debts of $894 million for the State.
It was good while it lasted, but the State and the NJSEA must face facts and adopt a new game plan.
During last week's testimony, a lot of discussion centered on whether horse racing can be economically viable in New Jersey. Indeed, the NJSEA's CEO testified that horse racing has been on a downhill slide since 1977. All who testified were in support of trying the Governor's Commission's proposal to reduce the number of race days and eliminate thoroughbred racing at the Meadowlands. This kind of agreement is rare and we should seize upon it. Others have ideas for better promotion and expansion of Off Track Wagering and Account Betting. The NJSEA should be pushed on these items. As for other forms of gaming, even its supporters admit that it would be an uphill battle and is not a near term solution for the racetracks. Other options must be proposed.
Today, with the upcoming opening of the new Giants and Jets Stadium and the Nets following the Devils to Newark, the Sports Authority's role in "Sports" is much smaller than in the past. This calls into question its structure, management, salaries, and future in general. We need a vision for the future Meadowlands complex. Its proximity to New York City, major roads, and a new train station on the Northeast Corridor make for endless economic development opportunities.
While I certainly appreciated NJSEA CEO Dennis Robinson's frank testimony about the agency's finances, I believe much more information is needed. In order to plan for the Sports Authority's future, we need to know what is really happening with their finances. That is why I asked for an audit of the NJSEA and can not consider their request an additional $30 million dollars for this year until we have answers to our fiscal questions.
In the coming months, I intend to work with the State Auditor to get the answers we need. I will also reach out to the Governor's Commission as well as community and industry leaders and expert planners to help map out a sound plan for the future of both the Meadowlands and the NJSEA in the 21st century. And, of course, I am always open to ideas from the community. |
