The great circus impresario P.T. Barnum reportedly once said: "There’s a sucker born every minute."
Even though research indicates he may never have said it, there’s no doubt that the people of New York are being played for suckers in the matter of the franchise to operate 4500 slot machines at Aqueduct race track in Queens
The Daily News deserves credit for filing a freedom of information request to find out details of the secret negotiations involved in the multi-billon dollar contract awarded to the Aqueduct Entertainment Group.
The problem is an aroma still lingers around the deal struck by Albany’s big wheels with AEG.
And the details of how the deal came about are still murky.
Proposals to operate this franchise were received from a half dozen businesses. Somehow, even AEG, which at first didn’t offer the most upfront money to the state, was ultimately chosen. AEG managed to increase its offer to the state as the process went along -- a procedure not likely to inspire confidence in New York citizens.
New York City Comptroller John Liu told me he found the process "very troubling." He’s having his staff look into whether his office has any jurisdiction in this situation.
Local
Blair Horner of the New York Public Interest Group told me he finds the whole process "confusing." He spoke especially of the allegation that the bidding was kept open so that the successful bidder could keep raising his bid.
Amid the clouds of secrecy involved in this matter, as the News points out, there are two "financial questions" for the state negotiators: Governor Paterson, Senate Conference leader John Sampson and Assembly Speaker Sheldon Silver.
First, how much did the bidders offer to pay the state up front for the franchise? Second, how much did the bidders estimate their companies would take in over the years? (The state would get a substantial cut from these revenues).
Speaker Silver has tried to bring some clarity to the situation by requesting that the state’s inspector general, Joseph Fisch, investigate the matter.
At first, AEG was far behind the other bidders in its estimate of future long-term revenue but then it revived its estimates until, finally, its prediction of $3.6 billion towered above all the rest. If at first you don’t succeed, just revise the numbers upward!
When the state’s property or money are involved [in this case, both are], there is a great need for transparency. It didn’t happen here.
Perhaps Barnum -- or whoever said it -- was right: when it comes to big bucks deals we the people get played for suckers. Again and again.
