A State Senate oversight panel heard testimony Wednesday on the future of the New Jersey Sports and Exposition Authority, which is in deep debt and struggling to deal with its many assets around the state, the most glaring of which is the stalled Xanadu project at the Meadowlands.
The panel's chairwoman Sen. Barbara Buono said that when the Legislature adopted the NJSEA in 1971 its mission was overseeing construction, maintenance, and operations in the Meadowlands. Buono said since 1993 the authority has cost the state money, is in enormous debt, and has a "precarious financial situation."
NJSEA CEO Dennis Robinson testified that the authority is $830 million in debt, and that even hosting popular events that send money to the state treasury haven't been profitable for the NJSEA.
"While the sports authority actually lost $2 million on an operating basis on the Breeder's Cup in 2007, the state of New Jersey made an estimated $16 million."
Robinson said the NJSEA is struggling in part because of what has happened to the horse racing business in New Jersey. He said racing has been in decline for 30 years as a money maker.
"We've gone from an 81% market share and 56% operating margin to a less than 2% market share and a negative market share because racing loses money," said Robinson, who said racetracks haven't been legally allowed to offer additional gambling attractions while out-of-state competitors have.
When asked how the NJSEA could become financially viable, Robinson said, "We're working with the governor's advisory commission on just those issues."
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