OCEANPORT — A deal to privatize Monmouth Park racetrack was upheld today by the New Jersey Sports and Exposition Authority, but is likely to face a court challenge by the losing bidder.

The ruling — made public only after it was reviewed by Gov. Chris Christie — affirms the authority’s decision late last year to hand over control of the historic racetrack in Oceanport to the New Jersey Thoroughbred Horsemen’s Association.

Attorneys for John Brunetti, the owner of the Hialeah Park racetrack in Florida who was seeking to operate Monmouth Park, promised an immediate court challenge, charging the decision created new loopholes for wielding political influence in New Jersey.

The association, which represents horse owners and trainers, said the decision gives them control of their own destiny.

"The horsemen now have a stake in their own future and a stake in making sure racing survives in New Jersey," said attorney Dennis Drazin, who led the association’s bid to take over Monmouth.

The sports authority has been working for over a year to privatize the 65-year-old track, under plans by the Christie administration to get New Jersey out of the horse-racing business.

With more than $20 million in annual losses from racing, the sports authority has already transferred the Meadowlands Racetrack in East Rutherford to New York horseman Jeff Gural.

Christie had threatened to shut down Monmouth Park after a deal with developer Morris Bailey unraveled, but an eleventh-hour agreement was reached with the Horsemen’s Association last year.

Brunetti, however, challenged the decision, which led to a hearing on the dispute last Monday. A key issue was whether political contributions made by Brunetti unfairly had taken him out of the running because of the state’s pay-to-play restrictions.

Attorneys for Brunetti did not dispute he had made campaign contributions, but argued the Horsemen’s Association, a non-profit organization, made its own political contributions. The association argued it was not bound by the same pay-to-play restrictions as a business entity.

In a 37-page decision released today, Mark Stefanacci, the sports authority’s chief operating officer and legal counsel, agreed with the horsemen, finding non-profits were specifically exempted from the pay-to-play law, and recommended the authority affirm its decision.

The authority on Thursday met behind closed doors and accepted the recommendations, but would not disclose their action until it was reviewed by the governor.

Drazin said the horsemen have already invested significant funds to finalize the transaction in anticipation of Monmouth Park’s May 12 opening.

Meanwhile, Paul Josephson, an attorney for Brunetti, said the decision will be appealed.

"We are disappointed the governor, who has done so much to change the way business is done by the state, has accepted the sports authority’s decision to do business for the next 35 years with a group the governor himself called ‘untrustworthy’ and rightly accused of ‘extorting’ the state and its taxpayers," he said.

He said the sports authority’s decision also created a new loophole in the pay to play laws by allowing a politically connected nonprofit to contribute essentially unlimited amounts to officeholders who give them contracts. The law prohibits contributors from vying for state contracts if they give over a threshold amount to legislative and other campaigns.

"The horsemen gave $50,000 in political contributions to legislative leaders and state parties leading up to the award and are allowed to contract, while my client was deemed disqualified for $7,500 given to county parties having nothing to do with this deal," he said.

Related coverage:

• Privatization of Monmouth Park racetrack hits another snag

• Monmouth Park gets a new lease on life thanks to Thoroughbred Horsemen's Association

• Gov. Chris Christie announces deal to save Monmouth Park's 2012 race dates

• Monmouth Park could get help from Oceanport as track faces shutdown

• Monmouth Park faces shutdown in 2012 if a new lease deal can't be reached in seven days