Written by David Walter
Cover image courtesy of Ashlea Brennan
The Australian Turf Club is again seeking approval from members to close and sell Rosehill Gardens, and as a concerned member, I feel compelled to speak up, again.
The proposal remains no good. To give credit to the Club - the updated explanatory statement for the meeting is certainly an improvement, and it should get us all thinking about how the Club can be optimising use of its assets. In that regard, perhaps the floating of this proposal (even if or when it is rejected by members) will in the long term do the Club some good.
I remain positive about the Club’s future – and I continue to be very supportive of examining how the Club’s racecourses (and surrounds) can be better integrated into their communities and “modern day” Sydney. The Premier is completely right when he says that Sydney mustn’t become a museum. But the fundamental issues with this particular proposal remain.
David Walter
Dealing with the alleged cash crisis – the sale proceeds won’t obviously help
The near-term cash and cash-flow impact of the proposal is a myth. The proposal sees all of the initial $1.9b of cash proceeds over the first decade or so effectively matched to the planned capital expenditure at the various tracks. That is - there is no “spare” cash for otherwise dealing with the alleged cash crisis that the Club apparently faces right now because of the claimed collapse in wagering turnover. Rather, the “spare” cash is the $3.1b balance to be received over a period of years well into the future. And so how the sale contributes to dealing with the real issues for the Club - prizemoney levels, wagering revenue, on-course attendance - is not at all obvious. Sure, there will be new revenue streams from the mooted new leisure clubs and the like - but those are all years off as well. And so this does not change anything for the Club’s immediate issues.
To be fair – the capital expenditure budget is stated to be circa $1.7b, with the initial cash proceeds over the first 5 years to be $1.9n. But I think we should all confidently assume that cost overruns will see that actual capital expenditure swallowing the whole $1.9b. Perhaps I will be proven wrong.
Rather than flogging our best asset, the Club should be looking at prizemoney, programming and the pattern, the revenue arrangements with Racing NSW, peripheral asset sales, etc.
Rosehill “never worth more than it is now” – we have no idea
The core of the case for a sale generally and for the urgency now is that Rosehill will “never be worth more than it is now”. This is said to be because of the impending Metro station decision by the State.
Rosehill | Image courtesy of the Australian Turf Club
There may be something in this - but members simply do not know. The meeting materials still do not deal with the different valuations for Rosehill - both now and in around 2040 when the final parts of the sale price will be received - depending on what happens with the Metro line and any related development and zoning decisions in the precinct.
In the face of that lack of information, the impending Metro decision is in my view not a compelling “burning platform” reason to sell the Club’s best asset urgently – not when the rest of the proposal is, in my view, unsatisfactory.
Warwick Farm – seriously?
And then turning to Warwick Farm. I do appreciate the effort in working up this aspect of the proposal. And I have nothing against Liverpool. But the Warwick Farm rebuild is a distant pipe dream. This is so even on the Club’s own consultant advice. Fundamentally the flooding and drainage issues at Warwick Farm make it obviously challenging – perhaps do-able but very challenging. There is no planning certainty whatsoever. There is no timing certainty. There is no cost/budget certainty – and a lot of risk, in my view. The public transport arrangements are not ideal - for instance there is no clear commitment to rejuvenate Warwick Farm train station. I could go on.
Moreover, with the greatest of respect for Warwick Farm, it is a proven failed Group 1 racing/carnival destination. I was there when the last Chipping Norton was run at the course, and the crowd was very modest despite an excellent card. The Club can build whatever facility it likes, but the location is still a proven failure. It will, I very much fear, be a more expensive version of Menangle – just ask the trots how that is going for them in terms of community engagement, crowds and so forth.
Racing Advisory Board
The Racing Advisory Board is just that – an advisory board. It may help people in the industry feel better in the near-term, but in my view it will take the industry in NSW nowhere (and if anything will likely deepen frustration rather than redress it).
The Penrith purchase
The trainers will know better than me and I will stand to be corrected by experts; but spending a huge sum of money on building (only) 300 boxes at the mooted new Penrith facility does not make much sense to me in terms of value for money per box - and then the ongoing operating revenues/expenses for that site also do not seem obvious. There is no detail on this, at all.
Member loyalty programme
The Club insists that the member loyalty programme is not a gimmick to get your vote. It is a gimmick. That simple. There are already various member benefit arrangements on offer that are under-utilised – the Club should be pushing that along already, and not using it as a bauble to attract votes.
There are wider corporate governance question marks around the tethering of this part of the proposal to the outcome on the resolution - that could be the subject of an entirely separate letter.
Pushing Western Sydney to the periphery
Finally, and I mean this – when the Club says that this is not a betrayal of Western Sydney, it is a betrayal. It shoves racing in Western Sydney to the edges – Warwick Farm, Penrith (both nice places) – and removes it from the centre - Parramatta. It is akin to moving Randwick to La Perouse or Kurnell (both nice places). Racing in Sydney will be that little bit more out of sight and out of mind for the public. Like harness racing is in Sydney now that it is at Menangle (also a perfectly nice place).
This vote matters. Rosehill’s fate matters. The decisions made now will define the legacy of the Club for generations to come.
For members of the Club reading this - please check your inbox and complete your proxy form. This is our chance to shape the future of racing in New South Wales -wisely, responsibly, and with the long-term interests of members and the industry at heart.
Sincerely,
David Walter
ATC Member
Note: David unsuccessfully ran for election to the Australian Turf Club board in 2024 with the support of the ‘Save Rosehill’ initiative. David continues to support the Save Rosehill initiative, but the views above are his personal views only.
