Sale rejected: ATC Members say 'No' to Rosehill resolution

Cover image courtesy of The Image Is Everything

In one of the most significant votes in Australian racing history, members of the Australian Turf Club (ATC) have rejected the proposed $5 billion sale of Rosehill Gardens, voting down a controversial resolution that would have seen the iconic western Sydney racecourse redeveloped into housing.

The final result was 56.1 per cent against and 43.9 per cent in favour, with 4413 members voting “No” and 3451 voting “Yes”. The vote marked the end of an 18-month saga that saw heated debate, a parliamentary inquiry, and widespread industry backlash.

“This was the most significant decision in the Club’s history,” ATC Chairman Peter McGauran said in a media release after the result. “We thank every member who engaged with the proposal and made their voice heard.”

A vote that divided the industry

The proposal - first announced in December 2023 - was billed by the NSW Government and the ATC as a “once-in-a-generation opportunity” to create 25,000 new homes and unlock $5 billion in proceeds to reinvest in Sydney racing infrastructure. Premier Chris Minns, who championed the plan, described the outcome as disappointing but signalled the government had contingency plans for addressing Sydney’s housing crisis.

But critics questioned the process, the rushed timeline, and the integrity of the governance.

“I am very happy,” said Arthur Mitchell of Yarraman Park. “It was all badly run, badly thought out. Now we can take a deep breath, a rethink, take some time and look at other opportunities. There was a lack of trust. The bribery to members didn’t go down well.”

That so-called “bribery” refers to the controversial loyalty program released in the final weeks of the campaign, which offered free memberships and benefits to those who voted in favour of the sale. The offer was seen by many as a last-ditch inducement to flip the vote.

Julia Ritchie from Save Rosehill said, “I think 99.9 per cent of the people in the room today were ‘No’ voters. McGauran said young people wanted this. Someone asked for the young people in the room to raise their hands. There were two. Where were the rest?”

She continued: “Before the last vote we were polling 85 per cent no. Then they had lots of pretty pictures and brochures - and the inducements - and they got it down to 56 per cent. We want to help the industry get it right. We shouldn’t need inducements to get members to support our tracks.”

High-profile resistance

Gai Waterhouse, John O’Shea, and John Thompson were among the most vocal industry figures against the sale. Their interviews, coordinated by Save Rosehill in the lead-up to the vote, helped galvanise trainers and members.

“John O’Shea was amazing and John Thompson did such a great job bringing people together,” said Ritchie.

Antony Thompson, Aushorse Chairman and principal of Widden Stud, described the result as “not surprising,” and an opportunity for the industry to reset.

“It presents a good opportunity as an industry to look at all other options, how we can capitalise on the housing crisis and generate significant revenue to reinvest back into the industry. It is time for a review of the Racing Act, for a review of the ATC's assets and the whole business. It would be good to look at Rosehill - and possibly Canterbury - regarding developing land while still maintaining the great racetrack that it is.”

Chairman warns of pain ahead

Speaking to the media, Peter McGauran said he was “disappointed” with the outcome but understood the opposition. He ruled out stepping down as chairman and warned of consequences for the industry in the wake of the result: “We’ll have to squeeze the lemon even drier because we are dependent on wagering and wagering is turning down. Sadly, I think prizemoney is brought into question—as is our ability to provide the services members rightly demand as well as encourage young people.”

“I always saw it as both an opportunity and a necessity,” he said. “An opportunity to completely change and modernise in the face of declining attendance, declining membership, as well as necessity (during a) wagering downturn. Racing is not the dominant, nor let alone cultural pursuit, that it once was.”

It is important to note that while McGauran trumpeted the wagering downturn narrative throughout the ATC's sale campaign, total turnover remains nearly double what it was a decade ago. The COVID boom created inflated highs, and recent declines appear to be a correction - not a collapse. The upcoming review of the Racing Act will be critical to ensuring the ATC receives a fair share of the wagering revenue it helps generate, rather than relying solely on shrinking TAB distributions.

Asked directly whether he would resign, McGauran responded: “No, I won’t be retiring. I believe it was in the best interests of the club and of racing. I serve as chairman at the pleasure of the board and so that’s always within their power, but I don’t intend to resign.”

He maintained that the rejected deal would have been transformative: “The funding would have transformed the entire Sydney racing scene for the next 100 years as it would have funded with certainty the ATC, non-dependent on wagering income.”

What comes next?

The ATC has confirmed it will now refocus its energy on strategic planning and infrastructure renewal.

“With the vote behind us, the Club’s focus is firmly on the future - one that honours our proud heritage while continuing to evolve and grow,” said McGauran in a club statement.

“Our priorities remain enhancing our tracks and welfare systems, growing participation through deeper community engagement, and continually improving the raceday experience.”

The result will also intensify calls to speed up urgency on the review of the Racing Act, which has been committed to by the Racing Minister.

As Antony Thompson put it: “It’s time for a reset.”

And for now, Rosehill remains. Not just as a racecourse, but as a symbol of a racing community that fought to have its voice heard.