Cover image courtesy of Australian Turf Club
The Australian Turf Club board was dealt another curveball on Friday, when Racing New South Wales issued a Show Cause notice to the organisation. The ATC has two weeks to formulate a response to the notice, which threatens to place them under administration if they cannot prove they are financially viable.
It is no idle threat either. Racing NSW has previously placed the Tamworth, Queanbeyan, and Wyong clubs under administration, and the Hawkesbury club is still under administration, having first had an administrator appointed in 2021.
Shifts in the boardroom
The move follows a spate of departures at the ATC; chief executive officer Matt Galanos departed the role on Monday, and club-elected director Ben Bayot and government-appointed director Natalie Hewson submitted their resignations from the board on Thursday.
Steve McMahon, the ATC’s head of corporate affairs and government relations, has been promoted to interim CEO. The recruitment process for a new CEO is set to commence after the running of the G1 The Everest on October 18.
Peter McGauran resigned from the position of Chairman in July, following the conclusion of the members’ vote to not sell Rosehill Racecourse in May and a large member petition for his removal, and was replaced by long-serving director Tim Hale in an election in the same month. In the same election, Caroline Searcy, who has been a director since February 2023, was elected to Vice Chair.
Ben Bayot | Image courtesy of Australian Turf Club
Bayot had been briefly touted as McGauran's replacement pre-election, having been a strong proponent for the sale of Rosehill. On Thursday, he cited “poor corporate governance” and “significant financial strain” as driving forces behind his departure.
At present, there are only four directors left on the board; Annette English was elected to the board in February, joining the aforementioned Hale and Searcy, as well as director David McGrath. Earlier this week, English was appointed to lead the ATC response to the review into the Thoroughbred Racing Act of 1996, which is being led by former NSW Health Minister Brad Hazzard.
Asset-rich, resilient, and strong
According to the Sydney Morning Herald, the ATC owes Racing NSW $145 million in the form of an interest-free loan that only needs to be repaid if the club sells a major asset, and a further $30 million is owed to Commonwealth Bank, with a due date for payment of October 2026.
The sale of Rosehill allegedly could have netted the club $5 billion, but the cloak-and-dagger proceedings surrounding the proposal led to 56% of the members voting to keep the asset.
In another bid to increase club income, the ATC was slated to increase on-course stable rent by 10% on August 1, but significant backlash from trainers has postponed the change. However, metropolitan fees are due to change regardless; an email sent out by the NSW Trainers’ Association on Thursday night detailing that, for Sydney-based trainers, track fees will increase by 10%, acceptance fees by 20%, and barrier trials fees will increase from $260 to $421 on October 1.
“The ATC will cooperate with this process and work with Racing NSW to maintain the club’s ongoing financial position and sustainability,” Hale said in a statement released on Friday evening.
Tim Hale | Image courtesy of Australian Turf Club
“The process will help our long-term viability, but I'd like to emphasise that the ATC remains asset-rich, resilient, and strong. Be assured the club has a clear direction: that is to strengthen the ATC and invest in the future of Sydney racing across all metropolitan racecourses.
“The priorities are unchanged - members and our racing come first, particularly as we tomorrow officially launch the Sydney Everest Carnival. This Spring Carnival will showcase new enhancements for participants, members and patrons.
“We look forward to building the best possible future for our Club and its racing.”
Hale also thanked the departing directors for their service, saying, “I also wanted to advise that two ATC directors, Ben Bayot and Natalie Hewson, stepped down from the board late (on Thursday). We thank Ben and Natalie for their contributions and wish them well.”
There is currently no details on when or if elections will be run to fill the two vacant director positions.
