Cover image courtesy of Racing NSW
Five days can be a long time in racing. This week, it was enough to bring together several of the major issues currently surrounding Racing NSW.
On Monday, Racing NSW confirmed that Chief Executive Officer Peter V’landys would take four months’ long service leave from July to assume interim executive duties at the Australian Rugby League Commission, following Andrew Abdo’s resignation as NRL CEO. It was publicly endorsed in a statement by Racing NSW chairwoman Saranne Cooke.
By Tuesday, Racing NSW Chief Operating Officer Graeme Hinton had been confirmed as interim CEO and was publicly outlining his support for the strategic direction of the organisation.
Graeme Hinton | Image courtesy of Fan Duel Racing
On Thursday and Friday, Racing NSW and the Australian Turf Club were back before the Court of Appeal, with Racing NSW challenging Justice Francois Kunc’s ruling that its proposed appointment of an administrator to the ATC was invalid.
Sitting alongside those developments is the independent Hazzard review of the Thoroughbred Racing Act 1996, which is examining, among other things, governance structures, stakeholder consultation and transparency.
Taken separately, each development is significant. Taken together, they made for an unusually revealing week in NSW racing.
V’landys to take leave
The announcement of V’landys’ leave was made on Monday, with Racing NSW confirming he would step away from his role for four months while he takes on interim executive duties at the ARLC.
The move follows the resignation of Andrew Abdo, who will leave the NRL to become Chief Executive Officer of Tennis Australia.
“Mr V’landys has made this application so he is not spending more time on the Australian Rugby League Commission while performing his Chief Executive duties at Racing NSW,” Racing NSW Chairman Dr Saranne Cooke said in Monday’s Racing NSW statement.
Gallery: Racing NSW Board Members
“Having carefully considered Mr V’landys’ application, the Racing NSW Board unanimously supported the professional approach that Mr V’landys has taken.”
“Having carefully considered Mr V’landys’ application, the Racing NSW Board unanimously supported the professional approach that Mr V’landys has taken.” - Saranne Cooke
At a press conference on Monday announcing Abdo’s departure from the NRL, V’landys said the Racing NSW board had supported the arrangement.
“The board was unanimous in support of myself and the position that I put myself into,” V’landys said.
He also expressed confidence in Racing NSW’s leadership during his absence.
V’landys said he would take over from Abdo on July 15. Asked whether the NRL role could become longer-term, he said: “Look, today is about Andrew, I am not going to go into those details at this stage… I can assure you that I will not be CEO.”
V’landys also said taking on both the executive and board functions was “not allowable under the constitution at the moment”, meaning any longer-term executive chairman model would require constitutional change.
Andrew Abdo | Image courtesy of NRL
Asked who could replace Abdo permanently, V’landys said the NRL would “take our time” because it was a “very, very important decision”.
Asked whether a worldwide search could simply lead back to V’landys himself, he declined to be drawn on his own longer-term position.
He also joked that replacing Abdo would require “Superman and Jesus added together”.
“Superman and Jesus added together”. - Andrew Abdo
V’landys, who is on a year-to-year contract with Racing NSW, also said he would consider his future with the principal racing authority during his summer holidays at the end of the year.He has served as Chief Executive Officer of Racing NSW for more than two decades and has been chairman of the ARLC since October 2019.
His four-month leave period means he is not expected to return to Racing NSW until mid-November.
V’Landys has been the chairman of the ARLC since October 2019, and will be attempting to solidify a multibillion dollar broadcasting deal for NRL before Abdo’s departure in July. The four-month sabbatical from RNSW will see him not return to the organisation until mid November.
Governance questions remain live
The announcement drew criticism from some industry participants and groups, including the Racing Reform Group, which has been one of the most vocal critics of Racing NSW’s governance structure.
“The announcement that Peter V’landys will take long service leave to run rugby league raises further serious questions about the governance of Racing NSW,” RRG said in a statement.
“It is highly unusual for a CEO to take leave to act as an interim CEO at another competing organisation, so we question why Saranne Cooke and the rest of the board of Racing NSW approved it.”
RRG has also been active in the independent review of the Thoroughbred Racing Act 1996, led by former NSW Health Minister Brad Hazzard.
Brad Hazzard | Image courtesy of Sydney Criminal Lawyers
The review is assessing whether the Act remains appropriate to ensure the integrity and proper regulation of thoroughbred racing in NSW, as well as the industry’s development and sustainability. Its scope includes governance structures and processes established under the Act, along with mechanisms for stakeholder consultation and transparency.
RRG submitted a 40-page document to the review in January, outlining 33 recommendations across Racing NSW governance, sustainability, accountability, integrity and welfare.
The group has also argued that the review should be expanded to include industry funding arrangements.
The timing of the review gives this week’s events broader relevance. Racing NSW is preparing for a temporary change in executive leadership at the same time as the structure of the Act that underpins its role is being examined.
Hinton keen to keep power central
In the meantime, Graeme Hinton has been confirmed as interim CEO. Speaking to SEN’s Gareth Hall on Tuesday, Hinton said the decision for him to take over the role had been made only recently.
“You never count your chickens until they hatch,” Hinton said when asked about the prospect of taking over from V’landys full-time.
“You never count your chickens until they hatch.” - Graeme Hinton
“But I certainly would covet the role. I’ve been in my job for quite a long time, and I’ve certainly done a good apprenticeship.”
Hinton also flagged “big announcements” to come before V’landys’ departure to the NRL, including further integration of World Pool into NSW racing.
Graeme Hinton | Image courtesy of FanDuel Racing
Asked about the relationship between Racing NSW and the ATC, Hinton described it as “solid”.
“Steve McMahon has come in with a breath of fresh air,” he said of the ATC’s newly appointed CEO.
“At a board level, they are currently recruiting a couple of new directors, so we are hopeful that this creates a bit of change in their organisation that brings them more profitability.”
Hinton defended a centralised model of racing administration, pointing to jurisdictions he regarded as successful.
“When you look around the world, I would say that Hong Kong, Japan, and RNSW are the strongest racing jurisdictions,” he said.
“When you look around the world, I would say that Hong Kong, Japan, and RNSW are the strongest racing jurisdictions.” - Graeme Hinton
“What you find in each of those is a consolidation of that power. When you have got one entity that is able to drive things forward, you get the best outcomes for everybody.
“If you compare that to jurisdictions like the US or the UK, or even Queensland, when you have a fragmented model between regulatory and commercial functions, it gets harder to get things done… your outcome suffers as a result.”
Hinton said he would follow the same strategic direction as V’landys during the interim period.
Litigation continues afoot
While the leadership transition was being absorbed, Racing NSW and the ATC returned to the Court of Appeal on Thursday and Friday.
The appeal follows Justice Kunc’s March ruling that Racing NSW’s proposed appointment of an administrator to the ATC was invalid and of no effect.
The dispute began after Racing NSW issued a show cause notice to the ATC in September, raising concerns about the club’s financial position, governance and strategic direction. Racing NSW later resolved to appoint an administrator to the club. The ATC challenged that decision in the Supreme Court.
Justice Kunc found that Racing NSW’s proposed appointment was not authorised under the Thoroughbred Racing Act in the circumstances of the case. The case was not a ruling on whether Racing NSW’s concerns about the ATC were justified, but on whether the Act gave Racing NSW the power to take the action it did.
Justice Kunc | Image courtesy of Legal Services Court
The Australian Financial Review reported at the time that the ruling was a setback for Racing NSW, while also noting Racing NSW’s decision to appeal the judgment shortly after it was handed down.
Speaking on SEN earlier in the week, Hinton said Racing NSW had “little choice” but to appeal.
“It’s not so much about the ATC,” he said. “What that case is about is just confirming the way that our Act has been structured and what powers it provides to us.
“Our board had little choice but to run the appeal because the judgment that came down had some very… what we consider to be odd rulings that made some pretty significant restrictions on our Act, and we needed to have those clarified.”
The appeal was heard by Justices Jeremy Kirk and Kristina Stern and Acting Justice John Griffiths.
Racing NSW’s case, led by Justin Gleeson SC, focused on the interpretation of the Act and the scope of the principal racing authority’s powers. The ATC, represented by Scott Robertson SC, maintained its position that Racing NSW did not have the power to appoint an administrator to the club.
Justin Gleeson | Image courtesy of Justin Gleeson
Reporting from the hearing has indicated that argument again turned on the proper construction of the Thoroughbred Racing Act, including the definition of “horse racing”, the extent of Racing NSW’s statutory powers and the relationship between Racing NSW and race clubs.
What the week may mean
The week began with a leave announcement and ended with a Court of Appeal hearing.
For Racing NSW, the organisation’s message has been one of planned continuity.
Cooke said the board unanimously supported V’landys’ application for leave. V’landys said he was confident it would be “business as usual in racing”. Hinton said he would continue the same strategic direction.
For critics of the current structure, the week has provided further reason to focus on governance, transparency and accountability under the Act.
Those questions are now being considered in several places at once: by the Hazzard review, by the Court of Appeal in the ATC matter, and by industry participants watching the temporary leadership change unfold.
The outcome of each process may take time. But the events of the past five days have already shown how closely the questions of leadership, statutory power and industry confidence are now linked in NSW racing.
