Cover image courtesy of The Image Is Everything
On June 19, the Court Of Appeal ruled in Racing NSW’s favour, upholding the regulator’s statutory power to place the Australian Turf Club under administration under the Thoroughbred Racing Act 1996. The ATC was granted a stay of the appointment of administrator Morgan Kelly until July 13, but on Wednesday, July 8, it was announced that the administration had come into effect.
Racing NSW originally attempted to install an administrator in December, but the matter went to the Supreme Court to be heard before Justice Francois Kunc, ruled in favour of the ATC in March. Within 48 hours of the decision being handed down, Racing NSW announced their intent to appeal.
In a press release to participants, Racing NSW announced the appointment Of Kelly on Wednesday morning. It also announced the formation of an Advisory Committee consisting of current ATC Chairman Tim Hale, Vice Chair Caroline Searcy, and member-appointed director Bernie Brookes, and Racing NSW board members Michael Crismale and Simon Tuxen.
Racing NSW announces Advisory Committee
“The Administrator will undertake a comprehensive review of the ATC's operations, financial position and governance arrangements,” the statement read. “This review will identify opportunities to improve efficiency, strengthen performance and implement best practice governance and operational standards.
"The Advisory Committee has been established to provide management, continuity and industry experience." - Statement from Racing NSW
“The Advisory Committee has been established to provide management, continuity and industry experience. The inclusion of three current member-elected directors ensures that the perspectives of the Club's membership will continue to be represented as decisions are made regarding the future direction of the ATC.”
Gallery: Advisory committee
The Court Of Appeal ruled that the ATC board and directors would remain in place under administration. The ruling also made clear that the administrator works for the club, not for the governing body.
Commitment to continued funding
The second half of Racing NSW’s statement concerns funding for the ATC going forward.
“Racing NSW also announced that it will provide funding and cash flow support to the ATC to ensure the Club continues to meet its financial obligations,” it said. “This support includes the continuation of Racing NSW's guarantee of the ATC's existing loan facilities.”
"This support includes the continuation of Racing NSW's guarantee of the ATC's existing loan facilities." - Statement from Racing NSW
The ATC alleged in March that Racing NSW had withheld close to $10 million in wagering revenue, which has arrived monthly since 2023, from the club since January. The allegation arrived in hearings before Justice Kunc after Racing NSW appealed his decision in favour of the ATC, leading to Kunc asking if the regulator was ‘turning off the tap’ on the club.
There has been no further update on whether further funds have been withheld from the club.
The press release read: “In addition, Racing NSW will provide funding for urgent maintenance and capital projects that will be prioritised. This will include the repair of the escalators at Royal Randwick that have not been operational for over 5 years. These works will ensure members, racegoers and participants have access to the best possible facilities.”
Business as usual
The statement assures industry participants that “the new structure will not affect the Club's day-to-day operations”.
“All scheduled race meetings, events and member services will continue as normal, with the ATC's Chief Executive and staff remaining responsible for the delivery of the Club's daily activities under the oversight of the Administrator,” it concludes.
In a letter to members on Wednesday, ATC Chairman Tim Hale reiterated the message delivered by Racing NSW.
“Rather than repeat the details of that announcement, I wanted to write directly to reassure members that racing at ATC will continue as normal and that our focus remains firmly on delivering great experiences for members, participants and racegoers,” he said.
"The future of the Club is now clearer and more certain." - Tim Hale
“Most importantly, the future of the Club is now clearer and more certain. Funding arrangements have been secured, investment in our venues can proceed, and management, led by CEO Steve McMahon, can focus on running the business and planning for the future.”
Hale declined to answer questions on who authorised the administration to begin before the stay of proceedings had concluded.
