2 months ago
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The state’s racing regulator has followed through on a threat to sack the board of the Australian Turf Club in an unprecedented intervention.
Racing NSW said in a statement on Monday morning that it had appointed an administrator to conduct the affairs of the race club, which owns three metropolitan racetracks in Sydney, including Rosehill Gardens, and also operates Royal Randwick racecourse.
Peter V’landys heads Racing NSW, the controlling body for the sport in the state.Credit: Kate Geraghty
The industry’s controlling body, led by chief executive Peter V’landys, took the extraordinary action three months after issuing the ATC with a show-cause notice over financial and governance concerns.
“Throughout the show-cause process, the ATC board was repeatedly invited to provide detailed submissions, present its proposed strategy to improve the club’s financial performance, its future solvency and respond comprehensively to concerns regarding corporate governance,” Racing NSW said in a statement.
“Specifically, the ATC board was unable to demonstrate it could develop and implement a strategy to improve the commercial performance of the club, or rectify the serious financial issues. Further, the corporate governance concerns had not been appropriately addressed.
“Racing NSW has appointed a professional administrator who will report to a committee to be established. This committee will be constituted of the necessary expertise and may include a mix appointed from current ATC board members, ATC members using a best practice skills matrix and other suitable persons.”
Randwick is operated by the Australian Turf Club.Credit: Getty
According to sources, the ATC directors are planning to fight their ousting. The ATC has been contacted for comment.
It has previously defended its financial position and made its case in several joint board meetings at which the directors of both organisations came face to face.
ATC chairman Tim Hale told the club’s 11,000 members in a note in October that it was “solvent, operating normally, with strong cash reserves and is asset-rich”, backed by property “potentially worth billions”.
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“The club’s financial stability and operational capability are not in question,” he said at the time.
But Racing NSW said it was unconvinced and has removed the remaining four members of the club’s board.
“This administration period will provide an opportunity for the ATC to improve its financial performance, address the serious financial issues and develop a robust and best practice long-term strategy for the club, using the best possible skills and expertise,” Racing NSW said.
Racing NSW has placed several other smaller race clubs into administration over the past decade but not one the size of the ATC. The races held at its tracks account for half the state’s multi-billion-dollar industry.
ATC members in May voted down a controversial proposal to sell Rosehill for $5 billion and convert the land into a mini-city of 25,000 homes.
More to come
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