Racing NSW says ATC owes millions and can’t pay its loans

2 months ago 16

By Craig Kerry

September 22, 2025 — 8.45pm

Racing NSW has detailed its case to have an administrator installed at the Australian Turf Club, saying the club has needed handouts to pay its loans and allowed costs to spiral out of control, and accusing board members of improper behaviour.

In an explosive statement issued on Monday night, the governing body detailed the extent to which it has subsidised the club over the past decade.

It also said it had evidence of code of conduct breaches by directors that had not been adequately addressed by the club, but did not elaborate.

The ATC, which operates Sydney’s four thoroughbred racetracks, was issued a notice by Racing NSW last Friday to show cause as to why an administrator should not replace the board. It has two weeks to respond.

The notice came after a week in which the club sacked its CEO Matt Galanos, prompting board members Ben Bayot and Natalie Hewson to quit. Bayot labelled the board dysfunctional and said it “recently has shown poor corporate governance and faces significant financial strain”.

Top Sydney trainer Chris Waller on Saturday called for clarity from Racing NSW over its move.

In a bulletin issued by chair Saranne Cooke on Monday night, Racing NSW said it had been forced to make a $5 million repayment to the Commonwealth Bank on the ATC’s behalf when it could not meet its responsibilities, and had to go guarantor on the club’s loan facilities.

It also said the club’s cash reserves had dwindled from $50.1m in 2015 to $21m this year, a decline of 60 per cent, which had created doubts about its ability to survive without bailouts. The club “depends almost entirely on Racing NSW for both operating and capital funding”, the statement said.

The ACT owes Racing NSW $145 million in the form of a non-interest loan, and the Commonwealth Bank $30 million, due for repayment in October 2026.

Racing NSW also said it had “evidence of breaches of ATC’s Code of Conduct by board members, and has written to ATC outlining these concerns, which have not been adequately addressed.”

It is believed the alleged code of conduct breaches came since ATC members voted down in May the proposal to sell Rosehill Gardens to the NSW Government for $5 billion.

“These governance failures compound financial weaknesses, making it harder for Racing NSW to trust and rely on ATC’s management to effectively operate our metropolitan race club,” the statement read.

“Racing NSW wanted to take the opportunity to reassure all participants that this action was
being taken to protect the interests of the entire NSW Thoroughbred Racing Industry.”

Racing NSW’s key points:

The ATC has $35 million in debt facilities and could not meet a $5 million repayment to its bank. Racing NSW paid then went guarantor on the debt.
Racing NSW had highlighted to the ATC that its cost structure was unsustainable and required a much more cost-effective executive management structure.
The club’s cash reserves have dropped from $50.1 million to $21 million in a decade.
The $21 million in current cash reserves is less than the $32.1 million of revenue received in advance, meaning ATC has less cash than it needs to cover these future commitments.
Racing NSW had increased funding to the ATC from $31 million a year in 2015 to $164.7 million per annum in 2025, plus negotiating an extra $42 million per annum in agreements to support ATC.
It had bailed out the ATC on multiple occasions when it couldn’t make payments needed for loans, redundancies and grandstand cladding.
On top of additional funding provided by Racing NSW for prizemoney increases, the ATC also receives $38 million per annum to use towards funding its operations. This funding has increased by 35 per cent since 2015.
The club received $233.1 million in total funding from wagering revenues (TAB distribution + Racing NSW contributions), which is $153 million more than the ATC generated itself. It also received an additional $42 million a year from agreements negotiated by Racing NSW with TAB, Sky Channel and Channel 7.
The ATC’s share of the TAB distribution from 2015 to now has fallen from $80.7 million to $68.6 million, despite overall industry growth. Racing NSW has however provided a $12 million top up of the TAB distribution.
The ATC’s after costs revenue has doubled from $159.5 million to $312.2 million in that period, but the entirety of the increase comes from Racing NSW, not the ATC’s own commercial activities.
ATC’s staff costs have risen from $36.6 million to $60.2 million but ATC’s own non-wagering
revenues rose by only $2.6 million in 10 years.
About $250 million in major infrastructure improvements at ATC racecourses over the past decade were funded by Racing NSW and the NSW Government, showing the ATC has not been able to self-fund its major projects.