ATC Show Cause drags on into third month

The show cause notice from Racing NSW asking the Australian Turf Club why it shouldn’t be put into administration will move into a third month after a meeting on Thursday.

The meeting between the four-member ATC board, its acting chief executive Steve McMahon, and Racing NSW, minus Kevin Greene, who stood himself down due to a conflict of interest, worked through the governance concerns stated in the Show Cause and went for more than three hours.

The ATC had offered a significant written response to the Show Cause issued on September 18 after a turbulent week at the club, when the chief executive, Mat Galanos, was sacked and board members Ben Bayot and Natalie Hewson resigned.

“The board has shown poor corporate governance and faces significant financial strain,” Bayot stated after his resignation.

“I don’t see a positive future for the club under this board. Unfortunately, it was untenable to continue working with a dysfunctional board.”

The Show Cause was close to 20 pages and questioned the club’s operations and boards for the past decade, particularly its corporate governance and financial management.

The ATC issued a statement after Thursday’s meeting which read: “The Australian Turf Club Board met today with the Racing NSW Board to discuss the show cause notice issued to the Club. The meeting was constructive, with both boards agreeing on ongoing engagement in the interests of NSW racing.”

The meeting addressed the core issues of the Show Cause, but the ATC board was reminded of the importance of confidentiality about what was discussed.

Both parties would like to have the matter resolved before Christmas, so the club can get on with planning for the 2026 autumn carnival.

The club had considered making an application to Racing NSW to appoint a member-elected replacement to its board, while acting in caretaker mode because of the Show Cause.

However, this didn’t proceed, which leaves the board to act on a bare quorum of four.

There is also an ongoing investigation into ATC chairman Tim Hale playing out in parallel to the Show Cause, following a complaint by MP Mark Latham about his conduct as a board member.