ATC secures $17m lifeline as Racing NSW reaches interim funding deal

Racing NSW has announced on its website that it has reached an agreement with the Australian Turf Club to restore the top-up to the TAB distribution, valued at around $17 million annually.

The club and regulator have been embroiled in a bitter court dispute, in which Racing NSW’s move to appoint an administrator to the ATC was ruled invalid by the Supreme Court.

The case remains under appeal and the agreement reached on Monday will run until the Court of Appeal hands down a decision on the matter.

Racing NSW was only paying what was “contractually required”, which meant a shortfall in funding of more than $1.5 million a month to the ATC compared to other clubs in the state.

READ: ATC claims $10 million dispute with Racing NSW

In return, the ATC agreed to Ernst and Young’s Morgan Kelly, who was the administrator Racing NSW announced for the club, “to undertake a review and provide advice to the ATC with respect to its hospitality operations”.

Kelly will work directly for ATC chief executive Steve McMahon, and it is understood he will have no contact with Racing NSW.

The agreement will help the ATC with cash flow and ensure its financial position, which will allow the club to make stakes payments to Racing NSW.