ATC battles Racing NSW in court, claims owed millions

After winning an injunction to stop the appointment of an administrator by Racing NSW on Tuesday, Australian Turf Club chairman Tim Hale has sent a remarkable update to members claiming the regulator owes the club $1.2 million.

The Supreme Court will consider the legality of a move by Racing NSW to put the ATC under administration and sack its board on Thursday.

“The Court decides if Racing NSW has the lawful authority to undertake this action, and whether the process leading to the decision was proper,” Hale, a King’s Counsel, told members.

He went on to state, what the club calls “clear and compelling” reasons for taking the court action and took direct aim at Racing NSW.

“The Australian Turf Club is financially strong and operationally stable,” Hale told members.

“As of today, the Club holds approximately $29 million in cash and continues to meet all financial obligations as they fall due.”

“Our balance sheet is supported by more than $400 million in land and property assets, including strategically significant holdings at Canterbury and Camellia, both of which have substantial long term value, particularly with appropriate re-zoning approvals.”

“It is also important for Members to be aware that Racing NSW currently owes the Australian Turf Club $1,208,218.20 in outstanding payments, of which $799,467.70 is more than 120 days overdue. This amount remains a receivable of the Club.”

“Beyond these significant cash holdings and assets, the Club is actively pursuing several commercial contracts and partnership opportunities.”

“These initiatives have been thwarted as a direct result of restrictions imposed by Racing NSW during the show cause process.”

“Notwithstanding, the Board continues to progress commercial efficiencies, new revenue initiatives, and cost reduction measures to further strengthen the ATC’s financial performance.”

 “We are also engaged in constructive, positive refinancing discussions with the Commonwealth Bank regarding our existing debt facility.”

The club had asked Racing NSW to guarantee its $30 million Commonwealth Bank credit facility, which allows it to function between stakes payments.

Hale said the club had sought permission to appoint an interim member-elected director from Racing NSW while in caretaker mode, which was refused.

He filled in members on what had happened in the past couple of months during the show cause proceedings issued by Racing NSW

“Throughout the show cause process, the ATC engaged openly, constructively, and in good faith,” Hale wrote.

”We provided detailed written submissions, extensive financial and strategic material, and independent expert advice addressing each issue raised by Racing NSW.”

“The Board unequivocally rejects any suggestion that it has failed to develop or articulate a coherent and credible strategy for the Club’s future.”

“The Board is firmly committed to defending the independence of the Australian Turf Club.”

Hale made it clear that it was the directors’ responsibility to reflect its membership.

“The Australian Turf Club exists for its Members,” he continued. “Your Membership rights, voting entitlements, and voice in the future direction of the Club are fundamental.”

“The Board is acutely conscious of the trust Members place in it and is acting to protect that trust, your rights, and the long term integrity of the Club. The Board is standing up for the Club on behalf of its Members.”

Hale said the club would continue to function normally it terms of race meetings and day-to-day operation but made it clear how important it was for members that the ATC took this action.

“The imposition of administration would strip Members of their democratic rights and place control of the Club in the hands of external parties,” the release continued.

“The Board does not believe this outcome is justified, necessary, or in the long term interests of Sydney racing or the broader New South Wales racing industry.”

“As this matter is now before the Court, the Board is constrained from making further detailed comment at this time. Members will be kept informed as the legal process progresses.”