Inside the plan to fix the ATC’s $30 million problem
The administration of the Australian Turf Club will follow a process to develop a business plan to get the club’s $30 million debt facility back under control, which could last up to 12 months.
Racing NSW’s win in the Court of Appeal will see Ernst & Young’s Morgan Kelly start next month, if the ATC doesn’t appeal the decision.
Kelly will act in the club’s best interests but will also report to Racing NSW, which believes the club is underperforming commercially and has major concerns surrounding its debt facility.
There is culture concerns given a theft case, which remains in court, where an employee was allegedly captured taking $20,000 from a club safe, while another group were fired over taking alcohol and food from club cool rooms.
The administration period will not affect the meeting-to-meeting running of the club but focus on cost savings and getting the ATC business firing.
ATC chief executive Steve McMahon and its board will stay in place for the period of administration with Kelly having oversight over the business.
In the past Racing NSW has kept clubs, like Hawkesbury, in administration, even though in the provincial club’s case it was ready to be returned to its board’s management at the end of 2024-25 according to its annual report.
The preferred model will see the ATC returned to the board’s hands at the earliest convenience.
The club made it clear, following the decision, through chairman Tim Hale, that it feels the administration is “unnecessary”.
Kelly’s first task will be to assess the business’ strengths and weaknesses before putting a plan in place.
The focus will be the $30 million debt facility with the Commonwealth Bank, which is like a maxed out credit card, rather than acting to help cash flow between TAB distribution payments as it was designed.
However, like all clubs in NSW, the ATC is on a 20th-century funding model, as it generates revenue via Racefields, point-of-consumption tax, and tax parity, which is paid directly to Racing NSW.
A strong-performing ATC would only help Racing in NSW.
It is an opportunity to secure the club’s future, but there are many factors to make that happen, some beyond the club’s control.
J-Mac explains what went wrong for Joliestar
It might be the hardest task in racing to go overseas and win, and Australia’s best sprinter Joliestar found out just how hard in the Queen Elizabeth II Jubilee at Royal Ascot.
Margins in racing are small at the best of times, especially at the top level, and little things went against Joliestar on Saturday as she was third in a blanket finish.
“She was so, so brave but the race didn’t pan out for her,” jockey James McDonald said.
“They went too slow early and she got quite keen and then being left in front a bit earlier than I wanted.”
“But she went great, she is a wonderful mare.”
Joliestar has always been better with a back to follow, but when she jumped well, she was left facing the breeze as the tempo was slow.
Australian success at Ascot has come from a long way out, using superior acceleration to open a winning break before holding on up the hill, which climbs in the final 100m.
Joliestar was the target rather than the hunter, the way the race was run.
It meant when McDonald looked to win the race before the 200m mark, Joliestar found a half-length rather than a length or even two which proved the difference.
International Baker scans stable for next raider
Bjorn Baker is already thinking of his next overseas raid after Overpass’ Royal Ascot trip and would like to take him back next year.
Overpass ran third in the King Charles III Stakes before finishing down the track in the Queen Elizabeth II Jubilee Stakes.
“It just opens your eyes up to how small the racing world is,” Baker said. “Overpass went fantastic, and I would like to think we could be back there with him next year.”
“I’m certainly looking at horses in the stable that could got to Hong Kong or Ascot.”
“You get a taste of representing the country and you want to do it again.”
“Racing in Australia is great but if you have the horse you need to be thinking about taking the world.”
“It is another opportunity that is available to the right horses.”
Lloyd wants English summer every year
Zac Lloyd has taken England by storm, riding seven winners from 20 rides, including a Royal Ascot success in the past week.
Lloyd, Mark Zahra and James McDonald have been winners on the Royal stage in the past couple of years.
Lloyd wants to make the European summer an annual trip in the footsteps of McDonald.
He has had winning doubles at Doncaster and Newmarket, riding in Godolphin blue on several occasions. It made him one of the most searched jockeys on the Racing Post website during Royal Ascot.
It will be his win on the George Boughey-trained Moonfall in the Britannia Stakes that he remembers, as he beat 29 rivals.
“He was probably my only bullet of the week and I’m very happy to have got the job done,” Lloyd said. “I wanted to come here, not expecting a winner but hoping to make connections.”
“Next year, if I come back, it will grow and then the year after.”
Boughey was already a Lloyd fan but after he got it right on Moonfall, he is certain to invite him back.
“He’s a beautiful rider,” Boughey said. “He’s been riding out quite a lot and we were very keen to get him over as he’s taking Australia by storm. It’s great to give him his first Royal Ascot winner.”
