It would be fair to say by the middle of next month there will be momentous changes to racing in NSW.
Racing NSW won its appeal and right to put an administrator in at the Australian Turf Club in the Court of Appeal on Friday.
The win confirmed Racing NSW’s power to hold clubs to account for their finance and corporate governance under the Thoroughbred Racing Act, which is currently under review by Brad Hazzard with his report believed to be imminent.
But it doesn’t lead to the ATC board being dissolved or sacked.
The appointed administrator would be independent with an obligation to act in the best interests of the club and wouldn’t be under the direction of Racing NSW.
The Court of Appeal has stayed the administrator start date until July 13 for the ATC to consider a High Court appeal.
If it doesn‘t appeal, Ernst & Young’s Morgan Kelly will walk into the ATC as administrator on July 13.
Only two days later in July, Racing NSW chief executive Peter V’landys will step away from the regulator after 22 years, on four months’ long service leave to run the NRL as acting chief executive.
The fact that Racing NSW and the ATC have shown the ability to work together during the court battle could be a lead to the future.
Kelly was hired by the club to review the hospitality operations by the ATC as part of a deal that guaranteed the release of “discretionary payments to the ATC to top up the TAB distribution” from Racing NSW.
Many would consider Racing NSW‘s power comes from its ability to take control of the commercial future of clubs, which it has through getting all the Race fields fees, racing’s biggest form of income.
The deal during the court battle guaranteed the ATC cash flow during and beyond the autumn carnival.
The regulator also guarantees a $30 million debt facility for the ATC at the Commonwealth Bank, which was part of the court dispute.
The ATC will no doubt consider it avenues of appeal, which chairman Tim Hale made clear in a release on Friday.
“The ATC Board strongly believes the appointment of an administrator is unnecessary,” Hale said.
“Throughout these proceedings, the Board has acted in what it believes to be the best interests of the Australian Turf Club and its Members.
“The Board and management have always been committed to the highest standards of governance and to ensuring the long-term sustainability of the Club.”
But he pointed out that the club has functioned well throughout the carnival and had appointed Steve McMahon as chief executive and Bernie Brookes as a director during the period.
But importantly, Hale went on to state what most in racing think should be the status quo when it comes to running the sport.
“It is not in the interests of racing for Racing NSW and race clubs to be in conflict,” Hale said.
“We should be working together.
“We remain committed to working constructively with Racing NSW, our Members and all industry participants in the best interests of racing in New South Wales.”
