The Australian Turf Club has fought off an attempt by Racing NSW boss Peter V’landys to force it into administration after a court ruled the racing regulator had no authority to do so.
The ATC took Racing NSW to the Supreme Court in December after V’landys, the industry regulator’s chief executive, announced plans to sack the board and appoint EY as administrators.
Racing NSW argued ATC directors, led by Tim Hale, SC, had not done enough to improve the club’s commercial performance or resolve serious financial issues. It first issued the club with a show-cause notice in September.
Justice Francois Kunc on Wednesday ruled the appointment was “not authorised” under the Thoroughbred Racing Act, a piece of legislation that Racing NSW oversees. The appointment of an administrator was “invalid and of no effect”, the judge said.
He added the decision was made on a “material misreading” of accounting information provided by the ATC and represented a “decisive intrusion” into the affairs of a race club.
The ATC owns four metropolitan racetracks in Sydney, including Rosehill Gardens and Royal Randwick. It was provided with a show-cause notice in September and was attempting to resolve its outstanding financial matters with Racing NSW before it entered administration.
The dispute came months after ATC members rejected the proposed $5 billion sale of Rosehill for housing, a divisive plan that became the subject of a parliamentary hearing.
Racing NSW chairwoman Saranne Cooke wrote to the ATC in early December detailing the reasons behind its move, but the letter also exposed deep-rooted tension between the club and its regulatory body. It argued that the relationship of “trust and confidence” had broken down.
The ATC won an injunction, temporarily fending off the decision to sack the board and appoint EY as administrators, pending the full court case.
Racing NSW’s rationale for appointing an administrator was focused on the risk of the club’s insolvency. Oliver Jones, SC, acting for Racing NSW, said last year the regulator was concerned about the state of the club’s financial affairs and the board’s competence.
Its main issue was that it may be forced to honour guarantees of more than $30 million in the event the ATC runs out of cash.
“Racing NSW’s function … is to control, supervise and regulate in NSW the racing of galloping horses,” Kunc said. “Racing NSW’s reasons for appointment were limited to concerns about the financial condition and corporate governance of the ATC which are not matters concerning the racing and galloping of horses.”
The judgment comes as former state health minister Brad Hazzard reviews thoroughbred racing legislation. Racing Minister David Harris told a budget estimates hearing last month the government would implement urgent recommendations before an election due next year.
Racing NSW has been ordered to pay the ATC board directors’ costs. Jones asked the orders to be delayed until 2pm on Wednesday. The matter was adjourned until then.
Article by Zoe Samios (Financial Review)
https://www.afr.com/companies/sport/court-blow-to-v-landys-in-australian-turf-club-fight-20260311-p5o9by
