The Australian Turf Club has been given an extra three weeks to prepare its defence of a Racing NSW show-cause notice that threatens to send the organisation into administration.
In a move that the club says will allow management and staff to concentrate their resources towards its primetime spring carnival meetings, Racing NSW’s deadline has been extended to October 24.
The regulator had initially given the ATC until October 3 to respond to a governance notice that laid bare the fractured nature of Sydney racing.
Chairman Tim Hale said the ATC welcomed the Racing NSW decision, which comes a week after Racing NSW chair Saranne Cooke issued an industry bulletin expressing the regulator’s grave concerns about the club’s financial viability.
The ATC has now until October 24 - six days after the running of the $20 million Everest - to mount a case as to why it should not be placed into the hands of an administrator.
“It allows ATC further time to respond in more detail to Racing NSW’s notice, which we will do with diligence and integrity,” Hale said in an ATC statement.
“Importantly, our teams can focus on delivering a world-class racing carnival and raceday experience for our members and customers at the peak of spring.’’
Racing NSW issued a show-cause notice to the ATC on September 19 following talks involving club powerbrokers Hale and his deputy chair Caroline Searcy.
Bren O’Brien
The regulator said it felt compelled to step in following a week of turmoil within the ATC’s ranks following the dismissal of chief executive Matt Galanos and the resignation of directors Ben Bayot and Natalie Hewson.
The departure of Bayot and the government-appointed director, Hewson, leaves the ATC operating with a four-person board.
Should the show-cause hearing find against the ATC, Racing NSW has the power to dismiss the remaining board members and appoint an administrator to take charge of the club’s affairs.
Steve McMahon has been the ATC’s interim chief executive since Galanos was removed from the executive.
McMahon and former chairman Peter McGauran were the ATC’s chief proponents for a sale of Rosehill racecourse.
McGauran resigned in early July, less than two months after the ATC membership voted down the Rosehill proposal.
Tim Rowe
In a damning assessment of the club’s financial situation amid concern over governance issues following the resignations of Bayot and Hewson, Dr Cooke said there had been “much misinformation relating to the ATC”.
“(The) ATC is losing financial resilience. Rising costs, falling reserves, and heavy borrowing have created significant doubts about its ability to survive without ongoing bailouts.” she said.
Cooke claimed that Racing NSW had evidence of breaches of the ATC’s code of conduct and that the regulator had written to directors about those concerns.
She said the code of conduct matters had not been properly addressed.
Bren O’Brien
