source : the age
Racing NSW will appeal a Supreme Court decision which blocked it from appointing an administrator at the Australian Turf Club, warning the financial health of the industry could be jeopardised if its powers were limited to on-track affairs.
The Peter V’landys-led racing regulator suffered a defeat in a Sydney court on Wednesday when Justice Francois Kunc ruled its intervention at the country’s largest race club was invalid.
Racing NSW had moved to sideline the ATC’s board, citing financial and governance concerns at the club, which runs Sydney’s major racecourses.
Downplaying fears about its commercial outlook, the ATC resisted the appointment of an administrator, arguing it was an improper intrusion.
The court found in the club’s favour, determining that Racing NSW’s function was to control, supervise and regulate “the racing of galloping horses” rather than the off-track issues it had raised about the club’s management and financial health.
It was a decision that could have significant ramifications for how racing’s controlling body exercises its authority in the $3.3 billion industry and was delivered as former health minister Brad Hazzard conducts a government-commissioned review of legislation underpinning Racing NSW’s powers.
“After careful consideration, Racing NSW has formed the view that it needs to appeal Wednesday’s decision of the NSW Supreme Court due to the precarious position it places Racing NSW in funding race clubs across the state and supporting the 50,000 participants who rely on the NSW thoroughbred racing industry for their livelihoods,” Racing NSW said in a statement on Friday.
“During the hearing and in the judgment, the court made findings about whether Racing NSW’s powers extend beyond matters solely related to the ‘racing of galloping horses’.
“If that narrow interpretation were to stand, it could significantly restrict Racing NSW’s ability to fund important club activities such as infrastructure, facilities and operational support that underpin racing across NSW. Without certainty on this issue, Racing NSW’s ability to continue supporting the state’s 120 race clubs and the communities they serve could be put at risk.”
Racing NSW acts as the industry’s main commercial operator as well as its regulator, boasting $600 million in assets and promoting the state’s major races such as The Everest.
Under multiple pieces of legislation, hundreds of millions of dollars in betting-related taxes from gambling on racing in NSW are distributed each year via the organisation.
The flow of money has become the subject of much debate in racing and was discussed last December in the court dispute, where the ATC argued it was generated from activities on their racecourses and belonged to the industry.
On Friday, Racing NSW said: “NSW race clubs, with the exception of the ATC, are in the best financial position that they have ever been, with their net current assets and cash doubling over the past decade”.
Racing NSW released its response to the judgment after a scheduled full-day meeting of its board in Sydney on Thursday.
It will return to court next Friday over a bid to access financial information from the ATC over alleged theft of food and beverages from cold rooms.
“The judgment of Justice Kunc importantly confirmed that Racing NSW’s statutory power to appoint an administrator does not conflict with the Corporations Act and dismissed the ATC’s claim in this regard,” Racing NSW said.
“Racing NSW moved to appoint an administrator to the ATC due to serious concerns about financial management and corporate governance at the club. Those concerns remain. Nothing in the judgment addressed or dismissed them. The case was about how the legislation was interpreted, not the merits of Racing NSW’s decision.
“Racing NSW Board members have a responsibility to act in the interests of the
industry as a whole, not those sectional interests with the loudest voice.”
The ATC appointed former Myer chief executive Bernie Brookes to its board on Thursday.
Chris Barrett is a senior sports reporter for The Sydney Morning Herald. He is a former South-East Asia correspondent for the Herald and The Age.Connect via X or email.
