Chairman Tim Hale says the Australian Turf Club does not accept several of the criticisms raised by Racing NSW chair Saranne Cooke about its financial situation, but will bide its time before responding to a show-cause notice issued by the regulator.
Hale sent a message to members on Tuesday, 24 hours after Cooke put out a notice to racing participants, which gave a brutal assessment of the financial state of the ATC, as well as the governance concerns Racing NSW holds after the departure of three board members, including two on the same day last week.
Hale and vice chair Caroline Searcy, two of the four remaining board members, were called to Racing NSW last week, and the ATC board was issued a show-cause notice as to why it should not be placed under administration.
Tim Rowe
Racing NSW has the power to replace a board with an administrator if it is concerned about a club’s finances or governance.
The ATC was given two weeks to reply, but within days, Cooke issued a public notice that cast doubt on the ATC's solvency, revealing that the club’s cash reserves had now dropped to $21 million, less than its liabilities.
In his note to members, Hale sought to calm fears that the ATC could be placed under administration on the eve of The Everest meeting, which has become its biggest day of the year.
“The process is not like the receivership of a public company. The club remains in a strong position, with cash reserves and a valuable asset base underpinning our future,” Hale said.
“The show cause relates to perceived governance and financial matters extending back many years. It does not impact our racing program, our operations, or experience we deliver for you as members.”
Significantly, Hale said the board did not accept much of the information put forward in Cooke’s notice.
“The ATC does not accept several of the points raised by Racing NSW and will respond in detail in due course. In the meantime, our focus remains firmly on the exciting weeks ahead.”
Bren O’Brien
