ATC’s $57 million carrot for members to support Rosehill sale

Australian Turf Club members have been offered a $57 million incentive to support the sale of Rosehill, with the club confirming members would receive a minimum of five years of free membership along with the $1.9 billion worth of infrastructure works should the sale proceed.

The ATC issued its new Notice of Extraordinary General Meeting (EGM) on Tuesday, with the 111-page document detailing the single resolution the members will vote on when the EGM is held on Tuesday, May 27.

Under the Registered Clubs Act, more than 50 per cent of members must approve the resolution if the $5 billion sale is to proceed.

The new document is far more in-depth and detailed than the one issued ahead of the aborted first vote, which was scheduled to be held in April before Racing NSW demanded the ATC delay it to provide more information to members.  

While the core proposal basically remains the same, the addition of the loyalty program, plus considerably more detail around the complete renovation of Warwick Farm are the key advances this time around.

The resolution that the members will vote on is for the approval of the sale of Rosehill Gardens to “the State of New South Wales (State) or other entity nominated by the State” provisional on seven aspects being met.

The first is minimum sale proceeds of $5 billion, with $1.9 billion to be received in the first five years for ATC infrastructure and $3.1 billion in annual instalments of no less than “$100 million per year for 10 years thereafter”.

The ATC has said it will have sole access to these funds and it will guarantee Racing NSW will have “no express legal entitlement” to them

The second proviso is the Warwick Farm rebuild, which commits the ATC to creating a Group 1 capable standard track at the site, at a cost of just over $800 million. The plan is for racing to continue at Rosehill until at least 2031.

The third involves the sourcing of a yet-to-be-determined site in Greater Sydney to be developed into a world-class training facility and potential to be developed for Group 1 racing. This has been costed at $522 million.

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The next provision relates to the $1.9 billion being allocated in the first five years to include new member facilities at both Warwick Farm and Randwick. The work at Randwick, which also includes racing and training upgrades, is costed at $522 million.

The fifth proviso, the establishment of a loyalty program, is set to provide significant incentives for members to support the Rosehill sale.

Costed at $57 million, members of the ATC as of April 30, 2025 would receive from August 1, 2026:

– Free annual membership fees for 5 years; 

– Free annual membership fees for life for members with at least 20 years tenure in aggregate as at April 30 2025;

– Food and beverage credits at ATC racecourses of $1000 per annum for five years.   

The club will also commit to establishing a racing advisory board which will be composed of “a majority of independent representatives from racing industry stakeholder groups including ATC members, trainers, breeders, owners and jockeys as well as ATC representatives”.

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The advisory board will advise the club on initiatives “such as the redevelopment of Warwick Farm, the transition arrangements for Rosehill Gardens and Warwick Farm trainers, the improvements at Royal Randwick and the identification of the new site.”.

The final proviso is the establishment of a future fund to manage the proceeds of the sale.

“A suitably qualified independent board will be appointed by ATC to oversee the fund and appoint experienced fund managers,” the club said.

The resolution would also determine that Rosehill Gardens is declared not to be “core property” of the ATC under and for the purposes of section 41E of the Registered Clubs Act 1976 (NSW) for the purposes only of the Transaction”.   

Chairman Peter McGauran told members the ATC had responded to strong feedback from members after the aborted first meeting, which was initially scheduled for April 3.  

“We acknowledge that it is highly unusual to present a sale proposal to members for a vote before the details of the sale have been negotiated,” he said.

“However, it is presented to members at this early time because the gvernment’s decision on whether or not to build a Metro station at Rosehill is imminent and will not be repeated.

“If the resolution is approved, we will proceed to negotiate the terms set out in the resolution with the government. 

McGauran re-iterated his earlier call that the club faced a crossroads.  

“The financial realities facing us are stark. Our direct wagering returns are in long-term decline, attendance numbers at Rosehill Gardens have dropped, and our facilities need upgrading,” he said.

“Without significant investment in year-round engagement strategies and modern facilities that appeal to contemporary audiences, we risk becoming a niche sport, trapped in a cycle of ageing infrastructure and declining relevance.

“The proposed $5 billion sale of Rosehill Gardens represents a significant opportunity to secure the future of the club, ensuring its continued growth and stability for future generations.”

Ugly duckling becomes central to ATC selling its golden goose

Unloved and unvarnished for 25 years, Warwick Farm, under the gun from the very start of Peter V’landys’ tenure in charge of Racing New South Wales, has remarkably emerged as the possible saviour of the Australian Turf Club’s plan to sell Rosehill.

The StraightBren O’Brien