The Australian Turf Club says it has $22 million in cash reserves, is solvent and rejects many of the assertions made by Racing NSW ahead of a show-cause hearing later this month that could put the organisation into administration.
Tim Hale, the ATC’s chair since July, moved late on Friday to address many of the concerns outlined by Racing NSW chair Saranne Cooke in an “industry bulletin” which claimed Sydney’s only thoroughbred racing club did not have enough capital to meet its future obligations.
Cooke harboured “significant doubts about its ability to survive”, suggesting that the ATC had been bailed out many times over the past decade and that there had been “much misinformation relating to the ATC”.
In an email to members, Hale refuted questions about the ATC’s financial position, indicating that it was the directors’ responsibility to “safeguard Sydney’s racing legacy for future generations through sound governance, transparency and strong financial management”.
He said many of the issues raised by Dr Cooke go back 15 years and do not involve current ATC directors Hale, Caroline Searcy, David McGrath and Annette English.
“Our most recent audited accounts show millions of dollars in net assets, supported by substantial property holdings, potentially worth billions, which continue to appreciate,” Hale wrote.
“Our cash reserves at the end of FY25 stand at $22 million, up from $12 million last year. This position has further improved in recent weeks.
“Those improvements reflect careful management and stronger commercial performance.”
Racing NSW granted a three-week extension to the show-cause hearing, scheduled for October 24.
The Racing NSW bulletin, issued on September 22 with Dr Cooke named as its author, said the ATC had received $164.7 million in funding from the regulator last financial year, on top of $38 million annually to contribute to club operations at Randwick, Rosehill, Canterbury and Warwick Farm.
Hale argued that Racing NSW was the statutory administrator and distributor of industry revenues collected under law, including race fields fees, wagering taxes, and other shared income streams.
Most of that “funding” is earmarked for prize money and bonuses paid directly to the owners and is not operational income for the club, he wrote.
Tim Rowe
“When those pass-through amounts are excluded, the ATC generates a substantial proportion of its own operating revenue through events, hospitality and commercial partnerships,” Hale said.
“This balanced model supports both stability and independence.”
In Friday’s member update, Hale also played down concerns over a $30 million debt to the Commonwealth Bank, which matures in late 2026, and pointed out that the ATC covers an $8 million annual shortfall in funding to cover the cost of maintaining Sydney’s racing infrastructure, including training.
Hale warned that if the club was placed under the control of an administrator, that it could lose its independence and no longer be a member-owned and governed club.
“If an administrator was appointed it would remove members’ representation and place decisions about the club’s future outside members’ hands,” he said.
“As things stand, race meetings, prize money, and the Everest carnival will proceed as planned. The club’s financial stability and operational capability are not in question.”
Hale promised more correspondence to members before the show-cause hearing.
Hale was appointed chair of the ATC in July after Peter McGauran resigned, less than two months after members voted down a proposal to sell Rosehill racecourse to the state government for $5 billion.
McGuaran was a staunch supporter of the unsolicited proposal to sell the western Sydney track, which had been earmarked for a housing development by the Minns Labor government.
Rosehill will host racing on Saturday before Randwick takes centre stage for The Everest on October 18.
