The Australian Turf Club remains committed to taking the proposed sale of Rosehill racecourse to a member vote in April, despite the significant misgivings of members, and candidates against the proposal dominating the recent board election.
There were 3792 votes cast in the election, with each member eligible to place two votes. Current vice-chairman Tim Hale was re-elected with 787 votes, while Annette English, who was backed by the Save Rosehill lobby, received 726 votes to claim the other spot on the board.
Including the 659 votes from the third-placed candidate David Walter, another opposed to the sale, it meant that 57.3 per cent of votes cast were for those who believe the club should retain Rosehill for racing.
The ATC will hold an extraordinary general meeting (EGM) on April 3 next year on the Rosehill issue, where a greater than 50 per cent approval is needed for the club to proceed with the sale proposal.
The board election saw less than 20 per cent of eligible ATC members, or fewer than 2000, cast their vote, but the broad message against the Rosehill proposal was clear.
However, addressing the annual general meeting shortly before the election votes were announced late last week, chairman Peter McGauran said the board was determined to see the process through to a member vote.
“This is a democratic organisation. There will be a vote on the biggest proposal the ATC has ever considered. There's nothing more transparent we could possibly do,” McGauran said.
Former Australian Jockey Club chairman David Hall suggested in a question to the board at the AGM that individual directors may be liable for costs associated with the sale process to date, if it was shown they had not acted in the interests of the members.
McGauran was emphatic in his reply.
“I'll tell you what would have been a breach of my fiduciary responsibilities if we had rejected an offer of that size only amongst ourselves without reference to the members,” he said.
Hall was critical of the fact that the ATC and Racing NSW had utilised the same consultants, Moelis, when it came to working on a valuation for the proposal, and that Racing NSW had paid for this consultancy work.
Warwick Barr
The ATC said it was the only aspect of the process which had been paid for by Racing NSW. It has received the report from Moelis under a confidentiality clause.
It was confirmed at the meeting the ATC has spent $320,000 on consultants to date and intended to spend another $800,000 before presenting the case to members.
The plan is to send information out to members by March 13 at the latest, giving a three-week window before the vote at the EGM.
McGauran said regardless of what information the consultants provided on the viability of the project, the Board would still be highly likely to proceed to the EGM for a vote.
“It would take a lot to cancel the EGM,” he told the meeting.
“I think we're honour bound at least to put it to a vote once and for all as a democracy, and members hold the power, so why would you deprive a body of members who already think it's a good idea?”
The chairman rejected the prospect that Racing NSW would receive a significant amount of any proceeds from a Rosehill sale but did concede some funds would flow back into the industry.
“The fact is, it's ATC land. The money will come to us,” he said.
“We would want to make some accommodation for the industry but the bulk remains with us. We're already working on a future fund strategy to take to members because this is a critical question that you all have.”
McGauran said if the members reject the proposal on April 3, he didn’t believe the state government or Racing New South Wales would seek to compulsorily acquire Rosehill.
Warwick Barr
“In private, the Premier has said he is not interested in a compulsory acquisition. So, if the vote is ‘no’ on the 3rd of April, then it'll be business as usual for us,” he said.
The new-look board will begin its tenure on February 2, two months before the EGM.
A parliamentary Select Committee report into the Rosehill proposal is due on Friday, the day before the first anniversary of when Premier Chris Minns and McGauran announced the proposal.
