Members reject ATC’s Rosehill proposal
Australian Turf Club members have voted against a controversial proposal to sell Rosehill racecourse for housing during an extraordinary general meeting.
Marking the end of a chapter of a saga that has divided the NSW racing industry, the ATC membership rejected the plan first publicly pitched by chairman Peter McGauran and the NSW government in December 2023.
At the time, NSW Premier Chris Minns described the potential sale as a “once-in-a-generation opportunity” that would provide 25,000 new homes in Sydney amid the city’s housing shortage.
During a meeting that insiders say became “hostile”, the “no” vote gained 56.1 per cent, or 4413 of the 7864 received. “Yes” received 3451. There are more than 11,500 members of the ATC.
McGauran insisted a sale was vital to future-proof Sydney racing, claiming the ATC is suffering severe financial pressure as wagering turnover declines.
Under the terms of the proposal, the ATC would sell the western Sydney racetrack to the NSW government for a $5 billion asking price.
Addressing the media after the ballot, McGauran said: “I am disappointed that
the vote wasn’t successful but I understand why people opposed it.
“I always saw it as both an opportunity and a necessity. An opportunity to completely change and modernise in the face of declining attendance, declining membership as well as necessity (during a) wagering downturn.
“Racing is not the dominant, nor let alone cultural pursuit, that it once was.”
Asked if he would step down from the board as a result of the vote, McGauran vowed to continue his role as an independent director and chairman.
“I believe (the proposal) was in the best interests of the club and of racing and so no, I won’t be retiring,” he said.
“I serve as chairman at the pleasure of the board and so that’s always within their power but I don’t intend to resign.”
Despite the sale proposal causing a split among the ATC’s seven-member board and earning widespread industry condemnation from high-profile figures such as Gai Waterhouse, McGauran insists relationships can be mended.
“I think we’ll come together very quickly because we all love racing,” he said. “There are obviously strong differences of opinions about how we fund and develop racing for the future.
“I don’t think there will be personal enmities going forward, but there will still remain strong differences of opinion as to how we shape the future.”
The ATC said it would use the proceeds to fund a $1.9 billion suite of upgrades to its remaining tracks, including $802 million on two new racetracks and new facilities at Warwick Farm.
A new training centre to replace Rosehill was planned for land on which the Penrith Golf Club currently sits.
Details of how the ATC would spend the windfall emerged after an April 3 vote was called off following a Racing NSW directive to provide more details on the proposal.
But McGauran warned the broader NSW racing industry should now be prepared for monetary pain as he foreshadowed reduced prize money and a review of the ATC’s expenditure.
“What we have to do is go back to core business, seek to reduce our operating costs where we can, discuss with Racing NSW and the state government how we can better align with their objectives and strategies,” McGauran said.
“The funding would have transformed the entire Sydney racing scene for the next 100 years as it would have funded with certainty the ATC, non-dependent on wagering income.
“I am disappointed that we’ll never have the funding to better cement ourselves in the mind of the wider community who have a declining – rapidly so – interest in racing.
“We’ll have to squeeze the lemon even drier because we are dependent on wagering and wagering is turning down.
“So sadly, I think prize money is brought into question (as is) our ability to provide the services members rightly demand as well as encourage young people.”
Bren O’Brien
McGauran claimed the unimproved land value without a Metro station on the 60-hectare Rosehill site was a mere $27 million while saying there were many unknowns surrounding a potential sale of Canterbury racecourse in Sydney’s inner west.
“We would look at Canterbury in the future but there are more uncertainties to that,” he said.
“The beauty of the (Rosehill) resolution put before members was that we go to government with an offer of net $5 billion, not a dollar less.
“The resolution wouldn’t allow us to. Its simplicity, I believe, was compelling and we will never get that opportunity again because there’s not going to be a metro station.”
After earlier ruling out compulsorily acquiring the site if the club voted against the sale, Minns said he was disappointed with the decision of ATC members.
Minns also hinted the government had contingency plans in place to help solve Sydney’s housing crisis.
“They’re not ready for me to announce today, and not everyone will love them, but they’re absolutely necessary for Sydney,” he said.
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