Morgan Kelly takes reins as Australian Turf Club enters administration

Racing NSW has appointed Morgan Kelly to lead the Australian Turf Club under an administration structure supported by a five-member advisory committee.

Kelly, who has already been working with the ATC on issues within its hospitality arm, steps into the role, with a panel working alongside him, including ATC chairman Tim Hale, vice-chair Caroline Searcy and director Bernie Brookes.

Racing NSW board members Michael Crismale and Simon Tuxen will also serve on the committee.

It is believed the ATC board, which also includes Annette English and David McGrath, will continue to play some role, but that hasn’t been confirmed by Racing NSW.

The regulator itself will not have any role in the day-to-day running of the club, with the current ATC executive to remain in place.

“The administrator will undertake a comprehensive review of the ATC’s operations, financial position and governance arrangements. This review will identify opportunities to improve efficiency, strengthen performance and implement best practice governance and operational standards,” a Racing NSW statement said.

“The advisory committee has been established to provide management, continuity and industry experience.

“The inclusion of three current member-elected directors ensures that the perspectives of the club’s membership will continue to be represented as decisions are made regarding the future direction of the ATC.”

The announcement brings an end to the protracted legal action between Racing NSW and the ATC over the regulator’s right to bring the administration action.

Racing NSW tried to install Kelly as administrator in December, but the ATC sought an injunction before winning a Supreme Court case in February where Justice Francois Kunc determined the regulator did not have the right to impose an administrator.

However, that decision was overturned by the Court of Appeal, which handed down its ruling on June 19, imposing a July 13 deadline for the ATC to either seek leave to appeal to the High Court or appoint an administrator.

As well as Kelly’s appointment, Racing NSW confirmed additional support, including continuation of its guarantee for the ATC loans, and repair of the Randwick escalators.

“Racing NSW also announced that it will provide funding and cash flow support to the ATC to ensure the club continues to meet its financial obligations,” it said.

“This support includes the continuation of Racing NSW’s guarantee of the ATC’s existing loan facilities.

“In addition, Racing NSW will provide funding for urgent maintenance and capital projects that will be prioritised. This will include the repair of the escalators at Royal Randwick that have not been operational for over 5 years. These works will ensure members, racegoers and participants have access to the best possible facilities.

“The new structure will not affect the club’s day-to-day operations. All scheduled race meetings, events and member services will continue as normal, with the ATC’s chief executive and staff remaining responsible for the delivery of the club’s daily activities under the oversight of the administrator.”