‘Ongoing engagement in the best interests of NSW racing’ – No resolution to ATC’s show-cause meeting with Racing NSW

The Australian Turf Club has described a meeting with Racing NSW as “constructive” as it continued to push its case to be spared from administration by the state’s thoroughbred industry regulator.

Racing NSW board members and executives met with ATC directors Tim Hale, Caroline Searcy, David McGrath and Annette English on Thursday in the latest development in the show-cause process, which was first raised with the club in September.

Acting ATC chief executive Steve McMahon was also at the meeting held at Racing NSW’s Druitt Street headquarters as the two entities held talks to explore how the concerns raised by the governing body would be resolved.

An ATC spokesman said: “The Australian Turf Club board met today with the Racing NSW board to discuss the show cause notice issued to the club. The meeting was constructive, with both boards agreeing on ongoing engagement in the interests of NSW racing.’’

Racing NSW would not comment on the status of the show-cause proceedings when contacted on Thursday.

The ATC runs Sydney’s Randwick, Warwick Farm, Canterbury and Rosehill racecourses, the latter of which was the centre of a $5 billion sell-off proposal that was rejected by the majority of members at a vote in May.

The long and bitter debate about the potential sale of Rosehill to the state government for the huge sum split ATC members and triggered a NSW Upper House Select Committee inquiry.

In the aftermath of the successful “no vote”, questions about the ATC’s long-term viability were voiced and two board members, Ben Bayot and Natalie Hewson, quit in the same week chief executive Matt Galanos was sacked. 

The show-cause notice was issued to Hale and his deputy Searcy on Friday, September 19.

Racing NSW chair Dr Saranne Cooke went one step further the following week, publicly detailing financial and governance concerns it holds about the ATC in an industry bulletin published on the regulator’s website.

“A frequent claim is that ATC should simply receive all wagering revenue generated by betting from all wagering operators on all its races. Based on this claim, the ATC would receive $80.1 million,” Dr Cooke wrote in the September 22 document.

“The actual money it receives from Racing NSW from wagering highlights why this argument is absurd given that in 2025, the ATC actually received $233.1 million in total funding from wagering revenues (TAB distribution and Racing NSW contributions).

“That’s $153 million more than ATC generated itself. It also received an additional $42 million per annum from agreements negotiated by Racing NSW with TAB, Sky Channel and Channel 7.”

The ATC filed a detailed submission on October 24 addressing the solvency and governance concerns held by Racing NSW.

Last week, the ATC announced that it had posted a $2.6 million loss in 2024/25, which was on the back of a $2.4 million loss the previous financial year.

But Hale, who replaced Peter McGauran as ATC chair in July, has been steadfast in defending the club’s financial and governance position.

“The proposed Rosehill Gardens sale significantly distracted the Board’s attention,” Hale wrote in the report.

“Members and industry participants held very strong and passionate views, but ultimately it was you who voted to keep our wonderful Rosehill Gardens Racecourse for the future of Sydney racing.

“This must now be placed in the past and we all must look forward in continuing to keep our club and racing as leaders.”

Sydney metropolitan racing will return to Rosehill on Saturday after back-to-back “standalone” meetings at provincial venues Newcastle and Kembla Grange.