‘Precarious position’ – Racing NSW to appeal ATC ruling citing risk to club funding

Racing NSW will appeal a Supreme Court decision which ruled its appointment of an administrator to the Australian Turf Club was invalid, saying it places at risk its ability to support the state’s 120 race clubs.

Justice Francois Kunc found in the ATC’s favour on Wednesday, determining that the Thoroughbred Racing Act only empowers Racing NSW to act in matters that are related to the “racing of galloping horses”.

It meant that Racing NSW’s concerns about the governance and commercial viability of ATC, which prompted it to appoint an administrator, are not valid reasons for it to intervene.

In a lengthy statement, Racing NSW said it had formed the view that it needs to appeal the decision due to “the precarious position it places Racing NSW in funding race clubs across the State and supporting the 50,000 participants who rely on the NSW Thoroughbred Racing Industry for their livelihoods”.

It said the “narrow” interpretation of Racing NSW’s powers could “significantly restrict Racing NSW’s ability to fund important club activities such as infrastructure, facilities and operational support that underpin racing across NSW”.

“Without certainty on this issue, Racing NSW’s ability to continue supporting the State’s 120 race clubs and the communities they serve could be put at risk.”

Racing NSW also said that its concerns about the ATC’s financial management and corporate governance remain, while taking aim at “sectional interests” seeking reform.

“This appeal is necessary to provide certainty and clarity about Racing NSW’s ability to fund and support race clubs across the State and to protect the long-term stability and viability of the industry,” it said.

It also said that “NSW race clubs, with the exception of the ATC, are in the best financial position that they have ever been, with their net current assets and cash doubling over the past decade”.

Justice Kunc awarded the costs of the Supreme Court action against Racing NSW. These costs will only escalate with the appeal action.