Take $5 billion or risk ‘painful choices’ – ATC pitch to voters on government Rosehill buyout

The Australian Turf Club wants its members to endorse a proposal which will see it attempt to sell Rosehill racecourse directly to the NSW government in a deal worth a minimum $5 billion, but the voting process for next month’s special general meeting has already been condemned by the sale’s opponents.

In summary:

– The ATC has put forward the two resolutions which will be voted on at the SGM on April 3

– The proposal is for the NSW government to purchase Rosehill for at least $5 billion, delivered within 15 years

– The ATC would spend $1.9 billion on renovating Randwick, Warwick Farm and Canterbury as well as securing and developing a fourth metropolitan racing site

– The remaining $3.1 billion would be invested, with that investment managed via ‘an outsourced model’

– Critics of the proposal have raised questions over the online proxy nomination process as well as the role of the chairman as a proxy 

In a communique to members of Wednesday evening, the ATC confirmed the two key resolutions which will determine whether the Rosehill proposal progresses. Members will vote in person, or by proxy, at Randwick racecourse on Thursday, April 3, at 2pm.    

The first resolution sets out the circumstances by which the ATC wants members to approve the sale of Rosehill.

The first two points of the resolution sets out that the gross sale proceeds would be no less than $5 billion and the proceeds are paid up front or in instalments over no more than 15 years.

The second two aspects of the first resolution are that the ATC is granted by the state the right to continue both racing and training until “a sufficient period of time has elapsed to allow for alternate facilities to be completed and/or available at Royal Randwick, Warwick Farm and/or a new Group 1 quality racecourse”.

That resolution will allow Rosehill to be declared non-core property of the ATC, meaning it can be disposed of under the Registered Clubs Act.

However, the viability of these terms are yet to be formally approved by the Minns Government, and vary significantly from suggestions throughout the process that the development and full commercialisation of the Rosehill site would be led by the ATC.

The second resolution is much more straight-forward: “That ATC will replace Rosehill Gardens with a new Group 1 quality racecourse”.

The resolutions require a majority of members voting in favour at an Extraordinary General Meeting on April 3.

“This resolution is without any doubt the most important and consequential in the history of our Club and it is vital that every ATC Member votes,” ATC chairman Peter McGauran said.  

“This proposal offers a one-off opportunity to make the ATC the most financially secure racing club in the world.”

Read the full Notice of Meeting

However, critics of the process have questioned the way the online process is set up, suggesting it automatically gives the ATC chairman a proxy vote for the member. The Save Rosehill group has advised members to hold off voting until the process is clarified.

The ATC replied that direct online voting on the proposal is not available due to requirements of the Registered Clubs Act and the ATC’s Constitution. The online process pushed out to members on Thursday was instead designed to nominate a proxy.

“This proposal offers a one-off opportunity to make the ATC the most financially secure racing club in the world,” Peter McGauran

A further detail in the voting process has also raised questions. Under the Corporations Act, any member who appoints a proxy who either doesn’t attend the EGM on April 3 or doesn’t vote, their vote would be transferred to the chairman, McGauran, who supports both resolutions.

Meanwhile, the notice of meeting sets out in detail for the first time what the ATC intends to do with the proceeds, should the proposal progress. It also features artist impressions of the redevelopments it could fund.

It includes expanding and upgrading racing and training facilities at Warwick Farm, revitalising existing ATC venues including major renovations at Royal Randwick and Warwick Farm to Members’ and spectators’ facilities and significant upgrades to Canterbury Park as well as acquiring a new site and developing it for racing and/or training.

“This isn’t a short-term fix, but a visionary proposal to transform the ATC from an organisation vulnerable to external forces into one with the financial independence to chart its own course for generations to come,” it said.

“The alternative – attempting to maintain the status quo amid declining wagering revenue and shifting entertainment preferences – risks a slow decline that would eventually force more painful choices under less favourable conditions.”

The plans for Warwick Farm include a track redesign “with longer straights and sweeping turns designed for Group 1 racing” as well as upgrades to stables and staff accommodation and a “Lifestyle Club”.

“Accompanied by a complete redevelopment of all spectator facilities akin to a world class racing and dining experience, Warwick Farm will be transformed into a venue capable of hosting Group racing,” it said.

A new lifestyle club overlooking the home straight is the centrepiece of the redevelopment of Randwick while there will be a major refurbishment of the Official Stand, Skyline Room and Chairman’s Lounge.

There is the promise of an “industry leading, weather proof arrival experience” and, most importantly, new stabling for 300 horses.

The notice also details the ATC’s two alternative venues to Rosehill.

They include Rosehill 2.0, a site to the east of the current Rosehill location, with discussions underway with two different landowners, and a site in Penrith, the location of which is not specified but is said to be sufficient to allow training of up to 350 horses. Again discussions are underway with the landowner.

253 words – How the NSW government responded to Rosehill parliamentary inquiry recommendations

The NSW government’s brief official response to the Rosehill Select Committee has included support for a review of the Thoroughbred Racing Act and for changes in ministerial diary disclosures.

The StraightBren O’Brien

The ATC says it expects Rosehill would be required to continue as a racing venue for at least six years, but that training would be transferred from the course in three years.

It states the cost of the work and acquisition of a new location would amount to approximately $1.9 billion, with ATC to invest the remaining sale proceeds “to produce an ongoing funding stream for our future operations.”

The ATC has also identified the risks of proceeding and not proceeding with the proposal.