The directors said the board remained in office and remained the lawful governing body of the club.
“The ATC board does not accept that Racing NSW has the legal power to remove or displace the duly appointed directors of the club, or to install an administrator in their place,” the board members said.
The ATC has challenged Racing NSW’s power to appoint an administrator.Credit: Sam Mooy
“Throughout the show-cause process, the ATC has engaged constructively and in good faith. The club has provided detailed written submissions, extensive financial and strategic material, and independent expert advice addressing the issues raised by Racing NSW.
“The board rejects any suggestion that it has failed to develop or present a coherent strategy to improve the club’s commercial performance or to address governance concerns and does not accept the characterisation of its response in Racing NSW’s statement.”
The ATC board members said they would ask the court to determine whether Racing NSW had any power to appoint an administrator in place of its board and scrutinise the way in which the decision had been arrived at “including questions of predetermination and independence”.
The club has previously defended its financial position and made its case in several joint board meetings at which the directors of both organisations came face to face.
ATC chairman Tim Hale told the club’s 11,000 members in a note in October that it was “solvent, operating normally, with strong cash reserves and is asset-rich”, backed by property “potentially worth billions”.
“The club’s financial stability and operational capability are not in question,” he said at the time.
But Racing NSW said it was unconvinced and has removed the remaining four members of the club’s board.
Morgan Kelly of Ernst and Young has been appointed as an administrator.
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“This administration period will provide an opportunity for the ATC to improve its financial performance, address the serious financial issues and develop a robust and best practice long-term strategy for the club, using the best possible skills and expertise,” Racing NSW said.
Racing NSW has placed several other smaller race clubs into administration during the past decade but none the size of the ATC. The races held at its tracks account for half the state’s multibillion-dollar industry.
Gaming and Racing Minister David Harris said he had sought a meeting with Racing NSW “to understand their next steps”.
