The Australian Turf Club (ATC) has been placed into the hands of an administrator following an announcement by the sport’s regulator on Monday.
Racing NSW (RNSW) said the industry’s principal race club – which manages racing at Randwick, Rosehill, Warwick Farm and Canterbury – would enter an administration period to “provide an opportunity for the ATC to improve its financial performance and address serious financial issues”.
The move follows Racing NSW issuing the ATC with a “show cause” notice back in September due to growing concerns about the club’s ongoing solvency and corporate governance, following the shock resignation of board members Ban Bayot and Natalie Hewson in September.
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In response to the initial “show cause” notice, ATC chairman Tim Hale and interim CEO Steve McMahon, who took the reins following the shock departure of former CEO Matt Galanos, pushed back against some of the concerns raised, with Mr Hale arguing the club was “asset-rich, resilient, and strong”.
But despite the club’s overtures during the process, in which “the ATC Board was repeatedly invited to provide detailed submissions and present its proposed strategy to improve the Club’s financial performance”, Racing NSW on Monday made the move to appoint an administrator.
“Specifically, the ATC Board was unable to demonstrate it could develop and implement a strategy to improve the commercial performance of the club, or rectify the serious financial issues,” a Racing NSW statement read.
“Further, the corporate governance concerns had not been appropriately addressed.
“This decision follows an extensive and exhaustive Show Cause process, together with multiple formal joint meetings between the Boards of Racing NSW and the ATC.
“These steps were undertaken to ensure the ATC was afforded every reasonable, and indeed ample, opportunity to address the serious concerns raised.”
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The saga took a further twist late Monday with a statement released by the ATC Board declaring “it 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” and given the position taken “has no choice but to seek urgent relief from the Supreme Court of New South Wales.”
“The Club will ask the Court to determine whether Racing NSW has any power to appoint an administrator to conduct the affairs of the ATC in place of its Board, and to examine the way in which this decision has been reached, including questions of predetermination and independence,” the statement read.
“Throughout the show-cause process, the ATC has engaged constructively and in good faith, providing 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.”
While an administrator and committee is set to be appointed to carry out the functions of the ATC Board, the day-to-day operations will remain managed by the ATC’s executive team.
“There will be no impact on the conduct of race meetings or events at ATC venues,” the Racing NSW statement read.
“Racing NSW has appointed a professional administrator who will report to a committee to be established.
“This committee will be constituted of the necessary expertise and may include a mix appointed from current ATC Board members, ATC members using a best practice skills matrix and other suitable persons.”
In an address to members, ATC interim CEO Steve McMahon said the club’s priorites “remain unchanged”.
“The Club will continue to deliver great racing, outstanding hospitality, and high-quality customer experiences across all of our venues,” Mr McMahon said.
“Our priorities remain the same, our Members, racing, partners and events come first.
“We remain focused on strengthening the ATC and investing in the future of Sydney racing, ensuring all metropolitan racecourses continue to thrive and deliver long-term value for the industry and our community.”
The appointment of an administrator to oversee the ATC continues what has been a tumultuous 2025 for the embattled club.
Back in May, ATC members voted against the sale of Rosehill Gardens for a mooted $5 billion.
The contentious vote, which divided many within the industry, was ultimately defeated despite a last-ditch appeal by then ATC chairman Peter McGauran.
In the aftermath of the decision, McGauran stepped down as chairman, declaring at the time “he remained convinced the potential sale of Rosehill Gardens was a lost opportunity for the Club and wider racing industry”.
