Racing NSW and ATC strike peace deal pending outcome of court case
Craig Kerry
Racing NSW and the Australian Turf Club have reached an agreement that will allow club operations to continue while the parties await the outcome of the court battle.
Racing NSW, the sport’s state regulator, and ATC, which operates four thoroughbred racing tracks in Sydney, issued a joint statement on Tuesday night saying they had reached an agreement under which Racing NSW would make discretionary payments to complement TAB distributions to the club.
The statement said the deal would help ATC’s cash flow and finances by ensuring the continuation of previous discretionary funding received from Racing NSW.
In response, ATC will appoint expert consultant Morgan Kelly from Ernst and Young to review and make recommendations on hospitality operations. Kelly will report to the club, not Racing NSW.
The short-term agreement will remain in place pending the determination of Racing NSW’s appeal against last month’s decision by the NSW Supreme Court to reject the ATC board’s attempt to appoint a replacement director.
Racing NSW moved to appoint an administrator amid concerns about ATC’s corporate governance and finances, including a $145 million interest-free loan from the regulator and a $30 million bank loan maturing in October 2026. The ATC challenged this decision and was successful in the Supreme Court; This decision ruled that Racing NSW’s move was invalid.
Racing NSW and ATC were also in court over a separate dispute. Alleged theft of food and drink from cold rooms at the race track by staff.
During that case, ATC claimed in court documents that the regulator had stopped making $7.5 million in monthly payments on TAB purchases since January. ATC claimed last month that Racing NSW owed it $9.45 million. The amount allegedly includes additional payments made over the last four years to cushion the impact of diminishing returns from accumulator bets.
Racing NSW agreed to a monthly rather than quarterly payment plan in 2023 to help cash flow and increase TAB distributions to the club to $80.4 million each year, according to court documents. The total of uploads made in fiscal year 2025 amounted to $12.2 million.
Monthly payments continued to be made until late last year but were stopped after the ATC took Racing NSW to the NSW Supreme Court in December.
The pause in hostilities comes as both sides prepare for the second day of the Championship at Randwick on Saturday, one of the biggest days of Sydney’s autumn carnival.
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