Racing NSW has ‘lost its way’, says ATC board as turf war hits court

Racing NSW’s barrister, Oliver Jones SC, told the court ATC was concerned about meeting its financial obligations at the time and was “forced to support the club with tens of millions of dollars of funding”.

“Racing NSW is the region most financially exposed to ATC’s business,” Jones said. “Our concern is that this club, under the management of board directors, has allowed itself to be put in a position where it cannot remain solvent unless large sums of money are guaranteed by Racing NSW.”

Of particular importance, according to the V’landys-led organisation, is the club’s $30 million loan from the Commonwealth Bank, which is due to mature in late 2026, with Racing NSW as guarantor.

Jones told the court Racing NSW had a broad suite of powers under the NSW Thoroughbred Racing Act, including the power to appoint directors of a racing club.

ATC directors argued that the club was in a position to pay its debts with $22 million in the bank and $350 million in property assets, according to its 2024-25 annual report.

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The club is a company limited by guarantee under company law and Robertson said Racing NSW “acted with a misapprehension of the scope of its powers”.

“This is a regulator with regulatory functions, not business functions,” he said.

He told the court the funds received from Racing NSW were “money earned from my client’s racecourses”.

“It is not accurate to say that this money is entirely voluntary or a donation from the organiser,” he said.

He dismissed as “blasphemous” any suggestion that the board would conduct a “hot sale” of ATC’s assets if it remained in office until February.

The hearing will continue on Friday.