Source :- THE AGE NEWS
Racing NSW had a win on all fronts when the Supreme Court appeal decision on Friday returned its power to appoint an administrator at the embattled Australian Turf Club.
In a much anticipated ruling with wide-ranging implications for the Peter V’landys-led racing regulator, the Court of Appeal set aside the orders of Justice Francois Kunc, who had ruled in March that Racing NSW’s intervention into the ATC’s off-track affairs was invalid.
Kunc had ordered that Racing NSW’s function under the Thoroughbred Racing ACT was to control, supervise and regulate “the racing of galloping horses” rather than the club’s management and financial position.
Racing NSW appealed, saying the “narrow interpretation” could significantly restrict its ability to fund infrastructure, facilities and operational support the state’s 120 clubs.
The appeal panel decision on Friday cemented Racing NSW powers under the Act.
The panel also ruled Racing NSW’s move in December to appoint of Ernst & Young’s Morgan Kelly as administrator to conduct the affairs of the ATC was stayed until 5pm on July 13. Leave to appeal was granted and ATC, which was ordered to pay Racing NSW’s appeal costs, could take its fight to the High Court.
Racing NSW is expected to discuss the ruling at board level before potential meetings with the ATC about its future.
The decision followed a two-day appeal heard in late May and continued a battle that started last September.
Racing NSW issued a show-cause notice to the ATC, which operates Sydney’s four metropolitan thoroughbred race tracks, that month as to why it should not sack the board and appoint an administrator because of financial and corporate governance concerns. That came at the end of a week in which the club sacked chief executive Matt Galanos and two directors then resigned.
The ATC’s financial troubles included a $145 million interest-free loan owed to Racing NSW, and a $30 million Commonwealth Bank loan due this October.
The ATC successful blocked the move in the NSW Supreme Court in March, but Kelly has since been hired as a consultant to review the club’s hospitality operations in a peace deal brokered to continue additional funding from the regulator.
ATC chairman Tim Hale issued a statement, saying the two organisations “should be working together”.
“The ATC Board strongly believes the appointment of an administrator is unnecessary,” Hale said.
“Throughout these proceedings, the board has acted in what it believes to be the best interests of the Australian Turf Club and its members. The board and management have always been committed to the highest standards of governance and to ensuring the long-term sustainability of the club.
“Importantly, the Australian Turf Club has continued to move forward during this period. It has appointed a permanent chief executive officer, welcomed a new director to the board, together with Racing NSW carried out an appointment process which has made recommendations to the Minister to appoint two new directors, strengthened the club’s financial position and delivered a successful Sydney Autumn Racing Carnival.
“It is not in the interests of racing for Racing NSW and race clubs to be in conflict. We should be working together.
“We remain committed to working constructively with Racing NSW, our members and all industry participants in the best interests of racing in New South Wales.”
