Racing NSW has issued the Australian Turf Club (ATC) with a show cause notice, giving the club a two-week deadline to prove why administrators should not be appointed.
In a newsletter sent out to Racing NSW participants on Monday evening, Racing NSW chairman Saranne Cooke explained the actions taken against ATC is “to protect the interests of the entire NSW thoroughbred racing industry”.
“ATC is heavily subsidised by the NSW thoroughbred racing industry, and it depends almost entirely on Racing NSW for both operating and capital funding,” she wrote.
“Cash reserves have been shrinking raising concerns around ongoing solvency. Recent developments have raised alarms regarding governance practices.”
In her chairman’s report, she detailed how Racing NSW has increased funding for ATC from $31 million per annum in 2015 to $165 million in 2025; negotiated an extra $42 million per annum in agreements to support ATC on top of the extra funds it’s already handed over; and bailed out the ATC on multiple occasions when it couldn’t make payments needed for loan repayment, redundancies, and grandstand cladding.
The ATC also receives $38 million per annum to use towards funding its operations, an increase of 35 per cent since 2015, Cooke added.
“Without Racing NSW’s intervention, prizemoney levels and operations would be unsustainable which demonstrates the extent to which the ATC is subsidised by the NSW thoroughbred racing industry,” Cooke said.
However, the ATC has refuted the claims made by Racing NSW.
“The Australian Turf Club does not accept several of the points raised by Racing NSW in its note to industry participants and will respond in detail in due course,” ATC chairman Tim Hale said.
“The ATC remains in a strong position with cash reserves and a valuable asset base underpinning our future.”
The show cause notice, issued on Friday, came days after the ATC announced CEO Matt Galanos “departed” from his role. Steve McMahon, the ATC’s head of corporate affairs and government relation, has been shuffled in as interim CEO until a permanent CEO is named.
Additionally, Peter McGauran resigned as ATC chairman in July after the club failed to secure enough member votes to proceed with the proposed sale of Rosehill Gardens Racecourse. Weeks later, Hale took over, pledging to rebuild trust with members, reform the club’s funding model, and explore the strategic potential of surplus land holdings.
As part of the club’s announcement that Galano had left the CEO post, the club also announced that vice chair Caroline Searcy will lead a new membership committee to “focus on enhancing the member experience”.
Meanwhile, club director Annette English will chair a committee to coordinate the ATC and members’ response to the NSW government’s review of the Thoroughbred Racing Act.
ATC said the board is also considering further committees, including ones dedicated to racing, wagering and innovation.
“More detail will be shared with members soon as we embark on a refreshed strategy for the ATC,” Hale said.
He added: “Our immediate focus is on delivering the world’s best Everest Spring Carnival, as we proudly welcome the world’s best sprinter, Ka Ying Rising, to Sydney.’’