Racing NSW’s counsel, Oliver Jones SC, told the court it was concerned about the ATC meeting its financial obligations during that period and it was “having to prop up the club with tens of millions of dollars of funds”.
“Racing NSW is the most exposed financially to the affairs of the ATC,” Jones said. “Our concern is that this club, under its board directors, has allowed itself to get into a position where it cannot maintain solvency unless large amounts of money are guaranteed by Racing NSW.”
Of particular issue according to the V’landys-led organisation is a $30 million loan the club has with the Commonwealth Bank, which is due in late 2026 and for which Racing NSW is the guarantor.
Jones told the court Racing NSW had a broad suite of powers under the NSW Thoroughbred Racing Act including the authority to appoint an administrator to a race club.
The ATC directors have maintained the club is solvent, 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 corporation law and Robertson said Racing NSW had “proceeded under a misapprehension of the scope of its powers”.
“This is a regulator with regulatory functions, not commercial functions,” he said.
He told the court the funding received from Racing NSW was “money earned from my client’s racecourses”.
“It’s not right to say this money is purely voluntary or a matter of largesse from the regulator,” he said.
He rejected as “scurrilous” any suggestion the ATC would conduct a “firesale” of its assets if the board remained in charge until February.
The hearing will resume on Friday.
