Racing NSW and ATC strike peace deal pending court case
Craig Kerry
Racing NSW and the Australian Turf Club have come to an agreement that will allow club operations to continue while the parties await the outcome of their court battle.
Racing NSW, the sport’s state regulator, and the ATC, which operates the four Sydney thoroughbred racing tracks, issued a joint statement on Tuesday night saying they had reached a deal whereby Racing NSW would make discretionary payments to top up TAB distributions to the club.
The statement said the deal would assist the ATC’s cash flow and financial position by ensuring that the previous discretionary funding from Racing NSW is continued.
In turn, the ATC would appoint expert consultant Morgan Kelly of Ernst and Young to undertake a review and provide advice on its hospitality operations. Kelly is to report to the club, not Racing NSW.
The short-term agreement is in place until the determination of Racing NSW’s appeal against the NSW Supreme Court decision last month to deny its attempt to appoint an administrator to replace the ATC board.
Racing NSW moved to appoint an administrator because of concerns over the ATC’s corporate governance and financial position, including a $145 million non-interest loan from the regulator and a $30 million bank loan due in October 2026. The ATC fought the decision and was successful at the Supreme Court, which ruled Racing NSW’s move was invalid.
Racing NSW and the ATC have also been in court over a separate dispute related to the alleged theft of food and drinks from racecourse cold rooms by staff.
During that case, the ATC alleged in court documents that the regulator had stopped making monthly payments of $7.5 million in TAB takings since January. The ATC alleged last month it was owed $9.45 million by Racing NSW as a result. The sum allegedly included top-up payments made over the past four years to cushion the impact of declining returns from totaliser betting.
According to the court documents, Racing NSW agreed in 2023 to a monthly rather than a quarterly payment schedule to assist with its cash flow, and to top up TAB distributions to the club to $80.4 million each year. The top-ups totalled $12.2 million in the 2025 financial year.
The monthly payments continued to be made until late last year, but they stopped after the ATC took Racing NSW to the NSW Supreme Court in December.
The pause in hostilities comes as both parties prepare for day two of the Championships at Randwick on Saturday, one of the biggest days on in Sydney’s autumn carnival.
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