Racing NSW and its chief executive Peter V’landys have been dealt a significant blow after a court ruled that its appointment of an administrator to take charge of the Australian Turf Club was invalid.
Justice Francois Kunc handed down his decision in the high-profile case in the NSW Supreme Court on Wednesday following a three-day hearing last month.
He ordered the racing regulator to pay the ATC’s costs.
The ATC had raced to court before Christmas after Racing NSW announced the appointment of an administrator at the club, citing serious financial and governance concerns.
They included a $30 million club loan with the Commonwealth Bank due later this year for which the sport’s controlling body was the guarantor.
But the club, which owns Rosehill Gardens, Warwick Farm and Canterbury Park racecourses and operates Royal Randwick, maintained the asset-rich club was solvent and argued Racing NSW had acted beyond its authority with the extraordinary intervention.
The costly dispute emerged in the months after ATC members rejected the proposed $5 billion sale of Rosehill for housing, a plan that divided the industry for 18 months and became the subject of a parliamentary inquiry.
The state legislation under which Racing NSW has wide-reaching powers is under review by former state health minister Brad Hazzard.
Racing Minister David Harris told a budget estimates hearing last month that the government would try and implement any urgent recommendations before an election next year.
More to come
Chris Barrett is a senior sports reporter for The Sydney Morning Herald. He is a former South-East Asia correspondent for the Herald and The Age.Connect via X or email.From our partners
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: www.smh.com.au
