The balance of power in New South Wales racing could shift significantly after Racing NSW secured a decisive victory in the NSW Court of Appeal, opening the door for the Australian Turf Club (ATC) to be placed back under administration within weeks.

The ruling marks the latest development in a prolonged dispute between Racing NSW and the ATC, a conflict that intensified in December when Racing NSW moved to remove the club’s board and appoint administrators to oversee its affairs.

Appeal Court Backs Racing NSW

Racing NSW had sought to place the ATC into administration and remove its board, led by chairman Tim Hale SC, citing concerns around the club’s commercial performance and financial position. The regulator had first issued a show-cause notice to the ATC in September before escalating the matter later in the year.

Those plans were temporarily halted when the ATC successfully obtained an injunction, allowing the matter to proceed to a full hearing in the NSW Supreme Court.

In March, Justice Francois Kunc ruled in favour of the ATC, finding that Racing NSW was not authorised under the Thoroughbred Racing Act to appoint an administrator to the club.

However, that decision has now been overturned. Appeal Court judges Kristina Stern, Jeremy Kirk and John Griffiths unanimously found that Racing NSW’s actions fell within the functions granted to it under the legislation.

The judgment was particularly significant in its finding that the finances and corporate governance of the ATC are matters that fall within the definition of horse racing under the Act.

In explaining its reasoning, the court noted that the appointment process could not be viewed in isolation.

“It is important to understand that the appointment was the culmination of a process that began with the show-cause notice,” the judgment stated.

The court further concluded that Racing NSW had acted throughout the process believing it was operating within its statutory powers.

“We thus reject the ATC’s contention that RNSW did not consider that the appointment needed to fall within the ambit of, or be made for the purposes of, one of its functions under the Thoroughbred Racing Act,” the judges said.

Long-Running Dispute Continues

The administration push has been one of the most contentious issues in Australian racing over the past year.

During earlier proceedings, counsel for the ATC argued the move appeared linked to the rejection by members of the proposed sale of Rosehill racecourse. The ATC maintained that Racing NSW lacked the authority to appoint an administrator or directly conduct the club’s affairs.

Friday’s ruling represents a major legal victory for Racing NSW and its chief executive Peter V’landys, strengthening the regulator’s position after months of courtroom battles.

ATC Calls For Cooperation

Despite the setback, ATC chairman Tim Hale reiterated the board’s position that administration was not required and stressed the need for cooperation across the industry.

Hale said the board had acted throughout the process in what it believed were the best interests of both the club and its members.

“It is not in the interests of racing for Racing NSW and race clubs to be in conflict. We should be working together,” Hale said.

He added that the ATC remained committed to working constructively with Racing NSW, members and industry participants in the interests of racing in New South Wales.

What Happens Next?

The Court of Appeal has ordered the ATC to pay Racing NSW’s legal costs. The appointment of administrator Morgan Kelly has been stayed until July 13, providing a short window before any administration process can proceed.

Whether the ATC seeks to challenge the ruling in the High Court remains uncertain, but the next few weeks are likely to be critical in determining the future governance of one of Australia’s most influential race clubs.