The Australian Turf Club has won an important interim ruling in its high-stakes standoff with Racing NSW, after the Supreme Court found no compelling evidence that the club was on the brink of insolvency or unable to continue trading in the short term.
The decision ensures the ATC board, chaired by Tim Hale SC, will remain in control until a full hearing in February, preventing the regulator from enforcing its plan to appoint Ernst and Young as temporary administrator.
The urgent legal action was triggered earlier in the week when Racing NSW chief executive Peter V'landys announced the regulator intended to remove the ATC directors and impose external management. That move followed a show-cause notice issued in September, in which Racing NSW outlined what it described as "serious financial and governance concerns" and criticized the ATC's response as lacking a credible strategy to stabilize performance.
In court, Racing NSW argued that the club's weakening commercial position and uncertainty around its future capital structure created a material risk to racing operations and to the income of participants. Counsel for the regulator submitted that deteriorating financial indicators reflected poorly on the board's competence and warranted immediate intervention to avoid what it claimed was a foreseeable slide into insolvency.
However, Justice Francois Kunc disagreed that the risk was sufficiently imminent or acute to justify administration before the substantive case was heard. He noted that, based on the material before the court, the ATC held approximately AU$29 million in cash and did not face any requirement to refinance its AU$30 million loan facility in the near term. Kunc also pointed out that Racing NSW itself had previously guaranteed the loan, making it unlikely the regulator would act in a way that jeopardized the club's continuity.
"There is no persuasive evidence that the ATC will be unable to conduct its scheduled race meetings between now and February if the current directors remain in place," he said, adding that the efforts being made by the board to address its financial position "should not be interrupted" by external control at this stage.
Kunc extended an injunction granted earlier in the week preventing Racing NSW from acting on its intention to replace the board. The court also rejected Racing NSW's attempt to make directors personally liable for any losses arising as a result of the injunction, and declined to compel the ATC to provide further financial documentation before the hearing proper.
Hale, who has chaired the ATC through an extended period of negotiations with Racing NSW, welcomed the ruling and reaffirmed the club's commitment to working with industry stakeholders.
"The Board of the Australian Turf Club welcomes today's decision and will now continue to work diligently and collaboratively with all stakeholders to continue normal racing and club operations," he said.
V'landys acknowledged the decision but emphazised its interim nature, reiterating the regulator's belief that its concerns would be substantiated at the full hearing.
"It is important to note that this decision is only for convenience and in no way has it determined the case," he said. "We are confident in our position and will continue to act in the best interests of the 50,000 participants to ensure their incomes are maximized."
The dispute arrives at a time of intensifying scrutiny around racing administration in Australia. Dissatisfaction with Racing Australia's governance—especially over stalled progress on black type policy—prompted the formation of the Australian Racing Industry Alliance, a grouping of major breeders, auction houses, owner bodies, and leading administrators. That coalition has sought to advance an independent model for determining the Australian stakes pattern, arguing that the current system has been paralyzed for several years.
This week the Asian Racing Federation intervened, announcing that its Asian Pattern Committee would temporarily assume control of the Australian pattern until a compliant, independent panel is established.
Although the ATC—Racing NSW matter is legally distinct, industry figures have noted that both disputes reflect the pressures facing racing administration as jurisdictions compete for commercial advantages while operating within shared national and international frameworks.
In the months ahead, the ATC will continue to operate its four metropolitan racecourses—Royal Randwick, Rosehill Gardens, Canterbury Park and Warwick Farm—with around two race meetings per week scheduled between now and the February hearing. Justice Kunc said there was "no persuasive evidence" those meetings would be better safeguarded under administration.
The full case will be heard across two days in early February, with both parties preparing extensive submissions on financial assessments, governance obligations, and the statutory thresholds for regulatory intervention.
Until then, the injunction preserves the existing board structure and allows negotiations between the club and Racing NSW to proceed, though the pathway to a resolution remains unclear.
The outcome will carry significant implications not only for the ATC and its 2,000-plus employees, but also for the wider racing industry, which relies heavily on the stability of Sydney's metropolitan program.
