Judge Blocks Racing NSW’s Move Over The ATC

[Wandering Eyes]

After two days of deliberation, on Friday, the Australian Turf Club (ATC) successfully stalled the appointment of an administrator, after the NSW Supreme Court ruled there was no persuasive evidence the club faced imminent insolvency.

The decision followed a two-day hearing, culminating in a significant legal win for the ATC, with Justice Francois Kunc granting an injunction preventing Racing NSW from placing the club into administration until a full Supreme Court hearing scheduled for February 18 and 19, 2026.

Racing NSW's case to appoint an administrator hinged on the belief that the ATC had not done enough to improve the club's commercial performance or resolve serious financial issues, after issuing the club with a show-cause notice in September.

Earlier in the week, Racing NSW announced they would remove the ATC board and install an administrator.

In response, the ATC sought an injunction, arguing Racing NSW does not have the legal authority to force the club into administration. Justice Kunc said he would extend the injunction that had been put in place earlier in the week, meaning the ATC's directors will remain in control until the court hands down a final decision.

In outlining the ATC's position, ATC's legal counsel Scott Robertson argued Racing NSW had exceeded its regulatory powers, suggesting the move was driven by a breakdown in the relationship between the two bodies following disagreements over the proposed sale of Rosehill racecourse. The sale was ultimately rejected by ATC members in May.

“We say this is a regulator that's lost its way in that it's failed to understand the scope of its functions,” Robertson told the court.

“It is principally a regulator, and this regulator has taken it upon itself to act as a supervisor of commercial decisions for our client… which goes beyond its scope.”

Counsel for Racing NSW, Oliver Jones SC, countered that the Thoroughbred Racing Act required the regulator to act “in the public interest and the interest of the horse racing industry as a whole in New South Wales”.

The Thoroughbred Racing Act 1996 is currently under the Hazzard review.

Jones argued Racing NSW differed from other regulators due to its broader statutory responsibilities.

He stated that Racing NSW was a regulator unlike others “in the sense that its statutory functions include not just a requirement to enforce the law or regulate what people are doing, but in fact to further the commercial aspects of the horse racing industry' for its 'betterment and welfare'.”

Jones also raised concerns about Racing NSW's own financial exposure, pointing to its role as guarantor on a $30 million loan the ATC must repay to the Commonwealth Bank by October 10 next year. He said refinancing talks had not advanced sufficiently.

In addition, the court ruled the ATC is permitted to fill a member-elected vacancy on its board.

“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,” ATC chairman Tim Hale said in a statement.

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