Racing NSW’s move to install an administrator and advisory board at the Australian Turf Club (ATC) took effect on Wednesday after more than six months of legal battles.

The Peter V’landys-led Racing NSW announced that Morgan Kelly, of Ernst & Young, will oversee the club, following the regulator’s victory in the NSW Court of Appeal on June 19.

Kelly, who has already been overseeing the club’s hospitality operations as part of a peace deal three months ago, will expand his role and powers to help turn around the fortunes of the embattled ATC. The ATC was initially resistant to Kelly's appointment, and in March, the Supreme Court ruled in its favour, stopping Racing NSW’s attempt to appoint an administrator due to concerns about the club’s financial position and corporate governance.

However, the ATC was ordered to pay Racing NSW’s legal fees, which will be enforced, despite additional funding announced on Wednesday. The funding will include a guarantee of the regulator’s $145 million loan to the ATC, which is payable only when the club sells an asset. The support will also cover urgent maintenance and capital projects at the club, including the repair of escalators at Royal Randwick, which have not worked for over five years.

As part of this deal, the administrator and committee will not affect the club’s operations under chief executive Steve McMahon.

Racing NSW first took action against the ATC in September, issuing a show-cause notice following the sacking of chief executive Matt Galanos and resignation of two directors.

Racing NSW’s original plan to install an administrator and advisory board had been put on hold as the ATC fought against the move in court. However, the regulator’s victory has paved the way for the planned reforms.

The advisory committee will consist of member-elected ATC directors Tim Hale, Caroline Searcy, and Bernie Brookes, along with Racing NSW board members Michael Crismale and Simon Tuxen. ATC directors Annette English and David McGrath will not be part of the panel.

The committee aims to provide management, continuity, and industry experience, with the inclusion of three current member-elected directors ensuring that the perspectives of the club’s membership will continue to be represented as decisions are made regarding the future direction of the ATC.

The regulator said that the appointment of an administrator and the committee will be in place for a year to provide stability and guidance to the club.

The continuation of funding to the ATC includes urgent maintenance and capital projects, such as the repair of escalators at Royal Randwick, which have not worked for over five years. The works are expected to cost several million dollars, with the funding provided as part of the regulator’s support for the club.

The regulator first took action against the ATC in September, following the sacking of chief executive Matt Galanos and resignation of two directors.

The administrator and committee have been established to provide stability and guidance to the ATC, with the goal of improving efficiency, strengthening performance, and implementing best practice governance and operational standards.

The regulator has stated that the review will identify opportunities to improve the club’s operations and financial position.

The regulator's victory has also led to the ATC being ordered to pay Racing NSW’s legal fees, which will be enforced despite the additional funding announced on Wednesday.

The regulator's original plan to install an administrator and advisory board had been put on hold as the ATC fought against the move in court. However, the regulator's victory has paved the way for the planned reforms.

The appointment of Morgan Kelly as administrator and the establishment of the advisory committee mark a significant step in the regulator’s efforts to stabilize the ATC and improve its governance.

The Australian Turf Club (ATC) operates Sydney’s four metropolitan thoroughbred racetracks and has been facing financial difficulties. Racing NSW’s decision to install an administrator and advisory board aims to bring stability and reform to the club.

The regulator's victory has also led to the ATC being ordered to pay Racing NSW’s legal fees, which will be enforced despite the additional funding announced on Wednesday.

The regulator's original plan to install an administrator and advisory board had been put on hold as the ATC fought against the move in court. However, the regulator's victory has paved the way for the planned reforms.

Key Facts

• Racing NSW’s victory in the NSW Court of Appeal allows administrator Morgan Kelly to take charge of the Australian Turf Club. • The ATC has been facing financial difficulties and the regulator’s decision aims to bring stability and reform to the club. • The regulator has announced additional funding to the ATC, including a guarantee of Racing NSW’s $145 million loan. • The works to repair escalators at Royal Randwick are expected to cost several million dollars. • The regulator has ordered the ATC to pay Racing NSW’s legal fees, which will be enforced despite the additional funding announced on Wednesday.