Racing NSW loses bid to put ATC into administration

Court rules Racing NSW invalidly appointed ATC administrator

The NSW Supreme Court has ruled Racing NSW did not have the legal authority to appoint an administrator to the Australian Turf Club.

Justice Francois Kunc found the regulator acted outside its powers when it designated Morgan Kelly to the role on December 15.

The court determined Racing NSW’s concerns centred on the ATC’s finances and corporate governance rather than matters directly related to the racing of galloping horses under the Australian Rules of Racing.

Justice Kunc said those issues fell outside the scope of authority provided by the Thoroughbred Racing Act, meaning the appointment was “invalid and of no effect”.

He also found the decision relied on a “material misreading by Racing NSW of accounting information provided to Racing NSW by the ATC”, which constituted a jurisdictional error.

The judge described the power to appoint an administrator as a significant intervention into the affairs of a race club.

Racing NSW has been ordered to pay the ATC’s legal costs.

The regulator has flagged the possibility of an appeal, with the parties set to return to court for a directions hearing on March 20.