Harness Racing Australia moves to deregister South Australian Harness Racing Club over debts
South Australia’s biggest harness racing club is on the verge of being shut down, with the sport’s national body taking action over debts worth millions of dollars.
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National moves are underway to strip the state’s peak harness racing club of its licence, casting doubt over the future of Globe Derby Park.
The sport’s governing body, Harness Racing Australia (HRA), has voted to issue a “show cause” notice on the SA Harness Racing Club (SAHRC) to provide reasons it should not be deregistered.
The unprecedented move follows a lengthy dispute between the club and the state’s controlling body, Harness Racing SA (HRSA), over its dire financial situation and ability to keep operating.
The club has made only one profit in the past 14 years and owes around $3.1 million in debts.
Its financial situation worsened earlier this year when a private property developer failed to pay an outstanding $2.2 million debt for a block of land he bought for $5.5 million in 2018.
The land sale was part of an aborted bid by SAHRC to clear its debts by selling large parts of Globe Derby Park for housing and commercial development. Speculation is rife within the industry that, if SAHRC loses its licence, the land sale will be revisited.
HRA chief executive Andrew Kelly confirmed the club’s indebtedness was one of the key issues concerning the Victorian-based body, along with allegations it had been trading while insolvent.
Mr Kelly said the club had been given 21 days to provide reasons why it should keep its licence. The HRA board – made up of two delegates from each state – would then decide if it kept its licence.
While there were various options available to the board, the strongest likelihood was the club would be deregistered.
“All members will be asked to vote, on the strength of the financial situation that the club now finds itself in, on whether it should remain a member of Harness Racing Australia,” he said.
HRSA chairman George Fiacchi, who is a member of the national board, declined to comment, referring inquiries to chief executive Ross Neal. Mr Neal confirmed the HRA executive had issued a “show cause notice”.
“Harness Racing Australia will dictate the process moving forward as to how the matter progresses,” he said. “It is in their hands.”
SAHRC president Ann Mowday, who publicly accused HRSA in a video of owing the club almost $330,000 in unpaid racing meeting fees, did not respond to a request to comment. Relationships between Mrs Mowday and Mr Fiacchi have been strained since he was appointed as the new chairman of HRSA by Racing Minister Corey Wingard as part of a shake-up of boards overseeing the racing industry.
Mr Fiacchi sent an email to Mrs Mowday in January asking her to place the SAHRC into voluntary administration, prompting Mrs Mowday to attempt to call a special meeting of members to vote to reject the move.
Four members of her committee complained to Attorney-General Vickie Chapman about the special meeting, saying it was called without their consent. The complaint prompted an investigation by Consumer and Business Services (CBS), the findings of which have not been made public.