South Australia Harness Racing Club to meet over selling Globe Derby Park land for development

The SA Harness Racing Club owes millions to the developer who tried to bail it out. Now much of Globe Derby Park could be sold off to settle the debt.

South Australia’s cash-strapped trotting club wants to sell most of its prime land in Adelaide’s north to clear millions of dollars of debt.

Approval to dispose of 12.5ha at Globe Derby Park alongside Port Wakefield Rd will be sought from SA Harness Racing Club members at a special meeting on Sunday.

The meeting has been called by the club’s committee to discuss a proposal by a Queensland developer, Kevin Seymour, to use the land for commercial and light industrial development.

The land was put up as security when Mr Seymour provided a $3.5m loan to the club in 2020 when it emerged it had made only one profit in 14 years and owed $3.1m.

In a notice to members, club president Ann Mowday said the club since had lost $500,000 a year while still owing $3.5m to Mr Seymour’s company, Seymour Group.

The ageing entrance to Globe Derby Park. Picture: Colin James

Ms Mowday said her committee wanted to enter into a formal agreement with the Seymour Group to sell some of the land for redevelopment while retaining ownership of other parcels for leasing.

“A trend of consistent annual operating losses cannot be sustained,” she said.

“Some major strategic decisions will urgently need to be made to address the club’s ongoing financial position within the existing business environment.”

Ms Mowday said the committee believed the proposed deal with the Seymour Group would “pay off existing debts and secure an income stream to support the club into the future”.

“Over time the club has experienced a total loss of its once significant on-course tote income that sustained the club’s finances,” she said.

“Consequently, the club has been trying to compensate for this major revenue loss through its various income producing operations.

“As patronage has fallen away over the years this has proven to be a very difficult task.”

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A presentation prepared for the meeting by Seymour Group shows 22 sites ranging from 3170sq m to 5082sq m would be sold between Globe Derby Rd and Daniel Ave.

The area includes a training track and other facilities.

The land was rezoned for commercial and light industrial use by Salisbury Council in 2019 after the club prepared a masterplan, including new residential development.

The project was stalled when the club’s serious financial problems emerged after another developer failed to pay $2.2m outstanding for a block of land he bought for $5.5 million in 2018.

Globe Derby Park’s grandstand. Picture: Colin James

An official investigation later found the club may have traded while insolvent, prompting the national governing body, Harness Racing Australia (HRA), to issue a “show cause” notice on why it should keep its licence.

The unprecedented move followed 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 came under pressure to put itself into voluntary administration, with Ms Mowday, eventually calling a special meeting of members. Three members of the club’s committee then quit when they learnt Ms Mowday and former president Richard Miller had negotiated the $3.5m loan with Mr Seymour at 12 per cent interest.

Ms Mowday did not respond to a request for comment.