Interstate racing authorities’ plot to exile Racing NSW revealed

Interstate racing authorities planned to form their own body and exclude Racing NSW over the state’s growing success in the sport, it will be alleged as a Supreme Court battle looms between Australia’s top racing chiefs.

Bombshell documents reveal interstate racing bodies had a plot drawn up to declare war on Peter V’Landys and Racing NSWto stop the state’s growing dominance in the sport, it will be alleged in the Supreme Court.

A secret dossier obtained by The Daily Telegraph maps out a battle plan for a “shock and awe” campaign against Mr V’landys and advises the racing bodies to “prepare for months of expensive, disruptive and damaging warfare”.

The extraordinary plan – unprecedented in Australian racing – proposes to oust Racing NSW from the industry by forming a breakaway body.

The papers are central to a major NSW Supreme Court action Racing NSW is bringing against racing authorities in Victoria, Queensland, South Australia and Western Australia.
It’s understood Racing NSW is alleging the other bodies were attempting to form a cartel, which constituted anti-competitive behaviour and a potential breach of corporations law.

A plot by interstate racing authorities to form a breakaway body in order to exile Racing NSW and its boss Peter V’landys from the Australian racing industry has been revealed. Picture: Sam Ruttyn

The documents propose advice on how racing authorities could force Mr V’landys to give up Racing NSW’s power of veto over major decisions governing the sport – a power which Racing Victoria also shares.
Mr V’landys has introduced highly successful events such as the $15 million TAB Everest in recent years, drawing huge crowds, prize money and wagering dollars in competition with Melbourne’s coveted spring carnival.

Peter V'landys was named in the secret dossier, which alleges the racing bodies to “prepare for months of expensive, disruptive and damaging warfare” with Racing NSW. Picture: Richard Dobson

The revised spring carnival changed the fortunes of racing in both states, with $60 million more now given out in prize money in NSW than in Victoria - a situation that was the reverse eight years ago.

“What will make PVL blink this time?” the document asks.

“The threat of a breakaway body leaving NSW isolated, is the shock-and-awe component of the campaign. That will get attention.

“It must be portrayed as the only viable option (more in sorrow than in anger) and it must be portrayed as in the best interests of racing’.’’

Racing NSW is alleging the other bodies were attempting to form a cartel, which constituted anti-competitive behaviour and a potential breach of corporations law. Picture: Jenny Evans

But the document, believed to be a form of strategic advice provided to the interstate bodies, then makes a telling admission – that the current management of racing is in strong health.

“We know what reform is needed (fix the Constitution) but we don’t know why this reform is needed. We need compelling reasons for change when, from the outside and to many inside, the system seems to be working. Crowds, finance, prize money, quality of racing all seem to be high.”

The document discussed how to prepare for Mr V’landys’ to make arguments like “the other states are tired, stuffy, protectionist, lack innovation etc. We need to prepare for the campaign to get very personal.’’

There were even suggestions of meeting with News Corp’s masthead editors around the nation to try and promote their opposition to Racing NSW and Mr V’landys.

“Even with all this work there is a very strong likelihood that NSW does not shift and the impasse remains. At least, there are likely to be months of expensive, disruptive and damaging warfare,’’ the document said.

One suggestion was to orchestrate a “coordinated reform” on contentious whip rules to portray Racing NSW as an “outlier” on key issues.

The document suggestedt the other states should meet with News Corp editors to try and promote their opposition of Racing NSW. Picture: Mark Evans

Racing NSW is seeking, through its court process to discover who commissioned the document and who wrote it.

When contacted, Mr V’landys declined to comment on the specifics of the document, but said that Racing NSW was “investigating if there has been anti-competitive behaviour”.

“The court action simply requests documents that indicate one way or the other if there was such behaviour,” Mr V’landys said. “We were forced into this because the parties refused to provide the documents when we requested them.”

Racing NSW has served papers on Racing Victoria, Racing Queensland, Racing South Australia and Racing and Wagering Western Australia.
Racing Victoria chairman Brian Kruger and director Greg Nichols are also named in the proceedings.

Neither Mr Nichols or Mr Kruger commented when approached by the Telegraph.

Racing Victoria provided a statement saying it would contest the allegations.

Racing Victoria director Greg Nichols

Racing Victoria Chairman Brian Kruger. Picture: Vince Caligiuri

“The matter is before the courts so we will not talk to the matters in dispute, other than to say RNSW’s litany of complaints will be vigorously contested,” a Racing Victoria spokesman said.

“Racing Australia’s paralysis has halted much needed progress and reform on key industry issues such as whip reform and equine welfare.”

He said Racing NSW’s legal action against other states “speaks for itself”.

“NSW’s decision to take legal action is misconceived and does nothing to resolve any current industry issues.”
Racing Victoria’s decision to reference “whip reform” in its media response appears to be in accordance with advice from the bombshell document which is the subject of the court case.

The matter is due for a Supreme Court directions hearing on February 22.