Interstate racing authorities’ plot to exile Racing NSW revealed

Bombshell documents ­reveal a plot for interstate racing authorities to exile Racing NSW and its boss Peter V’landys by setting up a breakaway body.

Bombshell documents ­reveal a plot for the racing authorities of Victoria, South Australia, Western Australia and Queensland to exile Racing NSW and its boss Peter V’landys by setting up a breakaway body.

The secret documents, ­obtained by the Herald Sun, call for a “shock and awe” campaign against Mr V’landys and tell the authorities outside NSW to “prepare for months of ­expensive, disruptive and damaging warfare”.

The papers are central to a Supreme Court action that Racing NSW is bringing against the other bodies.

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

It is understood Racing NSW alleges the bodies sought to form a cartel, which constituted anti-competitive behaviour and a potential breach of corporations law.

The leaked documents propose advice on how Victoria, Queensland, South Australia and Western Australia could force Mr V’landys to give up Racing NSW’s power of veto over major ­decisions governing the sport – a power that Racing Victoria also shares.

Mr V’landys in recent years has introduced the $15m race The ­Everest among other big prizemoney events, drawing top horses and ­wagering dollars away from Melbourne’s coveted Spring Racing Carnival.

“What will make PVL blink this time?” the documents ask, giving three options.

“A: There is something in it for him (V’landys) – a win; and/or

“B: Racing NSW is genuinely threatened by potential developments – ie. a breakaway body; and/or

“C: There is a groundswell of support for your proposal and he (V’landys) is forced to concede that his position is ­illogical and that he is standing in the way of the best interests of the industry.”

The documents suggest a combination of B and C would be most effective, stating: “To get any response, we can probably rule out (A). (Is there anything he wants that we could trade off for the NSW veto?)

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

“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.’’

But the documents – appearing to be a form of strategic advice from a third party – then acknowledge 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,” the documents state. “We need compelling reasons for change when, from the outside and to many inside, the system seems to be working. Crowds, finance, prizemoney, quality of racing all seem to be high.”

The documents outline a proposed course if Racing NSW and Mr V’landys will not “come to the table” to agree to reforms.

They suggest how to prepare for what is described as V’landys’ well-rehearsed lines such as “the other states are tired, stuffy, protectionist, lack innovation” saying “we need to prepare for the campaign to get very personal”.

Racing Victoria director Greg Nichols

Racing Victoria Chairman Brian Kruger. Picture: Vince Caligiuri

There are even suggestions of meeting with News Corp masthead editors across the nation to promote their bodies’ opposition to Racing NSW and 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 documents say.

When contacted Mr V’landys would not comment on the specifics of the documents, but said Racing NSW was investigating whether there had 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, in a move Racing Victoria says it will contest.

Racing Victoria chairman Brian Kruger and director Greg Nichols are named in the proceedings. Mr Nichols did not comment and Mr Kruger was contacted but did not respond. The matter is due for a Supreme Court directions hearing on February 22.