The Darwin Turf Club is down two more board members as Bicheno, Prince resign

Embattled Darwin Turf Club has been rocked by two more board resignations just weeks out from the Darwin Cup Carnival.

THE embattled Darwin Turf Club (DTC) has been rocked by two more board resignations just weeks out from the Darwin Cup Carnival.

Board members Dale Bicheno and Brooke Prince have become the latest members to quit the board after the resignations of Barry Coulter, Louise de Bomford-Scott and Allen Fanning at last month’s annual general meeting.

As well, Darwin Turf Club chief executive Brad Morgan resigned in March and is expected to finish with the organisation at the end of the month with chief financial officer Grant Dewsbury set to replace him.

People close to the DTC say the organisation is in disarray and the future viability of significant events like Darwin Cup Carnival are under threat.

One source told the NT News that former Chief Minister Michael Gunner, who demanded the resignation of the DTC board after the release last year of an ICAC report accusing the club of ‘corrupt conduct’ over its handling of a $12m grandstand grant from the NT government, is responsible for the crisis that has engulfed the club.

“His intervention single-handedly turned Darwin Turf Club into a basket case,” he said.

The ICAC report is facing legal challenges from former board members disputing the corrupt conduct finding and other aspects of the document.

The controversial Darwin Turf Club grandstand at Fannie Bay racecourse. Picture: Che Chorley

DTC chairman Richard O’Sullivan, who was appointed after the ICAC report was released, said the club was laboring under the weight of the $12m grant repayment order.

He called on new Chief Minister Natasha Fyles to reverse her predecessor’s campaign for the funds to be returned.

“The resignations illustrate the enormous pressure the board is under both from the fallout the from ICAC report and the government clawback of the $12m we simply can’t afford,” he said.

“Under these circumstances board members do have to consider the solvency of the club and its ability to proceed as a going concern.

“The whole morale of racing in the Top End is being severely impacted by this unjustified action of government and it’s jeopardising not only the Darwin Turf Club but the livelihoods of all people who rely on racing.”

Mr O’Sullivan said he expected to meet next week with Racing Minister Minister Chansey Paech to discuss the state of racing in the Top End and check facilities.

“This is a heartening start from the incoming Racing Minister. No discussions as yet but we’re pleased to report that we expect to have talks with incoming Racing Minister within the next week,” he said.

“They were only sworn in a fortnight ago so this is good and it’s heartening that the racing minister is intending to come and visit the DTC and TRNT and inspect facilities for Fannie Bay within the next week..

“We hope the government realises the importance of racing to the NT economy, to the tourist industry and to the people it employs. About 1300 people provide input into racing directly and indirectly in the Top End.

“If the decision of the government is reversed it reinstalls confidence in the industry which will flow through to the morale of people both on the board and employed by the club.”

Mr O’Sullivan said it was impossible to discount from the significance of the $12m repayment order on the club and its potential to operate.

“Of course I’m worried. Take $12m away from club in the last year when we had made a loss and take out $1.2m a year over 10 years and you’ll see the club isn’t solvent under those circumstances.

“The board’s been challenged by this clawback of money which it can’t afford to repay and it’s still dealing with the outcomes and consequences and consequences from the icac report.”

It is not clear whether the two board members will be replaced. Two of the three board members who resigned last month were replaced.

BOARD MEMBERS RESIGN AHEAD OF AGM

THERE have been several high profile changes on the Darwin Turf Club (DTC) board following the AGM on Monday night.

Deputy vice chairman Allen Fanning, life member and racing identity Barry Coulter and Louise De Bomford-Scott all resigned from the board at the AGM.

However, there are only two incoming replacements – long-time DTC members Craig Trezise and Ainslie Corridon, with one casual vacancy remaining open.

Barry Coulter is resigning from the Darwin Turf Club board. Picture: Jenni Collier

Darwin Turf Club chief executive Brad Morgan said the AGM was well attended with the board pleased to see two strong, new members.

“They’re both long term members with different strengths and very strong business acumen,” Mr Morgan said.

“Ainslie has a legal background so her skills will be appreciated and Craig brings a long term business history in Darwin.”

The Darwin Turf Club still faces a call from the NT government to repay a $12m grandstand grant.

Mr Morgan said the club would do everything in its power to fight the claim calling it “irresponsible” and something that could put the club in “financial peril”.

“At this point in time we have nothing in writing advising Darwin Turf Club on how the government intend to pursue the $12m, so we’re a little in the dark in that respect,” he said.

“We have been seeking some clarity on that point, but at this point in time Darwin Turf Club hasn’t received anything from the Northern Territory Government.

“The Darwin Turf Club will do everything in its power to try to speak to the government and present a case to why calling back the $12m will be financially irresponsible on their behalf.

“It will place the club in financial peril, so we would like an opportunity to speak to whoever’s making the decision as to why the Darwin Turf Club would find it difficult to repay that amount of money over any period of time.”

However, in a positive for the club ticket sales for the Darwin Cup Carnival are going strong with corporate areas already sold out.

“Corporate ticket sales have been very, very strong. All the corporate areas have been sold out,” he said.

“We’re now receiving heavy interest in general admission tickets. Given we’re now in late May ticket sales are very encouraging.”

Changes incoming ahead of Turf Club AGM

THERE is no doubt the events that culminated in the special general meeting of the Darwin Turf Club (DTC) in 2021 were the most tumultuous in the history of the club.

The ICAC report almost destroyed the club without any charges being laid - or even being referred to the DPP or police for follow up action on corruption charges - or anything else for that matter.

Millions have been spent by ICAC, their most expensive investigation to date, with no outcomes other than collateral damage to the DTC, the ICAC itself now under investigation by the police, and an independent investigator finding it breached its own Act as well as the current Commissioner and the previous Commissioner apologising for the way it went about its investigation.

The report is now being challenged in the Supreme Court.

Behind the scenes it brought about the demise of some of the Northern Territory’s brightest intergenerational talent on the DTC board and decimated the management team as the DTC brand was irreparably destroyed.

The DTC is no longer an employer of choice.

The DTC AGM will occur on Monday night and four current board members have resigned while only two people have nominated to replace them.

The current Chairman has told people he intends to step down at the end of the year.

One board member who said he would resign has been encouraged by the Chairman to stay on for a limited time.

The previous Chief Minister (Michael Gunner) originally encouraged the DTC Grandstand proposal and was the financial architect who eventually chaperoned the grant approval through Cabinet and had it approved.

He then demanded the DTC pay back the $12m grant money to the NT government without any legal grounds to do so and ignored his own government’s acquittal procedures that found no impropriety in the way the money was spent.

Michael Gunner will have to carry the saga as part of his legacy and if media reports are true, now faces ICAC scrutiny himself on other unrelated matters.

The DTC is not in a financial position to repay the grant and would never have built it unless it was a grant.

It’s worth remembering that the grandstand is now an NT government asset built on NT government land and no profit went to the builder.

Corporate bookings were sold out in days for this year’s Darwin Cup while the grandstand hospitality rooms are commercially utilised throughout the year by a wide variety of community organisations and corporations as was originally intended.

The DTC has dedicated its efforts towards increasing its own source revenue by way of rental properties to accommodate the Corporate Bookmakers and the entertainment centre, Silks, which DTC won’t benefit from financially until after the debt is extinguished in around four years’ time.

A quick snapshot of the NT Racing financials looks like this: IER, an independent racing analyst group, estimate that the NT Racing industry generates around $130m annually at the moment.

Of this, around $13m would be GST which the NT government then receives from the federal government at a rate four times that, courtesy of the Commonwealth Grants Commission formula.

In other words, the NT government receives almost $50m while paying out just $13m to racing through TRNT.

This is not a bad bet - outlay $13m to get back $50m.

The DTC current budget is around $25m with a consolidated nett profit of $80,000.

TRNT has had no increase in funding since 2012.

Stake monies have not increased for five years while the costs of training horses has increased by 25 per cent over the same time.

It now costs $1m a year in insurance policies to cover jockeys and rightly so, who else do you know goes to work with an ambulance following them?

We all recall the tragic loss of life that has occurred at Fannie Bay.

In short the rewards to the community are impressive.

The Darwin Cup Carnival is one of the top premier events if not the top but the costs are also high and the margin to DTC slim.

The former chief minister’s proposal to demand $1.2m annually for 10 years from the DTC will destroy this industry, and possibly bankrupt the DTC.

My advice to the remaining DTC board members, as I don’t intend to stand for re-election, is save yourself.

Now that Natasha Fyles has become our new Chief Minister, she has stated she intends to “put her own mark” on things.

There are many issues that need fresh eyes and lines drawn under them as she places her DNA and new leadership style on the NT and takes the opportunity to refresh, redirect and reengage.

A good start would be allowing the return of her ministers and MLA’s trackside to Fannie Bay where they too can enjoy Territory racing while engaging with large groups of constituents in time-honoured Territory fashion.

I would have thought that prolonging the grandstand saga resulting in the destruction of the racing industry ought not be a high priority of her administration.

If the new Chief Minister insists on the clawback of the $12m, the DTC should give back the keys to Fannie Bay and ask them to run it.

This is a better option than the DTC facing possible insolvency and the new Chief Minister’s $3.5m guarantee being called up by DTC financiers and the consequences that will flow.