ATC board could be toppled over Rosehill housing deal as civil war erupts in racing

A coalition of powerful thoroughbred racing identities has signalled it may attempt to roll the board of the Australian Turf Club over a controversial proposal to sell Rosehill Racecourse, saying it does not trust the organisation’s senior leadership to allow members a final say on the deal.

Threatening to scuttle the ambitious proposal to turn Rosehill into a “mini-city” of 25,000 new homes, the move pits some of racing’s most influential figures – including Racing NSW chief executive Peter V’landys and champion trainer Gai Waterhouse – against each other.

Gai Waterhouse is part of the Save Rosehill group.Credit: Kate Geraghty

Speaking on behalf of the newly formed Save Rosehill group, high-profile thoroughbred owner Jason Abrahams told the Herald that members had formed the alliance because of the “lack of transparency” they perceived in the proposed Rosehill Racecourse sale and their concern that members would not be given a vote on the deal.

“Legitimate fears persist that proponents of the sale will pursue options to sell off the land without allowing ATC members to vote on a proposal,” Abrahams said.

“A recent letter to members by the ATC Chairman, saying members will be consulted on any sale, has not assuaged our mistrust in the ATC Board and the senior executives involved in negotiations.

“As members of the ATC, we demand full voting rights on the future of Rosehill. This process should not be taken over by politicians or unelected racing officials.”

In a statement, a spokesman for the ATC dismissed any suggestion its members would not have final say on the proposal, hitting out at attempts to “frustrate” and “interfere” with that process.

“There will be a vote on the sale of Rosehill Gardens at the end of this year, when all ATC members will decide the issue with finality,” the spokesman said.

“Moves by opponents to frustrate that process impinges on the democratic right of ATC members.

“The ATC board is currently undertaking due diligence in conjunction with Racing NSW to ensure members have all the facts and sufficient detail on which to make an informed decision. That is their right and it’s not for the Board or any opponent to interfere with due process.”

Abrahams said that Save Rosehill also had “great concern” about V’landys’ role in the proposal. The Herald last month revealed documents that some members believe reveal the powerful Racing NSW boss lobbied the government to divert funds from the proposed sell-off away from the ATC. The group contends the proposal has been “handed over” to Racing NSW because the regulator has been tasked with undertaking due diligence over the deal.

But V’landys hit back at those concerns, accusing the group of “scaremongering” and citing a “statutory obligation to ensure decisions such as this are in the best interests of the industry as a whole”.

“No amount of scaremongering which conveniently ignores the facts will deviate us from our statutory obligations,” he said.

Among well-respected racing figures, Save Rosehill includes former ATC chair and life member Matt McGrath, previous board members such as owner-trainer Julie Ritchie and Winx owner Debbie Kepitis. Champion horse trainers Gai Waterhouse, Chris Waller and Anthony Cummings are also backers.

The group has not yet decided on its next steps, and has sought feedback from other ATC members. It has not ruled out an attempt to orchestrate changes to the board – Abrahams said Save Rosehill would “vigorously pursue all avenues to hold the board of the ATC accountable to the members”.

The ATC board comprises seven directors, three of whom are appointed by the NSW Minister for Racing. The other four are appointed by members.

The housing proposal, announced by NSW Premier Chris Minns and ATC chairman Peter McGauran in December, was hailed by the government as a “once in a generation” opportunity to ease Sydney’s housing supply shortage. In exchange for selling the course for housing, the ATC would gain a Metro station at Rosehill and investments in racing infrastructure around Sydney.

The proposal is now being considered under the government’s unsolicited proposals’ framework, but a series of reports published by the Herald, revealing a remarkably short turn-around in the deal being hatched, raised questions about the process behind the mooted sale. The deal is now subject to an Upper House parliamentary inquiry.

Among the concerns of Save Rosehill members is a document released to parliament earlier this year showing NSW government officials workshopped a series of options to secure the racecourse, including compulsory acquisition. Documents also revealed that government officials originally believed “only the ATC board” would need to approve the deal, though McGauran insists it will go ahead only if members support it.

Abrahams said: “In our view, this whole process contemplates disenfranchising ATC members and threatens the future of premier racing in Greater Western Sydney, because there is no viable alternative to Rosehill Racecourse in the foreseeable future.”

In April, the Herald revealed the ATC had told planning officials there was “definitely no plan” to sell Rosehill. Initially, the club had instead flagged a potential sale of Canterbury Racecourse.

The ATC said the planning meeting had not been “the appropriate forum” to raise a potential Rosehill sale.

Abrahams said it was evidence the ATC had “flip-flopped dramatically” on Rosehill. The Canterbury proposal showed there were “many feasible options that can see land freed for much-needed housing which would preserve racing at Rosehill”.