Written by Keely McKitterick
In a pivotal moment for the Australian racing community, the proposed sale of the iconic Rosehill Gardens Racecourse has stirred a whirlwind of debate and opposition, notably from two of racing’s most respected figures, Gai Waterhouse and Chris Waller.
Their outspoken criticism came to a head during an emotionally charged club members’ meeting on a recent Tuesday night, marking a significant move of resistance within the industry to a proposal presented by Australian Turf Club (ATC) Chairman, Peter McGauran.
Chris Waller, a name synonymous with racing excellence over the past decade, broke his silence on the ATC’s plans with a forthright critique:
“Your designs have just been whipped up overnight, and they’re not good enough for what’s about to happen,” he said, pointing out glaring oversights in the upgrade and training centre plans.
Waller’s concern was not just about the immediate financials but the future of racing in Sydney.
“The negatives have barely been touched on… What does that do for the members? What does that do for the racing industry?” he questioned, challenging the ATC’s operational and financial strategies and their impact on long-term industry viability.
“You said it’s not for profit. Well, why is it not for profit? Why are you not running a business? Why are you losing money? You can’t just continue to lose seven or eight million a year without being accountable for it.”
“You can’t just continue to lose seven or eight million a year without being accountable for it.”
– Chris Waller
Tough questions asked
Gai Waterhouse, in her typically spirited manner, echoed Waller’s sentiments, focusing her words on the ATC board’s handling of the situation. Her disappointment was palpable, especially with the absence of key directors at such a crucial juncture.
“You’ve got the most important decision you’re ever going to make in your life, the committee, and they can’t turn up,” she passionately told the forum, clearly annoyed that two of the seven Directors had not attended.
Waterhouse questioned the board’s financial management and strategic vision, which she saw as leading to a potential disposal of invaluable assets out of a short-sighted attempt to manage debts.
“You’re flogging this (Rosehill) because you’ve got yourself into debt, and you should be ashamed of yourself. Why has prizemoney continued to go up when the club clearly cannot afford it?
“You can’t flog Randwick because you don’t own it. Thank the Lord.”
– Gai Waterhouse
McGauran is the godfather to V’landys’ son, introducing a complex layer of personal relationships into the realm of corporate governance.
“Your inefficiency as a committee has cost you $80 million. You’ve allowed Peter (V’Landys) to get you into a corner that you can’t get out of. You should be ashamed.”
Waller also directly referred to the unfair power balance Racing NSW held over the ATC, logically pointing out that the majority of the income generated by the administrator came from wagering on Sydney’s metropolitan tracks.
“Mr V’Landys (Peter V’Landys, CEO of Racing NSW), you’re the best administrator we’ve ever had, but this is not part of it. You’re going to come down in a crashing heap,” Waller warned.
Historically monumental decision
The debate around the sale of Rosehill is not just a financial discussion; it’s a pivotal moment that could define the future direction of racing in Sydney.
The proposal, which aims to transform Rosehill into a residential community, promises substantial financial returns, with ATC estimates suggesting a windfall of $5 billion. However, skepticism surrounds these valuations, with industry insiders pointing out the inflated nature of these figures and the significant risks involved.
A respected property developer highlighted to The Thoroughbred Report that the valuation could only be realised after development, which is first contingent on a series of bureaucratic and logistical hurdles, and many more years of investment before a profit results. The land itself is suggested to have a more realistic pre-development valuation of around $1 billion.
A topic of conversation across all members was the responsibility the Board of the ATC carries to act in the best interests of its members, who have entrusted them with the governance and stewardship of the club. Waterhouse pushed for more dialogue and consultation, making it clear that decisions this big shouldn’t just be about fixing financial issues but should also reflect what the members and the racing community really want and need.
Waller echoed similar sentiments, questioning the ATC board members’ representation of the racing community’s interests and accusing them of succumbing to politics.
“We need the next 200 years, not the next 20 years,” Waller said. “We’re one of the greatest cities, not only in Australia, but the world. Are you representing us or just rolling over to political pressure?”
Is it actually up to the Members?
One of the statements in the ATC press release regarding the Rosehill Sale mentioned that part of the proceeds are intended for a “new world-class racetrack in Sydney”. This was not covered off in McGauran’s presentation. Instead plans for a training centre were drawn up by dropping the layout of Cranbourne, declared by McGauran as “probably the gold star”, onto a map of Horsley Park.
Of major concerns to members was both the clear lack of thought and consultation that had gone into the redevelopment, with McGauran struggling to answer pertinent questions around contamination of land, the processes adopted and logistics around the proposed upgrades.
When asked, McGauran insisted that a 50 per cent member majority vote would be required for the proposal to proceed. However, concerns over the validity of that claim have been voiced to The Thoroughbred Report, given that on the valuation claimed by the ATC, Rosehill is, by far, the ATC’s most valuable asset.
“In that situation, where a key asset is sold, it typically warrants a Special Resolution vote with a 75 per cent majority,” said respected industry lawyer Hamish Esplin. “I would be very surprised if Sydney racing’s biggest asset could be sold on one vote over 50 per cent.”
“I would be very surprised if Sydney racing’s biggest asset could be sold on one vote over 50 per cent.”
– Hamish Esplin
So, could Rosehill be sold without Members agreement?
If due process was followed, guided by the ATC constitution, then no; a majority vote (either 50 per cent or 75 per cent – remains to be seen) would be required. However, given the monumental impact that the sale of such a major asset would have on the future of Sydney racing, one must explore all possible eventualities.
If the ATC Board were seen unfit for the task of governing, either through insolvency or through an extraordinary general meeting removing the Directors from their positions, then it’s most likely Racing NSW would assume administrative control until a new board was appointed. In that instance, assets could possibly be sold to repay debts, without the due process of a member agreement.
There’s a lot of water to go under the bridge, but in the meantime, Waterhouse has reiterated the importance of the ATC’s duty to listen to its members – and that the members turn up to the forums to be heard. Waterhouse told The Thoroughbred Report:
“This is our industry, this is our racecourse, and this must be our decision. I implore everybody who is a member of the ATC – attend these forums and make sure you get up and speak. We need your voice to be loud and clear.
“This is our industry, this is our racecourse, and this must be our decision. I implore everybody who is a member of the ATC – attend these forums and make sure you get up and speak.”
– Gai Waterhouse
“This is not a decision that can be dictated to us by a group of people who so clearly do not have our best interests at heart. You must vote, we all must vote!”
Upcoming forums for ATC Members
The upcoming ATC Members forums present a vital opportunity for members to engage in the discussion on this pivotal issue.
The forums are scheduled as follows and require an RSVP to the ATC to attend, more than 24hrs before the event:
• 10.30am Saturday 17 February at Royal Randwick
• 6pm Tuesday 27 February at Royal Randwick
• 11am Wednesday 28 February at Rosehill Gardens