News

AJC opens door for super club

18th Feb 2009

Sydney Morning Herald - Craig Young - Wednesday, 18 February 2009

THE Australian Jockey Club has embraced pursuing all avenues involved in merging with the Sydney Turf Club in a bid to secure the financial future and prosperity of metropolitan racing.

The news surfaced yesterday amid ructions following Peter Falk's resignation from a splintered 10-person AJC committee. Confirmation Falk had resigned came shortly after AJC chief executive Norman Gillespie confirmed the AJC had agreed at its committee meeting on Friday to investigate merger talks.

Gillespie presented a power point display to the committee and it called for "radical" change, with the combination of both clubs' best assets certain to "create a great entity". "It needs courage and it needs reform," Gillespie told the Herald yesterday. "The racing industry's funding model is breaking down."

The chief executive stated the STC brought an "untapped capital base". When asked if he was referring to Canterbury racecourse, Gillespie replied: "You may say it is Canterbury. It is probably the most valuable piece of land in racing."

It is mainly used as a mid-week racing track and Gillespie wondered aloud if its financial return to the industry was worthwhile.

The AJC chief said the STC's Golden Slipper deserved "top billing" while the rival club had an "innovative marketing" team.

Figures produced by Gillespie reveal the STC has a declining membership while the AJC's is growing. Another Gillespie concern was the STC's $42 million debt incurred building the Pavilion stand at Rosehill and investment in on-course stables.

Gillespie, who described a rundown Randwick as "a dud asset" which could be turned into "a valuable asset", pointed out the AJC had $8m in the bank. The AJC also offered a "strong brand" and "heritage", while Randwick racecourse was close to the CBD and airport with the potential to turn it into one of the world's premier racetracks.

The AJC's blueprint for Randwick's renewal is contained in a master plan that will come at a cost of $200m. The $33m first stage, which will include building race-day access points for patrons and horses along with race-day stabling, will be fully funded largely due to the sell-off of residential property in Doncaster Ave, which runs alongside the track.

Asked why the AJC wasn't considering going into debt to fund the Randwick plan, Gillespie replied it was not the right time, as racing's funding was under siege from corporate bookmakers and the betting exchange model.

"And what if the bank calls in loans early?" Gillespie warned.

The prospect of the AJC hosting group 1 race meetings at Warwick Farm is drawing to a close. The Chipping Norton Stakes is scheduled for March 7 but it may be the last because "whatever we do … we still can't get the crowd out there".

"Showcase days at Randwick, it has growth potential," Gillespie said. "We do believe Warwick Farm will continue as a mid-week racing venue and has the potential to become the premier training centre in the country."

Gillespie was adamant talk of any one club taking over the other was "irrelevant" and added: "Together we have a chance to build something sustainable with a future."

Gillespie said he was concerned about "self-interest" winning out and believed officials in power "have all got to pretend they don't have a role" when the merger numbers are being crunched. "Forget about who is doing what, get your head out of it," he said.

NSW Minister for Racing, Kevin Greene, put the merger of the AJC and STC back on the agenda last month, with Racing NSW, the state's ruling body, on board. An independent body will be hired to report on the merits and pitfalls of such a merger. "We are not hanging about, it won't take years," Gillespie said. "It [the report] must be done in 12 months' time."

Gillespie said "change will always upset people" and while there were complex issues to work out, racing "must go in that direction".

Falk, who served under three AJC chairmans in just short of five years on the committee, has other avenues to explore.

"I haven't been enjoying myself on that committee for a year or so," he said. "There are some issues that I do not really want to bring out in the press, I want to leave in good grace … I thought it was time to move on."