A merger between the AJC and STC will lead a package of
potential reforms including $174 million in funding however, the
merger of the AJC and STC is not certain.
The future of Sydney's new 'super club' is far from
certain. In a move conditional upon the merger of the Australian
Jockey Club (AJC) and Sydney Turf Club
(STC), the NSW Government recently announced a
package of potential reforms including $174 million in funding for
the redevelopment of the Rosehill and Randwick race tracks. While
both the AJC and STC Boards had given their unanimous endorsement
of the proposed government package, it was up to AJC and STC
members to vote on the merger of the two clubs.
It is understood that the NSW Racing Minister, Kevin Greene, has
asked the boards of the AJC and STC for their recommendations by
the end of this week and, if supportive, the Government would
proceed. However, some might consider it a brave STC board to now
recommend in favour of the merger in light of the vote.
With the $174 million in funding:
the AJC would have received $150 million, and had planned to
redevelop Randwick racecourse to include multi-purpose venues,
increased seating and improved facilities, new grandstands and a
multi-storey hotel on Alison Road; and
the STC would have received $24 million and had planned to
refurbish the Fleming Stand at the racecourse, build a new main
entry and railway bridge, build a pedestrian bridge over James Ruse
Drive, purchase a new demountable concert stage and infield screen
and build a vehicular access bridge and tunnel link to the infield
Details of the merger were still being determined prior to the
vote and before a new Act was introduced into the NSW Parliament to
endorse the package. The proposed Act would have established the
new racing club and repealed the previous Acts which established
the AJC and the STC (the Australian Jockey Club Act 2008 and the
Sydney Turf Club Act 1943). The proposed start date for the new
racing club was reported to have been 1 January 2011.
As part of the package of reforms, hundreds of new computerised
gambling terminals (called Trackside) were to be introduced into
pubs, clubs and TABs around NSW. It is reported that in a deal
between Tabcorp, Racing NSW and the NSW Government, Tabcorp was
expected to put up $150 million for the redevelopment costs of
Rosehill and Randwick race tracks. It is not clear at this stage
how Tabcorp would have recovered this "grant".
With uncertainty surrounding the future of Sydney's new
'super club', Clayton Utz will continue to monitor merger
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