Legislation enabling the merger of Sydney's two race clubs could be passed as early as September, igniting a $174 million cash injection for the upgrade of Randwick and Rosehill racecourses.The boards of the Australian Jockey Club (AJC) and Sydney Turf Club (STC) will recommend their members vote for the merger which will save an estimated $5 million annually in administration costs.Under the proposal outlined by NSW racing minister Kevin Greene on Thursday, $150 million would be allocated to th
Legislation enabling the merger of Sydney's two race clubs could be passed as early as September, igniting a $174 million cash injection for the upgrade of Randwick and Rosehill racecourses.
The boards of the Australian Jockey Club (AJC) and Sydney Turf Club (STC) will recommend their members vote for the merger which will save an estimated $5 million annually in administration costs.
Under the proposal outlined by NSW racing minister Kevin Greene on Thursday, $150 million would be allocated to the merged club as a loan to help fund the $200 million redevelopment of Randwick which would include two new grandstands and a 4500 seat multi-purpose venue and horse parade ring.
A grant of $24 million would enable the refurbishment of the JR Fleming Stand at Rosehill and new vehicle and pedestrian access to the course.
The clubs had previously rejected a merger proposal outlined in an Ernst & Young report released in June last year.
That report, commissioned by Racing NSW on behalf of the government, estimated savings of $21 million per year.
STC chief executive Michael Kenny said the new proposal had swayed his club towards the merger.
"What has changed is that 174 million dollars is a huge incentive," Kenny said.
"We didn't agree with the Ernst & Young report of a $21 million saving annually.
"Our figures have always shown a saving of between three and five million."
Greene said the government had given in-principle support to the merger and the drafting of the legislation.
He said this could be put through parliament when it resumed sitting in late August/early September provided the race clubs' members had voted for the merger.
The financing of the $150 million loan would come from revenue generated by Trackside, an animated horseracing game to be introduced to TAB outlets as a wagering product.
Trackside is currently classified as a gaming product and is available in NSW at Star City casino.
"Trackside is already in Victoria as a wagering product," Greene said,
"Reclassifying it as a wagering product provides a funding stream allowing Racing NSW to take out a loan of 150 million for the upgrading of facilities at Randwick."
Greene said TAB projections indicated the return to the racing industry from Trackside revenue would amount to around $12 million annually after three years which would fund loan repayments.
He said it was important to ensure the viability of the state's racing industry which employs 50,000 people and generates more than $1 billion a year into the economy.
"The reality is if we don't support racing, it is on the slippery slide to oblivion," he said.
The make-up of the board of the new club would be two representatives chosen by the STC, two by the AJC and three independents.