Racing NSW wins discovery ruling in secret plot for new racing body

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Racing NSW has been granted court access to internal documents from Racing Victoria about a secret plan to exclude it from a proposed new national body in the latest twist to thoroughbred racing’s civil war.

The ruling by the NSW Supreme Court on Wednesday is the latest chapter in a long-running feud between the two bodies over the timing of major races during the spring carnival.

Racing NSW CEO Peter V’landys will gain access to documents from Racing Victoria following a ruling on Wednesday.Credit: Dominic Lorrimer

The ruling will give Racing NSW access to in-house Racing Victoria communications in the months before it hired a public relations firm to plot a breakaway national body.

The two powerhouse racing authorities have been at loggerheads since the introduction in 2017 of Sydney’s multimillion-dollar juggernaut The Everest at a time of year that has traditionally been dominated by Melbourne racing.

The mutual distrust has caused dysfunction on the Racing Australia board, where both parties have the power of veto, which has been used to block initiatives proposed by either side.

Racing NSW applied last December to the NSW Supreme Court for access to internal communications between Racing Victoria, its outgoing chairman Brian Kruger and its appointed Racing Australia board member Greg Nichols, and the principal racing authorities (PRAs) from Queensland, South Australia, Western Australia and Tasmania.

Racing NSW’s introduction of The Everest in Sydney has created tensions with the Victorian body.Credit: Jenny Evans/Getty Images

In their application, Racing NSW CEO Peter V’landys and chairman Russell Balding alleged anti-competitive behaviour by the other PRAs in their plans to create a national governing body from which it was to be excluded.

The centrepiece of Racing NSW’s claim was two plans set out in a document by public relations firm Cato & Clive Partners, who had been engaged by Racing Victoria to come up with a strategy for the proposed new body.

The court ruled Racing Victoria would have to hand over internal communications dating back to February 2022 – almost three months before Cato & Clive were engaged as the public relations consultant.

According to the ruling, Cato & Clive outlined two plans: “[Racing NSW would be asked] to agree to a restructure of Racing Australia to remove the effective vetos enjoyed by it and Racing Victoria (referred to as Plan A). If that did not work, Racing NSW would be excluded from the new organisation (Plan B).”

Judge Ball said: “Cato & Clive were engaged in April 2022. It may be that the plan that was discussed and developed with their assistance was conceived shortly before they were approached. In my opinion, the plaintiffs are entitled to documents during that period. A starting date of 1 February 2022 seems reasonable in those circumstances.”

The plan was formulated by Racing Victoria along with Racing Queensland, Racing South Australia, Racing and Wagering Western Australia and TasRacing, all of which are defendants in the action.

The plans for the new body went as far as interviewing candidates for the chief executive’s role by mid-2022.

“They also indicate that steps have been taken to interview candidates for the position of chief executive officer of the new organisation that those PRAs were considering establishing,” the judgment read. “However, it remains unclear how far the plans have been developed or, indeed, whether they are still on foot.

“It seems to me that the plaintiffs [Racing NSW] seek three types of information. First, they seek information about the precise nature of what is planned by the defendant PRAs.

“Second, they seek information concerning how far those plans have advanced. Third, they seek information concerning the object that is sought to be achieved by whatever plans exist – that is, the purpose of the plans.”

Racing NSW and Racing Victoria didn’t wish to comment on the finding.

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