Racing NSW sensationally issued the embattled Australian Turf Club a show-cause notice on Friday over concerns the club is broke, owes $175 million and has poor corporate governance.

The governing body gave the club a fortnight to respond to the notice, threatening to appoint an administrator to replace the board.

The move came at the end of a week in which the ATC, which operates Sydney’s four thoroughbred racetracks, sacked its CEO and had two directors resign .

The club owes Racing NSW, run by sports powerbroker Peter V’Landys, $145 million in the form of a non-interest loan which is only repayable if it sells a major asset. It also owes the Commonwealth Bank $30 million, which is due in October 2026.

Racing NSW believes the club does not have the capacity to service the CBA loan.

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