Superclub Merger to Reverse Racing Decline?

A merger between the Sydney Turf Club (STC) and Australian Jockey Club (AJC) would see Saturday races worth more than $100,000 and an annual sponsorship revenue increase of $4.3 million to $11.5 million, according to a report by Ernst & Young.
The report, commissioned by Racing NSW to examine the feasibility of merging the two clubs, showed that a merged 'superclub' would provide an injection of about $21 million annually through synergies and other benefits.
It showed that the racing industry in NSW creates a wagering turnover of $3.5 billion and employs around 50,000 people, many in casual positions.
However, the industry has been in decline over many years and the Ernst and Young report argues that there is an overcapacity of one track in Sydney.
The AJC currently operates Royal Randwick and Warwick Farm and the STC has Rosehill Gardens and Canterbury. Because of its proximity to the city, the Canterbury track is seen as the most likely to be sold, which Ernst and Young suggest would generate at least $200 million.
The future structure of racing in NSW will now be decided by the State Government, Racing NSW, the race clubs and their members while NSW Racing Minister Kevin Greene apparently yet to decided his position on the merger.