Auckland clubs approve merger in watershed deal for racing industry
Auckland Racing Club (ARC) members voted overwhelmingly in favor of merging the ARC and the Counties Racing Club (CRC) into a new combined club, named Auckland Thoroughbred Racing Incorporated.
The ARC membership vote last week followed the equally successful approval of the merger by CRC members earlier in the week. The merged club will have assets north of $ 130 million.
The merger, which will come into effect on August 1, 2021, will bring significant benefits to clubs, including the realization of combined land assets, on a coordinated basis, to ensure that revenues are maximized and reinvested in the industry.
Chapman Tripp, led by a consultant Barry brown and assisted by lawyer Liam Stoneley, advise the ARC on all aspects of the merger, including helping the two clubs obtain the required approvals from the industry regulator, New Zealand Thoroughbred Racing (NZTR). Chapman Tripp Partner Miles Bevan led the firm’s experts providing tax advice to the CRA.
In granting the approval of the merger, NZTR expressed its appreciation for the assistance provided by the company in advancing the ARC and CRC request which “had been of considerable assistance to NZTR”.
Describing the merger as a “forward-thinking, innovative and courageous†proposal, NZTR noted that the merger will secure the future of racing in the Auckland region.
ARC Managing Director Paul Wilcox said: “The Chapman Tripp team’s assistance with the merger, in a revolutionary structure for the industry, has been invaluable and has resulted in an extremely positive outcome for BOW. We are especially grateful for their pragmatic, collaborative and customer-centric approach, which enabled both clubs to achieve a positive outcome from the NZTR and its members â€.
CRC Chairman Mark Chitty said the merger is a game-changer for thoroughbred racing.
“This marks the start of an exciting new chapter for our industry. The amalgamated club will aim to double the average wagering money per race to $ 100,000 to retain industry participants and attract young people into the industry, â€said Chitty.
Senior partner Robbie bennett and senior lawyer Conor handyman further strengthened the Chapman Tripp team by helping with the merger.
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