The Australian Jockey Club and Sydney Turf Club have jointly commissioned a fresh report to assess the economic benefits of a merger.

Both Clubs acknowledge and make clear that they have no predetermined position about the merits of a merger.

The Clubs agreed to consider a merger and approved the commissioning of the Ernst & Young (EY) Report, viewing it as a unique opportunity to properly evaluate the merits of a merger.

The Clubs were disappointed after committing to the process of a merger review that they were precluded from genuine participation in the formulation of the EY Report.

Having reviewed the report the Clubs do not have confidence that the economic benefit of $21 million per annum is either achievable or sustainable.

The Clubs also have reservations about the prospect of reducing the number of metropolitan racecourses. The EY Report also suggests the merged entity would require $200 million capital in the near term. There is no firm recommendation about how this capital is sourced.

The Clubs have engaged L.E.K. Consulting to prepare a fresh report to objectively consider the economic benefits of a merger.

Once the L.E.K advice is to hand, the Clubs will use the findings as a basis for making recommendations to their respective members, in the best interests of the Clubs, their members and the broader NSW racing industry.

The Clubs had sought an extension of two further weeks to consider and respond to the EY Report and are grateful that Minister Greene has granted an extension until 24 July 2009.

Australian Jockey Club Limited                                   Sydney Turf Club
RON FINEMORE, AO                                                         BILL PICKEN
Chairman                                                                           Chairman