KZN racing operator Gold Circle’s public clash with owner Nic Jonsson over the access to funds ringfenced from the sale some eight years ago of Clairwood Racecourse is likely to land in the courts.
The Sporting Post has learnt that Mr Jonsson is pursuing an urgent application against the cash-strapped racing operator in the KZN High Court.
This is a sequel to a letter to Gold Circle members last Thursday where Mr Jonsson suggested that the ring-fenced monies amounting to some R240 million were never intended to support operational losses.
He urged a delay of the Special General Meeting convened for this Thursday, where members approval would be sought to uplift the specific hurdles blocking access to the funds.
Former Gold Circle Chairman Robert Mauvis wrote on the Sporting Post comments platform on Tuesday that before acceding to such amendments, ‘we need to engage and debate with the board and management to understand their vision and strategy for the next few years’.
He added that explanation must be given to why millions owed by Phumelela Gaming & Leisure was allowed to get where it is.
‘We need to know what was done to recover this and what must still be recovered, as not to do so, amounts to a dereliction of duty in the part of management. However I have no doubt the board will have an explanation.’
It is very likely that Gold Circle will oppose the Jonsson action.
But it’s bleak whichever way one looks at it.
The scenario is a dismal catch twenty-two for racing in the Holiday Province, with opinion divided.
Either way, if Gold Circle were to find themselves going the Business Rescue route, it is likely that the funds will in any event be unlocked.
But the timing is of major concern.
With the SA Champions Season now well under way, the dispute is likely to impact on operations – and racing and hard-pressed owners and trainers could be the losers in the short term.
