Canberra Racing face a potential six-figure payout over the messy handling of their removal of Andrew Clark from the chief executive role while he was on sick leave.
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Applications for a new chief executive closed last week after being open for just a fortnight.
That's despite Clark being on indefinite sick leave and still being listed as the boss on Thoroughbred Park's website.
The Canberra Times revealed in May the club had removed Clark from the top job, when they sent out an email to members notifying them of the move.
It's believed the club's handling of the affair could now prove costly, with a potentially hefty payout looming as a result.
The news couldn't come at a worse time for the club, which was in the middle of a number of crucial discussions.
Firstly, The Canberra Times revealed the ACT Greens had walked out on government discussions over the club's next memorandum of understanding - how the racing industry received the bulk of its funding in Canberra.
Greens spokeswoman for animal welfare Jo Clay said they didn't support $40 million of taxpayer funding going to the industry over the next five years.
That's despite the racing industry expected to help inject more than $100 million of revenue into the government coffers over the same period.
Despite the Greens' stance, the MoU was still expected to be passed by government.
Canberra Racing's also in the middle of redeveloping their Mitchell site.
It's currently in the two-year consultation period for their Territory Plan Variation as they look to build 3200 dwellings and redevelop their own facilities.
It could also set up the racing club's long-term financial future.
But those finances could take a hit if they're forced into a big payout for how they've gone about removing their chief executive.
The Canberra Times asked Canberra Racing chairman Tim Olive if he was concerned the club could now face a hefty payout over their handling of the affair and what impact it would have on the club's finances.
But a response from a spokesperson was all that was received.
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"The club does not wish to comment on individual employee matters," the club spokesperson said.
The Canberra Times also asked if it was normal to advertise for a new chief executive while the current one was on sick leave and what would happen when he returned from it.
Plus, whether Olive was satisfied with the way it had been handled by the club.
"The club is continuing in its search for a new CEO as previously advised on May 26," the spokesperson said in reference to the email sent to members advising them of the board's decision to remove Clark.
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