The Swedish government is renouncing control of racing monopoly ATG. This comes as part of a new deal. The deal calls for ATG’s board to have fully independent members.
The Swedish government has made the deal with Svensk Travsport and Svensk Galopp. Both of these share ownership of ATG. On April 10, the state announced that the deal reduces government control over it.
ATG was founded in 1974 to oversee and address financial problems faced by equestrian sports at the time. Svensk Travsport and Svensk Galopp were in financial difficulties. The state decided it would be best to form a joint venture for horse betting. Profits supported trotting and galloping sports, along with the Swedish Horse Industry National Foundation.
The new deal shows the Swedish government giving up part of its controlling powers over ATG. In result to this, it will no longer nominate ATG board members. It had the power to appoint six of the 11 board members previously.
The board directed the nomination committee to ensure that independent members represent a majority moving forward. ATG can now change its articles of association without needing government approval.
The board’s nomination committee must now ensure a majority of independent members. Additionally, changes to ATG’s articles of association no longer require government approval.
The board’s nomination committee must now guarantee that independent members form a majority. Furthermore, ATG can now amend its articles of association without needing government approval.
Niklas Wykman, Sweden’s Minister of Financial Markets, stated that the state’s involvement is no longer justified to the extent it has been in the past.
He added that with the new agreement, ATG will have full responsibility for the operations. It provides the opportunity to recruit a board that can develop the company in a good way, increase professionalism and strengthen Swedish equestrian sports for the future.
