The Wyong Race Club board of directors has been sacked and an administrator will remain in place until replacements are elected.
The board was stood down in February pending a show cause hearing by Racing NSW into improprieties and management issues at the provincial club.
Racing NSW chief executive Peter V'landys released the findings of the hearing on Friday and said John Rouse would remain as the administrator of the club until the members elected a new board.
"This decision resulted from grave concerns of Racing NSW in respect of the governance of Wyong Race Club Limited," V'landys said.
"The most critical matter was that the board of Wyong Race Club Limited awarded contracts resulting in payments of over $800,000 to two companies operated by Wyong board directors without following proper tendering processes or getting the approval of the members of Wyong Race Club Limited, as required by the Corporations Act.
"A further matter of concern was the lack of management of racing facilities resulting in the deterioration of the sand training tracks risking the health and welfare of horses and their handlers."
V'landys said after considering all the relevant material, the sub committee hearing the case determined it had lost confidence in the effectiveness of the board of WRC as a governing body.