TOWNSVILLE Turf Club is in financial trouble and Queensland Racing has issued it with a 28-day deadline to get its business in order or its licence will be revoked.

The Townsville Bulletin reports today that QR financial auditors visited the offices of the Townsville Turf Club last week to inspect the club's balance sheet and review the management structure.

Queensland Racing's audit committee presented its findings to a special board meeting before the club was issued with a ''show cause'' notice on Monday that changes had to be made. It held a follow up meeting yesterday when the two parties agreed to ''a way forward so as not to disrupt thoroughbred racing''.

Queensland Racing chairman Bob Bentley yesterday confirmed to the Townsville Bulletin that the club was in danger of closure.

''We have had concerns for the last 12 months about the Townsville Turf Club's financial management and their reluctance to comply with basic business and reporting practices,'' he said.

''We have grave concerns about their financial ability and were up there last week to consider their situation because they are in serious trouble. They have lots of issues that need to be addressed and addressed very quickly.''

Mr Bentley said the club was losing thousands of dollars each week on top of wider ranging problems, but would not go into detail.

''I think it is something they need to answer for themselves,'' he said.

Mr Bentley said yesterday's meeting was productive because the club had acknowledged it was in trouble and that its business model had to change.

Townsville Turf Club chief executive Michael Charge said the club would look to set up a joint venture agreement between the club and QR similar to that of Toowoomba and Caloundra.

''The concept is for Queensland Racing to be responsible for the presentation of the racing and training facilities,'' he said.

''This will allow the club, which will be responsible for the running of race meetings, to concentrate on the promotion and social aspect of racing.

''This arrangement will be of great benefit to the club and its members as the cost of maintaining the racing facilities will be the responsibility of Queensland Racing.''

Mr Bentley said the club had 28 days from last Monday to rectify the problem or face losing its Queensland Racing licence.

''We are the controlling body for the racing industry in Queensland and our priority is to make sure that all clubs are solvent and adhere to the rules of racing,'' he said.

''We have told (that) ... there are other issues that need to be addressed immediately.''

Mr Bentley said racing at the Cluden racetrack would not be impacted should the turf club go bust as it would continue under new leadership.

''The stakeholders and the designated racing will go on no matter what the outcome might be,'' he said.

''The racing will continue as far as Queensland Racing is concerned - that is important.''

The financial problems come after North Queensland Cowboys CEO Peter Parr warned this week that there were too many sporting organisations fighting for the shrinking corporate sponsorship dollar in Townsville.

STORY COURTESY OF THE TOWNSVILLE BULLETIN