NSW Racing Minister Kevin Greene last Tuesday released a feasibility analysis on the merger of the two entities by accountants Ernst & Young.

The analysis said the industry was facing significant and imminent challenges including escalating costs and mounting debts and estimated savings of $21million a year if the merger to create a ``super club'' proceeded.

The possible sale of the STC's Canterbury Racecourse was flagged as bringing a one-off windfall of ``between $200 million and $500million''.

In an email to the STC membership, chairman Bill Picken was quick to emphasise that the proposal did not reflect the views of either club but rather, served as ``a platform for further debate''.

``The content [of the study] does not reflect the state of [the STCs] business ... its reference to sponsorship revenue decline, limited investment and deteriorating facilities are contrary to our results,'' Mr Picken said.

The clubs have until July 11 to respond and will meet with Mr Greene to discuss the proposal on July 13.