Review of the Registered Clubs Industry in NSW - Clubs NSW

6 Strengthening the financial viability of the registered
clubs industry
6.2.2 Establishing a Club Viability Panel
IPART considers there is a role for a body to advise clubs on particular matters that
affect their financial performance. IPART considers that such a body, to be known as
the Club Viability Panel, should be established, with members drawn from the clubs
industry and government, plus one or more independent members with financial or
legal expertise.
The Club Viability Panel would be advisory rather than supervisory in nature and
would have five main functions:
facilitating the process of transitioning clubs to a standardised reporting format
for their financial management accounts
using business efficiency and financial viability measures provided to them by
clubs to produce industry benchmarks and communicating them to the clubs
industry on an annual basis
identifying those clubs that are at risk of being in financial distress, advising these
clubs of its findings, and offering to further investigate their financial position and
advise them of their options for improving their financial position
providing funding for eligible clubs to act on options outlined by the further
investigation and advice
in situations where the long-term viability of the club is questionable and
amalgamation is identified as an option, assisting the club with the process of
amalgamation.
Over the course of its review, IPART noted that many of the peak bodies (including
ClubsNSW, RSL & Services Clubs Association, and Bowls NSW) were able to identify
solutions to many of the issues the clubs industry faces. However, individual clubs
were often unaware that there is a problem or, in some cases, were reluctant to
implement the required solution. Of course, control over clubs’ future direction
properly lies with their members through the current democratic system of electing a
board to govern these entities. However, IPART envisages that the Club Viability
Panel will play a leadership role in encouraging the industry and individual clubs to
implement some of the solutions.
IPART’s considerations and recommendations for establishing a Club Viability Panel
are discussed in detail in Chapter 8.
6.2.3 Improving corporate governance, training and development
As outlined in section 6.1.5, the skills and effectiveness of club boards and the quality
of management have a strong influence on a club’s financial viability. Clubs that
perform well tend to have either a strong, competent board or manager, and ideally
all clubs should strive to have both.
104 IPART Review of the Registered Clubs Industry in NSW