Review of the Registered Clubs Industry in NSW - Clubs NSW

Executive Summary
Based on its examination of the potential for strengthening the performance of the
industry, IPART has recommended a coordinated response that requires action from
individual clubs, government agencies such as the NSW Office of Liquor, Gaming
and Racing and industry peak bodies such as ClubsNSW. Although approximately
10 per cent of clubs are not members of ClubsNSW, IPART considers it is the most
appropriate body to implement several of this review’s proposed cross-industry
initiatives. ClubsNSW has previously shown that it is capable of and willing to
implement such measures. For example, it helped to develop and will distribute the
pre-nomination pack for members wishing to nominate for election as directors.
IPART has also recommended that a new body, the Club Viability Panel, be
established to oversee, coordinate and advise on many of its recommendations for
improving clubs’ financial viability.
IPART’s recommendations involve a strategy of providing clubs with the tools to
identify when their financial performance is declining and offering assistance to
clubs and their management to adapt and change. However, even with this
assistance, IPART does recognise that there are some clubs for which no amount of
improved financial and other management will ensure their individual survival and
that these clubs may need assistance in exploring options such as amalgamation.
IPART has recommended initiatives across seven areas to improve clubs’ financial
viability, including:
improving clubs’ financial reporting and benchmarking their performance
establishing a Club Viability Panel to assist clubs to identify the early signs of
financial distress and to advise on potential responses
improving clubs’ corporate governance, including through training and
development for their boards and managers
helping clubs better understand the risks and benefits of diversifying their
operations
making it easier for clubs that are unlikely to be able to improve their financial
viability to amalgamate
making it easier for new clubs to be established in response to changes in
demographics and interests
removing unnecessary regulatory restrictions on clubs.
Improving clubs’ financial reporting and benchmarking their performance
Detailed financial reporting, coupled with relevant analysis in a timely and ongoing
manner, will assist clubs in identifying where their financial performance can
improve, when their financial performance is declining, and whether they are
financially viable in the long term. Once a club is able to understand and interpret its
financial performance, the next step is to address any issues revealed by this analysis.
Clubs may also require assistance with this step.
4 IPART Review of the Registered Clubs Industry in NSW