Review of the Registered Clubs Industry in NSW - Clubs NSW

8 Establishing a Club Viability Panel
Undertaking the review would involve the secretariat (or approved consultant)
investigating the operational and financial performance measures of the club to gain
a better understanding of the extent of the club’s financial position, and identify
whether it is experiencing financial distress.
If the review found that the club was in financial distress, the secretariat (or
approved consultant) would also identify what options are available to the club to
address any identified concerns. These options might include:
Engaging an industry consultant to work with the club to formulate and
implement remedial actions. For example, the detailed financial review may
identify that a particular segment of the club’s operations is placing a significant
drain on the club’s financial position so the club could engage a specialist
consultant to advise it on remedial action for that operational segment.
Refinancing or restructuring bank debt. The detailed financial review may
identify that the club’s financial performance is in line with industry benchmarks
and there are strong cash flows; however, the reason for the financial distress is
onerous repayment covenants on bank debt.
Amalgamating with another club. The detailed financial review may identify that
the club’s medium-term solvency is questionable and that the board should
consider amalgamation. In this case, the review could also provide information
about the amalgamation process and the pros and cons. In addition, the Panel
could refer clubs interested in pursuing this option to other service providers,
such as appropriate government agencies, legal consultants, financial advisers,
and investigative accountants. Though it is not expected that the Panel would
have a list of recommended service providers, it could provide advice to clubs
about the type of professional assistance they are likely to require.
Recommendation
32 When a club accepts the Panel’s offer of a more detailed, comprehensive review of its
financial position, that this review be undertaken by the Panel’s secretariat or an
approved consultant. That the review provide the club with a detailed assessment of its
financial viability and information about options to address identified weaknesses.
8.4.5 Providing further assistance to clubs confirmed as being in financial distress
If the more detailed review confirms that a club is in financial distress, the club
would be eligible to apply to the Panel for financial assistance to pursue further
action in relation to the options identified by the review. For example, the club might
apply for financial assistance for:
engaging a specialist industry consultant to develop, implement and monitor
remedial strategies
obtaining advice to restructure or refinance debt
undertaking due diligence of potential amalgamation partners
136 IPART Review of the Registered Clubs Industry in NSW