Review of the Registered Clubs Industry in NSW - Clubs NSW

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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
8 Establishing a Club Viability Panel funding legal and other costs associated with the amalgamation process. To be eligible for funding, the club would have to demonstrate that it does not have the financial capacity (ie, the cash reserves) to pursue the option without assistance. IPART considers that the amount of funding should be assessed on a case-by-case basis, but that an upper limit of $50,000 a club should generally be applied. The Panel would administer the application process and the grant of funds. It would also periodically follow up and review the progress of those clubs identified as being in financial distress. Recommendations 33 That a club found to be in financial distress by the detailed review should be eligible to apply for funding (administered by the Panel) up to a maximum of $50,000 to develop and implement strategies to improve its financial position. 34 That the Panel periodically follow up and review the progress of a club identified as being in financial distress. 8.4.6 Other activities Other related activities that the Panel may consider undertaking to support the longterm financial viability of the industry include: Ongoing education for the industry about: – club viability issues and the early warning signs of financial distress – the benefits of adopting a standardised reporting format for financial management accounts. Periodic review of industry sub-sectors (size of club, type, location) to understand specific issues affecting financial performance and to identify potential areas for industry consolidation, such as a number of under-performing clubs in a particular community. 8.5 Relationship to the existing club support scheme ClubsNSW, with funding support from the NSW Government (from unclaimed Keno prizes), established ClubBIZ in 2002. That scheme’s objective was similar to that of the Panel: to identify clubs in distress by funding financial health checks, then assist such clubs where possible by providing further funding for initiatives identified by the health checks that could improve the clubs’ financial viability. Review of the Registered Clubs Industry in NSW IPART 137
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Independent Pricing and Regulatory
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© Independent Pricing and Regulato
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Contents 6 Strengthening the financ
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Executive Summary Executive Summary
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Executive Summary estimated the val
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Executive Summary Therefore, IPART
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Executive Summary However, IPART al
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Executive Summary List of Recommend
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Executive Summary 15 Once the stand
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Executive Summary 29 That ClubsNSW
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Executive Summary 46 That ClubsNSW
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Executive Summary 60 That OLGR deve
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1 Introduction 1 Introduction Over
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1 Introduction 1.1.2 Review’s foc
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1 Introduction 1.2 Other reviews an
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1 Introduction 1.3 The structure of
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2 The registered clubs industry in
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3 Understanding the social contribu
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4 Measuring and reporting on club c
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5 Refining the Community Developmen
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Page 173 and 174: 10 Helping clubs better understand
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11 Making it easier for clubs to am
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12 Making it easier for new clubs t
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13 Removing unnecessary regulatory
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14 A framework for a management pla
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A Terms of reference A Terms of ref
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A Terms of reference The proc
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B Terms of reference checklist Term
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C List of submitters, roundtable pa
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D Gambling expenditure and problem
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E IPART’s methodology for recordi
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F ACG’s approach to measuring the
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G ClubsNSW - steps to establishing
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G ClubsNSW - steps to establishing
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Glossary and Abbreviations Glossary
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Review of the Registered Clubs Industry in NSW - Clubs NSW

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