Review of the Registered Clubs Industry in NSW - Clubs NSW

Executive Summary
However, IPART also found there still may be merit in clubs adopting diversification
strategies. In specific circumstances, diversification can be an effective means of
expanding a club’s revenue base, broadening its market appeal, and maintaining its
relevance through the provision of additional services to its members and the local
community. IPART has recommended that industry stakeholders provide education
about the risks associated with diversification and advice on how to make an
informed judgement on the relative merits of any proposed diversification strategy.
Making it easier for clubs to amalgamate
IPART found that there are some clubs for which no amount of improved financial
management can ensure their individual survival. In some cases, closure of a club
might be the only appropriate outcome. However, given that clubs are custodians of
community assets, amalgamation with another club may present a positive
alternative that is able to protect and preserve those assets and their benefits to the
community.
IPART examined the current amalgamation process and found a number of barriers
to effective amalgamation, including:
the complexity of the process and the involvement of various government bodies
and professionals make it quite a daunting and costly project, especially for
smaller clubs with fewer resources
cultural barriers to amalgamation, including club reluctance to consider
amalgamation as an option until it may be too late to undertake one that
effectively preserves the club’s assets and services.
IPART has recommended the development and dissemination of information about
amalgamation to clubs, both to help clubs to navigate the complexity of the process
and to overcome clubs’ reluctance to consider amalgamation.
Making it easier for clubs to be established
In recent times only a handful of clubs have been registered. This can be attributed
to changes including:
structural changes like demographic movements and industry maturity
increased competition through greater leisure and entertainment choices
legislative developments, like regulatory requirements and alternatives to club
registration.
While another boom in the number of new registered clubs, such as there was during
the 1950s, is unlikely to occur, this does not mean that establishment of registered
clubs is not expected at all. IPART has made recommendations in three key areas to
help make it easier for clubs to be set up in areas that need them, including:
providing greater guidance to groups wishing to establish a registered club
Review of the Registered Clubs Industry in NSW IPART 7