Review of the Registered Clubs Industry in NSW - Clubs NSW

11 Making it easier for clubs to amalgamate
Box 11.1 Panthers’ amalgamation model
In its submission, Panthers Entertainment Group (PEG) put forward its model for amalgamation,
which it described as:
…based on the principles of ‘twin citizenship’ which in this context meant that while they would
become part of a greater group, each club would also remain part of its local community.
Legally, the PEG amalgamations were parent-other amalgamations; however, PEG has
incorporated features of a partnership-style amalgamation. The PEG model allows the
dissolved clubs to take advantage of support and investment from the larger group, such as
PEG’s procurement, payroll and financial reporting systems. This leads to improvement in the
dissolved club’s performance, which means it can continue to provide services and support to
its local community.
Local community commitments are taken into account in the amalgamation with a
Memorandum of Understanding (MOU) and a local advisory board. The MOU was in addition
to the legislative requirement for a Deed of Amalgamation at that time.
The MOU provides a commitment from the parent club to the dissolved club as to how it will
deal with its assets, traditions, members, employees, creditors etc. IPART considers that the
inclusion of statements and intentions related to how the dissolved club’s local community
commitment, history and traditions will be maintained and supported are of particular interest.
PEG also sets up an advisory board for each dissolved club that is made up of members from
that dissolved club. Members are elected to positions on the advisory board in a similar way to
the election of PEG board members (the legal board of directors for all clubs in the group).
Only members on an advisory board are eligible to stand for the PEG board of directors,
thereby providing more representation from the dissolved clubs.
Source: PEG submission and discussions with Panthers Entertainment Group.
Clubs need to be aware of the risks as well as the benefits of amalgamation
Roundtable participants and case study clubs 203 indicated that, although clubs
recognise it is important to preserve community assets, more potential parent clubs
now also look for the benefit that the amalgamation will bring to them. Many may
not be willing to go in and rescue a struggling club, as it may adversely affect their
own club’s financial position. IPART agrees that potential parent clubs need to
inform themselves of the risks as well as the potential benefits of amalgamation.
203 For example, Club Old Bar and Nowra Bowling & Recreation Club.
180 IPART Review of the Registered Clubs Industry in NSW