Review of the Registered Clubs Industry in NSW - Clubs NSW

11 Making it easier for clubs to amalgamate
IPART notes that management agreements are specifically provided for in
Queensland’s Gaming Machine Act 1991, and guidelines have been introduced to help
clubs set up these agreements (see Box 11.4).
Box 11.4 Management agreements in Queensland’s registered clubs industry
The Gaming Machine Act 1991 (Qld) specifically allows for a club to enter into management
agreements with another club or a private business. Common types of management
agreements include:
private business offering its professional management services to the club for a fee
private business buying up the clubhouse and land and leasing it back to the club and
taking over the management of the property under a management agreement
one club entering into a management agreement to manage another club.
Guidelines have been introduced to assist clubs in setting up management agreements. These
guidelines include that the agreement must not restrict the board’s control of the club, and
that the agreements should include periodic performance reviews of the manager, and allow
the club to terminate the agreement (without any compensation to be paid) should the
manager's performance be unsatisfactory.
The Gaming Machine Act requires that the remuneration must be commercially realistic,
transparent, easily calculated and not linked to gaming earnings, profits or revenues.
Source: Queensland Office of Gaming Regulation, Guidelines Management Agreements Section 67.
Recommendations
59 That clubs explore the use of management agreements in their approaches to seeking
amalgamation. Information relating to management agreements should be included in
the guide to amalgamation (see Recommendation 54).
60 That OLGR develop a pro-forma management agreement contract that clubs can access
easily, to facilitate clubs seeking to enter into management agreements. The pro-forma
should include information about the legal requirements to be met to ensure the
agreement does not contravene the Registered Clubs Act.
Review of the Registered Clubs Industry in NSW IPART 195