Review of the Registered Clubs Industry in NSW - Clubs NSW
Review of the Registered Clubs Industry in NSW - Clubs NSW
Review of the Registered Clubs Industry in NSW - Clubs NSW
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E IPART’s methodology for record<strong>in</strong>g and valu<strong>in</strong>g clubs’<br />
social contribution<br />
E.1.2<br />
Measurement <strong>of</strong> representative club type contribution<br />
IPART’s valuation used data from ACG’s survey <strong>of</strong> clubs to aggregate representative<br />
club contributions. As discussed above, <strong>in</strong>direct contributions are acknowledged<br />
qualitatively ra<strong>the</strong>r than quantitatively. Volunteer hours do not <strong>in</strong>clude those<br />
associated with <strong>the</strong> provisions <strong>of</strong> facilities and services valued <strong>in</strong> <strong>the</strong> total direct <strong>in</strong>k<strong>in</strong>d<br />
contributions term. IPART’s valuation <strong>in</strong>volved <strong>the</strong> follow<strong>in</strong>g steps:<br />
1. Develop<strong>in</strong>g representative club types (RCTs). IPART used 40 RCTs to represent<br />
<strong>the</strong> variations <strong>of</strong> four club types (bowl<strong>in</strong>g, golf, RSL and o<strong>the</strong>r), five commonly<br />
used size categories (which use gam<strong>in</strong>g mach<strong>in</strong>e revenue (GMR) as a measure <strong>of</strong><br />
club size) and ei<strong>the</strong>r a country or metropolitan location. For example, RCTs were<br />
developed for country-based bowl<strong>in</strong>g clubs that generate between $200,000 and<br />
$1m GMR and metropolitan-based RSL clubs that generate between $5m and 10m<br />
GMR. The number <strong>of</strong> RCTs was selected by balanc<strong>in</strong>g whe<strong>the</strong>r <strong>the</strong>re were<br />
enough clubs sampled with<strong>in</strong> a category and also whe<strong>the</strong>r comb<strong>in</strong>g categories<br />
would aggregate <strong>the</strong> contributions to a level where <strong>the</strong> number/type <strong>of</strong> facilities<br />
were not consistent with IPART’s observations.<br />
2. Calculat<strong>in</strong>g <strong>the</strong> value <strong>of</strong> direct cash contributions made by each RCT. IPART<br />
divided <strong>the</strong> total cash contributions made by <strong>the</strong> number <strong>of</strong> clubs surveyed <strong>in</strong><br />
each RCT.<br />
3. Calculat<strong>in</strong>g <strong>the</strong> value <strong>of</strong> <strong>the</strong> direct <strong>in</strong>-k<strong>in</strong>d social contribution made by each RCT<br />
for <strong>the</strong> provisions <strong>of</strong> community <strong>in</strong>frastructure and facilities. IPART undertook<br />
<strong>the</strong> follow<strong>in</strong>g four steps:<br />
a) identify<strong>in</strong>g market prices for each <strong>of</strong> <strong>the</strong> facilities provided by clubs<br />
b) identify<strong>in</strong>g <strong>the</strong> sale prices for each <strong>of</strong> <strong>the</strong> facilities provided by clubs<br />
c) identify<strong>in</strong>g <strong>the</strong> number <strong>of</strong> community facilities, such as bowl<strong>in</strong>g greens,<br />
meet<strong>in</strong>g rooms, billiard tables, etc, provided by each RCT category<br />
d) apply<strong>in</strong>g equation 1, and us<strong>in</strong>g club numbers <strong>in</strong> each RCT sample to estimate<br />
each RCT’s ‘typical’ per club provision <strong>of</strong> community facilities.<br />
4. Summ<strong>in</strong>g <strong>the</strong> value <strong>of</strong> direct cash contributions and direct <strong>in</strong>-k<strong>in</strong>d contributions<br />
for each RCT to obta<strong>in</strong> an estimate <strong>of</strong> <strong>the</strong> total value <strong>of</strong> club contributions for each<br />
RCT.<br />
5. Scal<strong>in</strong>g up <strong>the</strong> result <strong>of</strong> <strong>the</strong> total social contribution for each RCT based on<br />
appropriate statistical weight<strong>in</strong>gs to obta<strong>in</strong> a value for <strong>the</strong> total <strong>in</strong>dustry social<br />
contribution.<br />
240 IPART <strong>Review</strong> <strong>of</strong> <strong>the</strong> <strong>Registered</strong> <strong>Clubs</strong> <strong>Industry</strong> <strong>in</strong> <strong>NSW</strong>