Review of the Registered Clubs Industry in NSW - Clubs NSW

Contents
6 Strengthening the financial viability of the registered clubs industry 86
6.1 Key findings on clubs’ financial viability 87
6.2 Strengthening the clubs industry’s financial viability 102
7 Improving clubs’ financial reporting and performance benchmarking 108
7.1 Clubs with annual gaming machine revenue of less than $5m should be
required to use a standardised reporting format for financial management
accounts 109
7.2 All clubs should be encouraged to monitor business efficiency and financial
viability measures and compare their performance to industry benchmarks 113
7.3 Clubs with annual gaming machine revenue of less than $5m should be
required to submit annual data on a suite of these measures to the Club
Viability Panel 117
7.4 All clubs should be required to calculate a single financial viability measure
and submit this data to the Club Viability Panel 121
7.5 Clubs that fail to comply with financial reporting and benchmarking
requirements should be penalised 125
8 Establishing a Club Viability Panel 126
8.1 The Club Viability Panel’s purpose and functions 126
8.2 The Club Viability Panel’s role should be advisory not supervisory 127
8.3 The Club Viability Panel’s membership and secretariat 128
8.4 The Club Viability Panel’s principal activities 130
8.5 Relationship to the existing club support scheme 137
8.6 Funding for the Club Viability Panel and its initiatives 138
8.7 Review of the Club Viability Panel’s effectiveness 139
9 Improving corporate governance 140
9.1 What is corporate governance? 141
9.2 Overview of the existing corporate governance framework 142
9.3 Recommendations for improving corporate governance 145
10 Helping clubs better understand the risks and benefits of diversifying their
operations 165
10.1 The potential for diversification to improve clubs’ financial viability 165
10.2 IPART’s findings and recommendations on diversification 168
11 Making it easier for clubs to amalgamate 174
11.1 The amalgamation process 175
11.2 The role of amalgamation 177
11.3 Overcoming the barriers to amalgamation 181
11.4 Using management agreements as a first step towards amalgamation 194
12 Making it easier for new clubs to be established 196
12.1 How can clubs be established in new and developing areas? 196
12.2 Factors affecting the establishment of clubs 198
12.3 Addressing the barriers to establishment that can be influenced 200
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IPART Review of the Registered Clubs Industry in NSW