There are many reasons for clubs to amalgamate including survival, preservation of community facilities, synergy, and the ability of the parent club to generate additional sources of profit. While most amalgamations have been a success, some amalgamations have been ill conceived or have not been properly executed.

Background to Amalgamations

The NSW Government recognised, in the 1980s, that the club industry was entering into period of restructure and that clubs would require a mechanism to merge to ensure preservation of community facilities and/or to improve efficiency and financial performance of the venue.  As a result, the Registered Clubs Act was amended to allow clubs to amalgamate (merge) together to form one registered club.  There have been well over 100 amalgamations in the state since these amendments and, with the increasing gaming tax rates and smoking bans, we are already seeing a rapid increase in the number of amalgamations being considered and undertaken.

Why Do Clubs Amalgamate?

There are many reasons for clubs to amalgamate including survival, preservation of community facilities, synergy, and the ability of the parent club to generate additional sources of profit.

The Amalgamation Process

The amalgamation process is relatively straight forward, although the legislation provides for a rigid structured process. As a result, while amalgamations can be a significant benefit to all parties concerned, they are a costly exercise which must follow this rigid process. The process contains significant traps if not undertaken in a professional/structured manner.

How can Lawler Partners Hopitality Help?

Over the last 10 years Lawler Partners Hopitality has assisted over 60 clubs through the complexities of the amalgamation process ensuring a successful outcome.  The services we provide include:

• Developing a Board policy on amalgamations;
• Identifying and bringing together clubs that wish to amalgamate;
• Facilitation of a Heads of Agreements;
• Briefing solicitors on the issues involved;
• Due Diligence Reviews;
• Feasibility Studies;
• Project management of the entire amalgamation process;
• Winding up the corporate structure of the child club; and
• Assisting address change management issues as a result of the amalgamation.

The first stage is always a determination of the specific benefits to your club of entering into an amalgamation.

If you want more information on the benefits/issues relating to amalgamations, the impact of the new regulations, the potential traps involved or assistance in determining whether an amalgamation will benefit your club, please contact Peter McLean on 0425 266 120, Margaret Carew on 0409 999 909, or any of the Lawler Partners Hopitality Team.