Clubs NSW: More than 80 clubs to run out of cash in eight weeks

One in five clubs in Greater Sydney will run out of cash by mid-October, with some losing more than $1 million per week.

One in five clubs in Greater Sydney will run out of money by the end of October thanks to the lockdown.

A survey of 429 clubs has revealed 80 don’t not have enough cash reserves to last another eight weeks.

Clubs NSW data also reveals clubs are losing an average of $120,000 per week (after government support), while others are losing more than $1 million every seven days.

The clubs impacted vary from the big clubs to smaller ones.

Clubs NSW CEO Josh Landis said while some clubs will be able to get finance form current or new lenders, “there will be a group of clubs who cannot get loans”.

Clubs NSW CEO Josh Landis.

“And for them, the answer will be to close the doors permanently,” he said.

“It’s concerning that there are so many clubs that are potentially in extreme financial difficulty, as well as the fact that there are so many more clubs for whom this period has eroded their savings and they’ll be limited in the way they can grow into the future.”

Mr Landis said it is crucial that clubs are given certainty that they can open in October once the eligible population reaches 70 per cent double dose vaccination.

Asked about what clubs will look like when they do reopen, Mr Landis said there may be limitations to dining if their younger staff are not yet fully vaccinated.

In relation to poker machines, he said the government “could say you need to have every second machine off or they need to be spaced a certain distance”.

“They could even say you’re not allowed to reopen gaming, which would make it very difficult for clubs to reopen at all,” he said.

Clubs like Bankstown Sports Club will survive but CEO Mark Condi said it has been losing $1.3m every week since lockdown started June 26.

“We have 48 sporting clubs which represent about 10,000 kids playing sport, but we have not been able to provide them with one cent for the past 11 weeks,” he said.

“That has a direct impact on registration fees, coaching, field maintenance and other costs.

“This lockdown has put us back two years in terms of investment.”

Bankstown Sports Club opened during lockdown as a vaccination hub.

Bankstown Sports Club CEO Mark Condi. Picture: AAP/Robert Pozo

Mr Condi said some of the club’s 600 staff have been suffering serious mental health problems as a result of being stood down while the doors remain closed.

Treasurer Dominic Perrottet said: “The government is very aware of the important role clubs play in communities across NSW and the tens of thousands of people they directly employ.

“The announcement on Thursday of a road map out of restrictions gives more surety that clubs can now begin planning to re-open safely in time for the key summer trading months.

“There will be challenges as we reopen but the path ahead is clearer as we hit key vaccination targets.

“Programs such as Dine Discover helped many clubs pre-lockdown and we have extended that through to 30 June 2022.”

Got a news tip? Email [e-mail]