Letter reveals Castle Hill RSL plans to tender for proposed Kellyville Sports Club to block competition
LEAKED correspondence between Castle Hill RSL Club and the State Government has revealed it will attempt to prevent another club from entering The Hills market amid fears it would eat into the club’s profitability.
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EXCLUSIVE: Castle Hill RSL will attempt to prevent another club from entering The Hills market amid fears it would eat into the club’s profitability.
Castle Hill RSL is considering bidding for a tender to manage a proposed sports club in Kellyville in order to block the competition.
Correspondence between the RSL and the State Government from January revealed Castle Hill RSL Group chief executive David O’Neil raised concerns around the proximity of the proposed Kellyville Sports Club and the fact that further competition would “pose a serious long-term threat” to the financial viability of Castle Hill RSL.
Mr O’Neil said the group supported the expansion of the industry in growth development areas such as Box Hill, Nelson, Riverstone and Schofields.
“After reviewing information regarding the proposed new facility, our major concern is that the proposed site is within the 5km radius of Castle Hill RSL Club and is within our existing catchment area,” Mr O’Neil said.
Documents obtained by the Times said while the board of directors recognised Castle Hill RSL Group could tender to run the facility, “doing so would not be in the financial best interest of the club and its 50,000 members”.
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However, Mr O’Neil said the club would be forced to consider tendering, “simply to prevent another club from outside our region, one not affiliated with our community, to enter the market”.
“Acquirement of this new venue would cannibalise our existing membership base and income, place Castle Hill RSL under financial duress and severely limit our ability to give back to the community through our established and successful sports programs,” Mr O’Neil said.
The documents revealed an estimated budget for the project that included installing a minimum of 100 to 150 gaming machines. They also highlighted concerns with “current attitudes towards gaming machines”.
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Mr O’Neil told the Times he was requested by a government official to assess and advise on the viability of a hypothetical new sports club.
“I raised several concerns regarding the proposed club’s ability to provide necessary community support, infrastructure and community sporting facilities,” he said.
“We would never pursue any proposal that was not in the best interests of the club, its members and the community.
“Our role is to protect the interests of the members and our community, and ensure that the right solutions continue to be delivered, as we endeavour to do at Castle Hill RSL, Parramatta RSL and Lynwood Country Club.”
It is understood preliminary meetings are under way with several sporting clubs across The Hills to establish an interim board for the proposed Kellyville sports club.