World’s second oldest leagues club forced to consider amalgamation due to ‘uncertain future’

After struggling against the changing tide of the liquor and gaming industry, one of the world’s oldest leagues clubs has been forced to consider amalgamation.

The Illawarra Leagues Club is seeking expressions of interest for amalgamation.

The Illawarra Leagues Club has been part of Wollongong’s history and landscape since 1951, making it the second oldest leagues club in the world. But with an uncertain future ahead, the club has been forced to consider giving up its independence.

In a statement to members last month, general manager Nick Condell said the club was seeking expressions of interest for amalgamation, noting clubs of the Illawarra Leagues’ size were facing big challenges.

The club recently underwent a refurbishment, but Mr Condell said the investment had not paid off, and the club was facing financial pressures.

“Unfortunately how fresh you look often won’t determine how well you trade, in our case, the recent renovations did not deliver a return on investment,” he said.

In the statement to members, Mr Condell said the club’s earnings were in “disaster looming territory”, as determined by an independent Pricing and Regulatory Tribunal review.

“The interest we were earning on our savings before the renovation was helping to support the clubs trading,” Mr Condell said.

“This income is no longer there making the years since the renovation very difficult to navigate.”

While Mr Condell said the club was not yet in “financial distress”, it had limited ability to reinvest in itself, hence the need to explore the option of uniting with another registered club.

“The trend is for clubs, who are not yet in financial distress but who see an uncertain future, to explore amalgamation as an option for growth in the normal course of business,” he said.

“We remain easily solvent by any measure, we have remaining liquid assets but do not project that we will need to use them this year.”

Any amalgamation would need to be approved by the club’s members and board, but Mr Condell said it could offer the club a “lifeline”.

“[It could offer] enough support to navigate the difficult times, and the possibility of a more secure planned future,” he said.

“In the meantime we will continue to pursue our growth strategy and hope we can pull ahead.”

Amalgamation is a growing trend for smaller clubs, who are battling against larger clubs with a lion’s share of the market. Leagues Clubs Australia CEO Peter Turnbull said at least 100 clubs in the country had closed in the past decade, while a further 70 had amalgamated.

“We are in an industry where a third of all clubs are struggling financially,” he said.

“That’s predominantly due to the ageing demographic as people aren’t spending as much time or money at these clubs anymore, and they aren’t an attractive venue for young people.”

Mr Tunrbull said in the Illawarra area, a lot of clubs were feeling the pressure of competing venues.

“Corrimal Leagues closed up recently and Wests Illawarra amalgamated with Port Kembla Golf Club,” he said.

“The industry has been talking about this situation for a long time. It’s tough out there in club land and amalgamation gives a new window of opportunity for clubs to head further into the future.”