Clubs in crisis: RSL resists pressure to support failing club

The NSW branch of the Returned and Services League (RSL) has accused federal and state MPs of pressuring it into propping up a failing club, as the cost-of-living crisis affects the financial viability of the industry.

The Woronora River RSL and Citizens Club faces closure after RSL NSW terminated its sublicence of the site, claiming the club failed to pay rent and did not maintain the building.

The Woronora River RSL and Citizens Club faces closure after RSL NSW terminated its sublicence of the site.Credit: Rhett Wyman

The organisation’s president, Mick Bainbridge, said the RSL had a duty of care to ensure optimal income is achieved from its assets to provide services to military personnel, veterans and their families.

“RSL NSW is not in the business of operating licensed clubs that sell alcohol and promote gambling,” he said.

The club, in southern Sydney, is located on Crown land, which the state branch of the RSL licenses from the NSW government and then sublicenses the property to the club.

Club manager Darren Parker declined to comment, but the club’s website said lawyers were trying to negotiate with the RSL for an extension of its sublicence beyond August 31.

A Crown lands spokesman said the government had discussed future licence arrangements with the club to allow it to stay open.

“It advises it is a viable operation and has been paying rent to the RSL Custodians as the current licence holder,” he said.

However, an RSL spokeswoman said the military veterans charity terminated its agreement with the club because it was concerned it would be liable “to make good the site” if the club failed.

“The charitable purpose of RSL NSW is to support veterans and their families, not clubs,” she said.

She said the club had posted losses in consecutive years “indicating that the club appears to be at a high risk of becoming, if not already, insolvent”.

She also said the club had presented an “unsatisfactory” business plan, which did not indicate any realistic financial improvement in its operations.

She said there was a long-standing misconception clubs and RSL sub-branches “are one and the same and, by virtue of some clubs using the RSL letters in their name, the charity should support the operations of the club”.

“This historic misconception is an ongoing issue for RSL NSW,” she said.

The RSL has received flak in the past for failing clubs such as the Concord RSL and Community Club, which went bust in 2019, and the Narrabeen RSL Memorial and Recreational Club, which was placed in voluntary administration in 2022.

The RSL spokeswoman said the charity had been pressured by local politicians to support the Woronora club.

Federal Liberal MP Jenny Ware told 2GB this month that she had contacted the RSL “and impressed upon them the importance of this club remaining”.

Ware also told 2GB she had asked the RSL to continue negotiating with the club to secure a long-term tenure for the site.

Ware said she had no first-hand knowledge of the club’s financial situation including its solvency status.

“I have committed to advocating for the club to remain open as it is a local icon, an important community hub and contains the memorial which brings the community together on Anzac Day for commemoration services,” she told this masthead.

State Labor MP Maryanne Stuart said in a statement there was a consensus on finding a solution for the club to continue operating.

Other clubs face an uncertain future amid growing debts and falling patronage and gaming revenue.

The City Tattersalls Club was forced to sell its historic CBD site, which is being redeveloped into an apartment and hotel tower, for $24.7 million to pay off mounting debts that left it facing closure.

The Kirribilli Club was placed in voluntary administration in June, three months after it asked members to pledge $2000 following a rise in rental costs.

A Clubs NSW spokeswoman said the cost-of-living crisis had taken a significant toll on hospitality businesses and “clubs are not immune”.

Soaring costs and patrons spending less had led to an increase in struggling clubs seeking extra support or pursuing amalgamations with larger clubs, she said.

“Sadly, without a lifeline, some clubs will be forced to close their doors permanently,” she said, adding that a decline in volunteering had made it more difficult to find skilled professionals to sit on club boards.

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