Wingham Memorial Services Club on the Mid North Coast is in the process of exploring amalgamation with Dubbo RSL Memorial Club (DRSL) after 77 years of operation.
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The two clubs have entered a management contract from April 12, 2024, according to Wingham Services Club's (WSC) Proposed Management Contract notice to members, which is in place independent of whether the clubs amalgamate or not.
"DRSL has the staff, expertise and resources to assist WSC with the management of its licensed premises and registered club business ... Although the management contract is not subject to completion of an amalgamation, it is entered into to assist WSC remain financially viable and assist in seeking to improve revenues/cash flow pending a possible amalgamation being pursued," the proposed management contract notice says.
Dubbo RSL Memorial Club's general manager is Gus Lico, a former secretary manager of Wingham Services Club (the club).
Club under financial stress
The proposed amalgamation is the result of Wingham Services Club having suffered a loss of $845,000 in the 2022-23 financial year, and a reduction in gaming turnover of nearly $3.5 million.
The club's financial reports put the loss of revenue down to rising cost of living pressures.
"I don't think that the services club is any different to a lot of other clubs in similar locations," a member of the club's board said.
"Clubs which don't have a lot of tourist trade seemed to have suffered more than any of the coastal clubs."
In trying to rectify the club's financial situation, feelers were put out to other clubs in NSW for an expression of interest, with the Dubbo club indicating an interest.
Amalgamation between the two clubs is not a fait accompli. Members will vote as to whether the amalgamation will occur.
There have been and there will continue to be various meetings to brief members.
- Wingham Memorial Services Club board member
"There have been and there will continue to be various meetings to brief members," the board member said.
"Anything that happens with the club will go through the proper voting process with members. And obviously, any amalgamation that may happen has to be approved by members."
As to when the vote will happen, there are still a number of processes to go through beforehand.
"We are still negotiating the amalgamation memorandum of understanding," the board member said.
"Once it is approved by both clubs it has to go then through the Department of Liquor and Gaming for their final sign off. And it's effectively then outside our control as to the timing."
Measures taken
In an attempt to rectify the club's financial position a number of measures have been taken. These include a reduction in opening hours, permanent staff redundancies, proposed capital works put on hold and the relocation of regular activities in the auditorium to the Parkview Room. Large shows will still take place in the auditorium.
In addition, management decided to sell 12 poker machine licences, however, nine of those poker machines have been in storage since the COVID-19 pandemic.
Backflip on land swap deal
Meanwhile the future of the former Dubbo City Bowling Club site is uncertain after a land swap between Dubbo RSL and Dubbo Regional Council folded.
On September 15 2020, Dubbo RSL and the council entered into a deed to swap the former Dubbo City Bowling Club site and about 3.3 hectares of land in Keswick estate.
At the time, the RSL Club said the site would be used to construct a second RSL Club, as well as sporting fields to accommodate cricket, rugby league and tennis.