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What is amalgamation?
Amalgamation is the joining together of two or more clubs. Under the Registered Clubs Act, this happens in one of two ways:
- the dissolution of each of those clubs and the formation of a new club that owns or occupies the same premises of at least one of the dissolved clubs; or
- the continuation of one of those clubs and the dissolution of the other club or clubs.
Amalgamation generally involves a larger parent club coming together with a smaller (often financially struggling) club with the intention to operate both premises.
It was great that the club sought advice early in this situation. It’s extremely rewarding to facilitate such a great outcome and to see the community benefit from the actions taken.
Chad Rapsey (Co-founder / Director)
We were approached by a small, regionally-based sport and recreation club who were suffering from financial burden as the result of a large renovation bill and increased competition against hotel chains. They had also suffered a drop in patronage during the construction of a major government infrastructure project.
The small club was under-resourced, largely due to poor historical management decisions. As volunteers were running it, they struggled to maintain the rigorous requirements of the highly-regulated club industry.
We helped the board review their position, explore all options and eventually determined that the club couldn’t trade its way out of difficulty, even with our guidance. We recommended that the club explore an amalgamation and advised them through the process.
An amalgamation was successfully completed. Both clubs continue to operate and are benefitting from efficiencies and economies of scale. They were also able to maintain important community (social and recreational) assets for the continued benefit of locals.