Clubs are in the entertainment business, providing members and the local community with accessible dining, sporting and social options.
This is a great thing, but it’s also a tough business. KPMG’s 2015 National Clubs Census report highlighted that 50% of clubs are at risk of financial distress, and those clubs with EGM revenue between $200k-$1m were specifically in decline.
However, it’s not just tough for clubs. The entire bricks and mortar entertainment sector is under pressure:
- Shopping malls are struggling to compete with online.
- Netflix has pushed cinemas to the brink of existence.
- Restaurants are searching for a way to make the economics work in the Uber Eats era.
Unfortunately, for many of these businesses facing headwinds from generational and technological change, there is no obvious way forward. Thankfully, for most clubs there is.
For many clubs, the solution stems from recognising that the value of its land can play an important role in facilitating not only new facilities and an upfront cash payment, but also ongoing and diversified revenue streams.
To better understand what that could mean for your club, we have provided a couple of examples below.
Auburn Sports Soccer Club is a shining example. Amongst other financial and in-kind benefits, their development partnership has resulted in them owning a portfolio of property including retail space, office space and a childcare centre in addition to the impressive new club. This generates substantial revenue, and in the case of the childcare centre, they are also providing critical infrastructure to their local community.
A second example, with confidential details, is a club that has entered an arrangement whereby they do not even need to sell their land. Rather, by simply entering into a very long-term lease they will obtain new premises, upfront payment, and most significantly a large, 150-year income stream that will guarantee their viability further into the future than most of us can even contemplate!
These types of opportunities are not easy to identify or bring to life, but with the right support and partnership along the way, they can give a bright future to your club.
To learn more about how we can help you get the most out of your club property please contact us on (02) 9966 8898 or email firstname.lastname@example.org