 The Club's Annual General Meeting was held on March 26 when members were advised of a successful trading year, increased profits and continuing financial stability.
At long last a compromise has been reached with the State Government regarding the Gaming Tax. Clubs NSW believe that the agreement reached was the best outcome that could be achieved in difficult political and economic circumstances.
The Club's Annual General Meeting was held on March 26 when members were advised of a successful trading year, increased profits and continuing financial stability. Total net assets now exceed $47 million and the Club remains debt free. The three sitting directors Brian Johnston, Warren Lockwood and Ralph Piggot were returned for a further three-year term.
The Board election was keenly contested for the three vacant positions, however the Board was concerned that on some occasions, over-zealous campaigning created a poor image for members and guests using our club. A new set of ground rules will be introduced to prevent this occurring at future elections.
At long last a compromise has been reached with the State Government regarding the Gaming Tax.
Clubs NSW believe that the agreement reached was the best outcome that could be achieved in difficult political and economic circumstances.
The new tax scales will see a further increase on September 1, 2006, and will then be capped at the maximum rate of 39.99% from September 1, 2007 until August, 2012.
At this stage, our Club cannot generate additional revenue from our traditional activities to offset the additional tax burden. As a consequence, profitability will suffer. If that was not enough, a total smoking ban will also have an impact on our bottom line.
It is the first time in recent years that, after six months of the current financial year, profits are down on last year's performance. Gaming machine revenue is below budget and taxes are up courtesy of the new gaming tax.
It is a difficult scenario that unfortunately is common across the Club industry.
Therefore it is essential that we become less dependent on gaming machine revenue and look at generating additional revenue from other sources. In the short term this is easier said than done.
Fortunately, the Board of Management had already recognised this problem when it initiated the current master planning exercise in 2005.
This exercise, in the medium to long term, will put a well researched plan in place to better optimise the use of our existing site, thus enhancing our ability to attract complementary business opportunities and securing our long-term future (see GM's report on page 7).
On a positive note the $8 million upgrade of OKI Jubilee Stadium is now complete and was used for the first time on June 2 with the narrowest of wins under brand-new lights against the Parramatta Eels.
Prime Minister John Howard was present and saw first hand how the Federal Funding had transformed OKI from an outdated suburban ground to a modern upmarket communitybased sporting facility (see page 8).
Also on the same night Premier Morris Iemma announced further funding of $7 million from the State Government. The NRL Premiership is now into the second half of the season with the Dragons in the top eight. Once again the competition is so even that any number of teams could win the ultimate prize and the Dragons are certainly contenders.
We need the "House full" sign to go up at WIN and OKi for the remainder of our home games.
Let's all do our bit by cheering the mighty Dragons home in a sea of red and white and win that elusive Premiership.
See you at the game,
Warren Lockwood
Chairman
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St George Leagues Club
LEAGUES CLUB JOURNAL
