Social club entertaining is big money business

Taupo Times, Volume 19, Issue 98, 17 December 1970, Page 11

Social club entertaining is big money business

(BY

BILL

FORSYTH)

Over the last decade the social club entertainment business has become a multimillion dollar venture. Live entertainment in New South Wales social clubs has grown, to the extent that it is considered to be the second richest entertainment area in the world. Las Vegas still leads the way, employing the most talent and paying the most money. But after that, New South Wales, with Sydney as the hub, comes into the picture. The state's 1500 social clubs gush money to attract the top show personalities of the world. And below them are hundreds of Australian and New Zealand artists who often make a comfortable living on the club circuit. Sydney 's big clubs pay millions of dollars a year for artists, South Sydney Leagues Club paid out $527,293 to entertain its 46,000 (approximately) members in the last financial year. A further two leading clubs each spend something in excess of $250,000 a year. Salaries of $8000 to $10,000 a week are not unusual for imported stars. The big clubs don't really quible about the money, either, for

big name stars are what bring people in. Night clubs occasionally pay much more for top stars. The Chevron Hotel was reliably reported to have paid Jose Feliciano $35,000 a week, plus a share of the takings. Where does all this money come from? Just check over any leading club's balance sheet, and the cash-in looks like a king's ransom. St George Leagues Club showed a gross profit of $2,281,721 on trading last year. INCREASE Dealing with the year ending December 31 last, the report shows that takings from poker machines increased by $370,961, but the total revenue from them was not stated. Smaller clubs with only a fraction of their number of members, show a profit of $100,000 dollars, from the machines alone. Operational expenses are wide ranging. Major costs include: * $1,036,954 for wages and salaries. * $394,913 for entertainment, which includes artists and musicians fees, social and sports functions. * $142,247 for cleaning. Among a wide range of other items serviettes cost $6305, flowers, shrubs and decorations $18,594, bar laundry $12,537, beer gas $2643 and coasters and straws $4895. Rubbing oil used in the sauna section of the club cost $605. Then there were such things as $1131 for ash trays, $84 for dart boards, and $854 for "steak markers" plastic

labels which identify cooked steaks as medium, rare or well done. The main income included trading profit of more than $2 V* million . and entrance fees, usually between $4 and $10 per head, and subscriptions of $183,469. Total fixed assets were shown at $2,529,414, a figure quite often reached after a mere three years operation, by many of the bigger clubs. Operating expenses including licence fees and taxes, were nearly $3 million. In brief, the Taj Mahal is doing all right, which makes the Government very happy, for taxes on proceeds of poker machines alone, which L scooped up over $100 million throughout the state of New South Wales, amounted to a cool $30 million revenue to help balance the Government budget. No wonder the South Australians, who are banned from gambling of any sort, are casting envious eyes north, for it's a known fact that a large proportion of the New South Wales clubs' revenue comes from visiting southerners. VIEW CHANGED Their Premier, who has always opposed poker machines, recently suggested that clubs be allowed to operate them, to help finance the state's budget, which is close to bankruptcy. There are club members who want to go back to those times when profits were not eaten into by high-salaried professionals. This group of members, according to the managers, are living in another age — they do not understand basic business principles. Club managers, dissatisfied with the highest basic award of $7511 a year, are demanding $20,600. And that's only a few dollars short of the Prime Minister's salary and allowances. Already there are two managers getting $20,000, several on $15,000 and quite a number on $12,000 and $10,000.

A club secretary-manager is a hazardous position, for the clubs are controlled by committees or boards of directors elected by members. Unfortunately, * these people, though elected, are not always used to the responsibilities that go with their position. Many of them previously earned $50 or $60 a week, and feel that is all anybody should get. It creates an atmosphere of envy and jealousy — and the manager's job relies on pleasing the committee. His other duties include staff control, public relations and organisation of entertainment. He must be able to prepare a budget, know protocol, report to the board of directors, and understand the principles of double entry bookkeeping. There is no room today for amateurs. In the early days, shortcomings could be absorbed by the tremendous volume of money coming in. But since the event of poker machines taxation — 30 per cent of takings — clubs have to be managed on a strictly professional basis. Many clubs have grown so fast in recent years that in some cases they are not all being run by professionals. One well known local comedian woke up early one morning after working at a club where the management didn't bother to quieten the audience for him.

MANAGER As he was collecting his milk he was greeted by the man emptying his garbage pail. The comedian grunted an offhand comment, to which the garbo said: "You don't remember me, eh? I am the manager of the club where you played last night." Club luxuries are subsidised to a large degree by the addiction of some members to poker machines. The machines have been variously described as "the greatest social evil of an affluent society" . . . . "A necessary evil" . ... . . "An evil we have to live with." The truth about poker machines, is that they probably have as many disguised advantages as obvious evils. "The Great Poker Era" has been responsible for a broadening of the entertainment field and social environment available to the ordinary working man. But what is not generally known is that proceeds from machines have been channelled into numerous community projects and activities which have nothing to do with gambling and drinking. In Bankstown there are hundreds, at least, of poker machines. As in every other part of New South Wales, they are rigidly controlled by law — they cannot, for example, be set up in just any establishment, or in a milk bar like a pin-ball machine. The dozen or so clubs in Bankstown which have machines crowded around the lounge walls and in the games room, enforce their own rules regarding operation. They have to — unless they are willing to be overwhelmed by a wave of public protest, which would remove their

easiest, and steadiest, source of income. One of the most beautiful things about the "pokie", is that you do not have to be addicted to it to benefit from the tax .it imposes on the gambling fraternity. Much of the rake-off from the machines in clubs — that which is not tagged for the upkeep of the establishment — goes to some of the most worthwhile community projects. In Bankstown for example "pokie" profits sponsor almost everything, from senior citizens' centres to junior soccer teams. Admittedly, any form of gambling is repulsive to some people. It seems slightly degrading that a large section of society , particularly in Australia, lives for horse-racing, the dogs, and having a fling for a jackpot on the "pokies ' every Saturday night; but it is an inherent human trait. Poker machines have by the nature of the clubs which instal them, a peculiarity which sets them apart from most other forms of gambling. They are not operated for individual profit. This makes them perhaps the most satisfactory form of legalised gambling. The one-arm bandits at least present a controlled, and non-profiteer's, outlet for gambling appetites. There is some hope that legal use of the poker machine in Australia will greatly reduce criminal activities associated with gambling, and thereby greatly reduce a social evil. One of the strongest criticisms levelled at the machines is that they are often a cause of financial hardship to families which cannot really afford to gamble. NOT MANY But while cases do exist, they are not numerous in comparison to the number of people who play the machines. Poker machines are an open form of gambling and players can be helped and not exploited. Clubs, for their own protection, work to discourage the compulsive gambler. Bankstown District Sports Club secretary-manager Mr E. McDonald, says that if a member of the club strains his family purse on the machines he will be barred from their use. He believes the "damage" created by machines to be far outweighed by their advantages. This is also the strong conviction of the writer. With its profits, the sports club is able to sponsor about 1400 district children and sportsmen in some 18 sporting activities. It has paid fees, uniform and equipment cost for these people during the past 1 1 years. In co-operation with the local Lions club, they have provided most of the finance for the Bankstown District Senior Citizens' Centre. Lions provides most of the manpower for the task, and the sports club carries wages and administration costs. "Machines," Mr McDonald says, ' are a part of the system." ,