The Portugal Club’s prospects have significantly improved after the Independent Liquor & Gaming Authority stepped in earlier this year and appointed a temporary administrator.
The board of the Marrickville club was stood aside after governance failures almost led the club to insolvency, with the Authority intervening after being notified of a court case between rival factions of the board.
“The Authority rarely takes these steps but in this case we found the board had stopped being effective,” Mr Crawford said.
“With questions about the Club’s solvency, a faction within the board attempted to appoint voluntary administrators which was disputed in the courts.
“It was at this point the Authority stepped in and appointed KPMG to administer the affairs of the club and report back to the Authority on its financial position, governance and a plan for its future.
“The Portugal Club is an established fixture in the Inner West and KPMG’s promising updates show it is well on its way to being operable again, with a bright and sustainable future ahead.”
An extraordinary general meeting was held in October and 95 per cent of members voted in favour of a constitutional change and to institute the temporary administration process.
Futsal has since returned to the Portugal Club and registration is open for the next football season. Events and functions will soon be offered and plans to reopen the food and beverage facilities are underway. The club is focussed on clearing its debts and securing a viable income stream from its assets.
A new board will be appointed at the next AGM, scheduled for January.
“One of the Authority’s key roles is to monitor the operations of the state’s registered clubs and, where necessary, step in to resolve issues of stability in order to protect members interests,” Mr Crawford said.
“The last time the Authority intervened in a similar scenario was in 2016 when it found the board of the Parramatta Leagues Club had ceased to be effective in the wake of the club’s salary cap breaches.
“After the Authority appointed a temporary administrator, the club agreed to a series of successful changes including the appointment of a new board.”
“We have every faith that the Portugal Club will overcome this setback and regain its footing too.”
