Parramatta Leagues Club Adminstration

Parramatta Leagues Club has been run by an administrator since 2016. He was appointed by the Independent Liquor and Gaming Authority.

This has been mentioned on this blog before. See Administrator for Parramatta Leagues Club – what about City Tatts?

As that blog pointed out, if conditions at Parramatta Leagues prompted ILGA to appoint an administrator the obvious question is how come they never did the same at City Tatts?

The problems at City Tattersalls Club are ten times worse than Parramatta Leagues Club.

When Tony Guilfoyle started as CEO in 2004 he inherited a club that was successful in every way. The committee then watched as he managed the club so badly it eventually had to borrow from a property developer to continue trading.

Its been said before but it bears repeating: City Tatts needs an administrator far more than Parramatta Leagues Club.

City Tatts Information Desk

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Lunch for two at Zest – $100?

Most members never go to Zest so they are probably out of touch with what goes on there. So here is a story of someone who dropped in for lunch recently.

This was a normal lunch, “nothing special” in the words of the customer, with no alcohol – and it cost $100 for two people. This is in a club that owns it’s own premises and doesn’t need to make a profit.

Most people would say this is just too expensive for a club restaurant.

But now we come to the most amazing fact of all. This restaurant, charging $100 for lunch for two, is losing $7,000 every week!

How is this possible?

Even allowing for any conceivable poor management, such as paying too much to suppliers or letting food go to waste, the cost of preparing that meal would still be less than $50. That means they made a profit of over $50 on the meal. If these are the prices most customers pay then the restaurant would have a gross profit of thousands of dollars every day to cover overheads.

The two main overheads in any restaurant are rent and wages. But City Tatts doesn’t pay rent!

So how can it lose $7,000 a week?

City Tatts Information Desk


Is there an Interim Club in the latest DA?

Many of you would recall that a big part of the plan to convince members to approve a property development was the “Interim Club”.

Basically the idea was that 202-204 Pitt Street would remain open as a temporary club for three years while construction went on at 194-200 Pitt Street.

It goes without saying there were numerous problems with this proposal and many doubted it would ever happen. The expense alone made it a dubious proposition. It entailed the building of a massive seven storey wall between the construction site and the temporary club. This would have cost about $2 million and was soon dubbed the “Wailing Wall”. Add to that the other work required to make the temporary club operational and the cost would have amounted to $4 million or more.

Remember the club was only going to get $25 million from the developer – and $6 million is already gone on a succession of failed attempts to get a Stage 1 DA.

So is there an “Interim Club” in the latest plans lodged with the council?

This is a very important question.

City Tatts Information Desk


Can you see now why members question election results?

The recent closure of the City Tatts Chinese restaurant is a reminder to have another look at the committee election results. (See previous blogs Are the City Tatts elections rigged?)

Given that it closed within 6 months, and was virtually empty while it was open, we can safely say it was rejected by 99% of members.

So this is the actual verdict of members on something offered to them. And that verdict can only be described as total rejection. In other words this is what members really think.

But hold on.

The committee that proposed, planned and opened this restaurant, which was totally rejected by members, was re-elected easily by those same members?

How do you explain this?

City Tatts Information Desk


Why was it so hard to run a Chinese Restaurant at City Tatts?

The recent closure of the Chinese Restaurant raises serious questions about Marcelo Veloz and the committee. The foremost question that needs answering is just why was it so hard to make a Chinese Restaurant work in the centre of Sydney CBD?

If you gaze a little west of Cty Tatts as far as York Street you will find the Bowlers Club. Inside the Bowlers Club there was a Chinese Restaurant which operated successfully for forty years. Yes, the Bowlers Club housed a Chinese Restaurant for forty years!

The Bowlers Club restaurant closed not long after the original owner retired. Fast forward a bit and City Tatts tries the same thing, and guess what? It fails. This shouldn’t be such a surprise because almost everything City Tatts tried in recent years failed. But to fail as quickly, and as badly, as the City Tatts version is a new low.

It is interesting that someone did question recently whether Marcelo Veloz really did know how to run a restaurant. (See Why is so hard to run a restaurant at City Tatts now?) Those doubts can only be growing.

But whatever the reason this is just embarrassing, opening a restaurant only to have it close after six months.

City Tatts Information Desk


What real management looks like: NSW Masonic Club

It’s easy to forget how badly City Tattersalls Club has been run because it has gone on for so long.

But if you want to see how a club should be run take a look at the Masonic Club in Castlereagh Street.

Their annual profit from poker machines is $7,000. Yes $7,000, that is not a misprint.

They make their money from the hotel over the club. This generates a profit of $2 million, which after general overheads leaves a net profit of about $600,000. You have to remember that a hotel is a real business which operates in a competitive market and requires real management.

Now just compare their situation to City Tatts. When Tony Guilfoyle started in 2004 City Tatts had a profit of $22 million every year from poker machines. That’s right, $22 million. Even after all gaming expenses, and all poker machine taxes, there was a net profit from gaming of $11 million.

But with that he couldn’t even manage a net club profit of $2 million. Even more incredibly, within 3 years he was making a loss despite poker machine profits of $21 million. This just might be the worst management performance ever in a NSW club.

If the General Manager of the NSW Masonic Club had been running City Tatts since 2004 there would be no mortgage, and the club would have money in the bank.

And if Tony Guilfoyle and Pat Campion had been running the Masonic Club they would have gone broke by now.

City Tatts Information Desk


Are the City Tatts elections rigged? – Voting patterns

One of the features of the City Tatts elections that has often attracted attention is the actual pattern of the vote results.

Someone who has covered a lot of elections was asked to look at the 2018 City Tatts committee elections and this is what he had to say:

I’ve never seen election results like these. There’s something strange about them

Just look at the grouping of votes for five of the sitting committee. In a ballot where the range of votes goes from 1389 down to 92, five of the Committee are within a tiny band from 1052 to 1090

That just doesn’t happen in a normal election

All I can say is this looks like 500 identical ballot papers are being prepared in one location

City Tatts Information Desk