This came to an end, with the club failing to avoid falling into the hands of a voluntary administrator and consequently closing its doors for the final time on March 25 of this year.
Souths on Chalmers is a separate entity from the South Sydney Football Club, and was perceived as a valuable addition to the neighbourhood. Many residents held high hopes for the former South Sydney Leagues Club that was previously closed for renovations back in 2008.
In the 2012 Chairman’s Report, Chairman Bill Alexiou-Hucker expressed excitement for the opening of Souths on Chalmers, stating: “We kicked off the opening of Souths on Chalmers with a guest list of members of the Burrow and Football Club, past players and members who regularly attended our AGM along with our Life Members. As numbers were restricted, the Board and CEO felt that this was a good representation of the members who have followed our progress over recent years.”
Seventeen months on, the Leagues Club is now in voluntary administration, owing $5.65 million. This involves $2.6 million owed to a private lender, and $2 million to the Castellorizian Club which formerly ran the security on the premises. The debts also include $400,000 to a previous director and $600,000 to tradespeople who worked on the development.
Speculation grew regarding the administration of Souths well before the closing back in March, with Fairfax Media revealing that the Leagues Club was facing financial difficulty at the end of 2012. Members of Souths on Chalmers claim they only received notification of the situation through an email sent a week before the closing.
The generic email stated: “Dear Member, it is with deep regret and sadness that the Board of Souths on Chalmers (South Sydney Leagues Club) has found itself in a position where it has no option but to file for voluntary administration. Many of you will be aware that ownership of the building by South Sydney Leagues Club was forfeited when the Club was last in Administration in 2006. Many of you will know the many hurdles the Board, management and team at Souths on Chalmers have had to endure to open the doors and keep them open. The decision to put the Club into voluntary administration has not been taken lightly. This is a very sad and frustrating decision to have to make. It was becoming clear that many of the promotions our CEO Liam Rogers has implemented have started gaining momentum and trading projections were starting to be met. The Club will continue trading through this period of Administration and it will be business as usual until a decision is made as to whether the Administrator has been able to negotiate an outcome for the Club that will allow the business to continue trading into the future.”
A following email sent on March 26 also announced how the Board had appointed Adam Shepard from a Sydney insolvency firm as an administrator. Initially Adam Shepard said it was premature to comment on the club’s financial position. “It is a matter of trying to facilitate an arrangement with creditors to allow the company to go forward.”
Through a series of emails sent after the closing of Souths on Chalmers, members of the Leagues Club had been led to believe that this administration was temporary, with Mr Shepard stating: “We continued to trade the Club following our appointment with a view to preserving the Club whilst negotiating with its key creditors and stakeholders. Unfortunately, we have been unable to secure funding to continue to trade the Club and as a result the Club ceased to trade on Monday, 25 March 2013.”
Members were also encouraged to attend a meeting that was held on March 28 to help solve the administration issues.
The latest meeting held, which members were invited to attend, took place on Tuesday June 25. It was at this meeting that a promising “Plan B” solution was initiated. The Club indicated its intention to buy back the funds from the Members’ Trust over a period of time, as they become available at no capital loss to contributors.
Nevertheless, the fact still remains that local residents and members are without a leagues club of their own – and this at a time which sees the Rabbitohs riding high and exuding confidence.
