City Tattersalls Group will be selling off its Sydney CBD Pitt Street site to clear itself of debt that has reached an “alarming level”.
According to minutes from the group’s recent annual general meeting, the club is currently $28 million in debt.
While the club did not discuss how much it will sell its CBD headquarters for, it noted there will be enough to pay off debt and to buy another clubhouse, whether that’s in or outside the Sydney CBD.
Since the end of 2022, the Pitt Street site has been closed for a major redevelopment project. When completed, it was expected to deliver the group a new clubhouse, along with a 100-plus room hotel and residential tower.
However, outgoing City Tatts chairman Patrick Campion told the AGM that the club cannot wait until the redevelopment is completed to sell.
“Our club needs funds now. Payment in 4-5 years’ time is no good to us,” he emphasised.
Campion explained the difficulties faced by the club escalated in 2023, mainly due to a decline in gaming revenue. He blamed it on an increased uptake of online gaming, growing competition from casinos and other CBD venues, restrictive laws and regulations, and social and political “anti-gaming” pressure.
“I think you all know that our club’s only real profit centre for the last 40-plus years has been gaming. It has subsidised all of the other largely loss-making activities of our Club. Even when at Pitt St, gaming, whilst still profitable, was in decline,” he said.
Campion added other factors including a fall in member numbers at The Castlereagh, one of the group’s other CBD sites, and the cost-of-living crisis have also contributed to the club’s revenue decline. He added the club is also now paying “exorbitant” rent for The Castlereagh premises.
“In the last 12 months, drastic steps have been taken to reduce overheads, but despite those efforts, our club remains burdened with unacceptable debt levels,” he said.
The decision by the group comes as the long-standing Kirribilli Club in Sydney’s north shore entered voluntary administration and ceased trading at the end of June.
