A submission by the Panthers Entertainment Group to the Independent Pricing and Regulatory Tribunal’s Review of the Registered Clubs Industry in NSW ________________________________________ Submitted on behalf of Glenn Matthews Group CEO ________________________________________ Contacts: Glenn Matthews – (02) 4720 5628 / email: glenn.matthews@panthers.com.au Rob Weaver – (02) 4720 5537 / email: robert.weaver@panthers.com.au July 26, 2007

3

EXECUTIVE SUMMARY Since its inception to support Rugby League in 1954, Panthers has grown from one site at Penrith into a club with 14 licensed sites across NSW. It is known as the Panthers Entertainment Group (PEG) and has around 150,000 members. Each of the amalgamated clubs continues to reflect its original purpose and tradition; and supports its community not only through CDSE and non-CDSE funding, but also through the provision of essential amenities and services. As an expert on our industry once said: “Clubs today are to their communities what the village halls used to be”. PEG believes its experience of amalgamations across such a geographically spread area, and across a diverse range of clubs, gives it a unique ‘take’ on some of the solutions to the challenges that the Registered Club Industry in NSW is facing. In late 2006, after exhaustive investigation and with the consent of members, PEG entered a property partnership with ING Real Estate. This partnership will optimise the value and earnings of our assets and pave the way to build what we call the Club of the Future. The Club of the Future will enhance the lifestyles of members at all 14 sites by providing better amenities and services, and act as a focal point for mixed use development in their Panthers communities. PEG believes this concept has relevance to the NSW Government in helping to implement parts of its State Plan. The following are some of the things that PEG believes are required to keep the Registered Clubs Industry in NSW relevant and vibrant: • Remove restrictions on the number of clubs that may form an amalgamated entity • Remove the necessity to first seek amalgamation partners within a 50km radius • Restore 24 hour opening to those clubs that want it • Allow movement of gaming machine entitlements between sites within a group

without losing any entitlements and without the need for cumbersome SIA processes • Allow funding of NRL Rugby League, our reason for being, to be counted as part of

CDSE 1 contributions • Relax the rules covering redemption of loyalty points • Alter the wording of the relevant acts to remove reference to Gaming Profit and

replace with Gaming Revenue

4

1 INTRODUCTION Read and understood.

5

2 OVERVIEW OF THE REGISTERED CLUBS INDUSTRY AND ITS REGULATION IN NSW Questions on which the Tribunal invites comment: • Why do clubs seek registration? What do they see as the advantages and

disadvantages of becoming a registered club? • Is the current regulatory framework appropriate?

_______________________________________________________________ 2.1 Profile of Panthers and its growth In 1954, a small club was established in Penrith with the sole purpose of supporting and promoting the game of Rugby League. By 1967, Penrith was elevated to the elite level of Rugby League. In the years that followed, the licensed club grew to become one of the major tourist attractions in regional NSW – Panthers World of Entertainment. As others copied many of the entertainment concepts begun by Penrith, and the grant of poker machines to hotels increased competition, Panthers realised that to survive it had to grow – and in the late 1990s an amalgamation strategy was born. Today, the Panthers Entertainment Group has 14 licensed club sites in NSW - from Port Macquarie on the mid-north coast to Lavington, in the south. These amalgamating clubs were set up originally to cater for different interest groups, including: Rugby League, Australian Football, general sports, bowling, golf, bocce, cultural, community and workers. Since amalgamation, each of the amalgamating clubs continues to reflect its original purpose and tradition; and each provides a wide range of activities for members, their families and guests. In all, the club has 150,000 members. 2.1.1 Geographic dispersion The club sites are:

Bathurst Panthers Bathurst City Bowling Panthers Cardiff Panthers Glenbrook Panthers Lavington Panthers Mekong Panthers (Cabramatta) Newcastle Panthers

6

North Richmond Panthers Panthers World of Entertainment Penrith Port Macquarie Panthers Port Macquarie Panthers Sports Club St Johns Park Panthers Wallacia Panthers West Epping Panthers

2.1.2 Size Classification

Gaming Machine Profit

No. of Sites

%

0 - $200,000 0 0.00% >$200,000 - $1 million 4 28.57%>$1 million - $5 million 4 28.57%>$5 million - $10 million 3 21.43%>$10 million 3 21.43%Total 14

Site 2006 Gaming

Machine Revenue $

Penrith 49,268,803Port Macquarie 13,858,411Cardiff 10,838,811Mekong 7,348,496Newcastle 5,960,961Bathurst 5,224,875Lavington 3,779,996St Johns Park 3,518,024North Richmond 3,104,811Glenbrook 2,013,301Wallacia 932,673Hibbard 520,681West Epping 274,858Bathurst Bowling Club 222,927TOTAL 106,867,627

7

2.2.1 Applicable legislation A vibrant and viable club industry depends on harmonious and productive relationships between the industry, its regulators and the government. Terminology used by the stakeholders is at the crux of such relationships. In the past, confusion surrounding the terminology has led to misunderstanding and conflict. One notable example surrounds the term Gaming Profit. Gaming Profit is defined by the Act as Gaming Turnover less Wins. This is contrary to the more common use of the word profit to describe Revenue less Costs. In line with common understanding of profit, the industry describes Gaming Turnover less Wins as Gaming Revenue. Bringing the Act into line with the industry, common usage and globally accepted accounting doctrines would be a good step towards securing a more productive communications platform. Recognition of the need to run a profitable business is essential for the viability of an efficient and contributing club industry. This means being able to competitively meet the demands of the marketplace. Some of the restrictions that retard the industry’s ability to compete 24 Hour Trade The inability to remain open and trading for 24 hours is a loss of opportunity for many clubs. More importantly, the restrictions ignore the needs of a significant proportion of the community who’s preferred – or forced – leisure time is outside the norm. Entitlements It should be possible to move gaming machine entitlements between sites within the group without losing any entitlements. This would benefit the group as a whole. Consumer Expectations Consumers have become more discerning and more demanding. For clubs to remain competitive and sustainable regulators need to accommodate this. Allowing clubs to develop benefits and offers aimed at specific segments of their membership is fundamental to remaining competitive and sustainable.

8

Loyalty Programs Many clubs run programs under which members may accrue loyalty points. The value of these points depends on how they may be redeemed. A large proportion of members want to be able to redeem their points for cash or be able to use the points in gaming machines (as is possible in some NSW gaming venues). Enabling this would simultaneously satisfy a persistent consumer demand and reduce a club liability. Communications There is recognition and acceptance of the need to ensure that clubs do not provide incentives for people to gamble. Nevertheless, there is a need to be able to inform people of the options that are available to them. Currently clubs are fearful that even mentioning their gaming installation may result in breach notices. At the same time, operators of other gambling or gaming activities in NSW are able to advertise discounts and bonuses on selected gambling activities. Recent examples of this are the NSW TAB promotions that offered well publicised and advertised increased percentages for punters betting on racing – Fat Quaddies, Bonus First Four, and Higher percentage trifectas.. If clubs are to sustain a viable position in the market place, this imbalance needs to be addressed. At the very least clubs need the latitude to provide members with descriptive information about the choices and facilities available to them, including those that are gaming related. Amalgamations There should be no limit on the number of clubs that can be part of an amalgamated group. This would be a way to ensure that many clubs, now facing financial difficulties, could be protected, thus saving their assets – particularly sporting, cultural and entertainment venues – for their communities (This issue is covered comprehensively under Section 6 of this submission).

9

3 SOCIAL CONTRIBUTION Questions to which the Tribunal invites comment: • What role does your registered club play in your community? • What are the main contributions registered clubs make to social infrastructure and

services in NSW? How significant are these contributions? Are these contributions in line with what communities want? Do these contributions differ across metropolitan, regional and rural areas?

• What roles might registered clubs play in advancing the NSW Government’s priorities, as set out in the State Plan?

• When valuing the registered club industry’s social contribution, what aspects of club activity should be included?

• How do registered clubs identify, calculate and record the value of social contributions they make? What value would a common methodology be to the industry?

• Does the distinction between direct and indirect registered club social contributions seem appropriate?

• What approach/methodology should be used to measure registered clubs’ social contributions? ________________________________________________________________

3.1 What social contribution do registered clubs make? The contribution that a registered club plays in its community varies, and is influenced by a number of factors including: its original reason for being; its financial position and size; geographic location; and local needs. The following table shows the contributions made by PEG on a site by site basis for the CDSE year ended 31 August 2006. Note that it also includes ‘Other’ community donations over and above CDSE.

CDSE year ended 31 August 2006

CDSE 1 CDSE 2 Other TOTAL Statutory Requirement

Explanation of ‘Other’

Member of Local Donation Committee Yes/No

% CDSE Breakdown from Donation Committee

Penrith 420,198 315,920 2,427,000 3,163,118 717,520 Our contribution to the cost of supporting Rugby League, a community asset and our reason for being

Yes 30% of CAT 1

Port Macquarie 103,606 276,808 230,000 610,414 191,370 Sponsorship of the Ironman $150k, Port Macquarie Sharks Football $16k, Port Race Club $12k and $50k donation to the council for the regional sports stadium ongoing over 10 years totalling $500k.

Yes 50.00%

Cardiff 73,034 139,655 64,225 276,914 146,572 Newcastle Trades Hall council $55.9k and sponsorship Newcastle Knights $8.3k

Yes 50% of CAT 1

Mekong 77,899 31,050 0 108,949 99,370 Yes Approx 10% Newcastle 40,100 42,163 76,370 158,633 77,583 Newcastle Trades Hall

council $55.9k and sponsorship Newcastle Knights $8.3k, Black Diamond AFL $10k

Yes 50% of CAT 1

11

Bathurst 34,120 133,233 15,500 182,853 63,686 Sponsorship Bathurst International Motor Festival $5.5k and V8 Supercar Mt Panorama $10k

No N/A

Lavington 26,500 100,000 144,805 271,305 42,587 AFL Oval, Cricket and Bowling Greens upkeep and maintenance (incl Ground staff wages)

Yes Not Quantified

St Johns Park 25,963 11,800 100,000 137,763 34,765 Agreed annual allocation for Slovenian Cultural Events

Yes Approx 75%

North Richmond 17,225 15,857 0 33,082 31,678 Yes 50% of CAT 1 Glenbrook 10,350 6,070 151,672 168,092 16,032 Bowling Greens

upkeep and maintenance (incl Grounds staff wages)

No N/A

Wallacia N/A N/A 458,450 458,450 0 Golf course upkeep and maintenance (incl Grounds staff wages)

N/A N/A

Hibbard N/A N/A 115,231 115,231 0 Bowling Greens upkeep and maintenance (incl Grounds staff wages)

N/A N/A

West Epping N/A N/A 104,746 104,746 0 Bowling Greens upkeep and maintenance (incl Grounds staff wages)

N/A N/A

Bathurst Bowling Club N/A N/A 0 0 0 N/A N/A TOTALS 828,995 1,072,556 3,887,999 5,789,550 1,421,163 N/A - Under the $1m CDSE threshold

In assessing the value of clubs to their communities it is necessary to look not only at the dollars spent, but at what is achieved through that expenditure, which is sometimes intangible, sometimes hard to quantify. The following are some examples … Rugby League and Penrith The value of an elite Rugby League team to its community is immense. Several years ago, a survey found that the value in media coverage of the Panthers National Rugby League team to Penrith was around $24M a year. It is impossible to calculate the flow-on effect of this publicity in terms of visitations and dollars spent. Penrith City Council and local business organisations realise that value, and express it in terms of civic receptions, street decorations and a close affiliation with the team. In a good year, the feeling in the streets of Penrith is palpable. The team is the major talking point, even among people who do not follow the game. In 1991 and 2003, the years Penrith won the competition, tens of thousands of people turned out to welcome the team back to the club. New crowd records were set and broken several times at Penrith (now CUA) Stadium in 2003. Even when the team is not doing well – as in 2007 – local interest remains high. Penrith’s average home crowd stood at 12,746 with 7 home games played so far (up to July 14). In June, the Panthers football website attracted 42,000 unique visitors (11,000,000 hits) in a 30 day period. Rugby League is the Penrith Panthers’ reason for being. The club does not generate a profit from it. In fact, it invests more than $2M a year – the shortfall – to finance this community asset. The total cost of the Rugby League operation is more than $8.5M a year. Whether a good year or not, local business supports the team in many ways – through sponsorship, through association and through a community foundation called Panthers on the Prowl.

The foundation is jointly supported by the club, State and Federal Government departments and local business, with the aim of improving the well being of our children.

It does this through various programs, including a classroom at Football HQ where children “at risk of disengaging from school” are taught by qualified teachers and supported by players.

13

Currently, 24 players are qualified as teacher’s aides and working in the education system.

The foundation supports a range of other programs, including Active Lifestyles, designed to give children an appreciation of good nutrition and fitness. This is in line with various State and Federal government programs designed to overcome childhood obesity.

One initiative of the program is to provide breakfast for school children who may not otherwise get one. Latest figures show that around 300 pupils across 10 schools are being provided with nutritional breakfasts every school day.

Further information on Panthers on the Prowl can be found here: http://www.panthers.com.au/ContentFiles/NRL/Documents/Proof%20Newsletter%20June.pdf

Another small piece of evidence of the team’s importance to business can be found in the latest edition of the White Pages: 13 local businesses not associated with the club have the word Panthers in their name. In this they are acknowledging that Rugby League is ‘tribal’ and that the local ‘tribe’ sees value of the ‘brand’. Junior Rugby League is also a beneficiary to the exposure of the senior team. The Penrith District Junior Rugby League is the largest in the world, with around 8,000 registered players, supported by more than 2,000 volunteers who run the competition week in, week out. PDJRL has 22 clubs with a total of 495 teams, ranging from Under 6 to A-Grade. It is regarded as the best managed Junior League in Australia and many of its development initiatives have been copied not only in this country but abroad. PDJRL is helping to develop not only healthy, active bodies in the players, but a strong ethic of community involvement among the volunteers. Panthers invests more than $700K a year in junior development. Furthermore, all players in the junior league who are 16 or under receive an entry pass to NRL games. At Panthers home games there is anything up to 2,000 entries from children using these passes – over 20,000 a season. The cost of providing free entry to this elite sport is not reported anywhere but it is a significant investment that provides access to fixtures that are both inspirational and entertaining. Supporting a culture Mekong Panthers plays a major role in the life of the Vietnamese community in Cabramatta and surrounding suburbs.

14

It is the Major Sponsor of events such as the Vietnamese New Year and Full Moon festivals - events that help preserve and strengthen the culture of Vietnamese Australians. Mekong Panthers has substantially contributed towards the construction of the Vietnamese Cultural Centre at Bonnyrigg, which is used for meetings, teaching traditional arts, crafts, music and languages, including English. A $10M annual event Our Port Macquarie club is the major sponsor of the Panthers Ironman Australia Triathlon – an annual event estimated to be worth $10M a year to the city from competitors and associated tourism. Such additional revenue supports and creates jobs in the area – no small achievement in a rural area. More than that, the event provides volunteer work for 2,000 every year – another example of community spirit. Tourism is further strengthened in Port Macquarie by Panthers financial support for the Regional Sports Stadium, a project which would not have been possible but for the club. The club committed to $500K over 10 years toward the development of this important stadium, which plays host to many sporting events, attracting visitors from all over Australia. Bocce for all While the sport of bocce might not be widely played – or even known – in Australia, it is the principal recreation of members of St Johns Park Panthers. This club was originally founded by and for the local Slovenian community. Bocce, a version of a game that has been around for 5,000 years in several forms, is played by people of all ages. It is just one example of how the club has maintained its traditions since becoming part of the Panthers Entertainment Group. THE NSW GOVERNMENT’S STATE PLAN There are a number of ways in which clubs can help the NSW Government achieve its State Plan. One is by helping to build healthy communities. Participation in sport can directly relate to a person’s health and well-being; and will contribute to reduced obesity. Clubs such as Panthers provide opportunities for people of all ages to participate in sport, as mentioned in other parts of this document. Without the facilities and backing provided by clubs, many of these opportunities for health and well-being would either disappear from some communities or become more exclusive.

15

But perhaps the biggest area in which clubs can help the government deliver the State Plan is in the improvement of community environments. This is part of the rationale behind what Panthers calls the Club of the Future. The Club of the Future What will these clubs offer? They will in some ways be different because each of the club sites must remain relevant to the wants and needs of its community and the aspirations which originally led to its formation. Through the amalgamation process, described elsewhere in this document (see Section 6), PEG amassed a significant property portfolio – some 195ha of land, much of it located in NSW regional centres with great development potential.

Developments of this nature require capital and expertise, as well as co-operation between all potential stakeholders. In the current economic climate for our industry – with higher poker machine taxes, restrictions on trading hours and anti-smoking legislation – capital investment is almost impossible to obtain from traditional sources such as banks. As a means of pushing forward with its vision, the PEG late last year entered into a partnership venture with ING Real Estate (the Panthers Partnership) to jointly manage and develop its extensive real estate portfolio across NSW. ING Real Estate is an international company active in investment management, development and finance. With a total business portfolio of over A$130 billion and offices in 21 countries, it ranks among the world’s strongest real estate companies. As part of its investigation before partnership, ING commissioned research into the industry and specifically the concept of the Club of the Future. Part of that research is included as an attachment. Note that this attachment is ‘Commercial in Confidence’. Approval to follow enter into the partnership was given by members at two General Meetings and an information process that took more than 18 months to complete. Not only has the partnership left PEG debt free, it has money in hand to develop and improve its club businesses, as promised to members as part of the agreement to proceed. The objectives of the partnership between PEG and ING are to:

• Optimise development opportunities on each site

• Develop a Club of the Future at each site

• Grow and optimise earnings from property (sales and ongoing income)

• Diversify PEG’s property holdings

16

• Improve property values

• Carry out developments that achieve the optimum balance of triple bottom line – social, environmental and economic – outcomes.

The developments will be guided by PEG’s vision statement, Panthers – your lifestyle, your club. Key principles include:

• Use of physical amenities and soft programs to enhance the lifestyle of our communities.

• To provide these communities with a range of value for money services and experiences of a quality and level of sophistication found in major regional centres.

• To ensure each development is relevant to the local community, helping the town centres fulfill their role in providing jobs, quality amenities and services, and reasons for people from outside the area to visit.

• To make the clubs part of an integrated mixed use development that creates a destination and sense of place, thus attracting a higher level of foot traffic that would enable the club and businesses around it to survive and grow.

• To serve the broader community with a range of entertainment, food, beverage, sport, recreation, accommodation, well-being, health and fitness offers that have broad market appeal.

• To focus on people and the experiences they are seeking.

• To give the clubs regionally exclusive offers, differing from one region to another.

Some examples of how these principles will be applied are shown in Master Planning now underway:

Panthers 68ha property in Penrith will play a major role in its community.

In February 2006, Premier Morris Iemma announced a plan to establish a network of six key regional cities to underpin the State’s economic growth and create more jobs. Penrith is one of these cities.

An underlying principle of the NSW Government’s Metropolitan Strategy is that people should be able to access a range of jobs, health and education services, cultural, entertainment and recreation activities and shopping without travelling long distances.

The Department of Planning and Penrith City Council see Panthers as a destination with nationwide appeal, adding to Penrith’s stock of regional tourist and visitor options. They anticipate further development of the entertainment facilities with the addition of associated retail and accommodation, and want planning of the area to consider the neighbouring areas and links to the river.

17

The Panthers Partnership’s aspirations for the property are to create a major city precinct with the club at its heart, and resort style uses (club, cinemas, bowling, child play care, restaurants, day spas, gymnasiums, well being facilities, beauty, etc.) as the foundation use.

These will be integrated with a mix of other uses including another major employer on the site, commercial, related retail and residential. The residential could be a mix of seniors living, affordable housing, at market and above market products that suit families, empty nesters and singles. PEG sees up to 2,000 residential units on the site, which is consistent with DoP plans for another 5,000 residences within 2km of Penrith railway station.

The government and PEG appear to have a strong coincidence of interest.

The partnership is currently assessing where it would be able to partner the NSW Government to help achieve some of its outcomes as outlined in the current State Plan.

There is a significant opportunity for government to leverage off existing infrastructure and for Panthers to expand and improve Penrith’s sports, entertainment and events precinct to a level required for a regional city, at no ongoing cost to tax payers.

This is the reason that Panthers has:

• submitted a proposal seeking $20-25M from Federal and State Governments as a contribution towards a new multi-purpose sports and entertainment venue for Penrith (Penrith Arena); and

• Commenced discussions with Penrith City Council about relocating the local swimming pool at Panthers.

The proposed arena fits in with a Penrith City Council plan for a 5,500 indoor stadium for basket ball.

The venue would have retractable seating, allowing for a capacity crowd of 5,500 for basket ball; and would also be used for concerts, conferences, events and sports such as gymnastics and tennis.

The local pool is aging and PEG understands that the upkeep cost to ratepayers is significant. If a replacement pool were built at Panthers, it would be managed by Panthers and would become part of a greater entertainment and recreation centre – at no cost to ratepayers.

Panthers can demonstrate a number of examples where it has successfully co-operated with various tiers of government.

One example of this is the Panthers on the Prowl Community Foundation, mentioned elsewhere in this document. It is a successful and growing coalition between Panthers, local business, and State and Federal Governments for the benefit of our children.

18

Another example is the development of a major local sporting venue, CUA Stadium.

The Federal Government provided Panthers with $10M to upgrade the facility.

Working together with Penrith City Council, Panthers used the money to improve and extend an existing grandstand; add 2,500 seats; a 300-seat multi-purpose room; improved facilities for players, officials and media; and better access and facilities for the disabled.

CUA Stadium is now used for soccer as well as Rugby League and is suitable for international and national events which can be hosted at no ongoing cost to ratepayers or taxpayers.

Earlier this year, the State Government announced $5M in funding to further improve this venue.

At Newcastle and Port Macquarie, as at Penrith, PEG has properties that can play a major role in these communities.

Newcastle is a regional centre under the NSW Government’s Metropolitan Strategy and the Panthers club occupies nearly a complete city block (188m frontage to King St).

The idea is to create an integrated mixed use development of entertainment, retail, commercial and residential that will help the DoP and Newcastle Council achieve the objective of providing jobs, services and quality lifestyle to that part of the city.

Port Macquarie is a regional centre under the NSW Government’s Mid North Coast Strategy. Port Panthers adjoins ING’s Settlement City shopping centre. The Panthers Partnership is developing a Master Plan for the site. The aim is to provide an integrated shopping, entertainment, health and fitness complex that will help the town fulfill its role as a regional centre.

The Club of the Future concept is applicable to smaller sites, such as Wallacia Panthers, also. Wallacia Panthers is an aging golf and country club with an 18-hole championship course. Wallacia is a village under Penrith City Council’s rural lands strategy. Council wants these villages to provide a certain level of jobs, services and amenities.

The plan is to build a new community club that will become a keystone for the development of the village and particularly the area around the club.

Promotion of intrastate tourism is an area which PEG believes would also be helpful to the NSW Government in achieving some of its goals.

As stated elsewhere, Panthers not only promotes its 14 club sites to the total membership but also highlights the areas in which each site is located. This is achieved through the traditional advertising and marketing mix as well as the Internet.

Another plank of the State Plan is to decrease anti-social behaviour and to increase participation and integration of community activities.

19

The second part of this we believe is covered in our preceding remarks about the Club of the Future and our plans for development across our 14 sites.

Clubs such as Panthers provide safe and secure environments for their members and guests through the use of highly trained security and surveillance personnel, up-to-date electronic equipment, and adherence to Harm Minimisation strategies. This combination effectively reduces the amount of crime in licensed premises, helps the police in their investigations and tends to lessen backlogs in courts. At Penrith, the group’s Chief Security and Risk Officer, Steve Van Zwieten, works closely with groups such as the Police Accountability and Community Team that looks at ways of cutting crime in and around Penrith city. Van Zwieten is Senior Regional Vice-President of ASIS International, and as such his opinions on security are sought not only by other Australian venues but many from overseas. He has also assisted the Liquor Administration Board on standards for Closed Circuit Television (CCTV). 3.2. How can we measure the value of this contribution? Apart from the usual methods, one way in which Panthers highlights its community contributions and activities is through its website, where a Social Scorecard is kept and regularly updated. Its purpose is to ensure that the main areas of the club’s activities are categorised, on a site by site basis. The link to the Social Scorecard page is http://www.panthers.com.au/default.aspx?id=167 3.2.1 Categorising the types of social contribution clubs make 1. In-house contributions for the club’s primary purpose One example is in the provision of free or subsidised sporting facilities. These have provided not only a benefit to members and guests but have helped many sportsmen and women achieve success on the world stage. Clubs invest in these facilities and enable to public to use them free of charge.

20

The following table breaks down the range and size of sporting facilities provided at PEG’s sites:

Site Sporting Penrith - Aqua Golf

- Adventure Golf - Children’s play ground - NRL team.

Port Macquarie - 4 Snooker Tables

Cardiff - 10 indoor bowls mats - 4 snooker tables - 12 dart boards

Mekong - Nil

Newcastle - 2 indoor bowls mats - 8 dart boards

Bathurst - Squash Court - 4 Snooker Tables - 3 Darts

Lavington - AFL oval - Cricket - Netball - 2 Bowling Greens - 6 Squash Courts

St Johns Park - 6 bocce courts - Children’s play ground

North Richmond - Nil Glenbrook - 2 bowling greens Wallacia - 18 hole Golf course

Hibbard (Port Macquarie Sports Club) - 3 bowling greens

- 35 hectares of sporting fields

West Epping - 3 bowling greens

Bathurst Bowling Club - 4 bowling greens

2. In-house contributions for general member benefit Clubs such as Panthers are not just places for members and their guests come for entertainment, gaming or food and drink. They are places where people come to socialise – or even be alone among others – in what they perceive to be a warm and secure environment. A leading expert on the industry once remarked: “In many cases NSW clubs have taken the place of the village hall as the centre of social life.”

21

The following table shows the number of restaurants, bars, meeting rooms and similar facilities on a site by site basis:

Site Function Rooms Bar Catering Penrith* 6 8 10 Port Macquarie 7 7 2 Cardiff 7 5 2 Mekong 1 2 2 Newcastle 12 9 1 Bathurst 2 6 1 Lavington 3 5 2 St Johns Park 1 1 1 North Richmond 2 2 1 Glenbrook 0 1 1 Wallacia 0 1 1 Hibbard 1 2 1 West Epping 1 1 1 Bathurst Bowling Club 2 1 0

*Penrith also has 10 hectares of exhibition grounds 3. External contributions for community benefit At West Epping Panthers, for instance, local high schools are allotted days for students to play bowls. At Wallacia Panthers, free golf tuition is provided for juniors during school holidays. Without clubs, scores of bowling greens, golf courses, tennis courts, cricket grounds and other sporting fields would either have to be totally supported by local or state governments or disappear. On the entertainment front, it has long been recognised that the clubs of NSW are a place where entertainers can show off their talent. Some of Australia’s leading artistes – past and present – got their start that way. 3.3 The Community Development and Support Expenditure Scheme Questions on which the Tribunal has invited comment are: • Do registered clubs find it difficult to identify Category 1 and 2 CDSE opportunities,

or to comply with Category 1 and 2 CDSE requirements? • When allocating funding, how do registered clubs/boards of directors assess local

community priorities? In general: - Does the allocation of registered club funding match the priorities identified

by the CDSE local committee process? - What percentage of social contribution funding is allocated according to the

priorities identified by local CDSE committees?

22

• Should clubs be subject to requirements for community contributions beyond the

CDSE scheme? • How effective is the CDSE Scheme and local committee process? Do you have any

issues, problems or concerns with either? What initiatives or incentives could enhance the CDSE Scheme and local committee process to better target expenditure towards identified community needs?

• What social contributions to registered clubs make outside the CDSE Scheme? How are they measured and reported?

_______________________________________________________________ Panthers supports the current CDSE Scheme and the allocation between Category 1 and Category 2 (See CDSE table on pages 10-11). However, we believe there are opportunities for improvement. The first relates to the qualification of organisations under Category 1. Historically, Panthers was a great supporter of the Neo-natal Unit at Nepean District Hospital, donating $500,000 to this unit by the club over a five year period. The money was used to buy essential equipment for the unit. Today, such donations have become virtually impossible because hospitals do not qualify under CDSE Category 1. We suggest that medical research and hospitals should qualify. The next suggestion for improvement is to allow our club’s reason for being and the expenditure it incurs to qualify under CDSE. At Penrith Panthers the main reason for being is Rugby League. As stated elsewhere in the paper, our financial investment exceeds $2M per annum to keep this community asset. Currently this expenditure does not qualify because some of the money is used to fund professional sports people. We would argue that our funding of the NRL side has perhaps the most positive social contribution of everything PEG does, yet it is not recognised by government. This leads to a further financial burden compared to our competitors. For example, a similar sized club, say, an RSL. Both clubs have the same CDSE commitment, yet funding Rugby League is seen as not having value to the community, so our $2M investment is over and above what our competitor pays. One of the downsides of the current CDSE model is the perception of community groups that clubs make these donations only because they are required by legislation to do so. Yet the majority of clubs – certainly Leagues Clubs – far exceed their statutory requirement. This was true long before the CDSE scheme was established.

23

This perception by community groups, we believe, has harmed the reputation of clubs. It has probably also tarnished the average person’s view of properly regulated gaming, which is, after all, a considerable asset to the State Government. We believe that by increasing the awareness of what clubs provide to their communities – both inside and outside CDSE – properly regulated and controlled gaming would have a better image. This would be beneficial not only to clubs but to the State Government.

24

4 CONTRIBUTION TO EMPLOYMENT AND OTHER ECONOMIC OPPORTUNITIES Questions to which the Tribunal has invited comment are: • What employment and contracting opportunities currently exist within registered

clubs? Do clubs in metropolitan, regional and remote areas find difficulty finding or retaining employees or contractors? If difficulties are experienced, how could they be overcome?

• What opportunities exist for volunteers within registered clubs? How important is the role of volunteers to the functioning and ongoing operation of clubs?

• What formal and informal training is provided to employees, contractors and volunteers? What effect does this training have on workforce skills and participation?

• In addition to registered club employees, contractors, volunteers and training, what other economic opportunities are created by the registered club industry? Do these economic opportunities differ in metropolitan, regional and rural areas? What scope exists to enhance these economic opportunities within the various metropolitan, regional and rural areas?

_______________________________________________________________ 4.1 Employment

Employees Wages Volunteers Training Part Time Full Time Casual Total Penrith 185 189 122 496 18,106,227 0 493,741 Port Macquarie 47 47 82 176 5,313,120 8 Cardiff 29 19 9 57 2,981,615 0 Mekong 18 14 10 42 1,610,863 0 Newcastle 17 14 12 43 2,809,946 0 Bathurst 31 15 28 74 1,822,418 0 Lavington 28 12 25 65 1,649,648 A St Johns Park 8 9 10 27 1,050,614 1 North Richmond 14 20 10 44 1,466,973 0 Glenbrook 20 16 7 43 1,418,348 0 Wallacia 4 9 4 17 785,286 0 Hibbard * * * * 592,294 * West Epping 2 2 2 6 228,649 5 Bathurst Bowling Club # # # # 194,541 # Corporate × × × × 6,642,527 0 Football 5 19 9 33 6,756,000 38 408 385 330 1123 53,429,067 52 493,741

A Volunteers are used for all major events at the oval, as many as 50 volunteers could be used for one event

* Figures combined and disclosed in Port Macquarie numbers # Figures combined and disclosed in Bathurst numbers × Figures combined and disclosed in Penrith numbers

Note: Most training is done on the job and therefore its costs are included in the total wages figures above.

25

5 FINANCIAL VIABILITY AND PERFORMANCE Questions to which the Tribunal has invited comment: • What are the key financial challenges facing registered clubs over the next 10 to 15

years? How do these challenges differ for clubs of different size, type and location? • What areas of business operation currently provide the greatest levels of financial

viability for clubs? • Given the operation of clubs as community-based, not-for-profit entities, what options

for business diversification are most likely to ensure the future viability of clubs? Do these options differ for clubs in metropolitan, regional and remote locations?

5.1 Financial operating environment This information if provided in the Group’s Annual Report (Attached). 5.1.1 Sources of revenue and key financial challenges The operation of gaming machines is the key driver of financial viability. While acknowledging the need to strengthen and diversify non-gaming revenue streams, it does not diminish the importance of ensuring our gaming operations remain attractive and competitive. The key financial challenges facing the Club Industry over the next 10-15 years include registered clubs being able to: • maintain relevance to their community • continually reinvest in their business • meet the community’s expectations of their social responsibilities These aims must be achieved in the face of an ever-changing gaming industry which will see continued consolidation in the hotel industry with groups such as Coles and Woolworth’s continuing to grow their gaming portfolios. This will, through economies of scale, give such hotel groups a greater competitive advantage over clubs. Pressure will also come from Internet gaming. In an age where it is more expensive to go out, and where people perceive that it is not as safe as it once was to do so, the idea of having a bet on-line with all the comforts of home will prove appealing. At home there are no restrictions on smoking, drinking or gambling.

26

New Zealand is already experiencing a growth in illegal on-line gambling operators, which is having a detrimental effect on legal gaming revenue and hence government taxes. Revenue options we have explored led to the concept of the Club of the Future and to our partnership with ING. These are fully explained elsewhere in this submission. 5.5 Financial management support schemes What does the registered clubs industry regard as financially viable? What are the key factors that affect the financial viability of clubs? Key factors that affect the financial viability of clubs, listed in no particular order, include but are not limited to:

• Competition (other clubs, pubs and casino) • Non level playing field with competitors • Poker Machine taxes • Harm Minimisation (24 hour trade etc) • Smoking changes • Economic conditions (increasing interest rates, food and petrol prices) • Negative perceptions through media and other sources “Gaming is on the nose – it

is almost criminal to operate gaming”. • Government and other regulators (one of the most heavily regulated industries) • Nature of the industry (clubs must refresh and re-invent themselves to remain

competitive) • Restriction on the qualification of CDSE payments (i.e. payments for our reason

for being, Rugby League, and medical research are excluded) What are the most appropriate measures for monitoring the financial performance of registered clubs? The starting point for measuring financial performance of registered clubs is answering the following question “there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable”. The measures of financial performance to ensure an informed decision can be made on the questions above “ability to pay debts as a when they become due and payable” listed in no particular order, include but are not limited to:

- EBITDA (Earning before interest, taxes, depreciation and amortisation) - Net profit (to a lesser extent as the nature of the industry is not for profit) - Compliance with bank covenants - Positive net asset position - Current assets > Current liabilities

27

- Wages percentage - Bar and Catering gross profit percentage - Positive cash flow forecasts - Positive budget forecasts - Creditors days calculation - Poker machine return to player percentages

Recognising the financial and non-financial aspects of the registered clubs industry, what measures of business efficiency performance are best suited to the registered clubs industry in NSW? As above What thresholds for these indicators should be used to identify clubs that are in financial distress? - Broad criteria for EBITDA as follows:

o 25%+ : Business flourishing, ability to reinvest and reinvent as required o 15% - 25% : Solid position, needs to critically evaluate capital purchases

to ensure best ROI is selected o 10% - 15% : Sufficient cash flow to maintain current business operations,

will find it difficult to reinvest and reinvent as required o 5% - 10% : Financial difficulty, changes required to ensure continued

existence o <5% : Serious financial difficulty, drastic changes required to ensure

survival. Serious consideration as to the operations as a going concern.

- Continued non-compliance (Breach) of bank covenants - Net current liabilities positions (Current Assets < Current Liabilities) - Declining creditor days (i.e. Consistent failure to pay creditors within the nominated

terms) 6 CLUB ESTABLISHMENT, RELOCATION AND AMALGAMATION Questions to which the Tribunal has invited comment: • Does the current amalgamation process create any undue barriers to clubs seeking to

amalgamate? • Does the amalgamation process ensure adequate protection of community assets for

all clubs involved? • Other than amalgamating, how might registered clubs adapt their services to respond

to changing demographics in their area? How might they enhance their existing membership base?

_______________________________________________________________

28

Panthers believes that there should be no limit on the number of clubs which can amalgamate into one entity. This view is based on first-hand experience gained since the late 1990s, when Panthers began to put in place its amalgamation strategy. . There had been amalgamations between clubs in NSW in the past, but they were more takeovers than true mergers. The Panthers model was different – these were to be genuine amalgamations with due regard for the history and purpose of the other club. To this end, a Memorandum of Understanding (MOU) was agreed with each club, outlining the terms of the amalgamation. As an example, a copy of the MOU for Port Macquarie is attached. These amalgamations were based on the principles of ‘twin citizenship’ which in this context meant that while they would become part of a greater group, each club would also remain part of its local community. Panthers management believed that to succeed, each of the amalgamating clubs should have its own Advisory Board, a body that would remain close to its roots, make local decisions and ensure that the group remained aware of each community’s wants and needs. In all, Penrith concluded 10 amalgamations involving 13 sites – Bathurst (2), Cardiff and Newcastle, Glenbrook, Lavington, Mekong, North Richmond, Port Macquarie (2), St Johns Park, Wallacia, West Epping) Some of the clubs were struggling when they amalgamated. For a couple, it was a case of seeking a partner or closing their doors. Today, all of the sites are trading better than they were before amalgamation, and proudly carry the word ‘Panthers’ in their names. Their contributions to the group in terms of assets and cash flows has been substantial The Panthers Group believes that some of the existing requirements for amalgamations are both un-necessarily restrictive and proscriptive. One example is the limit on the number of ‘child’ clubs that can belong in an amalgamated (‘parent’) entity. There is a relatively small group of clubs with the funds, resources and interest in becoming ‘parents’, particularly to ‘child’ clubs which are ailing.

29

As a result, struggling clubs have closed their doors, resulting in the loss of important community assets in many instances (sporting fields, conference and entertainment venues etc). Panthers believes that there should be no limit on the number of clubs involved in an amalgamated entity and that the criteria should be the financial structures and measures, mutually agreed in writing, that protect the ‘child’ club’s tradition, heritage, membership and assets. Another requirement is that a club must explore all avenues for amalgamation within a radius of 50 kms through an Expression of Interest (EOI) before seeking amalgamation with a club outside its area. This is based on a flawed assumption, which is that two local clubs have a similar culture, whereas in many cases they have been bitter rivals with conflicting cultures that are impossible to blend. It also ignores an opportunity to bring new investment from metropolitan areas to regional centres, thus boosting the local economy. Panthers has proven that amalgamation between clubs can succeed despite any geographic gap between them. In fact, this could be many cases be an advantage – partly because the potential partners have never been rivals. Perhaps more importantly, a group that is geographically widespread has much to offer its membership from each amalgamated site and the state’s tourism industry. Obviously, Panthers ‘sells’ each site to its local market. But it also targets the membership as a whole, realising the potential for family from (say) Port Macquarie visiting (say) Albury and – depending on time available and the purpose of the trip – calling in to see other Panther clubs on the way. This is also an opportunity to promote internal tourism between one region of NSW and another. The Panthers Group first used this approach on its licensed club website (www.panthers.com.au) and has since followed a similar strategy with print media. In the case of the website, cross links have been established – where applicable – with local tourism bodies. Pictures and banners on each site’s pages reflect not only what that particular club has to offer, but also what the region has to offer. Part of the Panthers amalgamation strategy was to use the acquire assets not only for the benefit of each club, but for the benefit of the group as well.

30

The strength of the group has made it possible to improve the individual clubs in a way that would not have been possible for the clubs as stand-alones. Indeed, in many cases the lack of funds and resources to remain competitive is perhaps the main reason for the financial distress – and failure – of many clubs. There are many examples of how the strength of the group can be used to improve its amalgamated members. One such example is Wallacia. Since amalgamation, there has been an ongoing improvement of the club’s centre piece, the 18-hole golf course. Six holes have been improved so far at a cost of $930,000 – and there have been other improvements. As a stand-alone club, Wallacia would never have achieved this. Shifting Gaming Entitlements An opportunity to strengthen the financial viability of a club – and at the same time meet changing demographic needs – would be to allow clubs to shift Gaming Entitlements within a group without having to worry about inefficient SIA processes concerned with capping the number of machines. There is no evidence to suggest that capping machines is an effective harm minimisation strategy. 7 STRENGTHENING PERFORMANCE Questions to which the Tribunal has invited comment: • How do the current legislative requirements affect the activities of registered clubs? • How appropriate are the current corporate governance requirements for registered

clubs? And how are those requirements enforced? • Are these requirements sufficient for all clubs, based on type, size and location? • Are these requirements excessive for any clubs, based on type, size and location? • Would alternative governance arrangements be beneficial for the industry?

_______________________________________________________________ 7.2 What are the current governance arrangements for registered clubs? Do registered clubs face special risks that affect their corporate governance requirements? If so, what are these risks? A major risk centres around the election and education of Directors. Our experience shows that less than two (2) per cent of the membership votes at elections, meaning that an entire Board could change at every election.

31

This is seen as a weakness in our industry and so could be a barrier to attracting strong business partners. It could lead to less popular business decisions being avoided by Directors. One suggestion would be to legislate for partial elections – for example, a three year term with one third of the Board due for election each year. Another suggestion – particularly at large clubs – could be the addition of some independent Directors to those who qualified by election. The formation of the CDI has certainly provided a platform for improving the education of both Directors and managers in corporate governance. Some of the courses should be mandatory. On page 53, the Tribunal invites comments to the following questions: How effective is the OLGR’s current compliance program? In years gone by there was a ‘policeman-like’ approach by OLGR inspectors. Recent years have seen a change to a more self-regulating approach, which has increased their effectiveness. Compliance Checklists which are regularly updated are available online at the OLGR website for use by the club industry. The OLGR has become more customer-focused in its relationship with the club industry – a good example being the inaugural Industry Forum convened by the OLGR in 2006. How could this program be improved? For example, should there be increased compliance responsibilities for designated members or staff of each club? Yes. The Panthers Compliance Policy delegates responsibility for compliance to all levels of the organisation. Suggestions for improvement include: 1. The OLGR must ensure consistency of regulation interpretation by all their inspectors. 2. There must be better and more timely feedback after audits and inspections have been carried out. For example; Panthers submitted a voluntary Section 35 Audit at the end of February 2007 and we have still not received any feed back, let alone a formal acknowledgement of receipt of the documents submitted.

32

3. More timely delivery of changes to regulations and legislation is required. For example, changes to signage requirements have been talked about since the Industry Forum in July last year. There has been no further feed back as to the current status since then. We understand it is still awaiting government approval. 4. There should be more consultative industry forums with key industry representatives. 5. There needs to be an improvement in the communication between the various OLGR Departments (e.g. Legal branch and Inspection Branch). What changes are required to promote the culture of good corporate governance in the clubs industry? And what are the regulatory tools for implementing these changes? Our experience shows that in a main a culture of good corporate governance does exist in the industry. The Code of Practice, with the formation of the CDI, and messages from the industry bodies has certainly improved the education and awareness of good corporate governance practice. Culture is “the way we do things” and continued education, not regulation, is the key. 7.4.3 ClubsNSW Club Directors’ Institute • What are the training and professional development needs of the registered clubs

industry? • How effective are the current arrangements for training and development? And how

might these arrangements be improved? _______________________________________________________________

Directors’ Education

According to the Club Directors’ Institute:

“Club directors have the challenge of keeping their clubs ahead in an increasingly competitive business environment. At the same time they need to also maintain the original objectives of the club. The Club Directors' Institute (CDI) helps clubs to Build Boards of Excellence that can successfully lead their organisation to maintain this balance.”

CDI is a valuable source of industry leading-information on club governance; offering face-to-face workshops and courses, video training, internet resources and publications.

33

CDI is voluntary. Attendance by senior executive management is voluntary. A constructive outcome of attendance at the CDI is for the executive of both the Board and Management to attend together. This would allow the key people of the club to address issues with the same approach and understanding; and more importantly, respect for each person’s role in the organisation. Panthers Board and Management Executive have attended CDI in this manner. To provide the industry with access to leading executives, attendance at the CDI should be mandatory for persons reaching executive management and those currently on Boards. It should also be a mandatory requirement for those for wishing to stand for a board. This in many ways is no different to requiring a person to attain their RCG and RSA prior to entering the hospitality industry. Managers’ Education In regards to education for Managers, the CMA provides the most structured path. Panthers use the structured program of the CMAA - Club Managers’ Development Australia (CMDA). This is a nationally recognised training program that allows people to go from the most basic levels (RSA and RCG) all the way up to a degree in hospitality in modules. To become an Active Certified Club Manager (ACCM) the program takes a manager through all aspects of basic finance, responsibilities of management, responsibilities of boards all the way to a diploma in hospitality ( with Southern Cross University).

The mission of the CMDA

“The CMDA basic aim is to ensure that both individual members and the industry reach their full potential by maintaining a key role in the ongoing supply of appropriately trained managers for the industry and to advance club management as a career.

“The Certified Club Manager Award (CCM)

“The letters CCM signifies this prestigious industry award. To initially achieve the CCM award, applicants must meet the points and the criteria for each of the sections that make up the award i.e. Industry Experience, Industry Activity and Education. The recipient of the award will be entitled to retain this CCM status for perpetuity. Recipients will be initially granted active status of the award for a period of two years.

“The Active Certified Club Manager Award (ACCM)

“To either attain and/or maintain the active status of the CCM award, ACCM, managers must be employed within the club industry, be current members of the CMAA, and provide evidence of continued Education and/or Industry Activity.”

34

On completing the CCM, the next stage of a manager’s education can be a degree in hospitality at Southern Cross University. The CCM is treated as pre-learning to the level of Diploma. Panthers is actively taking all management, from Duty Managers up, through the program. This is being done to ensure all managers within the Panthers Group receive a structured and consistent learning program. It also ensures managers are able to deliver a consistency of information to their staff and boards, meet the challenges of a dynamic industry and provide all stakeholders with the confidence that their club is being managed at its highest level. This also provides a path for succession and development of managers both for Panthers and the industry. This is very important for the industry, as inconsistent interpretations of regulations and compliance can lead to negative issues for not only the business, but also our stakeholders. Mandatory Education This direction of education and certification really should be looked at by IPART as a mandatory requirement for all persons getting into senior management in the club industry. It will allow both legislators and directors to know that the people they are employing in these positions are not only theoretically qualified, but also have operational experience in the industry (a requirement needed to achieve your ACCM). It will avoid the situation of persons being put into a position well beyond their capacity either educationally, or operationally. Currently, in the industry there is no requirement for a club to select a person with any of these qualifications. There is no significant requirement within the industry for any person to acquire significant education. This is something in which the Club Managers’ Association is a strong believer, and that Panthers supports, as it believes education and industry experience and on-the-job training are a mixture required for all managers and developing managers in the future. Currently, education and structured education is not being recognised in any part of the legislation affecting clubs in NSW. PEG’s HR Department is addressing the structure of all forms of trained compliance. By 2008, Duty Managers and above will have received training to achieve all appropriate industry certification.

35

Panthers Entertainment GroupANNUAL REPORT 2005-06

50YEARSSERVING YOUR COMMUNITY

www.panthers.com.au 1

Panthers Entertainment Group Board of Directors

From 50 years of experience emerges the Club of the Future.

This publication reports on our 2006 financial results – the 50th trading year of Panthers.

In 1956 Panthers was issued its very first licence and became part of the family of NSW Registered Clubs.

The licence brings with it several responsibilities. More importantly, it places clubs in the privileged position of being able to make a difference to their communities.

Panthers has always honoured that privilege.

For over 50 years, our local communities have taken great benefit from the resources that Panthers has been able to provide.

Times change ... as do the needs and demands of our communities.

Right now, for venues like Panthers, the most pressing demand is to provide our communities with venues that can be enjoyed comfortably and conveniently by everyone.

Panthers has allocated some $8 million across 13 different projects to bring our properties in line with the community demand for clean air venues.

The quality being delivered by these projects can be seen in the recently completed refurbishment of the Lakeview Lounge at Panthers World of Entertainment, Penrith.

In the next 5 years you will witness considerable changes in Panthers venues as we continue our development of the Club of the Future – a project that will undoubtedly lead to an even closer relationship between community and club.

Indeed it will give greater resonance to our current vision:

Panthers...your lifestyle, your club.

Barry Walsh (Chairman)

Terence Heidtmann (Senior Deputy Chairman)

Donald Feltis (Deputy Chairman)

Gregory Alexander

Robert Anderson

Colin Bentley

Gregory Chapman

Kathleen Evans

James Geyer

John Hiatt

Gary Kennedy

Kerry Lowe

David Meidling

Keith Rhind

2 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 3

CEOs Report – -Rugby League Never before had a club won those three premierships in the same year. These performances show the strength and depth of junior talent in Penrith and that the future of our NRL team is bright. Congratulations to the players, coaches and support staff.

The new Western Grandstand Complex at CUA Stadium opened on schedule and on budget. I would like to thank Jackie Kelly MP and the Federal Government for providing the $10M funding through the Department of Communications, Information Technology and the Arts. I would also like to thank Penrith City Council with whom we worked to develop a Master Plan for the stadium. The work done last year was Stage 1 of that plan.

The stadium is once again the permanent home of Rugby League in our city, with our training, administration, Junior League and ‘Panthers on the Prowl’ all residing there.

We marked our 40th year in the top grade with celebrations and the naming of our first ‘Team of Legends’. It is:

1. Rhys Wesser, 2. Bob Landers, 3. Grahame Moran, 4. Ryan Girdler, 5. Alan McIndoe, 6. Brad Fittler, 7. Greg Alexander, 8. Terry Geary, 9. Royce Simmons, 10. Tim Sheens, 11. John Cartwright, 12. Bill Ashurst, 13. Colin Van Der Voort, 14. Craig Gower, 15. Brad Izzard, 16. Mark Geyer, 17. Tony Puletua.

For our NRL side, the season was disappointing, with us failing to make the finals for the second year in a row. However, there were still a number of achievements worthy of acknowledgement. I would like to congratulate all of our players who represented during 2006: Tony Puletua (NZ), Frank Pritchard (NZ), Paul Aiton (PNG), Keith Peters (PNG), Craig Stapleton (PM’s 13), Trent Waterhouse (City, PM’s 13), Luke Priddis (Country), Preston Campbell (Country), Luke Rooney (City), Luke Lewis (City), Joel Clinton (City), Craig Gower (City, NSW) and Rhys Wesser (QLD).

During the season Rhys eclipsed Greg Alexander’s and Ryan Girdler’s try scoring record. He now holds the record of 102 tries – and there will be many more to come.

2006 saw the end of an era with John Lang completing five years as Head Coach. John will always be remembered by our club and city for providing a positive culture that delivered a Premiership in 2003, followed by another terrific season in 2004.

I would also like to thank our Major Sponsor, Sanyo Oceania and all of our other sponsors for their support. The partnership between Panthers and Sanyo is now in its 8th season and I encourage everyone to support them the way they support us.

Rugby League in 2006 cost $2.4M – an increase of $0.5M over 2005. The main reason was a fall in game day profit as a result of home games not starting until round 8, lower attendances due to the team’s position on the competition ladder and poor weather for a couple of vital games.

2006 was also the final year of the St Marys-Penrith Cougars. I would like to thank Warren Smith and his Board at St Marys Leagues for their support over the past four years. They would be with us still but for the increasing costs in the club industry and the need to address other priorities.

Finally, I would like to thank our Board and our thousands of loyal fans. I am sure that, like me, you are looking forward to the new season with great optimism.

Glenn Matthews CEO Penrith Rugby League

Season 2006 saw plenty of positives for Penrith – premierships for our Harold Matthews, SG Ball and Jersey Flegg sides, a revamped stadium that now ranks among the best in the NRL, and the 40th anniversary of our entry to the elite competition.

We are now working through the final stages of the agreement, which we expect to be complete before the AGM.

Elsewhere in this Annual Report, Glenn Matthews has summarised the key points of this historic agreement, so I will not go into them here, other than to make the following points:

• This partnership will make us better and stronger

• It will allow us to meet promises made to amalgamated clubs

• It will put us in a great position to meet future challenges

• It will help us to become as good as we can be for the benefit of our members and our communities

It was also a year in which we turned around our financial performance – and we achieved this despite increased competition, higher poker machine taxes and tough new legislation against smoking. There is still a long way to go, but hard work and dedication by our management and staff is paying off.

The total ban on smoking in clubs comes in this July, so we have been carrying out renovations to ensure that we are ready for that. So we will be in a good position when the change comes.

2006 was also an historic year for our rugby league club. Our teams won the SG Ball, Harold Matthews and Jersey Flegg titles, making us the first club ever to achieve such a triple.

It showed that our football future is in good hands and I would like to thank everyone involved – players, coaching and support staff. Additionally, we have locked up a number of these young players, many of whom will no doubt find their way into 1st Grade within a couple of seasons.

The retention and promotion of local juniors is an important part of our strategy – they are the backbone of our NRL sides.

It was a year that saw a change in our coaching staff, and I would like to thank John Lang and his people for five good years. John became the second longest serving coach in Penrith’s history (after Royce Simmons). He delivered us our second elite Premiership and took us to within one game of a grand final the following year.

Our new coaching staff, headed by Matthew Elliott, has inherited a strong roster of experienced players and an exciting group of juniors – so they have plenty to build with.

In closing, I would like to extend my thanks to the following:

• Our Group Board and Advisory Boards for their passion and support.

• Management and staff across the Group for their efforts.

• Our sponsors and supporters to whom we owe a great deal.

• Jackie Kelly and the Howard Government for helping us rebuild our home stadium; and

• The officers and elected representatives of Penrith City Council who have shown in many ways, that they are as committed to the Penrith Panthers as we are.

I am looking forward to an exceptional year on all fronts.

Barry Walsh Chairman Panthers Entertainment Group

2006 will prove to be one of the most significant in the history of our organisation. It was the year that saw us take our property strategy a major step forward by selecting a preferred partner, ING Real Estate, to help us re-invent and rebuild our business.

Group Chairmans Report - 2007

4 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 5

Group CEOs Report And it is only fitting that as we enter our 50th year as a licensed club, we are poised to make some historic changes.

These things have been brought about by our property strategy, which members approved at two General Meetings, and which involves the disposal of a number of assets so that we can achieve the following outcomes:

• Have 14 great clubs

• Unlock wealth created by amalgamations

• Reduce our debt

• Create a sustainable future

The strategy has delivered on some of these outcomes already – and the future is exciting.

Financial Highlights

Total Members’ Equity increased by $24M from $169M to $193M.

Debt was reduced from $87M to $43M as a result of property sales – which included the former Holiday Inn, the AMF Bowling Centre and Panthers warehouse and football complex – together with an improvement in trading performance.

This year’s financial performance shows a profit of $24M, but includes a number of extraordinary items that need to be recognised, among them:

• Profit on sale of properties - $15.3M

• Government grant for CUA Stadium improvements - $10M

• Restructuring, redundancy and other abnormal costs - $0.8M

After allowing for these items, the Group incurred a loss of $0.4M, which included the cost of Rugby League of $2.4M. Before tax, this was an improvement of $5.7M over the previous year, despite an increase in poker machine tax (on a pro

rata basis) of $2.7M, and an increase of $0.5M in the cost of football.

The normalised EBITDA produced was $19.5M, an improvement of 9.1% over the previous year.

While it is good to acknowledge this improvement, a lot of work remains to be done so that we can reach the profit levels required to enable the necessary reinvestment in our business.

Poker Machine Tax

We paid $30M in poker machine tax, an increase of 12.5%. During the year, ClubsNSW reached a compromise agreement with the State Government on a top tax rate of 39.99% (including GST). This compares with the lower rate of 34.99% reached in a Memorandum of Understanding with the NSW Liberal Coalition. On current trading figures, the difference between each party to our Group exceeds $4M per year.

Property Disposals

After getting members’ approval for the various property disposals, an Open Tender process was conducted and the response was extraordinary. The ‘Top End of Town’ was quick to see the value of partnering our organisation. At the time of writing, a Memorandum of Understanding had been signed with ING Real Estate, with formal agreement expected by the AGM.

In summary, the deal sees Panthers keep majority control of all club properties; retain 100% operational control; retain 100% of development rights and receive sufficient funds to extinguish debt and reinvest in all our properties.

The deal certainly fulfils the strategy approved by members and sets a platform for creating a sustainable future – the ‘Club of the Future’.

2006 saw an improved financial performance across the Panthers Group and our delivery on a number of promises made to members over previous years.

Non Smoking

July will see the introduction of a total smoking ban in clubs and pubs in NSW. Experience in other states shows that gaming revenues will fall as a result of such a ban. However, because the legislation is being implemented in stages in NSW, clubs have had a chance to adjust and prepare. Nevertheless, we have budgeted for an initial downturn of 12%.

In order to minimise any such downturn we have begun approximately $8M in renovation work across the Group to improve facilities. Most of this work will be completed by May.

Community Scorecard

During the year our Group made donations of approximately $2M. In addition, $776,000 was spent in developing our Junior Rugby League.

One example of our community support is the Panthers on the Prowl Community Foundation. This coalition of government, business and Panthers, is aimed mainly at helping disadvantaged children in our community. It has attracted attention Australia-wide for its innovative solutions to help the young.

Another major community initiative is at Port Macquarie, where Panthers is spending $500,000 over 10 years on improvements to the Regional Sports Stadium. This – along with our sponsorship of the Ironman Australia Triathlon – helps bring visitors and dollars into the Port community.

At each of our 14 sites across NSW there are examples of our community support, and they can be viewed on our website.

The Board of Directors

I would like to take this opportunity to thank the members of our Group Board, headed by Chairman Barry Walsh, for their support, their passion and their commitment to Panthers.

Our’s is a large organisation with significant assets; we are a major employer and play a vital role in each of our communities. Our directors have the same responsibilities to corporate governance as those of any large company, yet they are all volunteers, who give their time freely.

I flag that in coming years we should consider paying Directors fees to reflect the responsibility the position holds.

Our proposed partnership with ING Real Estate will see Panthers reach new heights and set new standards in the building, management and development of our assets.

The Group Board must be congratulated for its courage and for the thousands of hours invested by them in shaping, evaluating, and assessing our future strategy.

Our People

Currently 1326 people work for Panthers, around 41 percent of whom have been with us for over five years. If you discount government departments and offices, there would not be many organisations with that kind of retention rate. I believe it says something about our culture and our people.

In finishing, I would like to thank each of our site general managers and other senior managers for continually striving to improve themselves, their businesses and the organisation that is Panthers.

Glenn Matthews Group CEO

6 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 7

PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED (ACN 003 908 503)

NOTICE OF ANNUAL GENERAL MEETING

NOTICE is hereby given that the Annual General Meeting of PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED will be held in the EVAN Theatre, Level 2, Panthers, Mulgoa Road, Penrith, New South Wales on Sunday, 25 March 2007 commencing at 9.00am.

BUSINESS

ORDINARY RESOLUTIONS

1. To receive and confirm the minutes of the Annual General Meeting 26 March 2006.

2. To receive and consider the following:

(a) the Financial report for the financial year of the Club ending 31 October 2006;

(b) the Directors’ report for the financial year of the Club ending 31 October 2006;

(c) the Auditor’s report on the Financial report for the financial year of the Club ending 31 October 2006;

(d) the Chairman’s report;

(e) the Chief Executive Officer’s report.

3. Recommendation that Tony Ferguson be elected as an Honorary Life Member.

OTHER

4. Recommendations to the Board.

Glenn Matthews CEO/Secretary

Dated: 23 February 2007

NOTES TO MEMBERS

1. Under the Corporations Act proxy voting is permitted.

2. For the purposes of Section 249L of the Corporations Act the following information is given:

(a) a member who is entitled to vote at the Annual General Meeting of Penrith District Rugby League Football Club Limited has a right to appoint a proxy;

(b) the proxy does not need to be a member of the Club;

(c) a member wishing to appoint a proxy must do so in accordance with Sections 250A and 250B of the Corporations Act.

3. To be passed an Ordinary Resolution needs votes in favour from a simple majority of those members who being eligible to do so vote in person or by proxy on the Ordinary Resolution at the Annual General Meeting.

4. Each of the Ordinary Resolutions must be considered as a whole and cannot be amended by motion from members at the meeting.

5. Any questions that a member has should be directed to Glenn Matthews CEO/Secretary, Panthers, Locked Bag 322, Penrith NSW 2750 in writing before the Annual General Meeting so that answers can be provided.

6. The Board of the Club recommends to members that they vote in favour of each Ordinary Resolution.

PENRITH RUGBY LEAGUE CLUB LIMITED (ACN 000 578 398)

NOTICE OF ANNUAL GENERAL MEETING

NOTICE is hereby given that the Annual General Meeting of PENRITH RUGBY LEAGUE CLUB LIMITED will be held in the EVAN Theatre, Level 2, Panthers, Mulgoa Road, Penrith, New South Wales on Sunday, 25 March 2007 commencing at 9.30am.

BUSINESS

ORDINARY RESOLUTIONS

1. To receive and confirm the minutes of the (i) Annual General Meeting 26.03.06 & (ii) General Meeting 10.12.06.

2. To receive and consider the following:

(a) the Financial report for the financial year of the Club ending 31 October 2006;

(b) the Group Directors’ report for the financial year of the Club ending 31 October 2006;

(c) the Auditor’s report on the Financial report for the financial year of the Club ending 31 October 2006;

(d) the Group Chairman’s report;

(e) the Group Chief Executive Officer’s report.

3. To consider and if thought fit pass Ordinary Resolutions approving and agreeing to the payment of expenses (up to the amounts specified in those Resolutions) and other benefits for Group Directors, certain Officers of the Club, partners of Group Directors, Advisory Board members, partners of Advisory Board members, Senior employees of Home Clubs, the Group Chairman and Advisory Board Chairmen and incurred up to the next Annual General Meeting of the Club, and in addition the provision of the use of a Club car for business use for the Group Chairman.

NOTES TO MEMBERS IN RELATION TO ORDINARY RESOLUTIONS IN 3 ABOVE

The text of the Ordinary Resolutions referred to in 3. above is on the Club web page (www.panthers.com.au) and copies have been placed on the notice board of the

Notice of Annual General Meeting

Club at each of its premises. Copies of the text of each of the Ordinary Resolutions referred to in 3. above may be obtained on request from the general office of each premises of the Club. Further copies will be made available to members attending the Annual General Meeting. The Ordinary Resolutions in 3. above are in similar terms (but different amounts) as approved by the Annual General Meeting in 2006, and in addition provide for the use of a company car for business use for the Group Chairman.

OTHER

4. Recommendations to the Group Board.

Glenn Matthews Group CEO/Secretary Dated: 23 February 2007

NOTES TO MEMBERS

1. Under the Registered Clubs Act proxy voting is not permitted, all members other than Temporary members, Honorary members and Provisional members are entitled to attend the Annual General Meeting and vote on an Ordinary Resolution irrespective of the restrictions on voting rights for certain classes of members in the Club’s Constitution (Memorandum and Articles of Association), except employees who are members, who are not permitted to vote.

2. To be passed an Ordinary Resolution needs votes in favour from a simple majority of those members who being eligible to do so vote in person on the Ordinary Resolution at the Annual General Meeting.

3. Each of the Ordinary Resolutions must be considered as a whole and cannot be amended by motion from members at the meeting.

4. Any questions that a member has should be directed to Glenn Matthews Group CEO/Secretary, Panthers, Locked Bag 322, Penrith NSW 2750 in writing before the Annual General Meeting so that answers can be provided.

5. The Group Board of the Club recommends to members that they vote in favour of each Ordinary Resolution.

Corporate Governance StatementPanthers is committed to best practice in the area of corporate governance. We believe that corporate governance facilitates effective management and control of the business, which in turn enables Panthers to deliver the best results to all its stakeholders.

THE BOARD OF DIRECTORS

The Board of Directors is accountable to the members for the performance of the entity and is responsible for the corporate governance practices of Panthers. The Board’s principal objective is to maintain and increase member value while ensuring that overall activities are properly managed. All directors have unrestricted access to company records and information and receive detailed financial and operational reports from executive management during the year, to enable them to carry out their duties. The Board meets formally at least 12 times each year, and also from time to time, to deal with specific matters that require attention between scheduled meetings.

Under the Registered Clubs Act, directors are not entitled to derive directly or indirectly, any profit, benefit or advantage from the Club that is not offered equally to every full member of the Club. The exception to this relates to the payment of out of pocket expenses incurred by a director in the course of carrying out his or her duties in relation to the club.

CODE OF CONDUCT

Panthers is committed to the highest standards of ethical business conduct. As part of that commitment Panthers has an internal Code of Conduct to guide executives, management and employees in carrying out their duties and responsibilities.

BOARD COMMITTEES

The Board utilises a number of committees to support it in matters which require more intensive review. At present the Board has three committees, the Board Audit Committee, the Executive Remuneration Committee and the Compliance Committee. Other Board Committees may be established from time to time to consider matters of special importance.

Audit CommitteeThere is no legal requirement for Panthers to have an Audit Committee. However as Panthers is an entity in

which there is significant public interest, we believe it was sound business practice in 1998 to establish one.

The Audit Committee operates under a charter approved by the Board and meets four times a year. The Board has delegated the responsibility for the establishment and maintenance of a framework of internal control and ethical standards for the management of Panthers to the Audit Committee. Members of the Audit Committee during the year were Greg Chapman, Terry Heidtmann, and David Meidling.

Compliance CommitteeThis Committee, established during 2006, provides assurance to the Board that Panthers is meeting its compliance obligations in regard to internal guidelines and external regulations. The current members are John Hiatt, Keith Rhind and Kath Evans.

Remuneration Committee The Remuneration Committee assists the Board by ensuring that Panthers remuneration policies and practices fairly and responsibly reward executive management having regard to their performance, the law and the highest standards of governance. The Committee operates under guidelines that have been formulated to ensure compliance with the Clubs NSW Code of Practice as well as industry standards. The current members are John Hiatt, Kerry Lowe and Don Feltis.

COMPLIANCE AND RISK MANAGEMENT

The Panthers Internal Audit and Compliance Team is an independent and objective internal review function charged with evaluating, testing and reporting on the adequacy and effectiveness of management’s control over compliance with internal policy, laws and regulations and operational risk. The Internal Audit Team has access to all entities in the Panthers Group and conducts audits and reviews following a risk based planning approach utilising Australian Standard AS/NZ 4360 for Risk Management and AS/NZ 3806 for Compliance. The Group Internal Audit and Compliance Manager maintains independence within Panthers by having an administrative reporting line to the Group Chief Executive Officer and functional reporting line to the Board Audit Committee.

(A more detailed version of this governance statement is available on the Panthers website - www. panthers.com.au)

www.panthers.com.au 9

Concise Financial Reportfor the year ended 31 October 2006

CONTENTS

Important Information about this 9 Concise Report

Directors’ Report 10

Income Statement 13

Discussion and Analysis – Income Statement 14

Balance Sheet 17

Discussion and Analysis – Balance Sheet 18

Cash Flow Statement 19

Discussion and Analysis – Cash Flows 19

Statement of Changes in Equity 20

Notes to the Concise Financial Statements 21

Independent Audit Report 31

otherwise stated. The names and details of the directors of the consolidated entity in office during the financial year and until the date of this report are as follows:

Names Qualifications

Walsh, Barry (Chairman)

Press Room Manager John Fairfax, until retirement. Director for 24 years, Football Director for 33 years. Director of Camden Valley Golf Resort, and Co-Chairman St Mary’s Penrith Cougars. Chairman of Panthers on the Prowl. Member of Donations Committee. Life Member.

Heidtmann, Terence (Senior Deputy Chairman)

Managing Director, Professionals Real Estate Penrith, Licensed Real Estate Agent. Director for 23 years, Member of the Audit Committee. Life member.

Feltis, Donald (Deputy Chairman)

Chief Executive of Penrith and Districts Junior Rugby League. Life member of junior league. Life member of Panthers. Retired police inspector. Life member Police Association. Director since 2002. Member of Remuneration Committee.

Alexander, Gregory

Sports Commentator for 2UE and Foxtel. Director for 5 years.

Anderson, Robert

Retired former RAAF Warrant Officer Engineer. Director for 3 years. Member of North Richmond Panthers advisory board for 13 years.

Bentley, Colin MBA, Graduate Diploma in Management. Sales Executive - IGT (Aust) Pty Limited, part-time lecturer at University and TAFE. Director for 5 years.

Chapman, Gregory

National Distribution Manager – HLW Pty Limited (Liquor wholesale company). Director for 5 years. Member of Board Audit Committee.

Evans, Kathleen

Secretary Australasian Meat Industry Employees Union Newcastle and Northern Branch and Senior Vice President Panthers Newcastle and Cardiff Advisory Board. Newcastle/Cardiff Board member 8 years, Panthers Group Board 2 years.

IMPORTANT INFORMATION ABOUT THIS CONCISE REPORT

IMPORTANT INFORMATION FOR MEMBERS

The Director’s Report, Concise Financial Report and Auditor’s Statement contained within this document represent a Concise Report.

The full Financial Report of Penrith Rugby League Club Limited for the year ended 31 October 2006 and the Auditor’s Report thereon will be sent, free of charge, to members upon request. Members can access the full Financial Report and Auditor’s Report by visiting the Panthers website www.panthers.com.au

The Concise Financial Report contained within this document has been derived from the full Financial Report of Penrith Rugby League Club Limited for the year ended 31 October 2006 and cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the economic entity as the full Financial Report.

DIRECTORS’ REPORT

Your directors submit their report for the year ended 31 October 2006.

DIRECTORS

All directors are current members of Penrith Rugby League Club Limited and were in office for this entire period unless

8 Panthers Entertainment Group Annual Report 2005-06

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d

10 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 11

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d

Names Qualifications

Geyer, James Technical Director in the computer industry and University Lecturer. Director for 5 years. Member of Bathurst Panthers advisory board for 8 years.

Hiatt, John Director since 2003, Member of the Remuneration Committee, Member of the Donations Committee. Solicitor Diploma Criminology Sydney University. Retired Magistrate. Director of Hawkesbury Race Club since 1988 and member of the Racing Appeals Tribunal since 1996.

Kennedy, Gary

Secretary of Newcastle Trades Hall Council. Director of Honeysuckle Development Corporation, Hunter Economic Development Corporation and Hunter Area Consultative Committee. Director for 5 years. President of the Newcastle and Cardiff Panthers advisory board for 3 years.

Names Qualifications

Lowe, Kerry Fleet Manager, Paul Wakeling Holden, Camden. Director for 5 years. Penrith delegate, Director of Camden Valley Golf Resort and Narellan Properties. Member of the Remuneration Committee.

Meidling, David

Mortgage Manager, Wizard Home Loans Port Macquarie. Director since 2003. Member of Port Macquarie Panthers advisory board since 2002. Member of the Audit Committee.

Rhind, Keith District Football Committee 1968-1969, Director 1969 to 1971, Director 1978 to 2006. Held Executive positions for 25 years including Chairman 1983. Patron of Penrith District Junior Rugby League. Retired Insurance Consultant. Life Member.

The net profit from continued operations includes:

• Surplus on disposals of properties, plant and equipment for the year was $8,383,000 (2005: $23,000) for continued operations and $6,890,000 (2005: Nil) for discontinued operations totalling $15,273,000 (2005: $23,000) for total operations.

• An increase in Poker Machine Tax of $3,358,000 or 12.5% to $30,316,000 in 2006 from $26,958,000 in 2005.

• Restructure costs for the consolidated entity amounting to $812,000 (2005: $1,331,000).

• Federal government grant to Penrith District Rugby League Football Club Ltd of $10,000,000.

• Annual net cost of operating the Penrith District Rugby League Football Club of $2,427,000 (2005: $1,945,000).

Consolidated operating revenue for the year was $186,004,000. This represents an increase of $18,114,000 or 11% on the 2005 revenue of $167,565,000. This was mainly due to the receipt of the federal grant to the Penrith District Rugby League Football Club of $10,000,000 and a net gain on disposal of continuing operations plant property and equipment of $8,383,000.

DIVIDENDS

No dividend was declared or paid by any company in the consolidated entity during the year. The holding company is limited by guarantee and is prevented by its constitution from paying dividends.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

Total equity increased to $193,346,000 from $169,313,000, an increase of $24,033,000. The movement was largely the result of increased profits from continued and discontinued operations.

Ordinary resolutions were passed at a General Meeting on the 17 July 2005 and at the Annual General Meeting on the 26 March 2006 approving the sale or lease of all the consolidated entities properties with the exception of the property related to the Nepean Shore operations. This resolution was required by the Registered Clubs Act 1976 in order that the consolidated entity has the flexibility to review its property portfolio with a view to utilising the properties in the most efficient manner.

SIGNIFICANT EVENTS AFTER BALANCE DATE

The consolidated entity has selected the ING Real Estate Group as the preferred tenderers with the intention of establishing a strategic alliance in order to manage and develop the consolidated entity’s real estate portfolio. A heads of agreement has been signed on the 21 December 2006 to facilitate this relationship.

Apart from the above, there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material or unusual nature likely, in the opinion of the directors of the consolidated entity to affect significantly the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity, in future financial years.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS

The directors foresee that in the 2007 financial year:

• The relationship with ING Real Estate Group will be legally formalised, enabling the consolidated entity to unlock the wealth built up in its assets, reduce its reliance on debt funding, and provide a sustainable long term future for the consolidated entity.

• The consolidated entity will benefit from the full impact of the extensions to the football stadium, completed in the 2006 financial year and financed by the federal governments grant of $10,000,000.

• A further $8,000,000 will be spent on upgrading the various club sites in preparation for the impact of the non smoking legislation which will make the clubs 100% non smoking in July 2007.

ENVIRONMENTAL REGULATION AND PERFORMANCE

The consolidated entity’s operations are subject to various environmental regulations under both Commonwealth and State legislation.

The Board believes that the consolidated entity has adequate systems in place for the management of its environmental requirements and is not aware of any breach of those environmental requirements as they apply to the consolidated entity.

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

During the financial year, the parent entity, Penrith Rugby League Club Limited, held an insurance policy for the benefit of the directors and officers. In accordance with commercial practice, the insurance policy prohibits disclosure of the terms of the policy, including the nature of the liability insured against and the amount of the premium.

DIRECTOR’S REPORT CONTINUED DIRECTOR’S REPORT CONTINUED

Continuing operations are reconciled as follows:

2006

$’000

2005

$’000

Net profit for total operations 24,033 (4,257)

Surplus on discontinued activities of motel on Penrith site (1,106) (2,446)

Net gain on disposal of the discontinued activities property plant and equipment (6,890) -

Net profit from continued operations 16,037 (6,703)

PRINCIPAL ACTIVITIES

The principal activities during the year of entities within Penrith Rugby League Club Limited and its consolidated entities (‘consolidated entity”) were:

• promotion of the game of rugby league football;

• provision of facilities for sport and recreation;

• operation of a licensed club; and

• rental of property.

Other than the sale of the motel on the Penrith site, there have been no further significant changes in the nature of these activities during the year.

EMPLOYEES

The consolidated entity employed 1,326 employees as at 31 October 2006 (2005: 1,506).

REVIEW AND RESULTS OF OPERATIONS

The net gain for the consolidated entity for the year was $24,033,000 (2005: ($4,257,000)) after an income tax credit of $935,000 (2005: $1,928,000), amortisation and depreciation charge from continuing operations $13,948,000 (2005: $15,723,000), an interest charge of $6,342,000 (2005: $7,631,000), and a discontinued operations surplus of $7,996,000 (2005:$2,446,000), which includes additional amortisation and depreciation charge of $552,000 (2005: $705,000).

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d

12 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 13

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d DIRECTOR’S REPORT CONTINUED

DIRECTORS MEETINGS

The number of meetings of directors held during the year and the number of meetings attended by each director were as follows:

Directors’ Meetings

Meetings of Audit

Committee

Meetings of Remuneration

Committee

Meetings of Risk and Compliance

Committee Number of meetings held: 12 4 5 1Number of meetings attended:B Walsh 11 - - -T F Heidtmann 11 3 - -D Feltis 11 - 4 -G P Alexander 7 - - -B Anderson 10 - - -C D Bentley 6 - - -G W Chapman 11 4 - -K Evans 7 - - 0J Geyer 12 - - -J Hiatt 11 - 5 1G Kennedy 4 - - -K J Lowe 12 - 5 -D Meidling 12 3 - -K L Rhind 11 - - 1

AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS OF PENRITH RUGBY LEAGUE CLUB LIMITED

In relation to our audit of the financial report of Penrith Rugby League Club Limited for the year ended 31 October 2006, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

Ernst & Young

James PalmerPartner, Sydney29 January 2007

ROUNDING

The amounts contained in this report and in the financial statements have been rounded to the nearest $1,000 (where rounding is applicable) under the option available to the company under ASIC Class Order 98/0100. The company is an entity to which the Class Order applies.

AUDITOR’S INDEPENDENCE DECLARATION

The directors have received a declaration of independence from the auditor and this is attached. The directors are satisfied that the nature and scope of non audit services has not compromised the auditor’s independence.

Signed in accordance with a resolution of the directors.

B Walsh

DirectorPenrith29 January 2007

INCOME STATEMENT For the year ended 31 October 2006

Consolidated

Notes 2006 2005

$’000 $’000

REVENUES FROM CONTINUING OPERATIONS 2 186,004 167,565

Changes in inventories of finished goods (202) (300)

Raw materials and consumables used (16,907) (17,472)

Depreciation and amortisation expenses (13,948) (15,723)

Finance costs expensed (6,342) (7,631)

Employee benefit expense (54,265) (59,579)

Advertising expense (3,891) (3,893)

Artists and entertainment expenses (2,444) (3,334)

Computer expenses (912) (881)

Donations (1,980) (1,824)

Insurance expense (1,793) (2,208)

Repairs and maintenance (3,923) (3,685)

Sponsorship (425) (176)

Rent and rates (1,868) (2,258)

Electricity expense (2,727) (2,449)

Junior development (776) (513)

Bad and doubtful debt expense (323) (1,688)

Member promotions and membership expense (3,871) (3,416)

Other promotions/discounts (3,323) (3,565)

Impairment of non current assets (538) -

Other expenses from ordinary activities 3 (16,206) (15,403)

SURPLUS FROM ORDINARY ACTIVITIES BEFORE STATE TAXES AND INCOME TAX

49,340 21,567

Poker machine tax (30,316) (26,958)

Payroll related taxes (3,729) (3,666)

Land tax (642) (568)

SURPLUS (DEFICIT) FROM CONTINUING OPERATIONS BEFORE INCOME TAX 14,653 (9,625)

INCOME TAX BENEFIT 1,384 2,922

SURPLUS (DEFICIT) FROM CONTINUING OPERATIONS AFTER INCOME TAX 16,037 (6,703)

DISCONTINUED OPERATIONSSurplus after tax from discontinued operations 7,996 2,446

NET SURPLUS (DEFICIT) 24,033 (4,257)

NET DEFICIT ATTRIBUTABLE TO MINORITY INTEREST 89 108

NET SURPLUS (DEFICIT) ATTRIBUTABLE TO MEMBERS OF PENRITH RUGBY LEAGUE CLUB LIMITED 24,122 (4,149)

Liability limited by a scheme approved under Professional Standards Legislation.

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d

14 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 15

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d DISCUSSION AND ANALYSIS – INCOME STATEMENT

TRENDS IN REVENUES ARISING FROM OPERATING ACTIVITIES

Revenue from continuing operations increased by $18,439,000 or 11% from $167,565,000 in 2005 to $186,004,000 in 2006. The increase was mainly due to:

• Receipt of federal government grant of $10,000,000;

• Net gain on disposal of property plant and equipment of $8,383,000 (2005: $23,000);

• An increase in the groups gaming revenue of $2,927,000 or 2.85% to $105,553,000 in 2006 from $106,626,000 in 2005;

• A decrease in the consolidated entities catering and beverage revenues of $3,655,000 or 9.2% to $35,747,000 in 2006 from $39,402,000 in 2005.

EFFECTS OF SIGNIFICANT ECONOMIC OR OTHER EVENTS

During the 2006 financial year the following significant events occurred:

• The motel business situated on the Penrith site was discontinued in August 2006. The disposal of the assets relating to the business unit resulted in a profit of $6,890,000 and the trading surplus achieved in the period to the date of the sale was $1,555,000 resulting in a surplus for the year from discontinued operations of $8,445,000;

• The net gain on disposal of property plant and equipment from continuing activities was $8,383,000 (2005: $23,000);

• Poker Machine tax increased by $3,358,000 or 12.5% to $30,316,000 in 2006 from $26,958,000 in 2005. This increase was primarily caused by the ongoing increases in the Poker Machine tax rates;

• In July 2006 the anti smoking legislation limited smoking to 25% of the bar, gaming and recreation areas. From July 2007 no smoking will be permitted in enclosed spaces, however, smoking will be permitted in outdoor and non enclosed areas.

MAIN INFLUENCES ON COSTS OF OPERATION

The costs of operation before income tax decreased by $5,839,000 or 3.3% to $171,351,000 in 2006 from $177,190,000 in 2005. This improvement was related to reductions in:

• Employee salaries and benefits of 8.9% or $5,314,000 mainly due to the impact of the restructure process started in 2005 and continued through to the current period;

• Depreciation and amortisation of 11.3% or $1,775,000;

DISCUSSION AND ANALYSIS – INCOME STATEMENT CONTINUED

• Finance costs of 16.89% or $1,289,000 due to the decrease of interest bearing debt of $40,147,000 during the financial year;

• Raw materials and consumables used of 3.2% or $565,000 due to the decrease in catering and beverage sales of 9.2%;

These reductions were offset by increases in:

• Poker machine taxes of 12.5% or $3,358,000.

MEASURES OF FINANCIAL PERFORMANCE

Summarised operating results are as follows:

2006 2005

Results

$’000

Sales

$’000

Results

$’000

Sales

$’000

Total Activities

Licensed Clubs 1,502 157,297 (2,532) 159,239

Reconstruction Costs (812) - (1,331) -

Property Disposals 15,273 15,273 - -

Rugby League 7,573 19,399 (1,945) 9,107

Other controlled entities (438) 4,800 (377) 5,257

Tax 935 - 1,928 -

Total 24,033 196,769 (4,257) 173,603

Continuing Activities

Licensed Clubs (53) 153,422 (5,972) 153,201

Reconstruction Costs (812) - (1,331) -

Property Disposals 8,383 8,383 - -

Rugby League 7,573 19,399 (1,945) 9,107

Other controlled entities (438) 4,800 (377) 5,257

Tax 1,384 - 2,922 -

Total 16,037 186,004 (6,703) 167,565

Discontinuing Activities

Licensed Clubs 1,555 3,875 3,440 6,038

Property Disposals 6,890 6,890 - -

Tax (449) - (994) -

Total 7,996 10,765 2,446 6,038

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d

16 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 17

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d DISCUSSION AND ANALYSIS – INCOME STATEMENT CONTINUED

BREAKDOWN OF LICENSED CLUB

2006 2005

Results

$’000

Sales

$’000

Results

$’000

Sales

$’000

Bathurst 935 8,006 973 7,632

Cardiff 2,388 15,335 1,373 15,049

Glenbrook 530 4,682 383 4,853

Lavington (37) 4,995 (142) 4,932

Mekong 1,707 8,459 2,050 8,362

Newcastle (779) 8,736 (1,240) 9,835

Nth Richmond 555 5,077 361 5,116

Penrith 5,473 72,583 4,224 75,802

Plancask Pty Limited (724) 446 (441) 372

Port Macquarie 3,123 21,370 3,131 20,759

St Johns Park 960 4,879 134 3,402

Wallacia (83) 1,994 65 2,336

West Epping (118) 735 (99) 789

Less Group costs (12,428) - (13,304) -

Total 1,502 157,297 (2,532) 159,239

BALANCE SHEET as at 31 October 2006

Consolidated

2006 2005

$’000 $’000

CURRENT ASSETS

Cash and cash equivalents 5,095 3,150Trade and other receivables 1,890 2,115Inventories 1,750 1,952Income tax receivable 559 381Other assets 1,537 3,160TOTAL CURRENT ASSETS 10,831 10,758

NON-CURRENT ASSETSTrade and other receivables 494 3,418Investments 156 153Property, plant and equipment 273,095 290,706Poker Machine Licence 1,114 789Deferred tax assets 5,780 5,158Other assets 419 444TOTAL NON-CURRENT ASSETS 281,058 300,668

TOTAL ASSETS 291,889 311,426

CURRENT LIABILITIESPayables 3,404 6,548Interest bearing liabilities 2,883 12,745Current tax liabilities - 369Provisions 2,508 2,565

Other 18,299 17,488

TOTAL CURRENT LIABILITIES 27,094 39,715

NON-CURRENT LIABILITIESInterest bearing liabilities 43,784 74,069Deferred tax liabilities 23,992 24,305Provisions 568 902Other 3,105 3,122

TOTAL NON-CURRENT LIABILITIES 71,449 102,398

TOTAL LIABILITIES 98,543 142,113

NET ASSETS 193,346 169,313

EQUITY Retained surplus 193,158 169,036

TOTAL MEMBERS INTEREST IN EQUITY 193,158 169,036

TOTAL OUTSIDE EQUITY INTEREST 188 277

TOTAL EQUITY 193,346 169,313

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d

18 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 19

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d DISCUSSION AND ANALYSIS – BALANCE SHEET

CHANGES IN THE COMPOSITION OF ASSETS

Total assets decreased by 6.3% or $19,537,000 to $291,889,000 in 2006 from $311,426,000 in 2005. The reduction is largely due to a decrease of property, plant and equipment of $17,611,000 which relates to the disposal of various properties during the year, and a decrease in amounts owed by related parties of $2,924,000.

THE RELATIONSHIP BETWEEN DEBT AND EQUITY

The gearing of the consolidated entity, calculated as total liabilities as a proportion of total assets, is 33.8% (2005: 45.7%). The change in this ratio is largely due to the reduction in interest bearing loans made possible by the disposal of various properties during the year.

The major ratios considered by our financiers are:

• The Debt Service Coverage Ratio (DSCR) – As at the 31 October 2006 the DSCR was 1.66 which is favourable when compared to our financiers covenant requirement of 1.10;

• The Minimum Tangible Net Worth (MTNW) – Currently this ratio is $186,452,000 (2005: $163,366,000) which compares favourably with the minimum level set by our financiers of $160,000,000; and

• The Earnings Gearing Ratio (EGR) – As at the 31 October 2006 the EGR was 0.92 which is favourable when compared to our financiers covenant requirement of 3.50.

OTHER SIGNIFICANT MOVEMENTS IN THE BALANCE SHEET

Total members interest in equity increased by $24,122,000 to $193,158,000 in 2006 from $169,036,000 in 2005. The movement was largely the result of a net surplus after tax of $24,122,000.

CASH FLOW STATEMENT for the year ended 31 October 2006

Consolidated

2006 2005$’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 191,121 193,355

Receipts of government grants 10,000 -

Payments to suppliers and employees (160,869) (165,312)

Goods and services tax paid (10,128) (10,332)

Interest received 318 457

Borrowing costs (6,342) (7,645)

Income tax paid (547) (90)

NET CASH FLOWS FROM OPERATING ACTIVITIES 23,553 10,433

CASH FLOWS FROM INVESTING ACTIVITIES

Payment for property, plant and equipment (17,609) (5,436)

Net proceeds from sale of discontinued operation 27,644 -

Net proceeds from sale of property, plant and equipment 10,101 163

Purchase of shares and other financial assets (3) (2)

NET CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES 20,133 (5,275)

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of loan to associated company 2,801 250

Principal repayment under finance leases (4,249) (4,871)

Repayment of borrowings (33,580) (5,250)

NET CASH FLOWS USED IN FINANCING ACTIVITIES (35,028) (9,871)

NET INCREASE/(DECREASE) IN CASH HELD 8,658 (4,713)

Cash at the beginning of the financial year (3,563) 1,150

CASH AT THE END OF THE FINANCIAL YEAR 5,095 (3,563)

DISCUSSION AND ANALYSIS – CASH FLOWS

CHANGES IN CASH FLOWS FROM OPERATIONS

Net cash flows from operating activities increased by $13,120,000 from $10,433,000 in 2005 to $23,553,000 in 2006. The increase in cash from operating activities was largely due to:

• Receipt of a federal government grant to extend the football stadium of $10,000,000;

• The decrease in employee salaries and benefits of $5,314,000;

• The decrease in finance costs of $1,289,000;Offset by• An increase in Poker Machine Tax of $3,358,000

in 2006

FINANCING OF CAPITAL EXPENDITURE PROGRAMS

Capital expenditure programs were financed largely from cash derived from operating activities and

external borrowings. There was a net inflow from investing activities of $20,133,000 (2005: net outflow of $5,275,000), which in the main, related to the disposal of properties from continuing and discontinued activities of $37,745,000 (2005: $163,000) offset by purchases of property plant and equipment of $17,609,000 (2005:$5,436,000) which included the extensions and fit out of the football stadium.

SERVICING AND REPAYMENT OF BORROWINGS

There was a net cash outflow from financing activities of $35,028,000 (2005: $9,871,000) relating mainly to the repayment of borrowings of $33,580,000 (2005: $5,250,000) and finance leases of $4,249,000 (2005: $4,871,000).

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d

20 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 21

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d STATEMENT OF CHANGES IN EQUITY for the year ended 31 October 2006

Consolidated

Notes 2006 2005

$’000 $’000

Total equity at the beginning of the year 169,313 173,600

Purchase of remaining Outside Equity Interest in Penmate Pty Ltd - (30)

Deficit/(surplus) for the year 24,033 (4,257)

Total equity at the end of the year 193,346 169,313

Attributable to:

Members of Penrith Rugby League Club Ltd 193,158 169,036

Minority interest 188 277

193,346 169,313

NOTES TO THE CONCISE FINANCIAL STATEMENTS for the year ended 31 October 2006

1. BASIS OF PREPARATION OF THE CONCISE FINANCIAL REPORT

The concise financial report has been prepared in accordance with the requirements of the Corporations Act 2001 and Accounting Standard AASB 1039 “Concise Financial Reports”.

Significant accounting judgements, estimates and assumptions

i) Significant accounting judgements

In the process of applying the group’s accounting policies, management has made the following judgements which have the most significant effect on the amounts recognised in the financial statements:

Poker Machine Licences

The entity holds poker machines licences either acquired through a past business combination or granted for no consideration by the NSW government. AIFRS requires that licences outside of a pre AIFRS transition business combination be recognised initially at its fair value as at the date it was granted with a corresponding adjustment to retained earnings to recognise the grant immediately as income. Until new gaming legislation taking effect in April 2002 allowing poker machine licences to be traded for the first time, the entity has determined that fair value at grant date for licences granted pre April 2002 to be zero. Licences granted to the entity post April 2002 are initially recognised at fair value. The entity has determined that the market for poker machine licences does not meet the definition of an active market and consequently licences recognised will not be revalued each year.

ii) Significant accounting estimates and assumptions

The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key estimates and assumptions that have an effect on the carrying amounts of certain assets and liabilities are:

Impairment of investment

The parent determines whether investments are impaired on an annual basis. This requires estimation of the recoverable amount of the investment.

Going Concern Basis of Accounting

The financial report has been prepared on the going concern basis. At balance date, total current assets were $10,831,000 and total current liabilities were $27,094,000. Loan facilities with the consolidated entity’s main financier Westpac Banking Corporation expire on 1 November 2007. Hence, on 1 November 2007, a further $41,170,000 becomes due and payable. The directors

have a strategy to repay this debt before 1 November 2007 and to form a business partnership with a property developer which will see the group free of debt.

Should the property transaction not occur before the Westpac facility become due, the ability of the consolidated entity to pay its debts as and when they fall due is dependent on the ongoing support of the consolidated entity’s financiers or the replacement of those loan facilities with equivalent or greater facilities from an alternate financier. The directors are confident that ongoing or alternative finance will be available.

However, should the position change, the consolidated entity may not be able to pay its debts as and when they fall due and may be required to realise assets and extinguish liabilities other than in the normal course of business and at amounts different from those stated in the financial statements. The financial statements do not include any adjustment relating to the recoverability and classification of recorded asset amounts or to the amount and classification of liabilities that might be necessary should the consolidated entity not continue as a going concern.

Statement of Compliance

The financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS).

This is the first financial report prepared based on AIFRS and comparatives for the year ended 31 October 2005 have been restated accordingly except for the adoption of AASB132 Financial Instruments: Disclosure and Presentation and AASB 139 Financial Instruments: Recognition and Measurement. The company has adopted the exemption under AASB 1 First-time Adoption of Australian equivalents to International Financial Reporting Standards from having to apply AASB 132 and AASB 139 to the comparative period. Reconciliations of AIFRS equity and surplus for 31 October 2005 to the balances reported in the 31 October 2005 financial report and transition to AIFRS are detailed in note 8.

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d

22 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 23

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d NOTES TO THE CONCISE FINANCIAL STATEMENTS CONTINUED

Statement of Compliance CONTINUED

Except for the revised AASB 119 Employee Benefits (issued December 2005), Australian Accounting Standards that have recently been issued or amended but are not yet effective have not been adopted for the annual reporting period ended 31 October 2006:

AASB Amendment

Affected Standard(s)

Nature of change to accounting policy

Application date of standard*

Application date for Company

2005-1 AASB 139: Financial Instruments: Recognition and Measurement

No change to accounting policy required. Therefore no impact.

1 January 2006 1 November 2006

2005-5 AASB 1: First-time adoption of AIFRS, AASB 139: Financial Instruments: Recognition and Measurement

No change to accounting policy required. Therefore no impact.

1 January 2006 1 November 2006

2005-10 AASB 132: Financial Instruments: Disclosure and Presentation, AASB 101: Presentation of Financial Statements, AASB 114: Segment Reporting, AASB 117: Leases, AASB 139: Financial Instruments: Recognition and Measurement, AASB 1: First-time adoption of AIFRS.

No change to accounting policy required. Therefore no impact.

1 January 2007 1 November 2007

New standard AASB 7 Financial Instruments: Disclosures

No change to accounting policy required. Therefore no impact.

1 January 2007 1 November 2007

AASB 2005-10 Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023, AASB 1038]

AASB 7 is a disclosure standard so will have no direct impact on the amounts. However, the amendments will result in changes to the financial instrument disclosures included in financial report.

1 January 2007 1 November 2007

* Application date is for the annual reporting periods beginning on or after the date shown in the above table.

NOTES TO THE CONCISE FINANCIAL STATEMENTS CONTINUED

2. REVENUE FROM OPERATIONS

Consolidated

2006 2005

$’000 $’000

Revenue from Continuing operations

a) Revenue from operating activities

Revenue from catering and beverages 35,747 39,402

Revenue from gaming 105,553 102,626

Revenue from raffles/bingo 2,068 2,169

Revenue from accommodation 1,143 1,262

Revenue from gate receipts 1,181 1,438

Revenue from functions and banquets 6,074 6,298

Revenue from merchandise sales 914 900

Revenue from show tickets 1,283 1,632

Rental income 1,838 1,955

NRL Grant 2,750 2,575

Revenue from advertising and promotion 822 810

Sponsorship revenue 3,136 2,780

Subscriptions 957 977

Other 3,353 2,261

Total revenues from operating activities 166,819 167,085

b) Other income

Net gain on disposal of property plant and equipment 8,383 23

Federal government grant 10,000 -

Interest received – associated companies 176 427

Interest received – other 301 30

Grant – Poker Machine Licences 325 -

Total other income 19,185 480

Total revenues from continuing operations 186,004 167,565

Revenue from discontinuing operations

c) Revenue from discontinuing operations

Revenue from catering and beverages 67 112

Revenue from accommodation 3,791 5,891

Other 17 35

Net gain on disposal of discontinued operations 6,890 -

Total revenues from discontinuing operations 10,765 6,038

Total revenues 196,769 173,603

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d

24 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 25

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d NOTES TO THE CONCISE FINANCIAL STATEMENTS CONTINUED

3. OTHER EXPENSES FROM OPERATING ACTIVITIES

Consolidated

2006 2005

$’000 $’000

Annual report 150 211

Audit and accounting 461 433

Bank charges 142 190

Cleaning expenses 1,395 1,177

Consultancy 416 329

Commission 140 6

Courtesy Bus 492 444

General expenses 1,315 1,292

Ground expenses 351 284

Legal fees 363 636

Licences and Subscriptions 1,036 708

Mini asset register 82 166

Money security 253 390

Motor vehicle expenses 198 221

Pest control 40 50

Plants 51 79

Postage 108 123

Printing and stationery 451 534

Purchases Raffle 1,773 1,696

Security 486 661

Staff amenities 109 307

Telephone 889 874

Travel and accommodation 222 114

Waste expenses 368 416

Gaming, monitoring and other cost 2,381 1,832

Other expenses (individually do not exceed $250,000) 2,534 2,231

16,206 15,403

4. DISCONTINUED OPERATION

On 3 April 2006, the consolidated entity entered into a sale agreement to dispose of the motel on the Penrith Rugby League Club site in Penrith. The disposal was completed on 1 August 2006, on which date control of the business passed to the acquirer.

NOTES TO THE CONCISE FINANCIAL STATEMENTS CONTINUED

4. DISCONTINUED OPERATION CONTINUEDThe results of the discontinued operation for the year until disposal are presented below:

Consolidated

2006 2005$’000 $’000

Revenue from operations 3,875 6,038

Expenses 2,320 2,598

Gross surplus/(deficit) 1,555 3,440

Gain on disposal 6,890 -

Finance costs - -

Surplus before tax from discontinued operations 8,445 3,440

Tax expense 449 994

Surplus for the year from discontinued operations 7,996 2,446

2006$’000

Consideration received

Cash 29,500

Less related costs on disposal (1,856)

Net cash proceeds 27,644

Less net assets disposed (20,754)

Gain on disposal before income tax 6,890

Income tax expense -

Gain on disposal after income tax 6,890

5. SEGMENT INFORMATIONThe consolidated entity operates in the leisure and entertainment industry. The operations of the consolidated entity are carried out predominantly in New South Wales.

6. KEY MANAGEMENT PERSONNEL

Consolidated

2006 2005

(a) Details of Key Management PersonnelKey management personnel includes all directors plus the following executive management:Glenn Matthews Chief Executive Officer

Daniel Munk Chief Operating Officer

Ric Simpson Chief Financial Officer

Key management personnel compensation:

Short-term 741 761

Post employment 66 67

Other long-term 7 9

Termination benefits - -

Shared based payment - -

814 837

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d

26 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 27

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d NOTES TO THE CONCISE FINANCIAL STATEMENTS CONTINUED

7. SUBSEQUENT EVENTS

The consolidated entity has selected the ING Real Estate Group as preferred tenderers with the intention of establishing a strategic alliance in order to manage and develop the consolidated entities real estate portfolio. A heads of agreement has been signed on the 21 December 2006 to facilitate this relationship.

Apart from the above, there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material or unusual nature likely, in the opinion of the directors of the consolidated entity to affect significantly the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity, in future financial years.

8. TRANSITION TO AIFRS

For all periods up to and including the year ended 31 October 2005, the Group prepared its financial statements in accordance with Australian Generally Accepted Accounting Principles (AGAAP). These financial statements for the year ended 31 October 2006 are the first the Group is required to prepare in accordance with Australian equivalents to International Financial Reporting Standards (AIFRS).

Accordingly, the Group has prepared financial statements that comply with AIFRS applicable for periods beginning on or after 1 January 2005 and the significant accounting policies meeting those requirements are described in note 1. In preparing these financial statements, the Group has started from an opening balance sheet as at 1 November 2004, the Group’s date of transition to AIFRS, and made those changes in accounting policies and other restatements required by AASB1 First –time adoption of AIFRS.

This note explains the principal adjustments made by the Group in restating its AGAAP balance sheet as at 1 November 2004 and its previously published AGAAP financial statements for the year ended 31 October 2005.

Exemptions applied

AASB 1 allows first-time adopters certain exemptions from the general requirement to apply AIFRS retrospectively.

The Group has taken the following exemptions:

• Comparative information for financial instruments is prepared in accordance with AGAAP and the company and group have adopted AASB 132: Financial Instruments: Disclosure and Presentation and AASB 139 Financial Instruments: Recognition and Measurement from 1 July 2005.

• AASB 3 Business Combinations has not been applied to acquisitions of subsidiaries or of interests

in associates and joint ventures that occurred before 1 July 2004.

• Cumulative currency translation differences for all foreign operations are deemed to be zero as at 1 July 2004.

• AASB 2 Share-based Payment has not been applied to any equity instruments that were granted on or before 7 November 2002, nor has it been applied to equity instruments granted after 7 November 2002 that vested before 1 January 2005.

Explanation of material adjustments to the cash flow statement

There are no material differences between the cash flow statement presented under AIFRS and the cash flow statement presented under previous AGAAP.

NOTES TO THE CONCISE FINANCIAL STATEMENTS CONTINUED

8. TRANSITION TO AIFRS (continued)

Balance Sheet reflecting reconciliation of adjustments to AIFRS as at 1 November 2004

Consolidated

Notes AGAAP AIFRS IMPACT AIFRS

$’000 $’000 $’000

CURRENT ASSETS

Cash and cash equivalents 3,382 - 3,382

Trade and other receivables 3,841 - 3,841

Inventories 2,289 - 2,289

Other assets 2,235 - 2,235

TOTAL CURRENT ASSETS 11,747 - 11,747

NON-CURRENT ASSETS

Trade and other receivables 4,058 - 4,058

Investments 151 - 151

Property, plant and equipment 297,542 - 297,542

Poker Machine Licence C - 789 789

Deferred tax assets B - 4,968 4,968

Other assets 451 - 451

TOTAL NON-CURRENT ASSETS 302,202 5,757 307,959

TOTAL ASSETS 313,949 5,757 319,706

CURRENT LIABILITIES

Payables 7,171 - 7,171

Interest-bearing liabilities 10,794 - 10,794

Current tax liabilities 45 - 45

Provisions 8,622 - 8,622

Other 11,608 - 11,608

TOTAL CURRENT LIABILITIES 38,240 - 38,240

NON-CURRENT LIABILITIES

Interest-bearing liabilities 77,387 - 77,387

Deferred tax liabilities B - 26,430 26,430

Provisions 874 - 874

Other 3,175 - 3,175

TOTAL NON-CURRENT LIABILITIES 81,436 26,430 107,866

TOTAL LIABILITIES 119,676 26,430 146,106

NET ASSETS 194,273 (20,673) 173,600

EQUITY

Retained surplus A 27,561 145,624 173,185

Reserves A 166,297 (166,297) -

TOTAL MEMBERS INTEREST IN EQUITY 193,858 (20,673) 173,185

TOTAL OUTSIDE EQUITY INTEREST 415 - 415

TOTAL EQUITY 194,273 (20,673) 173,600

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d

28 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 29

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d

NOTES TO THE CONCISE FINANCIAL STATEMENTS CONTINUED

8. TRANSITION TO AIFRS (continued)

Balance Sheet reflecting reconciliation of adjustments to AIFRS as at 31 October 2005

Consolidated

Notes AGAAP AIFRS IMPACT AIFRS

$’000 $’000 $’000

CURRENT ASSETS

Cash and cash equivalents 3,150 - 3,150

Trade and other receivables 2,115 - 2,115

Inventories 1,952 - 1,952

Income tax receivable 381 - 381

Other assets 3,160 - 3,160

TOTAL CURRENT ASSETS 10,758 - 10,758

NON-CURRENT ASSETS

Trade and other receivables 3,418 - 3,418

Investments 153 - 153

Property, plant and equipment A 295,585 (4,879) 290,706

Poker Machine Licence C - 789 789

Deferred tax assets - 5,157 5,157

Other assets 444 - 444

TOTAL NON-CURRENT ASSETS 299,600 1,067 300,667

TOTAL ASSETS 310,358 1,067 311,425

CURRENT LIABILITIES

Payables 6,548 - 6,548

Interest-bearing liabilities 12,745 - 12,745

Current tax liabilities 369 - 369

Provisions 2,565 - 2,565

Other 17,488 - 17,488

TOTAL CURRENT LIABILITIES 39,715 - 39,715

NON-CURRENT LIABILITIES

Interest-bearing liabilities 74,069 - 74,069

Deferred tax liabilities B - 24,304 24,304

Provisions 902 - 902

Other 3,122 - 3,122

TOTAL NON-CURRENT LIABILITIES 78,093 24,304 102,397

TOTAL LIABILITIES 117,808 24,304 142,112

NET ASSETS 192,550 (23,237) 169,313

EQUITY

Retained surplus A 21,097 147,939 169,036

Reserves A 171,176 (171,176) -

TOTAL MEMBERS INTEREST IN EQUITY 192,273 (23,237) 169,036

TOTAL OUTSIDE EQUITY INTEREST 277 - 277

TOTAL EQUITY 192,550 (23,237) 169,313

NOTES TO THE CONCISE FINANCIAL STATEMENTS CONTINUED

8. TRANSITION TO AIFRS (continued)

Income Statement reconciliation of adjustments to AIFRS for the year ended 31 October 2005

Consolidated

Notes AGAAP AIFRS IMPACT AIFRS

$’000 $’000 $’000

CONTINUING OPERATIONS

Revenues from continuing operations 167,565 - 167,565

Changes in inventories of finished goods (300) - (300)

Raw materials and consumables used (19,355) - (19,355)

Depreciation and amortisation expenses (15,723) - (15,723)

Finance costs expensed (7,631) - (7,631)

Employee benefit expense (59,579) - (59,579)

Advertising expense (3,893) - (3,893)

Artists and entertainment expenses (3,334) - (3,334)

Computer expenses (881) - (881)

Donations (1,824) - (1,824)

Insurance expense (2,208) - (2,208)

Repairs and maintenance (3,685) - (3,685)

Sponsorship (176) - (176)

Rent and rates (2,258) - (2,258)

Electricity expense (2,449) - (2,449)

Junior development (513) - (513)

Training expense (302) - (302)

Bad and doubtful expense (1,688) - (1,688)

Member promotions and membership expense (3,416) - (3,416)

Other promotions/discounts (3,565) - (3,565)

Other expenses from ordinary activities (13,218) - (13,218)

SURPLUS FROM ORDINARY ACTIVITIES BEFORE STATE TAXES AND INCOME TAX 21,567 - 21,567

Poker machine tax (26,958) - (26,958)

Payroll related taxes (3,666) - (3,666)

Land tax (568) - (568)

SURPLUS (DEFICIT) FROM CONTINUING OPERATIONS BEFORE INCOME TAX (9,625) - (9,625)

Income Tax (387) 2,315 1,928

SURPLUS (DEFICIT) FROM CONTINUING OPERATIONS BEFORE INCOME TAX (10,012) 2,315 (7,697)

Discontinued operations

Surplus after tax from discontinued operations 3,440 - 3,440

NET SURPLUS (DEFICIT) (6,572) 2,315 (4,257)

Net deficit attributable to minority interest 108 - 108

Net deficit attributable to members of Penrith Rugby League Club Limited (6,464) 2,315 (4,149)

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d

30 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 31

Pe n r i t h R u g b y L e a g u e C l u b L i m i t e d INDEPENDENT AUDIT REPORT TO MEMBERS OF PENRITH RUGBY LEAGUE CLUB LIMITEDNOTES TO THE CONCISE FINANCIAL STATEMENTS CONTINUED

8. TRANSITION TO AIFRS (continued)

Impacts of adoption of AIFRS

The impacts of adopting AIFRS on the total equity and profit after tax as reported under Australian Accounting Standards applicable before 1 January 2005 (AGAAP) are illustrated below.

A. Property, plant & equipment

Under AASB 116, the Group elected to carry property, plant and equipment at deemed cost. Therefore, any revaluations to property, plant and equipment from date of transition to AIFRS to 31 October 2005 must be reversed. In addition the balance of the revaluation reserve at transition is transferred to retained earnings.

B. Income Tax

AASB 112 Income Taxes requires the balance sheet method to be used, which recognises deferred tax balances when there is a difference between the carrying value of an asset or liability and its tax base. As a result of the above adjustments, the deferred tax liabilities and deferred tax assets are recognised as shown.

C. Intangible Assets

AIFRS requires the fair value of an intangible asset acquired by a not for profit entity outside of a pre AIFRS transition business combination for no cost or nominal cost to be recognised at the asset’s fair value at the date of grant. As a result of the above, poker machine licences have been recognised as shown and results in an increase to total equity.

SCOPE

The concise financial report and directors’ responsibility

The concise financial report comprises the balance sheet, income statement, cash flow statement, statement of changes in equity and accompanying notes to the financial statements for the consolidated entity for the year ended 31 October 2006. The consolidated entity comprises both Penrith Rugby League Club Limited (the company) and the entities it controlled during the year.

The directors of the company are responsible for preparing a concise financial report that complies with Accounting Standard AASB 1039 Concise Financial Reports, in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the concise financial report.

Audit approach

We conducted an independent audit on the concise financial report in order to express an opinion to the members of the company. Our audit was conducted in accordance with Australian Auditing Standards in order to provide reasonable assurance as to whether the concise financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.

We performed procedures to assess whether in all material respects the concise financial report is presented fairly in accordance with Accounting Standard AASB 1039 Concise Financial Reports.

We formed our audit opinion on the basis of these procedures, which included:

• Examining, on a test basis, the information to provide evidence supporting that the amounts and disclosures in the concise financial report are consistent with the full financial report; and

• Examining, on a test basis, information to provide evidence supporting the amounts, discussion and analysis, and other disclosures in the concise

financial report that were not directly derived from the full financial report.

We have also performed an independent audit of the full financial report of the company and the consolidated entity for the year ended 31 October 2006. Our audit report on the full financial report was signed on 29 January 2007, and was not subject to any qualification. For a better understanding of our approach to the audit of the full financial report, this report should be read in conjunction with our audit report on the full financial report.

INDEPENDENCE

We are independent of the company and the consolidated entity and have met the independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001. We have given to the directors of the company a written Auditor’s Independence Declaration, signed on 29 January 2007 a copy of which is included in the Directors’ Report. In addition to our audit of the full and concise financial reports, we were engaged to undertake the services disclosed in the notes to the financial statements of the full financial report. The provision of these services has not impaired our independence.

AUDIT OPINION

In our opinion the concise financial report of Penrith Rugby League Club Limited complies with Accounting Standard AASB 1039 “Concise Financial Reports”.

Ernst & Young

James PalmerPartnerSydney29 January 2007

Liability limited by a scheme approved under Professional Standards Legislation.

Pen r i t h D i s t r i c t Ru gby L ea gu e Fo o t ba l l C l u b L i m i t e d

32 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 33

Pen r i t h D i s t r i c t Ru gby L ea gu e Fo o t ba l l C l u b L i m i t e d

Concise Financial Reportfor the year ended 31 October 2006

CONTENTS

Important Information about this 32 Concise Report

Directors’ Report 32

Income Statement 35

Balance Sheet 36

Cash Flow Statement 37

Statement of Changes in Equity 38

Notes to the Financial Statements 38

Independent Audit Report 41

IMPORTANT INFORMATION ABOUT THIS CONCISE REPORT

IMPORTANT INFORMATION FOR MEMBERS

The Director’s Report, Concise Financial Report and Auditor’s Statement contained within this document represent a Concise Report.

The full Financial Report of Penrith District Rugby League Football Club Limited for the year ended 31 October 2006 and the Auditor’s Report thereon will be sent, free of charge, to members upon request. Members can access the full Financial Report and Auditors Report by visiting Panthers website www.panthers.com.au

The Concise Financial Report contained within this document has been derived from the full Financial Report of Penrith District Rugby League Football Club Limited for the year ended 31 October 2006 and cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the economic entity as the full Financial Report.

DIRECTORS’ REPORT

Your directors submit their report for the year ended 31 October 2006.

DIRECTORS

All directors are current members of Penrith District Rugby League Football Club Limited (“Football Club”) and were in office for this entire period unless otherwise stated. The names and details of the directors of the Football Club in office during the financial year and until the date of this report are as follows:

Names Qualifications

Walsh, Barry (Chairman)

Press Room Manager John Fairfax, until retirement. Director for 24 years, Football Director for 33 years. Director of Camden Valley Golf Resort, and Co-Chairman St Mary’s Penrith Cougars. Chairman of Panthers on the Prowl. Member of Donations Committee. Life Member.

Heidtmann, Terence (Senior Deputy Chairman)

Managing Director, Professionals Real Estate Penrith, Licensed Real Estate Agent. Director for 23 years, Member of the Audit Committee. Life member.

Feltis, Donald (Deputy Chairman)

Chief Executive of Penrith and Districts Junior Rugby League. Life member of junior league. Life member of Panthers. Retired police inspector. Life member Police Association. Director since 2002. Member of Remuneration Committee.

Alexander, Gregory

Sports Commentator for 2UE and Foxtel. Director for 5 years.

Bentley, Colin MBA, Graduate Diploma in Management. Sales Executive – IGT (Aust) Pty Limited, part-time lecturer at University and TAFE. Director for

Chapman, Gregory

National Distribution Manager – HLW Pty Limited (Liquor wholesale company). Director for 5 years. Member of Board Audit Committee.

Hiatt, John Director since 2003, Member of the Remuneration Committee, Member of the Donations Committee. Solicitor Diploma Criminology Sydney University. Retired Magistrate. Director of Hawkesbury Race Club since 1988 and member of the Racing Appeals Tribunal since 1996.

Lowe, Kerry Fleet Manager, Paul Wakeling Holden, Camden. Director for 5 years. Penrith delegate, Director of Camden Valley Golf Resort and Narellan Properties. Member of the Remuneration Committee.

Rhind, Keith District Football Committee 1968-1969, Director 1969 to 1971, Director 1978 to 2006. Held Executive positions for 25 years including Chairman 1983. Patron of Penrith and Districts Junior Rugby League. Retired Insurance Consultant. Life Member.

PRINCIPAL ACTIVITY

The principal activities of the Football Club during the year were:

• promotion of the game of rugby league football;

• provision of facilities for sport and recreation;

• sponsorship activities; and

• advertising and promotional activities.

RESULT AND DIVIDENDS

The net surplus of the Football Club for the year was $21,974,000 (2005: $4,365,000). No dividend was declared or paid during the year.

EMPLOYEES

The Football Club employed 191 employees as at 31 October 2006 (2005: 186).

REVIEW OF OPERATIONS

Revenue from ordinary activities for the year was $33,800,000 which is an increase of $18,383,000 or 119.2% (2005: decrease of 3.5%) on the 2005 revenue from ordinary activities of $15,417,000. This was mainly due to the receipt of a federal government grant of $10,000,000 and an increase in trust income of $8,091,000 to $14,401,000 in 2006 from $6,310,000 in 2005. The increase in trust income is mainly attributable to an increase in the surplus income of the trust related primarily to the disposal of several of its properties.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

The football stadium extension, financed by the federal grant fund of $10,000,000, was completed during the course of the 2006 financial year.

Other than the above no further significant changes in the state of affairs occurred during the year.

SIGNIFICANT EVENTS AFTER BALANCE DATE

There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material or unusual nature likely, in the opinion of the directors of the Football Club to affect significantly the operations of the Football Club,

the results of those operations, or the state of affairs of the Football Club, in future financial years.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS

The directors foresee that in the 2007 financial year:

• The Football Club will continue with funding from the National Rugby League (NRL) and distributions from commonly controlled entities;

• The stadium lease will expire and the Directors expect to renegotiate a long term lease during the course of the 2007 financial year.

ENVIRONMENTAL REGULATION AND PERFORMANCE

The Football Club is not subject to any particular or significant environmental regulation.

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

During the financial year, the parent entity, Penrith Rugby League Club Limited, held an insurance policy for the benefit of the directors and officers. In accordance with commercial practice, the insurance policy prohibits disclosure of the terms of the policy, including the nature of the liability insured against and the amount of the premium.

DIRECTORS’ MEETINGS

Directors’ Meetings

Number of meetings held: 12

Number of meetings attended:

B Walsh 12

T F Heidtmann 11

D Feltis 11

G P Alexander 7

C D Bentley 7

G W Chapman 11

J Hiatt 10

K J Lowe 12

K L Rhind 11

DIRECTORS BENEFITS

The directors received no benefits during the year. They were reimbursed for expenses incurred in relation to the management of the Football Club.

Pen r i t h D i s t r i c t Ru gby L ea gu e Fo o t ba l l C l u b L i m i t e d

34 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 35

Pen r i t h D i s t r i c t Ru gby L ea gu e Fo o t ba l l C l u b L i m i t e d

ROUNDING

The amounts contained in this report and in the financial statements have been rounded to the nearest $1,000 (where rounding is applicable) under the option available to the company under ASIC Class Order 98/0100. The company is an entity to which the Class Order applies.

AUDITORS INDEPENDENCE AND NON AUDIT SERVICES

The directors have received a declaration of independence from the auditor and this is attached. The directors are satisfied that the nature and scope of non audit services has not compromised the auditor’s independence.

Signed in accordance with a resolution of the directors.

B Walsh

DirectorPenrith, 29 January 2007

DIRECTOR’S REPORT CONTINUED

AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS OF PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED

In relation to our audit of the financial report of Penrith District Rugby League Football Club Limited for the year ended 31 October 2006, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

Ernst & Young

James Palmer

PartnerSydney29 January 2007

INCOME STATEMENT for the year ended 31 October 2006

DISCUSSION AND ANALYSIS – INCOME STATEMENT

TRENDS IN REVENUES ARISING FROM

OPERATIONS

Total revenue increased by 119.2% (2005: decrease of 3.5%) or $18,383,000 to $33,800,000 in 2006 from $15,417,000 in 2005. This mainly related to:

• The receipt of a federal government grant to extend the football stadium of $10,000,000;

• An increase in distribution from a related party, Mulgoa Road Land Trust (No 1), of $8,091,000 to $14,401,000 in 2006 from $6,310,000 in 2005. The increased distribution from Mulgoa Road Land Trust (No 1) was made possible, as that entity received additional proceeds from the disposal of certain of its properties which also resulted in a significant reduction in its borrowing costs for the financial year.

MAIN INFLUENCES ON COSTS OF OPERATION

The costs of operations have increased by 7% to $11,826,000 in 2006 from $11,052,000 in 2005. This mainly related to:

• Other expenses increased by $337,000 to $1,247,000 in 2006 from $910,000 in 2005. The increase was associated with an increase in traineeship programme costs and relocation

expenses to ensure we were more competitive in signing up players, as well as an increase in Player Presentation nights costs which included the 40th Anniversary Tribute dinner as well as the Chairman’s Club function costs for the first time this financial year.

• Sponsorship costs increased by $249,000 to $425,000 in 2006 from $176,000 in 2005. The increase related to the initial production costs associated with the scrolling signage installed at the football stadium at the beginning of the 2006 season as well as the increased servicing costs related to the sponsorship revenue of $3,136,000 (2005: $2,780,000).

• Salary costs increased by $138,000 or 2% to $6,756,000 in 2006 from $6,618,000 in 2005.

Notes 2006 2005

$’000 $’000

REVENUE/INCOME FROM ORDINARY ACTIVITIES 2 33,800 15,417

Advertising and promotion (1,044) (1,032)

Artists and entertainment expense (265) (226)

Bad and doubtful debts (39) (342)

Insurance expense (71) (65)

Raw materials and consumables used (359) (396)

Rent and rates expense (218) (323)

Repairs and maintenance expense (191) (149)

Sponsorship expense (425) (176)

Salaries and employee benefit expense (6,756) (6,618)

Training expense (435) (302)

Junior development (776) (513)

Other expenses (1,247) (910)

SURPLUS BEFORE INCOME TAX 21,974 4,365

INCOME TAX EXPENSE - -

NET SURPLUS FROM OPERATIONS AFTER INCOME TAX 21,974 4,365

Liability limited by a scheme approved under Professional Standards Legislation.

Pen r i t h D i s t r i c t Ru gby L ea gu e Fo o t ba l l C l u b L i m i t e d

36 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 37

Pen r i t h D i s t r i c t Ru gby L ea gu e Fo o t ba l l C l u b L i m i t e d DISCUSSION AND ANALYSIS – INCOME STATEMENT CONTINUED

MEASURES OF INCOME STATEMENT

Summarised operating results are as follows:

2006 2005

Result Revenue Result Revenue

$’000 $’000 $’000 $’000

Rugby League 7,573 19,399 (1,945) 9,107

Distribution from related party 14,401 14,401 6,310 6,310

21,974 33,800 4,365 15,417

BALANCE SHEET as at 31 October 2006

Consolidated

2006 2005

Notes $’000 $’000

CURRENT ASSETS

Cash and cash equivalents 32 -

Trade and other receivables 516 463

Inventories 13 -

Prepayments 39 12

TOTAL CURRENT ASSETS 600 475

NON-CURRENT ASSETS

Other receivables 76,406 62,006

Property, plant and equipment 10,104 629

TOTAL NON-CURRENT ASSETS 86,510 62,635

TOTAL ASSETS 87,110 63,110

CURRENT LIABILITIES

Other payables 397 388

Provisions 55 81

Deferred revenue 62 370

TOTAL CURRENT LIABILITIES 514 839

NON-CURRENT LIABILITIES

Other Payables 14,878 12,531

Provisions 32 28

TOTAL NON-CURRENT LIABILITIES 14,910 12,559

TOTAL LIABILITIES 15,424 13,398

NET ASSETS 71,686 49,712

EQUITY

Retained earnings 71,686 49,712

TOTAL EQUITY 71,686 49,712

DISCUSSION AND ANALYSIS – BALANCE SHEET

CHANGES IN THE COMPOSITION OF ASSETS

Total assets increased by $24,000,000 (2005: $6,193,000) due mainly to:

• An increase in receivables of $14,400,000 being the distribution from Mulgoa Road Land Trust (No 1), a related entity;

• An increase in property plant and equipment of $9,475,000 related to the extension of the football stadium.

THE RELATIONSHIP BETWEEN DEBT AND EQUITY

Total debt increased by $2,026,000 (2005: $1,828,000) from $13,398,000 in 2005 to $15,424,000 in 2006. These borrowings are primarily from Penrith Rugby League Club Limited, a related entity.

Total debt represents 17.7% (2005: 21.2%) of total assets.

CASH FLOW STATEMENT for the year ended 31 October 2006

Consolidated

2006 2005

$’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 9,314 9,646

Receipts of government grants 10,000 -

Payments to suppliers and employees (12,092) (10,960)

NET CASH FLOWS FROM/(USED) IN OPERATING ACTIVITIES 7,222 (1,314)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (9,537) (629)

NET CASH FLOWS USED IN INVESTING ACTIVITIES (9,537) (629)

CASH FLOWS FROM FINANCING ACTIVITIES

Advances from related parties 2,347 1,943

NET CASH FLOWS FROM FINANCING ACTIVITIES 2,347 1,943

NET INCREASE IN CASH HELD 32 -

Add opening cash brought forward - -

CLOSING CASH CARRIED FORWARD 32 -

DISCUSSION AND ANALYSIS – CASH FLOW STATEMENT

CHANGES IN CASH FLOWS FROM OPERATIONS

Net cash flows from operating activities increased by $8,536,000 to a net cash inflow in 2006 of $7,222,000 from a net cash outflow in 2005 of $1,314,000. The increase was mainly due to the receipt of a federal government grant to extend the football stadium of $10,000,000, offset by a net outflow of funds of $2,778,000 (2005: $1,314,000) required to fund the operations of the entity.

FINANCING OF CAPITAL EXPENDITURE PROGRAMS

The capital expenditure program to extend the football stadium was financed by the receipt of a federal government grant.

Pen r i t h D i s t r i c t Ru gby L ea gu e Fo o t ba l l C l u b L i m i t e d

38 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 39

Pen r i t h D i s t r i c t Ru gby L ea gu e Fo o t ba l l C l u b L i m i t e d STATEMENT OF CHANGES IN EQUITY for the year ended 31 October 2006 NOTES TO THE FINANCIAL STATEMENTS continued

Retained Earnings

Total Equity

$’000 $’000

1 November 2004 45,347 45,347

Surplus for the year 4,365 4,365

At 31 October 2005 49,712 49,712

Surplus for the year 21,974 21,974

At 31 October 2006 71,686 71,686

1. BASIS OF PREPARATION OF THE CONCISE FINANCIAL REPORT (continued)

Statement of Compliance (continued)

AASB Amendment

Affected Standard(s) Nature of change to accounting policy

Application date of standard*

Application date for Company

2005-1 AASB 139: Financial Instruments: Recognition and Measurement

No change to accounting policy required. Therefore no impact.

1 January 2006 1 November 2006

2005-5 AASB 1: First-time adoption of AIFRS, AASB 139: Financial Instruments: Recognition and Measurement

No change to accounting policy required. Therefore no impact.

1 January 2006 1 November 2006

2005-10 AASB 132: Financial Instruments: Disclosure and Presentation, AASB 101: Presentation of Financial Statements, AASB 114: Segment Reporting, AASB 117: Leases, AASB 139: Financial Instruments: Recognition and Measurement, AASB 1: First-time adoption of AIFRS.

No change to accounting policy required. Therefore no impact.

1 January 2007 1 November 2007

New standard AASB 7 Financial Instruments: Disclosures

No change to accounting policy required. Therefore no impact.

1 January 2007 1 November 2007

AASB 2005-10

Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023, AASB 1038]

AASB 7 is a disclosure standard so will have no direct impact on the amounts. However, the amendments will result in changes to the financial instrument disclosures included in financial report.

1 January 2007 1 November 2007

* Application date is for the annual reporting periods beginning on or after the date shown in the above table

Impact of Adoption AIFRS

There are no material differences between the financial statements presented under AIFRS and the financial statements presented under previous AGAAP.

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 October 2006

1. BASIS OF PREPARATION OF THE CONCISE FINANCIAL REPORT

The Concise Financial Report has been prepared in accordance with the requirements of the Corporations Act 2001 and Accounting Standard AASB 1039 ‘Concise Financial Reports’.

Going Concern Basis of Accounting

The financial report has been prepared on the going concern basis. The Football Club is reliant on the continued financial support of its Parent entity, Penrith Rugby League Club Limited (“PRLC”). At balance date, PRLC had total current assets of $8,949,000 and total current liabilities of $89,737,000. Loan facilities with PRLC’s main financier Westpac Banking Corporation (“Westpac”) expire on 1 November 2007. The ability of PRLC to pay its debts as and when they fall due is dependent on the ongoing support of PRLC’s financiers or the replacement of those loan facilities with equivalent or greater facilities from an alternate financier. Consequently, PRLC’s continued financial support of the Football Club is also dependant on the ongoing support of PRLC’s financiers or the replacement of those loan facilities with equivalent or greater facilities from an alternate financier.

The directors of the Football Club – all of whom are also directors of PRLC – are confident that adequate loan facilities will be in place to refinance PRLC’s borrowings. As a result the directors believe that PRLC will be able to continue to financially support the Football Club and that the adoption of the going concern basis is justified.

Should this position change the Football Club may not be able to pay its debts as and when they fall due and may be required to realise assets and extinguish liabilities other than in the normal course of business and at amounts different from those stated in the financial statements. The financial statements do not include any adjustment relating to the recoverability and classification of recorded asset amounts or to the amount and

classification of liabilities that might be necessary should the Football Club not continue as a going concern.

Statement of Compliance

The financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS).

This is the first financial report prepared based on AIFRS and comparatives for the year ended 31 October 2005 have been restated accordingly except for the adoption of AASB132 Financial Instruments: Disclosure and Presentation and AASB 139 Financial Instruments: Recognition and Measurement. The company has adopted the exemption under AASB 1 First-time Adoption of Australian equivalents to International Financial Reporting Standards from having to apply AASB 132 and AASB 139 to the comparative period.

Except for the revised AASB 119 Employee Benefits (issued December 2005), Australian Accounting Standards that have recently been issued or amended but are not yet effective have not been adopted for the annual reporting period ended 31 October 2006:

Pen r i t h D i s t r i c t Ru gby L ea gu e Fo o t ba l l C l u b L i m i t e d

40 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 41

Pen r i t h D i s t r i c t Ru gby L ea gu e Fo o t ba l l C l u b L i m i t e d

SCOPE

The concise financial report and directors’ responsibility

The concise financial report comprises the balance sheet, income statement, cash flow statement, statement of changes in equity and accompanying notes to the financial statements, for Penrith District Rugby League Football Club Limited (the company) for the year ended 31 October 2006.

The directors of the company are responsible for preparing a concise financial report that complies with Accounting Standard AASB 1039 Concise Financial Reports, in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the concise financial report.

Audit approach

We conducted an independent audit on the concise financial report in order to express an opinion to the members of the company. Our audit was conducted in accordance with Australian Auditing Standards in order to provide reasonable assurance as to whether the concise financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.

We performed procedures to assess whether in all material respects the concise financial report is presented fairly in accordance with Accounting Standard AASB 1039 Concise Financial Reports.

We formed our audit opinion on the basis of these procedures, which included:

• Examining, on a test basis, information to provide evidence supporting that the amounts and disclosures in the concise financial report are consistent with the full financial report; and

• Examining, on a test basis, information to provide evidence supporting the amounts, discussion and analysis, and other disclosures in the concise financial report that were not directly derived from the full financial report.

We have also performed an independent audit of the full financial report of the company for the year ended 31 October 2006. Our audit report on the full financial report was signed on 29 January 2007, and was not subject to any qualification. For a better understanding of our approach to the audit of the full financial report, this report should be read in conjunction with our audit report on the full financial report.

INDEPENDENCE

We are independent of the company, and have met the independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001. We have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is included in the Directors’ Report. In addition to our audit of the full and concise financial reports, we were engaged to undertake the services disclosed in the notes to the financial statements of the full financial report. The provision of these services has not impaired our independence.

AUDIT OPINION

In our opinion the concise financial report of Penrith District Rugby League Football Club Limited complies with Accounting Standard AASB 1039 “Concise Financial Reports”.

Ernst & Young

James PalmerPartnerSydney29 January 2007

NOTES TO THE FINANCIAL STATEMENTS continued

for the year ended 31 October 2006

2006 2005

$’000 $’000

2. REVENUE/INCOME FROM ORDINARY ACTIVITIES

Revenues from operating activities

Revenue from sponsorship 3,136 2,780

Revenue from advertising and promotion 822 810

Revenue from catering and beverages 813 990

Revenue from gate receipts 1,181 1,438

Revenue from merchandise sales 320 200

NRL grant 2,750 2,575

9,022 8,793

Other income

Trust income

- other related parties (a) 14,401 6,310

Federal government grant 10,000 -

Other revenue 377 314

24,778 6,624

Total revenue/income 33,800 15,417

(a) Mulgoa Land Trust (No 1) This trust owns land and buildings occupied by the Penrith Rugby League Club Limited and derives its income from rents. Each year the trust distributes its income to the discretionary beneficiary which is Penrith District Rugby League Football Club Limited. Distribution made to Penrith District Rugby League Football Club Limited for the year ended 31 October 2006 was $14,401,000 (2005: $6,310,000).

3. SEGMENT INFORMATION

The entity is predominantly involved in the promotion of the game of rugby league football and the provision of facilities for sport and recreation in Australia.

4. SUBSEQUENT EVENTS

There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material or unusual nature likely, in the opinion of the directors of the Football Club to affect significantly the operations of the Football Club, the results of those operations, or the state of affairs of the Football Club, in future financial years.

5. ECONOMIC DEPENDENCY

The Football Club is dependent on continued funding from the NRL and continued distributions from related parties. The Football Club has a liability of $14,878,000 due to its parent, PRLC. PRLC has undertaken neither to call on this loan to the Football Club in the next twelve months nor to call on it in such a way that any other

non-related party creditor is left unpaid. However, as disclosed in Note 1, at balance date, PRLC had total current assets of $8,949,000 and total current liabilities of $89,737,000. Loan facilities with PRLC’s main financier Westpac Banking Corporation (“Westpac”) expire on 1 November 2007. The ability of PRLC to pay its debts as and when they fall due is dependent on the ongoing support of PRLC’s financiers or the replacement of those loan facilities with equivalent or greater facilities from an alternate financier. Consequently, PRLC’s continued financial support of the Football Club is also dependant on the ongoing support of PRLC’s financiers or the replacement of those loan facilities with equivalent or greater facilities from an alternate financier.

The directors of the Football Club, all of whom are also directors of PRLC, are confident that adequate loan facilities will be in place to refinance PRLC’s borrowings. As a result the directors believe that PRLC will be able to continue to financially support the Football Club.

INDEPENDENT AUDIT REPORT TO MEMBERS OF PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED

Liability limited by a scheme approved under Professional Standards Legislation.

75th Anniversary Wallacia Panthers

Sponsors 2006MAJOR SPONSORSANYO

STADIUM NAMING RIGHTSCredit Union Australia Limited

SLEEVE SPONSORParkview

SHORT SPONSORFlexirent

CORPORATE SPONSORSCoca-ColaTooheys Limited

APPAREL SPONSORISC

MAJOR SPONSOR JUNIOR LEAGUE REPRESENTATIVE SQUADSCABE

EXECUTIVE SPONSORSAussie Bodies Pty LtdPenrith Press

ASSOCIATE SPONSORSAnare AmusementsBlue Mountains Bus CoCarmax Quality Used CarsConcept Sports InternationalElastoplast SportJacob’s CreekNepean RadiologyStephensons Food ServicesTelstra Country WideTony Ferguson Weightloss Centre

PANTHERS ON THE PROWL SPONSORCABE

ON-FIELD TRAINERS SPONSORPenrith Toyota

GOLD SPONSORSApollo Fire ServicesAWE – SIMBernipave Pty LtdBrooksBundaberg RumCains GlassCrockers Deno’s CranesExceptional Electrical ServicesHawkesbury Race ClubHi-Craft Home ImprovementsJohnsonDiverseyKonami Australia Pty LtdLineBreakM & J ChickensPowerade Nepean Boltmaster

Penrith Mower CenterPenrith Timber & HardwareRaine & Horne Commercial PenrithSalgo Sinclair FordSinclair HyundaiStowe AustraliaSweeties ConfectioneryThomas Marsden Advertising

SILVER SPONSORSA Good Time / Penrith Light & SoundAl Palmer Repairs PenrithAm Coil (Aust) Pty LtdAt Home PenrithAussie Banner & FlagAuto One – ScottsBateman Battersby LawyersBing Lee PenrithBlue Mountains GazetteChippy’s Food DistributorsCreative Balloons & Kingswood Florist Eastcoast BeveragesElite PlumbingFreedom PenrithFreedom Taxation ServicesHarvey World Travel - PenrithHeartland Holden PenrithK & S RoofingKlenall Industrial SuppliersMark Gresham Sign CorporationOkay Electronic SolutionsPenrith Mazda CentreP F ConcretePremier Fire ProtectionProfessionals Real Estate PenrithReady RoofingRichard Eastmead The Good GuysS & N Colour Trends PaintersSilver Spur Steak Ranch Sita Environmental SolutionsSouth Penrith Sand & SoilStreets Ice CreamThe Smith’s Snackfood CompanyTrade SecretTress SecurityWizard Homeloans Penrith & St Marys

BRONZE SPONSORS A1 Antennas PenrithA B Equipment Pty LtdAlam Electrics ServicesARCS Building MaintenanceArtex SamplemakersBerger Piepers Chartered AccountantsBetta Electrical MinchinburyBHB PrintingBirds SmallgoodsCare Logistics Pty Ltd

Casablanca Video ProductionsDavlyn Electrical Services Enhanced PrintingGlenmore Park Town CentreGranite TransformationsHawkesbury RefrigerationHerrmann TilesHertz PenrithJodana Video ProductionsKookaburra Hot WaterLahood Bros The Fresh Food SpecialistsMaster Coaching PenrithMerilux Paint & Paper - PenrithMichael Hill Jeweller PenrithMurrays Sandwich ShopPanther Removals & StoragePCS AustraliaPenrith Lock-Up Storage UnitsPenrith Valley GlassPhilway ConstructionsPowerdrive (NSW) Pty LtdPro-Frame Design Pty Ltd Quad Services Pty LtdRiverstone Frame & TrussRomwood Pty LtdRoss Fowler & Co Chartered AccountantsS & N Lewis LandscapesShades Painting & DecoratingSPIRIT Computer ServicesSt Peters Post OfficeStonehill StonemasonsStreamline EnterprisesSydney LightingWarehouse By DesignWicked Ink Tattoo & Body Piercing StudioWild Ride Harley ToursWindsor Town Centre

BUSINESS SPONSORSA & F Linemarking SpecialistsAdler Sheet Metal Advanced Waste ServicesAll On ElectricalAltac Air Conditioning Pty LtdAnnlyn Motors VOLVOATS All Trades and ServicesAuto West PaintsBlaxland BicyclesBlue Mountains Motor WreckersBroadwalk Dental ServicesBromac Arbor CareContours Express PenrithCool-Zone Air Conditioning Doug Hall Denture ClinicElegant Function AccessoriesEmu Car CareExcite SignsFairfield – Nepean Mini Bus HireFrenchams Indoor Plant Hire

G & T Guttering and FasciaGlenmore Park Preschool GT WeddingsHewlett EquipmentIcons of SportInstyle CateringIt’s & Bits Craft SuppliesJamie Star Remedial MassageJim Aitken & Partners Real EstateJim’s Tranquility PoolsJukebox Hire Pty LtdKen Spears Truck RepairsKids Academy PenrithKingswood Pre-SchoolKwik Kopy PrintingLJ Hooker Commercial PenrithMal’s Mini BusMarks Auto Repairs Pty LtdMaxishine Carwash St Marys & WerringtonMcCalls Electrical Services MetalMax Pty LtdOutwest LocksmithsP&C Engraving and Signage Pty LtdPanther GlassPeachies Carpet CleaningPenrith Auto Recovery ServicePenrith Party HirePenrith SignsPMP DigitalPotter AutomotivePrestige Mortgages PenrithRAVE ON Promotional ProductsRocco’s Performance Engine & PartsSA Leitch Mobile WeldingS & D Alarm ServiceSchubachs NewsagencySouth Penrith Veterinary ClinicSouthern Steel Cash & Carry Pty LtdSt Clair Concreting Pty LtdStop-N-Fill RegentvilleTaylor PrintTeejay Performance Engine SpecialistThe Lindenvel Group Pty LtdUltra LinemarkingWerrington County Newsagency Westaflex (AUST)Westcut Concrete IndustriesWilson Auto ElectricsWindsor Motors Smash Repairs Pty LtdYork Road AutomaticsZig Zags Pre-School Long Day Care Centre

42 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 43

Left: First club bulding opening 17-5-57.

Below: The club house built in 1961.

Below: The club house built in 1973.

Below: The Cardiff club in 2007.

This year marks the 50th Anniversary of Cardiff Panthers. The club was established on 17 May 1957 as Cardiff District Workers’ Club. At over 16,500 members strong, Cardiff Panthers will celebrate its 50th Anniversary in May and June 2007 with two entire months of special events.

Two of the events will be of most significance. These include a Tooheys promotion where members have the chance to win a Harley Davdison or Holiday of their choice. Entries will open on 6 May and the major prize draw will be on Tuesday 26 June.

There will also be a free invite only Saturday matinee concert for members on Saturday 23 June as well as a VIP Luncheon for local dignitaries.

For further details of the 50th Celebrations contact the club on (02) 4979 1900 or visit www.panthers.com.au

Cardiff Panthers – Munibung Road, Cardiff NSW 2285

This year marks the 75th Anniversary of Wallacia Panthers Golf & Country Club. The first constitution of the club was adopted on 11 November 1932. The club was officially opened on 18 March 1933 and the first championship was held on 9 May 1933.

Wallacia won the number one club in the Nepean District for 2006, and boasts the number one player for 2006 – Board Member Mick Albee.

Wallacia Panthers will celebrate its 75th Anniversary from Monday 10 September – Sunday 16 September, 2007. Each day will feature a different event!

Monday 10 September Ladies Open Invitational + Members Individual Stableford

Tuesday 11 September Open Medley 2BBB Stableford + Individual Stableford

Wednesday 12 September Senior Pro Am

Thursday 13 September Open Medley Veterans & Super Veterans 2BBB Stableford + Individual

Friday 14 September Sponsors Novelty 2BBB Stroke

Saturday 15 September Open Medley 4 Person Ambrose & Official Dinner

Sunday 16 September Open Medley 4 Person Irish Stableford + Individual Stableford & Farewell BBQ

For further details of the 75th Celebrations contact the club on (02) 4773 8417 or visit www.panthers.com.au Bookings can be made by calling Wallacia Panthers Pro Shop on (02) 4773 8835.

Wallacia Panthers – 13 Park Road, Wallacia NSW 2745

RHYS WESSER 1998-current 141 games 102 tries 1 goal 410 points

Like lightening. Rhys holds the record for the most number of tries for the Panthers and his strike rate is exceptional. He is one of the most brilliant attacking players in the game today.

BOB LANDERS 1967-70 69 games 18 tries 187 goals 428 points

In Panthers first 4 seasons we scored 1188 points – Landers contributed close to half that tally through accurate goal-kicking and getting across the try-line.

GRAHAME MORAN 1967-74 121 games 25 tries 4 goals 83 points

A classic centre/five-eighth, deceptive and athletic, Moran became the first Panther to represent NSW. He was also the first player to play 100 games for the Panthers.

RYAN GIRDLER 1993-04204 games 101 tries 581 goals 6 f/g 1572 points

The Intercept King! He had a talent for anticipating and taking the intercept but his talents did not stop there. He was a deceptive runner, could get a ball away from seemingly impossible spots, and his goal kicking was exceptional.

GREG ALEXANDER 1984-94; 97-99 227 games 101 tries 343 goals 14 f/g 1104 pts

Dally M Rookie of the Year in 84, Player of the Year in 85. Our first home-grown test player. There is not enough space to devote to Greg’s accomplishments and talents. Let’s just assign him Five Stars.

TERRY GEARY 1970-7693 games 5 tries 15 points

“Dollar” was a much loved character in the club – but he drove the opposition to distraction. He was arguably one of the toughest props to take the field at Penrith Park. Stevo rated him as the best forward he played with.

TONY PULETUA 1997-current167 games 32 tries 126 points

Tony is a tower of strength, a regal leader whose style is to lead by example – to show not tell. Tony is a local junior who rampages at the defence and then can deftly slip the ball to a teammate.

BRAD IZZARD 1982-92 209 games 73 tries 283 points

A burly centre/five-eighth whose lasting talent is aptly shown that he played his first State of Origin game in 1982 and his last one 1991. Brad has the distinction of scoring a try in our 1991 Grand Final victory.

MARK GEYER 1987-92; 98-00 133 games 9 tries 36 points

MG was – and still is – a daunting and larger than life character. He put some steel into the team – but his ball play showed artistry that belied his size and demeanour.

CRAIG GOWER 1996-current214 games 54 tries 4 goals 5 f/g 227 points

Pound for pound one of the toughest and strongest players ever to run onto a Rugby League ground. Craig’s utility is one of his great strengths but in his specialist positions of half or hooker, he is right up there with the best in the game.

ALAN MCINDOE 1989-9037 games 26 tries 104 points

Alan’s try-scoring strike was impressive – 26 tries in only 37 games. He was a terrific winger whose contribution helped us reach our first Grand Final.

BRAD FITTLER 1989-95119 games 31 tries 5 goals 2 f /g 136 points

Our first home grown Test Captain, Freddie was also the first player to play for the Australian Schoolboys and the Australian Test Team in consecutive years. His feats are as well known as his trademark step.

ROYCE SIMMONS 1980-91 233 games 15 tries 1 goal 3 f/g 61 points

His last career game tells much of the story - a 2 try effort in the first Grand Final win for the club. He fought against the odds just to be in the game, is the only forward ever to get a double in a GF. That alone is the stuff of legends...and he competed hard in 232 games before that!

TIM SHEENS 1970-82166 games 11 tries 33 points

Tim’s contribution to our Club and our Game as a coach and administrator often overshadows his magnificent efforts on the field. Tim was the first player to play 150 games for the Panthers and was the most-capped Panther for many many years. Tim was Dally M Coach of the Year in 1985.

JOHN CARTWRIGHT 1985-96 184 games 14 tries 56 points

Impossible round-the-corner passes were delivered with ease by Carty. An enormously talented running forward with great ball skills and a name synonymous with Rugby League in the Penrith District.

BILL ASHURST 1974-76 46 games 19 tries 51 goals 6 f/g 165 points

One of the most prodigious football talents to don a Rugby League jersey, Bill could turn a game in an instant. There was nothing that Bill could not do ... except, perhaps, train hard. If Bill fancied the prize on offer for the TV Man of the Match he would simply go out and win it.

COLIN VAN DER VOORT 1987-97112 games 7 tries 28 points

If the Panthers had a player that could be tagged Mr Perpetual Motion it would be Col. He was a consistent, constantly moving lock with an enormous work rate. He was desperately unlucky that injury prevented him taking his rightful place on the 1991 Kangaroo Tour.

44 Panthers Entertainment Group Annual Report 2005-06 www.panthers.com.au 45

1. Rhys Wesser 2. Bob Landers 3. Grahame Moran 4. Ryan Girdler 5. Alan McIndoe 6. Brad Fittler 7. Greg Alexander 8. Terry Geary

9. Royce Simmons 10. Tim Sheens 11. John Cartwright 12. Bill Ashurst 13. Collin Van Der Voort 14. Craig Gower 15. Brad Izzard 16. Mark Geyer 17. Tony Puletua

14714PM_Team of legends A#55B29 24/1/07 4:00 PM Page 1

Your lifestyle, your club.

ISSUE 3 June 2007

FROM THE CLASSROOMDavid Reid

The program this term involves ten children, they are all boys. The boys come from Penrith Public School, Kingswood South Public School, Werrington Public School and Cambridge Park Public School. We aim to help them build resilience and help them gain many new social skills. The children will have loads of fun and will be involved in many new and exciting activities.

The boys will often go on excursions to many different places. This is called ‘community based instruction’ which gives the boys a chance to practice the new skills that they are learning.

The boys have already had a visit from Matthew Bell and Paul Aiton. The players came to sign some things for the boys and enjoyed answering some of the challenging questions that the boys threw at them.

We also had a visit from Joel Clinton and Liam Campbell. The players enjoyed the string-art activity that the students were doing. It was great to see them participating.

It is great for the boys that the players show an interest in them and what is happening in the classroom. We are planning on having more visits from the first grade players in the upcoming weeks.

The boys were also given a tour of the stadium during their first visit on Thursday 26th April. Whilst walking from the players change rooms down the tunnel onto the field the boys were told to imagine a Grand Final win for their favourite footy team.

There is currently a Fox Sports story being aired that gives an insight into some of what Panthers on the Prowl is all about. This was filmed during term one this year.

This story was filmed with Craig Gower and Matthew Cross in the classroom participating in a science lesson with the students. The lesson on circuits was a great way for the players to interact with the students, working together in groups.

A colleague said something last week that got me thinking. We were discussing the reasons that some of the children of today’s younger generation are increasingly seen as spoilt and having everything.

My colleague said ‘Parents don’t realise that they are giving their children everything’. Of course all parents try to provide their children with everything possible. This is not necessarily a bad thing but what she said next really hit home.

‘The only thing that some parents don’t give their children is time and the only thing the parents don’t know is to ‘know’ their child.’ It would seem that with increasingly higher mortgages and increasing work demands parents have less time to spend with their children.

I guess what she was saying was that parents try to compensate for working long hours or not being able to give their time to the children by giving them everything that they want. The thing that is missing is that children don’t get to spend time with their parents therefore they don’t know and understand each other and their needs.

For the next month, try to spend an extra hour a week of free time with your child. Get to know your child, nothing can compare with quality time spent together. Try to get time where you have no other commitments, give your full attention to your child.

PROGRAM OVERVIEW JUNE 2007

Family SkillsA group of parents form Claremont Meadows Public School and their children recently celebrated their completion of the family skills course with a morning tea at the school. Parents attended each Friday morning for 6 weeks and took the opportunity to share family issues within the group. A similar course will commence at Cambridge Gardens Public School in July. Another of our popular seminars for parents is planned for June with a speaker form “Interrelate”. Invitations will be sent out to past participants when the details are finalised.More information about the Family Skills Initiative on 4725 6420

Read With A MateThis popular program continues to be accessed by local schools. Several events are planned for Term 3. we had to postpone a night activity at Kingswood Public School when it was discovered that it clashed with the “State of Origin”, but this will be rescheduled. York Public School is planning a similar night late in the year.These events are possible because of the generosity of school staff and Panther players who give their time to this initiative. A video presentation is in production to enhance the program.

Partnerships with SchoolsSchools are seen by the Prowl as an excellent community contact point as schools themselves are learning communities. We continue to co-host Positive Behaviour For Learning Conferences which are designed to equip teachers and schools with skills and resources to enhance behaviour management and so improve quality teaching and educational outcomes. Some 400 teachers in school terms attended the workshop sessions between the 21st and 28th May.Schools form the lower Blue Mountains also teamed up for a joint school development day addressing the area of the classroom practice. The facilitators provided by the club and the Prowl are hugely appreciated by the school communities. Western Sydney Region Principals also met in the Chairman’s Lounge for their bi-annual conference and we were able to outline our programs to the school leaders. The Prowl continues to support individual schools and students where we believe our support contributes to the well being of students.

Playing for SuccessWe are now close to the commencement of our after school learning centre for junior secondary students. Cranebrook, Glenmore Park and Nepean High Schools have agreed to be our first

pilot groups. The Prowl Board has approved and purchased some $25,000 of advance technology and Sanyo have generously contributed to additional equipment for students to use.The teaching position was advertised last week and the applications close on the 8th of June.The learning centre (Called the Den) has as it aims to:

• Assist students in reaching their full potential by accessing a wide range of both physical and human resources

• Foster a positive, enriching atmosphere and learning environment within the Centre to and course work and encourage independent study

• Create a supportive atmosphere

• Work with students to develop a positive attitude to school life and strive to create a commitment to life long learning

Teachers Aid Program

We continue to provide training to young players to work in schools as teacher’s aids (special) schools report that this program is supporting their students in a very positive way.Over 20 of these young men are currently working in schools in the Mt Druitt and Penrith districts.

‘Bits and Pieces’

• We are in partnership with St Clair High School supporting their Business Week Activities. This school has received national recognition for their projects over several years.

• Financial support has been provided to Western Sydney PSSA to host the State primary rugby league carnival and individual students have been supported in a number of school sports

• A memorandum understanding has been signed with UWS to do a full evaluation of our programs

• We are supporting the Books From Birth project launched in Penrith Library on May 16th

• We are looking at becoming involved with the Resourceful Adolescent Program at Cambridge Park High School

• The Manager of Educational Programs is to travel to Shepparton to address a community forum on our programs as well as attending a 3 day conference in Newcastle in the school holidays entitled “Working With Boys, Building Fine Men”.

For further inquiries please contact (02) 4725 6400

HEALTHY LIFESTYLES

This term the Healthy Lifestyles program is in Glenmore Park Public School and Shalvey Public School. Both schools have just started the program and it looks to be a great fun term ahead.

In Glenmore Park we have the privilege of working with an autistic class with students from kindergarten to year six. Two of the students have familiar names and faces with Luke Priddis’ son Cooper being in the class and Tom and Bev Fink’s grand son Callum also being in the class.

The class have been reacting well with the program and look to be having a great time working on establishing and improving their gross motor skills.

The Panthers have a strong presence in assisting the community to become active with 12 junior players working in schools across the Penrith district as Active After School Care deliveries.

The junior players of Penrith participated in a co-hosted course ran by the Prowl and the Australian Sports Commission. The course runs over 2 days with topics such as working with children and the games sense approach being covered.

The active After School Care program is aimed at getting kids active after school hours. This program is appealing to today’s hectic society with parents often having time constraints which prevent them from being able to take their children to training for team sports.

The AASC program aims to increase community capacity to provide structure physical activity. The engagement of local community members in the delivery of the program has had beneficial impact on the growth of a number of local organisations.

Key results from the 2006 Program Evaluation

• 85% of children currently participating in the AASC program in 2006 were considered inactive.

• On average, children participating in the AASC program have increased their structured physical activity from 1.5 hours a week to 2.9 hours, an increase of 1.4 hours a week.

• 93% of schools and OSHCS report that they are satisfied with the program and four out of five children show great enthusiasm to return to the program.

• Children participating in AASC said that they had fun (85%) and 90% of parents believe that the AASC program is providing their child a fun structured physical activity.

• 92% of schools, OSHCS and deliverers involved in the program believe AASC is helping build children’s fundamental motor skills and 76% of participating children believe that they are now better at physical activities since starting the AASC program.

• 83% of schools and OSHCS believe AASC has helped them to increase their capacity to offer physical activity within school time, that is, AASC has helped teachers and OSHCS staff feel more confident in the delivery of physical activity, which has resulted in the delivery of physical activity to children outside of our program.

For further information relating to the Healthy Lifestyles Program please contact Jodie Cross 4725 6421

THEDENTHEDENLEARNINGCENTREPANTHERSTIMES & LOCATIONTIMES & LOCATION

PenrithShowground

(Paceway)

NepeanSquare

PenrithRugby League

Club

HowellOval

x

WE AREHERE!

MULGOA ROADTO M4

STATION STREET

RA

NS

LEY

STR

EET

JAM

ISO

N R

OA

D

N

CUAStadiumPenrith

3

CENTRE OPENING HOURS & LOCATIONPRIMARY & SECONDARY

Monday 12.30 - 6.30pm

Tuesday 12.30 - 6.30pm

Wednesday 12.30 - 6.30pm

Thursday 12.30 - 6.30pm

Friday 12.30 - 6.30pm

Where to find us

CUA STADIUMPENRITH

Telephone: (02) 4725 6400

Fax: (02) 4725 6426

Email: richardbooth@panthers.com.au

Website: www.panthers.com.au

THEDENTHEDENLEARNINGCENTREPANTHERS

ABOUT US MENTORS THEDENTHEDENLEARNINGCENTREPANTHERS

54

The Den The Centre is located in the heart of Credit Union Australia Stadium. It is resourced with the latest I.T. and electrical equipment to enhance quality learning and teaching. Each student has computer access and storage. Differentiated curriculum is used to meet individual student needs. Sport is used as a motivational tool to encourage and inspire young people to learn and develop new skills in a “new” environment.

The StaffThe smooth running of the Centre is due

to the staff that runs the programs. Centre staff include a range of fully qualified teachers

selected for the role, teacher assistants and Panthers players.

These are complemented with a variety of volunteers and mentors from schools, university

and the community.

MENTORSABOUT US

What is a mentor?A mentor is an individual who is willing to spend time with a young person with the intention of helping them develop their skills by advising, guiding, motivating or encouraging them. Anyone can be a mentor if they are patient, good listeners, committed, enthusiastic and non-judgemental.

What are we looking for in our mentors?Firstly we are looking for mentors who are willing to commit to the program, to the students, and be reliable and willing to work as part of a team. Here is a list of some of the qualities you will need to be an effective mentor:

• Non-judgemental • Reliable and committed

• A positive attitude • Good listening skills

• Ability to work in a team • Enthusiastic

• Approachable • Sense of humour

• Trustworthy • Patient

• A willingness to learn • Good communication skills

• Practical and realistic • Respectful

THEDENTHEDENLEARNINGCENTREPANTHERS

BENEFITS RESPONSIBILITIESTHEDENTHEDENLEARNINGCENTREPANTHERS

76

Benefits of becoming a mentor

• The experience of being in a working environment

• A certificate and letter of recognition from Panthers

• Add to your resumé for fu ture reference

• Experience of working with children

• Develop your own confidence and self-esteem

• Learn and develop new ICT skills

• Experience working as a team

• Make new friends

• Learn and develop organisational skills

• Learn how to manage time and prioritise

• Be more confident in discussions and decision making

• Make a great contribution to your community

• Develop patience and control

• Have an enjoyable experience

• Achieve a sense of fulfilment and personal achievement

ROLES &RESPONSIBILITIES

BENEFITS

Roles and responsibilities of a mentor

Role:-

The role of a mentor is to work as part of a team in providing support and encouragement to a child or a small group of students, who may be suffering from lack of confidence or low self-esteem and help them to improve in learning.

Responsibilities:-

• To arrive at least 10 minutes before the session to help in set up/preparation including helping to clear up once the session is over.

• To contact the learning centre in advance if you are running late or you are unable to attend a session.

• To bring to the attention of the Centre Manager anything you may have seen or heard that left you worried or concerned.

• To dress appropriately when attending the learning centre.• To attend voluntary training programs that may occur outside

session times.• To assist staff in record keeping as required.• To familiarise yourself with I.T. software.• To be prepared to carry out any other reasonable requests that you may

be asked to do in the Centre.

DO’s & DON’Ts DO’s & DON’TsTHEDENTHEDENLEARNINGCENTREPANTHERS

98

List of DO’s & DON’T’sHere is a list of the do’s and dont’s to give you a clear guideline of how to conduct yourself in the learning centre and help you develop an appropriate, positive and effective relationship with the children and staff members in the Centre and the complex.

DO’s• Do have fun and enjoy yourself

at the Centre• Do ask the teacher taking the session

if you could lead one of the games/quizzes etc.

• Do ask for help if you don’t understand something or if you get stuck

• Do participate in the games etc by helping the students

• Do tell us if you have any suggestions or opinions regarding the operation of the Centre

• Do let us know if you need to take time off for exams or appointments etc

• Do let us know if working in the Centre has helped you in any way

• Do tell us if you are worried about anything while working

• Do come back and let us know how you are getting on if you decide to leave

DO’s & DON’TsDO’s & DON’Ts

DON’T’s• Do not have conversations while the

teacher is taking a session, as this can be very distracting

• Do not be negative or use abusive language

• Do not complete the work for students (no matter how they try to “con” you

• Do not discriminate or show favouritism to students in relation to ethnic, class, gender or religious beliefs

• Do not pass judgements on students, parents and teachers

• Do not give out or accept personal details from students

• Do not intimidate or bully students• Do not offer money/personal gifts

to students• Do not counsel or advise students on

personal issues outside your role as mentor

• Do not keep important information disclosed to you regarding a student to yourself or promise to do so.

• Do not use toilet facilities at the same time as students

WAYS TO PRAISE DO’s & DON’TsTHEDENTHEDENLEARNINGCENTREPANTHERS

1110

Thirty-two ways to say ‘very good’1 I like that2 Good for you3 That’s right4 That’s first class5 That’s the way6 Superb7 You’re doing fine8 I knew you could do it9 Nice going10 That’s coming along nicely11 That’s good12 Terrific13 Good work!14 That’s better15 Excellent16 Congratulations17 Good going18 That’s really good19 Keep up the good work20 Much better21 Well done22 Tremendous23 Brilliant work24 You’re doing really well25 That’s it!26 That’s good27 That’s the right way to do it28 I like that a lot29 That’s better than ever30 Fine work31 Well done32 Etc, etc, etc

HEALTH & SAFETYWAYS TO PRAISE

Health and Safety regulationsIt is very important that everyone familiarise themselves with the OH & S Regulations that pertain to the Centre. Please ask for a copy.Staff should acquaint themselves with the location of emergency exits and any fire prevention measures in the complex.Be aware of the location of the First Aid Box and steps to take in the event of an injury or accident.Evacuation procedures are also published in the complex.

DISCLAIMER CLARIFICATIONTHEDENTHEDENLEARNINGCENTREPANTHERS

1312

Disclaimer for personal belongingsDisclaimerPlease note that staff and visitors are responsible for their own belongings. The Learning Centre, Penrith Rugby League Club and the Department of Education and Training accept no responsibility whatsoever for the said belongings. SmokingThere is “No Smoking” allowed by any member of staff or Visitors in the Learning Centre. No smoking is permitted in any part of the main stands, this includes the walkway outside the centre.

Child Protection LegislationIt is a “condition of your volunteering” that you are aware and take note of a number of points relating to Child Protection Legislation and Working With Children regulations. If a child tells you anything that is confidential or might point to abuse, you must,• Never enter into a pact of secrecy

with the child. Assure him/her that you will try to help but let the child know that you may have to tell someone in authority.

CLARIFICATION INVESTIGATION

DISCLAIMER

Child Protection Legislation (cont)• Stay calm. Do not transmit anger, shock

or embarrassment• Reassure the child. Tell them you are

pleased that he/she is speaking to you• Once the child has disclosed any serious

information to you do not continue to ask any leading questions to gather more information

Clarification. Not Investigation• If any of the students should tell you

something that needs to be reported to an adult you must report to the Centre Manager as soon as possible without causing embarrassment or concern to the student

• Any personal information must not be discussed outside the Centre.

INFORMATION

14

Further informationThis booklet has been designed to assist volunteers, aides and mentors during their time working for Panthers On The Prowl.

Your time and efforts really can make a difference in a child’s life and your support and commitment will always be recognised and rewarded. You also have our guarantee that we will support you in your new role as a “mentor” for the Prowl.

Thank you for taking the time to read this booklet. If you have any suggestions or questions regarding this publication feel free to contact us on 4725 6400.

We hope you enjoy your time as a mentor, and wish you success in your new role.

INFORMATION

THEDENTHEDENLEARNINGCENTREPANTHERS