Collingwood has finalised terms for the sale of its gaming operations as part of a wider sell down of its hospitality interests.
The Melbourne Racing Club has agreed to purchase from Collingwood the licences for two venues, The Coach and Horses in Ringwood and The Club in Caroline Springs, and with them 156 gaming machines under the terms of binding, conditional transaction documents.
The sales – and Collingwood’s complete and immediate exit from the gaming industry - are part of a strategic repositioning of the Collingwood business. Settlement will occur after all required regulatory approvals have been obtained. It is anticipated settlement will occur in October.
An extensive review of Collingwood’s operations was undertaken in 2017.
“This is a prudent commercial decision, one that will strengthen the Collingwood balance sheet significantly,” said Collingwood President Eddie McGuire.
“The forensic review of the entire Collingwood operation last year, and the ‘Forever’ blueprint which came out of it, gave us greater clarity and a renewed sense of purpose but also identified numerous opportunities.
“The decision of the board to sell our gaming operation and some of our hospitality interests will allow us to intensify the focus on our core responsibilities – Collingwood fans, elite sporting performance and community – but also enable us to pursue new and different possibilities for growth.
“Collingwood is in a strong financial position, with net assets of $32 million, and with the continuing support of its members will be in an even stronger position with this sale. It is the right time for Collingwood to be making this move.”
Collingwood will continue to operate its Glasshouse function and events business at the Holden Centre. There is no gaming operation at the Glasshouse.
Please note that as of 1 July Collingwood ceased operation of the Magpie Millions lottery.
Collingwood and MRC finalise gaming and venue deal
Collingwood has finalised terms for the sale of its gaming operations as part of a wider sell down of its hospitality interests.