The rescue and amalgamation proposed for the struggling Paddington ‘Paddo’ RSL has stirred up locals and veterans, as one potential guardian accuses the other of profiteering.
Established in 1959, the RSL in the heart of Sydney’s eastern suburbs has an array of bars, function rooms and multiple live spaces, billing itself as a “shining light of unparalleled entertainment”. It has previously thrived as a venue for live music, playing host to the likes of Yothu Yindi, Hunters & Collectors and INXS. Today it counts around 1,700 members.
Recent years have led to hard times and Paddo RSL has found itself both dilapidated and in serious financial distress.
Coogee Diggers has proposed investing more than $6 million to upgrade the premises. A Memorandum of Understanding (MOU) was issued to members earlier this year that outlined an amalgamation that would see the dissolution of Paddington RSL and all assets transferred to the other club, with Coogee’s Board installed and CEO Peter Gallagher adopt the role for both.
In 2020 Coogee Diggers amended its constitution and broke ties with the RSL governing body, although it was able to retain the all-important ‘Diggers’ title.
Separately, North Bondi RSL says it also previously presented Paddo with a plan, which does not propose a merger, guaranteeing the club’s independence and return it to profitability through financial and practical support.
This offer was reportedly prompted by concerned veterans from the Paddington RSL sub-branch, and importantly strives to preserve the armed forces veterans’ representation at Paddington.
North Bondi chairman Josh Farquhar is himself a veteran, serving in Afghanistan and Iraq, and believes there is nothing stopping Paddington RSL from succeeding “as a stand-alone club”.
While the MOU from Coogee Diggers suggests a guarantee for operation at Paddington for 20 years, the agreement would actually allow it to close and sell the Paddington premise within a few years and keep the proceeds.
Paddington RSL’s annual report for 2024 records the 1,550sqm corner property on Oxford Street as worth only $3.8 million, despite active developer interest in the precinct’s Town Hall, Victoria Barracks and parkland, directly opposite, and estimates the RSL site could be worth north of $20 million.
Discussion of the proposed amalgamation was not listed on the agenda for Paddington RSL’s AGM in July, despite members in attendance being told the Coogee Diggers amalgamation must proceed or the club would be forced into liquidation.
Last week North Bondi suggested the Coogee offer was an “asset grab” for the undervalued property.
Farquhar also says they believe their offer was not shown to Paddington members, which prompted him to go public on the proposals and request a forthcoming vote be postponed.
The offers from both neighbouring clubs provide financial assistance, including staff and resources, but concerns centre on the key differences in the consideration of returned servicemen and women and the future of Paddo RSL’s clubhouse, being its primary asset.
Paddington’s Chamber of Commerce met on 3 November to consider a motion to support the bid from North Bondi RSL and the resultant community campaign, which was passed, with president Erin Hawken stating they had elected to act to “preserve Paddington RSL Club as a vital local community and business asset” in the area.
Nevertheless, in the following days members were urged to vote for the Coogee proposal, with thanks offered to Coogee Diggers for its “generous $350,000 support” this year.
Management expressed that it was not a takeover, but actually a “joining of two like-minded clubs” and represented the “best path forward to protect and grow our club”.
The management of North Bondi RSL questions how a decision on the amalgamation agreement was reached, citing concerns Coogee’s deal won’t assure Paddington’s future, Farquhar boding it would “end a vital connection for local veterans”.
Following months of passionate politicking by several executives and members of the Paddo Board, a special meeting for members to vote on consideration took place Sunday (9 November).
A postal ballot on the proposal will now run from 17-27 November 2025.
