PUBLIC ANNOUNCEMENT – REGARDING THE PVRSC AND PDBA MERGER.

19/02/2025

For many years, the relationship between the Penrith District Basketball Association (PDBA) and the Penrith Valley Regional Sports Centre (PVRSC) has been a challenging one. It is important to note that PVRSC, formerly known as PSS, demerged its basketball operations in 2001, resulting in the continuation of the PSS for facility management and PDBA for basketball. The PVRSC is chartered now to provide a multi-purpose facility for the total Penrith community, while the PDBA exists solely to represent basketball. This at times brings differing objectives and over many years led to ongoing challenges in finding the right balance to meet our respective goals.

Despite differing views and past tensions, one thing has always remained consistent: both parties are committed to growing basketball, providing a fun and safe environment for the community, and striving to be the leading basketball facility in NSW.

In recent years, changes within both mindset and personal, both Boards have brought fresh perspectives, free from past conflicts, with a focus on improvement. It became evident that the existing operational model was broken—there was no synergy directly between the facility and the clubs, the relationship of the clubs was only with the PDBA, PVRSC's revenue from basketball was limited to court hire only, and as a result for over 20 years, not a single cent from basketball-generated revenue had been reinvested back into the facility itself. Furthermore, the PDBA operated out of the facility without a commercial arrangement, rent, or contribution to maintenance. Combined with breakdowns in communication to Basketball members and clubs on court hire, availability of the facility and poor planning, things had to change.

Recognizing the need for change, the PVRSC engaged in discussions with both Council and the PDBA throughout 2022 and 2023. Through external reviews and financial audits including a review of the PVRSC Board operation, all parties reached the same conclusion: the current model was neither sustainable nor viable.

Throughout this process, significant structural issues were identified within the facility, including concrete deterioration and electrical infrastructure challenges—issues requiring millions of dollars in repairs. While the facility is situated on Council-owned land, the PVRSC operates under a lease agreement with Council, and the building itself is accounted for on the balance sheet of the PVRSC. The PVRSC could not seek private capital investment, nor as a not-for-profit, borrow multimillion dollar loans from financial institutions and service them, necessitating financial support from Council. Council agreed to provide funding, on the condition that the PVRSC and PDBA collaborated to reform the operating structure. The PDBA Board acknowledged this necessity and agreed to work towards a new model.

A motion was passed by council in September 2023 that the PVRSC had to change its structure and operating model with the PDBA. With PVRSC responsible and the fact that the PDBA Chairman and other PDBA Directors attended Council acknowledging the need for change and a willingness to work with the PVRSC on a merger, a six-month timeline was established, with both Boards tasked with finding a sustainable solution. After months of negotiation, a draft Heads of Agreement (HOA) was developed, reflecting compromises from both parties and designed to meet corporate governance requirements. This proposal required approval from PDBA members via a formal vote.

The intent was for the Council, PVRSC, and PDBA Board to present the proposed HOA to the PDBA members, explaining the rationale behind the conditions and answering questions in an open discussion focused on the future. In November 2024—well beyond the original six-month deadline—the PVRSC and PDBA agreed to hold an initial meeting to discuss the proposal, followed by a vote one month later with the PDBA members.

The PVRSC aimed for a seamless transition, ensuring basketball operations remained unchanged but improved, with greater investment, simplified club administration, and a direct voice for basketball within the facility’s governance. If the vote did not pass, the commercial reality was that the PDBA would be required to vacate the premises, as there were no commercial arrangements in place to sustain the current model. A “no” vote also risked affecting the Representative Program, as that relationship exists between the PDBA and Basketball NSW, not the PVRSC.

Unfortunately, after nearly two years of negotiations, the PDBA recently informed the PVRSC Board that they would not stand united in presenting an agreed-upon plan to the basketball community. Instead, they planned to hand the decision over to the members without Board guidance or endorsement.

As was made clear during this process, we have external deadlines that must be met to secure the future of the venue and the PVRSC has a duty to meet those obligations. This does not stop the merging of the Boards should the PDBA members agree with the obvious advantages this opportunity provides and votes accordingly. It simply means that action, mentioned above, has to continue if regrettably that is not to be the case.

Despite our best efforts, negotiations have ultimately fallen through. In response, the PDBA has confirmed in writing their intention to proceed with a Town Hall meeting on February 20th, 2025, to inform members of the PVRSC’s decision and the directive for the PDBA to vacate the facility.

While this outcome is disappointing, the PVRSC remains committed to ensuring basketball continues at the facility with minimal disruption. Community basketball will proceed as usual, all clubs and players welcome, with the PVRSC directly managing operations from the start of the winter competition. Representative Program training and games will continue, with the PVRSC serving solely as a court hire provider, as the program itself is governed by Basketball NSW and the PVRSC want to ensure no impact to them as a venue for the 2025 season is still available.

For most participants—over 95%—this transition will be seamless. Our goal remains unchanged: to provide a viable home for basketball in Penrith.

In the coming days, General Manager, Luke Hepburn will communicate directly with clubs regarding operational details, answering any questions as needed. We appreciate your support during this transition and remain dedicated to delivering an improved basketball experience now and into the future.

The PVRSC will not be attending the Town Hall meeting on Thursday, February 20th, but looks forward to receiving an update on the outcomes.

Thank you for your ongoing commitment to the PVRSC facility and the Penrith basketball community.

Sincerely,

PVRSC Board of Directors