SINGAPORE — The new measures governing jackpot machines at social and football clubs will make it harder for sit-out S.League clubs to make their return to the country’s only professional sports league, the chairmen of two such clubs said on Thursday (July 20).

Edward Liu, who helms Tanjong Pagar United Football Club (TPUFC), and Gombak United Football Club chairman John Yap told TODAY that their clubs’ current revenue, which is largely derived from clubhouse operations, is likely to take a severe hit from these measures.

The two clubs withdrew from the S.League in 2014 and 2012 respectively due to financial problems. Since then, they have been using jackpot operations revenue to pay off their debts and build their coffers.

According to Mr Yap and Mr Liu, the plan is to successfully re-join the S.League within the next few years.

However, the new measures will now force them to reassess their plans.

“Jackpot revenue is important for our eventual participation in the S.League,” said Mr Yap.

“The measures implemented will likely cause the bottom line of our clubhouse operations to take a hit.

“We have only just managed to satisfy the debts that we incurred, but we will now have to assess how we can cope with the likely reduction of revenue while working towards our goal of playing in the S.League again.

“But we have to consider the bigger picture, and we agree that these changes will ensure that clubs become more responsible operators of jackpot machines.”

Mr Liu agreed. Estimating that most S.League clubs would need between S$1.5 million and S$2 million annually to sustain and maintain a competitive team in the S.League, the 68-year-old said: “We are working towards playing in the S.League again but we depend a lot on jackpot revenue at the moment and ideally, we want to build up enough of a surplus before rejoining the S.League.

“We do not want a situation whereby we return for one year but have to sit out again after that because we are not financially secure enough.

“We have to be responsible to the players, the staff and the community.”

Liu added that despite getting subisides from the Football Association of Singapore, which are funded by the Singapore Tote Board, local clubs still depend heavily on revenue from jackpot operations to fund their operations.

“The subsidies amount to about S$800,000, while on average clubs like us get about S$400,000 from jackpot machines,” said Mr Liu.

TPUFC operates about 18 jackpot machines at its clubhouse in Taman Jurong Shopping Centre.

“This means we still have to raise about S$300,000 on our own, and this is where sponsors come in,” he added.

“But under current economic and football conditions, to get such substantial sponsorship is almost nigh-on impossible, leaving us to rely on revenue from our clubhouse.”

Woodlands Wellington, the other sit-out S.League club, has also expressed its intention to return to the league. When asked about how these changes would affect the club’s jackpot operations, which are located at Prinsep Street, club chairman Gary Tan said: “We will leave it to the authorities to tell us the guidelines, and we’ll follow their instructions. But we want to get the club back to the S.League, and will work with the FAS to decide the best course of action for us moving forward.”

However, Balestier chairman S Thavaneson, whose club has eight jackpot machines that generates about S$400,000 annually, says the impact of these new rules can only be measured once they are fully enforced.

“It’ll be interesting how many machines the clubs will have to lose over the next two years,” he said.

“Right now, some of these measures are still a bit subjective and we’ll have to get further clarification and a better understanding before we can make further plans.

“But for most clubs, revenue will definitely be reduced, and how clubs will work their budgets moving forward will be the biggest challenge facing us all.

“Nonetheless, it’s good that they’ve announced the changes early so it gives us a chance to plan ahead for next year.”

In response to queries from TODAY, the FAS said that they “would need to review the measures in greater detail before responding to queries on them.”

POLICE INVESTIGATION COMES AFTER APRIL CLUBHOUSE RAIDS

The Singapore Police Force (SPF) is investigating the jackpot operations of local football clubs Woodlands Wellington, Hougang United and Tiong Bahru FC (TBFC).

The clubhouses of Woodlands, Hougang and TBFC (pictured above) — along with the headquarters of the Football Association of Singapore (FAS) — were raided by the Commercial Affairs Department (CAD) in late April.

It came after national sports governing body Sport Singapore filed a police report against TBFC for suspected misuse of club funds, as well as a purported attempt by a senior club official to obstruct the completing of audits of the S.League’s sit-out clubs.

TBFC and Hougang chairman Bill Ng, his wife Bonnie Wong, FAS general secretary Winston Lee and former FAS president Zainudin Nordin were subsequently arrested.

They were released on bail, but are understood to still be assisting the CAD in its investigations.

TBFC was found to have earned S$37 million from its clubhouse operations. It spent more than S$2 million on staff salaries but just S$169,000 on its football team, which plays in the amateur National Football League.

It also emerged that Polygon Ventures, a company owned by Wong, was the landlord of the People’s Park Centre basement unit that housed TBFC’s clubhouse, and that TBFC was paying almost S$80,000 in monthly rent.

A SPF spokesperson said on Thursday: “As police investigations are ongoing, it is inappropriate to comment further.”