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JOHN LEHMANN EDITOR AT LARGE THE SUNDAY TELEGRAPH JANUARY 25, 2014 10:00PM
Russell Crowe and James Packer. Source: News Limited
KERRY Packer always said you'd have to be mad to put your money into football clubs or racehorses.
But if his son, billionaire gaming mogul James Packer, ends up doing a deal to buy Peter Holmes a Court's stake into the South Sydney Rabbitohs, he won't be doing it to line his pockets.
Like those racing tragics who chase the dream of winning the Golden Slipper with a horse they picked up for nix, he'll be doing it for the thrill of the chase.
The truth is that Souths is at the crossroads. If the Rabbitohs' revival is to continue, the club needs to find a well-heeled owner, sooner rather than later.
"It would make us a better business to have someone of James' calibre involved,'' former captain Mario Fenech said. "The doors he can open are what every football club needs.''
Despite the club's remarkable membership drive and on-field success under Russell Crowe and Holmes a Court, serious issues are brewing.
DISFUNCTIONAL OWNERS
Crowe and Holmes a Court, who together own 75 per cent of the Rabbitohs, have been barely on speaking terms for at least four years.
As executive chairman and CEO, Holmes a Court racked up debts of almost $6.9 million in the first two full years in charge.
Co-owners actor Russell Crowe and Peter Holmes a Court as they watch a South Sydney Rabbitohs game. Source: News Limited
The decision to take over the South Sydney Leagues' Club, through a joint-venture with flamboyant developer Albert Bertini, ended in disaster when the club was placed in liquidation with debts of more than $5.5 million.
Crowe was reluctant to put money into the leagues club, but after Holmes a Court met him in New Mexico, where he was filming a movie, it was decided to bring Bertini into the deal, even though members had earlier rejected a proposal from the developer.
The collapse almost caused serious financial strife for the football club, with receivers demanding last March the Rabbitohs immediately pay $1.1 million under a guarantee it had given to underwrite the developers' *obligations.
The Sunday Telegraph understands the Rabbitohs were able to refuse because the guarantee was transferred only months before the collapse.
Anger still lingers over the collapse, with the Castellorizian Club, which was owed more than $2 million, still fighting to recover moneys. Efforts by the Greek community club are being led by well-connected businessman Nick Moraitis.
Holmes a Court ended up stepping down as CEO in 2008 and resigned as a director in 2010.
"Russell and Peter barely speak nowadays and that leads to uncertainty at times for the management team as to what can and can't be done,'' one Souths source said.
COACH & PLAYERS
Successful coach Michael Maguire is off contract at the end of 2014 and murmurs are already bubbling that he is not a sure thing to stay. at the Rabbitohs.
Coach Michael Maguire and the South Sydney Rabbitohs at Sydney Domestic Airport after returning from Townsville. Source: News Limited
"It's pretty easy to see that Michael and the Broncos could be a perfect fit one day,'' a source close to Maguire said.
Fenech says: "I'm a headache for Madge because every time I see him I say, 'you've got to stay, you've got to stay'. He always says, 'I'm not going anywhere'.''
Every coach wants three things: a great playing roster and talent pipeline, a strong operating budget and a high-performance centre. Maguire was extremely disappointed the Bunnies' plans to relocate to a new high performance centre to be built in Maroubra were derailed when the federal government withdrew support for a $16 million package. While Redfern is Souths' spiritual home, the council-owned Redfern Oval isn't adequate.
"It's only so long that you can continue to pick up dog droppings before training sessions,'' a Souths source said.
Packer's involvement would go a long way to locking in Maguire and enabling Souths to match facilities offered by clubs such as the Broncos.
DEBT & FINANCES
Souths grew its revenue by $4.2 million between 2008 and 2012 and now boasts the most valuable jersey in the NRL. It is on track to record a profit of more than $1 million for the 2013 year.
South Sydney superstar Greg Inglis in action for the Rabbitohs. Source: News Limited
But a debt of $6.15 million owed to Holmes a Court and Crowe looms as a major problem. It limits the club's ability to borrow and interest begins being payable from this October.
Not having a successful leagues club, like Canterbury-Bankstown or Parramatta, remains a weakness, along with the exorbitant rent the club has been forced to pay on its offices in the old leagues club building.
In 2011, the annual rent was more than $730,000. Crowe has raised the spectre of selling out in the past. His and Holmes a Court's pockets aren't as deep as those of Packer.
WILL PACKER DO A DEAL?
At the end of the day Parker is a businessman and any final decision to buy would come down to the price.
Souths has the potential to become one of the most loved and valuable brands in Australian sport, but there's still a hard road ahead, requiring further investment.
While some sceptics have cited Packer's close ties to the Roosters, it's clear they will always be Nick Politis' Roosters. Packer likes to run his own ship - and, it's worth remembering, he didn't always take his father's advice.
http://www.dailytelegraph.com.au/sp...gul-james-packer/story-fni3gki8-1226810421434
Russell Crowe and James Packer. Source: News Limited
KERRY Packer always said you'd have to be mad to put your money into football clubs or racehorses.
But if his son, billionaire gaming mogul James Packer, ends up doing a deal to buy Peter Holmes a Court's stake into the South Sydney Rabbitohs, he won't be doing it to line his pockets.
Like those racing tragics who chase the dream of winning the Golden Slipper with a horse they picked up for nix, he'll be doing it for the thrill of the chase.
The truth is that Souths is at the crossroads. If the Rabbitohs' revival is to continue, the club needs to find a well-heeled owner, sooner rather than later.
"It would make us a better business to have someone of James' calibre involved,'' former captain Mario Fenech said. "The doors he can open are what every football club needs.''
Despite the club's remarkable membership drive and on-field success under Russell Crowe and Holmes a Court, serious issues are brewing.
DISFUNCTIONAL OWNERS
Crowe and Holmes a Court, who together own 75 per cent of the Rabbitohs, have been barely on speaking terms for at least four years.
As executive chairman and CEO, Holmes a Court racked up debts of almost $6.9 million in the first two full years in charge.
Co-owners actor Russell Crowe and Peter Holmes a Court as they watch a South Sydney Rabbitohs game. Source: News Limited
The decision to take over the South Sydney Leagues' Club, through a joint-venture with flamboyant developer Albert Bertini, ended in disaster when the club was placed in liquidation with debts of more than $5.5 million.
Crowe was reluctant to put money into the leagues club, but after Holmes a Court met him in New Mexico, where he was filming a movie, it was decided to bring Bertini into the deal, even though members had earlier rejected a proposal from the developer.
The collapse almost caused serious financial strife for the football club, with receivers demanding last March the Rabbitohs immediately pay $1.1 million under a guarantee it had given to underwrite the developers' *obligations.
The Sunday Telegraph understands the Rabbitohs were able to refuse because the guarantee was transferred only months before the collapse.
Anger still lingers over the collapse, with the Castellorizian Club, which was owed more than $2 million, still fighting to recover moneys. Efforts by the Greek community club are being led by well-connected businessman Nick Moraitis.
Holmes a Court ended up stepping down as CEO in 2008 and resigned as a director in 2010.
"Russell and Peter barely speak nowadays and that leads to uncertainty at times for the management team as to what can and can't be done,'' one Souths source said.
COACH & PLAYERS
Successful coach Michael Maguire is off contract at the end of 2014 and murmurs are already bubbling that he is not a sure thing to stay. at the Rabbitohs.
Coach Michael Maguire and the South Sydney Rabbitohs at Sydney Domestic Airport after returning from Townsville. Source: News Limited
"It's pretty easy to see that Michael and the Broncos could be a perfect fit one day,'' a source close to Maguire said.
Fenech says: "I'm a headache for Madge because every time I see him I say, 'you've got to stay, you've got to stay'. He always says, 'I'm not going anywhere'.''
Every coach wants three things: a great playing roster and talent pipeline, a strong operating budget and a high-performance centre. Maguire was extremely disappointed the Bunnies' plans to relocate to a new high performance centre to be built in Maroubra were derailed when the federal government withdrew support for a $16 million package. While Redfern is Souths' spiritual home, the council-owned Redfern Oval isn't adequate.
"It's only so long that you can continue to pick up dog droppings before training sessions,'' a Souths source said.
Packer's involvement would go a long way to locking in Maguire and enabling Souths to match facilities offered by clubs such as the Broncos.
DEBT & FINANCES
Souths grew its revenue by $4.2 million between 2008 and 2012 and now boasts the most valuable jersey in the NRL. It is on track to record a profit of more than $1 million for the 2013 year.
South Sydney superstar Greg Inglis in action for the Rabbitohs. Source: News Limited
But a debt of $6.15 million owed to Holmes a Court and Crowe looms as a major problem. It limits the club's ability to borrow and interest begins being payable from this October.
Not having a successful leagues club, like Canterbury-Bankstown or Parramatta, remains a weakness, along with the exorbitant rent the club has been forced to pay on its offices in the old leagues club building.
In 2011, the annual rent was more than $730,000. Crowe has raised the spectre of selling out in the past. His and Holmes a Court's pockets aren't as deep as those of Packer.
WILL PACKER DO A DEAL?
At the end of the day Parker is a businessman and any final decision to buy would come down to the price.
Souths has the potential to become one of the most loved and valuable brands in Australian sport, but there's still a hard road ahead, requiring further investment.
While some sceptics have cited Packer's close ties to the Roosters, it's clear they will always be Nick Politis' Roosters. Packer likes to run his own ship - and, it's worth remembering, he didn't always take his father's advice.
http://www.dailytelegraph.com.au/sp...gul-james-packer/story-fni3gki8-1226810421434
