James Packer is set to join Russell Crowe as a co-owner of NRL club South Sydney as soon as this week, as the billionaire seeks to take advantage of the Rabbitohs’ first premiership win in 43 years.
A former board member of bitter arch-rivals the Sydney Roosters, Packer is in line to buy Peter Holmes a Court’s 37.5 per cent share in Souths.
The move would likely give the club unprecedented and unparalleled financial clout.
Crowe and Holmes a Court took 75 per cent ownership of the Rabbitohs following a membership vote in 2006.
The pair have since fallen out over the running of the club and Holmes a Court has rarely been sighted at Redfern in recent seasons.
However, the duo were captured by TV cameras embracing after Souths’ 30-6 drought-breaking grand final win over Canterbury at ANZ Stadium on Sunday.
In a media release from the Rabbitohs on Wednesday, Holmes a Court confirmed he was in discussions to sell his share of the club.
“I confirm there are negotiations underway for the purchase of my 50 per cent share in Blackcourt, as I now reside overseas and am working on a new, almost as hard, challenge – writing my first book for Penguin,” the release read.
“I am proud to have played a part in the team’s great victory on Sunday and expect the club to go from strength to strength in coming years.”
Blackcourt is the company which Holmes a Court co-owns with Crowe in the South Sydney Football Club, with South Sydney members owning the remaining 25 per cent, together with a preference share which controls the team’s name, colours, jersey and home ground choice.
Packer has been linked with a possible buyout of Holmes a Court’s stake in Souths for nearly a year. His casino-based interest Crown Resorts is the club’s major sponsor.
The combination of Australia’s richest man and Australia’s best-know celebrity has the potential to turn the Rabbitohs into a national sporting giant rivalling AFL club Collingwood.
The Magpies boast over 80,000 members, well ahead of the Rabbitohs’ 30,000.
But the Rabbitohs v Canterbury decider was the highest-rating grand final in rugby league history, out-rating the AFL decider between Sydney and Hawthorn in an indication of the untapped interest in the NRL.
Souths’ title victory was their first since 1971 and the club is expected to make a profit of over $1 million for the second successive year.
However the club is still carrying a significant debt after losses totalling around $10 million in each of Crowe’s and Holmes a Court’s opening two years in charge at Redfern.
Under Souths’ unusual ownership structure, Holmes a Court is owed a reported $4.5 million.
He is expected to make a handsome profit – as well as having that figure paid out – if Packer does buy him out.
Crowe and Holmes a Court paid just $3 million for their 75 per cent share of the Rabbitohs eight years ago.
Current estimates of the club lists its worth at around $20 million.
Barrell's Bullet
Guest
Packer isn't Australia's richest man. Tinkler was a billionaire, too. How did his gig at Newcastle go?
Statler and Waldorf
Roar Guru
i'll 2nd that.
fiver
Guest
Collingwood and Souths are very small fry compared to those other global brands.
Worlds Biggest
Guest
This can only be a good thing for the Rabbits. When Australia's richest man wants in then it's a no brainer. Souths are working towards a centre of excellence and administration complex to be built in coming years. Aside from Govt support no doubt Packer can assist with this project amongst others to ensure the Rabbits stay at the top. This is a great move.
Sleiman Azizi
Roar Guru
A club should never have to wait 10 years to be a legitimate contender for a grand final, let alone 43 years. Good to see Souths finally enter the modern world.
Arthur Beatsons Mum
Guest
I think this may well be the main story of all the stories surrounding the Rabbits rise to the top of the rugby league world. This is not a new story, this story was doing the rounds far earlier than this week. As a Souths fan i am happy we have our long awaited redemption and success. Yes it is a great fairytale, but i would not recommend any other clubs do it, it is incredibly frustrating. Go Cronulla, i can say this now i couldnt before last Sunday. The problem i have is now is that People like Packer want a part of the Rabbit pie, is this a good thing or bad. Are Souths selling out their fans, their community, their history? Is it wrong for Souths the Struggle street rabbits, To go from poor to rich? From easy beats to corporate juggernauts? Easts have their multimillionaire used car dealer cash cow, Why cant Souths. When Souths were on their knees other fans were happy to lay the boot in, bag us, humiliate us, Laugh at us. rubbish us. Now the wheels have turned and they now want to keep the humiliation going buy now calling us silvertails, bigheads, lost our culture, etc. Packer can see what i can see, Souths are a marketing dream. The whole Souths story is filled with romance, passion, pride, fluffy bunnies, hollywood, the broken down expelled losers to come from nowhere to somewhere. for me i am happy if we grow and become a massive sporting giant, Success is a good thing, We have done our time in the wilderness. Go packer i say, give us 43 years on top I say. winning off the field as well as on it. happy for us to be mentioned alongside, Collingwood, Manchester United, New York Yankees, Dallas cowboys, AC Milan. In the words of John Sutton, Lets do this.
Perry Mason
Guest
Crowe said he hated poker machines. Now he is partnered with the biggest poker machine owner in Australia. Russell is one crazy Kiwi! And more gambling is just what all the Souths fans need!!!
fiver
Guest
expect to see Souths on channel 9 every single week now, rather than 2 in every 3 weeks like it is currently. I know Packer doesn't own 9 anymore but i'm sure he still wields a lot of influence there.
The Barry
Roar Guru
Wow - a roosters fan owning 37.5% of souths! Will this get a chapter in book of feuds 2?