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Casino Mogul James Packer Acquires 37.5% Share In National Rugby League South Sydney

National Rugby League side South Sydney is "set to become one of the most powerful sporting clubs in the country," after billionaire James Packer joined Russell Crowe as a co-owner of the club on Thursday, according to the AAP. Packer has bought out Peter Holmes a Court’s 37.5% share in the Rabbitohs, to "assume ownership with Crowe," who took over following a membership vote in '06. Packer "happily confirmed over a year of speculation in a Rabbitohs media release." Packer: "This is a very proud day for my family. My father had a long history and association with Souths and to now be a co-owner with Russell Crowe and the members is an honor and a privilege." The other 25% of the club is owned by South Sydney Members Rugby League Football Club and the team's statement said the new ownership structure "would not affect the team's name, logo, colours, jersey and choice of home ground" (AAP, 10/23).

BUSINESS SENSE: In Sydney, Chris Barrett reported Packer said that it is "not just friendship and sentimentality behind his decision to buy into the NRL premiers; he believes he can make a dollar out of his latest investment as well." Packer: "I think that sporting rights are becoming more valuable around the world and if we can build the membership base and do all those things there is a chance we can do OK as a business." Holmes a Court, who paid A$1.5M when he and Crowe bought into Souths in '06, said Packer's ability to "take the club to a higher place" was an "irresistible carrot for him to sell his share in the newly crowned premiers." The pair had "first discussed Packer's desire to buy into Souths at a meeting in the gaming mogul's Crown office in Melbourne a year ago." Holmes a Court: "I never doubted James' passion; I don't doubt James' business nous and no one would ever doubt his determination" (SYDNEY MORNING HERALD, 10/23).

MARKET VALUE SOARS: In Sydney, Brad Walter reported South Sydney's market value has "soared" to more than A$20M ($17.5M) after Packer paid about A$7.5M for a 37.5% stake in the club. In comparison, shares in the Brisbane Broncos -- the "only NRL club listed on the Australian Stock Exchange" -- are worth A$26.47M. Souths Chair Nick Pappas, who is also the chairman of Member Co, said that "having Packer as a shareholder was the fulfillment of a promise made at the time of the privatisation deal to get the big end of town involved in the club." Pappas: "I join with the Rabbitohs senior management team, our staff and our members in welcoming James Packer to the Rabbitohs family. We promised some years ago to deliver sustained on-field success and the first chapter of that story was written on 5 October 2014 with our 21st premiership. We also promised to connect our great club with the highest echelons of Australia's business community so that its longevity could be ensured for decades to come. This we deliver today" (SMH, 10/23).

'NEVER ABOUT THE MONEY': In Sydney, Brent Read reported Holmes a Court walked away with a "tidy profit on his investment and a fistful of memories." Yet, "as he makes clear, it was never about the money -- it was about saving Souths and then handing the reins to fresh blood so the club could keep moving forward and add a 22nd premiership to the 21st it captured earlier this month." Holmes a Court: "I got involved for a number of reasons. Firstly, to save it -- it was bankrupt when we got involved -- to make it strong and a contender, which you have to be before you go on to win a grand final. ... I always said I would move on if there was a way to take the club to another level. ... An opportunity came to take the club to another level. When that all fell into place, the decision became pretty easy" (THE AUSTRALIAN, 10/24).

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