What do James Packer and Russell Crowe have in common?

Packer takes Crown Casino’s fight for Sydney to the Rabbitohs.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

What do James Packer and Russell Crowe have in common? Before this week probably not much. However Packer has seized on an opportunity to get one over on rival gaming operator Echo Entertainment’s (ASX: EGP) Star Casino by taking over as a key sponsor of Crowe’s much loved NRL team, the South Sydney Rabbitohs.

The three-year deal is reported to be worth $1 million a year from 2014 in return for the prime front-of-jersey position for Packer’s Crown (ASX: CWN), a position previously occupied by Star.

Crown is also a key sponsor of the Melbourne Storm, but the new association with South Sydney publically increases the company’s involvement with the city and community where Packer is aiming to invest up to $1 billion into a new 60-story casino hotel and resort. The winning design, unveiled yesterday, is to be submitted to an independent committee who will assess if it will grant a second gaming licence to Crown, or take up a competing proposal by Echo to reinvigorate its Star Casino in return for an extension of its monopoly position.

The grand proposal would include Sydney’s first six-star hotel and an invitation-only VIP area targeting wealthy Asian high-rollers, especially out of China. Packer, who owns 50% of Crown said at the unveiling that the curvature of the proposed building was in keeping with the flow of the Sydney Harbour and would create another icon for the city.

In addition to the Sydney development, Crown is reported to be considering a US$350 million investment in a new casino in Sri Lanka. ‘Crown Colombo’ could comprise an integrated resort, which usually take the form of combined hotels, casinos and shopping malls and theatres.

Even if Crown’s Sydney proposal does not get across the line, Packer will still have something to cheer about if the Rabbitohs can take the NRL premiership this year. Souths are currently top of the table with eight wins from nine games and are TABcorp (ASX: TAH) favourites to take home the grand final.

Foolish takeaway

There is something mystical about owning a sports team and the rich have never been shy to take a punt on them as an investment. Even devout value investing icon Warren Buffett owns a stake in a minor league baseball team in his home stat,e the Omaha Storm Chasers. Fans of the NRL who are keen for a piece of the action could consider Brisbane Broncos (ASX: BBL), the only listed sports team on the Australian stock exchange.

A sports-mad Buffett fan and in the market for high-yielding ASX shares? Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.  This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool contributor Regan Pearson does not own shares in any of the companies mentioned in this article.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »