James Packer Rejoins Crown Resorts Board as Director
James Packer has re-joined the board of Crown Resorts as a director, while setting aside the company’s executive chairman Rob Rankin who will be replaced by executive deputy chairman John Alexander.
These moves come after a decline in profits from the company’s Macau casino interests, a crackdown in China that resulted in the arrest of 18 Crown employees and concern over the viability of Crown’s business model for their Barangaroo development in Sydney, which relied on the business of high-rollers from China. However with the crackdown in China, it appears that the flow of high rollers to Australia will be significantly reduced.
Mr Packer stepped down from the Crown board in December 2015 to concentrate on the company’s local Australian interests, as well as their online gaming platform. Following the arrests in China, Crown has announced that they will sell off stake in Macau casino operator Melco Crown and will abandon plans for their casino project in Las Vegas.
Regarding the replacement of Rob Rankin as chairman, Packer said that he had done a “very good job” at CPH (Consolidated Press Holdings) and Crown.
“I trust and respect him as much today as ever and we remain the closest of friends.”
“We have had discussions about what makes the most sense for CPH and Rob personally, since the material announcements made by Crown late last year, including its selldown in Melco Crown and its increased focus on its Core Australian business.”
Mr Alexander will move over from his position of director of the board of Seven West Media.
“Crown Resorts is and will remain one of Australia’s most valuable tourism assets with its world-class resorts in Melbourne and Perth, and construction in Sydney now underway.”
“I am also excited about our plans to continue building our wagering and online businesses.”
January 10, 2017