James packer has made some interesting comparisons in an article by Damon Kitney at The Australian, saying his spend on a new casino in Sydney is like TV stations buying expensive sports broadcast rights.
“This is like a media company buying sporting rights where you are happy to end up in a break-even position for the halo effect it has over the rest of the network, he told The Australian.
“We modelled and bid Crown Sydney to approximately a 9 per cent IRR (internal rate of return), which is basically a break-even position.”
Last week an independent panel chose Packer’s development proposal for Sydney’s Barangaroo site over rival Echo Entertainment’s, after a highly-publicised ‘Casino War’.
As The Australian points out, this might not be how Crown investors want to think of the multi-billion resort and VIP-only casino.
Read more here.
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