Casino operator Crown is cutting back on expenses ahead of Baragaroo
Casino operator Crown is cutting down on expenses, as a direct result of a new boss and high-roller Chinese gamblers pulling back on Australia
Ross Greenwood: Crown are about one thing – to make sure the company can build this:
The $2 billion casino and resort at Barangaroo in Sydney.
And Nine News can show you, for the very first time, that work is underway.
The Barangaroo Resort is James Packer’s vision… but to achieve it, he’s having to cut expenses.
But you can see that the work has started.
It’ll start coming out of the ground in 12 months time, and will be Sydney’s tallest building.
This is $2 billion of work that will be completed in around four years time.
The sponsorship hits are big though.
A three-year, $3 million dollar deal with James Packer’s much-loved South Sydney Rabbitohs expires this year.
A five-year deal with the Melbourne Storm expires in 2020, they’re firms until then.
Gone – a deal with retired Chinese tennis star Li Na.
And seriously revised; former Australian cricket captain Michael Clarke’s deal.
Graeme Ferguson: We do see this is, you know, quite critical, but also quite necessary to it in terms of restoring the company’s profitability.
Ross: Almost certainly gone, crown sponsorship of Oak’s Day, the million-dollar race for three-year-old fillies.
Linda Joannides: If you have a downtown, you go to make some cuts somewhere.
Ross: 200 jobs will go at the refurbished Crown in Perth.
Crown will keep luxury yachts and private jets for global high rollers but their operation is under review.
Linda: They’re not going to cut their sources to their VIP market, they’re actually probably going to set them up.
Ross: The re-think is fallout after the Chinese authorities arrested 17 crown staff, servicing high rollers out of Shanghai.
After that, VIP revenue dropped 45 percent in the six months to December – more than $16 billion worth of bets.
But Crown still thinks Barangaroo is viable with an increasing reliance on local high rollers, the type of gamblers who frequent Melbourne and Perth’s mahogany rooms.
Ross Greenwood; Nine News
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