What’s the Buzz: Rabbitohs’ $20 million sale mystery: how much did Mike Cannon-Brookes pay?

Mike Cannon-Brookes has purchased a 25 per cent share in South Sydney — but no one knows how much he actually paid for it. Not even the chief executive or chairman have been told.

It’s almost impossible to keep a secret in rugby league … unless you’re worth $20 billion and you’d prefer to keep your business dealings private.

Technology tycoon Mike Cannon-Brookes has purchased a 25 per cent share in the South Sydney Rabbitohs, but no one knows how much he actually paid for it.

Louise Halloran, Cannon-Brookes’ director of communications, told us on Friday: “It’s not for public consumption.”

Mike Cannon-Brookes has purchased a 25 per cent share in Souths.

Not even chief executive Blake Solly or chairman Nick Pappas have been told.

One good source suggests the co-founder of software giant Atlassian forked out $20 million.

This values the club at $80 million – almost on par with the publicly listed Brisbane Broncos.

We presume Russell Crowe and James Packer get $10 million each, both of whom reduced their 37.5 per cent shareholding to 25 per cent to give Cannon-Brookes his quarter share.

So what happens with all the cash? We emailed Crowe on Thursday to try to get some answers.

Russell Crowe refused to divulge details of the purchase.

“Do you and James take $10 mil each? Is it reinvested? Is it used to recuperate the money you’ve put into the club over the years.”

Crowe replied: “I’m not at liberty to discuss details,” but added “There are no plans for reinvestment, or investment in other sports, at this stage.”

ASIC documents will eventually reveal the amount Cannon-Brookes has paid to Blackcourt League Investments, the company that owns 75 per cent of the Rabbitohs, for his share.

Last year Crowe took out $1 million from the football club to recoup money he has invested over the years. Packer did too but donated his to the club’s Souths Cares charity.

Crowe originally purchased a half share in the club with Peter Holmes A Court in 2006. They paid only $1.5 million each.

James Packer reduced his shareholding to accomodate Cannon-Brookes.

So now to the point …

Rugby league, and the Rabbitohs in particular, have always been about their blue collar fans and a not-for-profit organisation.

Rare cash surpluses in rugby league are normally reinvested.

(For example the Roosters have a $140 million property portfolio. The Dolphins own a shopping centre. The Sharks have their own golf club).

In comparison, Souths have got three very wealthy owners but not a huge asset base.

Originally published as What’s the Buzz: Rabbitohs’ $20 million sale mystery: how much did Mike Cannon-Brookes pay?