Ray Thomas: Untold story of Kerry Packer’s $6 million Might and Power Melbourne Cup plunge
IN the 1997 Melbourne Cup, media magnate Kerry Packer orchestrated one of Australia’s greatest betting plunges and then wanted the scalp of our journalist Ray Thomas who got the scoop.
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IT was the morning of the 1997 Victoria Oaks at Flemington when the boss called.
This was never going to be good news.
“I’ve had Kerry Packer on the phone, he wants you sacked,’’ my editor said. “All I want to know is that you are confident your story is right?’’
The Daily Telegraph that morning had a front page splash that Packer had pulled off a $6 million betting plunge on Might And Power in the Melbourne Cup two days earlier.
Packer never liked publicity about his gambling sprees, particularly when they appeared on the front page of a rival media organisation.
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When I told my boss I stood by the veracity of my story, he replied: “Good, go and back a winner at the Oaks, leave Packer to me.’’
As a young reporter back in those days, it is fair to say I felt a certain uneasiness when I left for the Oaks meeting.
This was the second early morning phone call in as many days from my editor. The previous day, he called with a simple instruction: “I don’t care if I don’t see you for the next six months, just find out who backed that horse!”
Might And Power, one of the all-time great stayers, had won a famous Melbourne Cup but 24 hours after the race, all the talk was who had orchestrated the massive betting plunge.
Bookmakers always protect the privacy of their clients, it is a bit like a doctor and patient relationship, so this request bordered on the impossible.
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Then I got lucky. The very first phone call I made was to a close friend in the bookmaking ranks. I struck gold.
Initially reluctant to discuss anything about the plunge, when I revealed my plight, he must have felt some sympathy for me because he said simply: “Packer backed Might And Power with me!”
When I gave him an iron-clad guarantee that I would never reveal my source, he told me the story — and probably saved my job.
Packer single-handedly launched a successful betting plunge on Might And Power with a string of huge telephone bets placed with a number of bookmakers in Sydney and Melbourne.
It surprised me to learn that Packer placed most of the bets himself although it was established he had least one operative assisting him.
The following is typical of the conversation Packer had with the bookmaker on Cup Day, two decades ago.
Packer: “Packer here.”
Bookmaker: “Yes, Mr Packer, how can I help you?”
Packer: “What price are you betting Ebony Grosve, Alfa and Might And Power?”
Bookmaker: “Ebony Grosve is 6/1, Alfa 14s, and Might And Power is 9/2.”
Packer: “I want to back Might And Power.”
Bookmaker: “How much do you want to on it, Mr Packer?”
Packer: “$100,000.”
Bookmaker: “That’s fine. $450,000 to $100,000 is the bet, Mr Packer.”
Conversation ends.
Packer is believed to have invested nearly $1.5 million on Might And Power in the 1997 Melbourne Cup.
Some of the other successful wagers he reportedly made include a massive $500,000 to $200,000, $300,000 to $75,000 and $200,000 to $50,000.
Packer, who died of kidney failure in 2005, was probably the highest roller in Australian punting history.
His love of a bet was legendary, a passion, he once admitted, that was inherited from his father, Sir Frank.
“My father was a gambler. Every man who ever created anything was a gambler,” Packer once said.
“I am also, but there’s a difference ... I’ve never risked the lot.’’
Packer’s successful betting spree on Might And Power 20 years ago is still considered the biggest single plunge in Melbourne Cup history.
In comparison to some of Packer’s famous plunges, the Might And Power coup is right up there.
Most notably, Packer went on a betting frenzy during the 1987 Sydney autumn carnival, staking up to $60 million alone, mostly with retired bookmaker Bruce McHugh.
One of his most significant bets that autumn was on his juvenile Christmas Tree in the Golden Slipper Stakes.
Packer is said to have placed a single wager of $2 million at 9/2 but Christmas Tree could finish only fourth.
He also invested $2 million-plus on champion colt Myocard in the Sydney Cup, standing to win a massive $7 million.
Ironically, Myocard was cut down in the final strides by the Packer-owned Major Drive.
Later that night, winning jockey Greg Hall was invited to a Cup celebration party at Packer’s Bellevue Hill home.
Hall has subsequently recounted the events of that night, describing how he was summoned by Packer into a private room.
“I want to see you, son,” Packer said to Hall. “You did well today, my father would have been proud of you.
“But you cost me $7 million you little ...”
This story has a comical postscript. On Oaks night 20 years ago, champion jockey Shane Dye invited me out to dinner at Crown Casino.
I told Dye what had happened earlier that day when suddenly Packer walked into the same restaurant.
“Here comes Kerry now, I will introduce you,’’ Dye said.
An ashen-faced reporter rose from his chair as Dye introduced me to Packer.
I don’t know who was more shocked. Packer reluctantly shook my hand, grunted, and walked away — and I can still hear Dye laughing to this day.