James Packer signs $3 million jersey sponsorship deal with the South Sydney Rabbitohs

BILLIONAIRE casino tycoon James Packer has grabbed a $3 million jersey sponsorship deal with the Rabbitohs from arch rival The Star.

Packer and Crowe

BILLIONAIRE casino tycoon James Packer has jumped on board the South Sydney Rabbitohs, grabbing a $3 million jersey sponsorship deal from arch rival The Star.

In a deal done with the club's owner and close friend Russell Crowe, Mr Packer's Crown casino will be on the front of the Rabbitohs' jersey from next season.

Sources indicated the three-year deal was worth $1 million a year from 2014.

The Sunday Telegraph revealed The Star's board had decided not to renew the Souths sponsorship deal.

However, Crowe blasted The Star management yesterday for the way it terminated the deal.

"When we did that (The Star) deal, the guy who was the CEO, Larry Mullins, called me 30, 40 times," he said.

"In closing it down (the sponsorship), not one single representative from Star has even bothered to get me on the phone.

"I find it really quite odd that it was such a public thing in the beginning and it's just closed mouths and closed doors at the end.

"I find that very disappointing. I don't understand how they can say they are deeply connected to the community when they do something like this.

"I was actually very surprised because we've done a significant amount for them. We have definitely over delivered. We put their logo on Oprah ... on Ellen.

"We're kinda getting rejected for reasons that are not being made clear to me."

Crowe had given enormous personal support to The Star at its official opening and a number of big shows.

He met with Mr Packer to confirm the sponsorship arrangement yesterday at the National Centre of Indigenous Excellence in Redfern after two weeks of private talks. The deal is almost identical to Crown's sponsorship of Melbourne Storm.

It took over the Storm sponsorship after the salary cap scandal in 2010 almost brought the club to its knees.

"The Souths sponsorship will not affect our great relationship with Melbourne Storm," Mr Packer said.

Souths are the hottest team in the NRL, leading the competition and TAB favourites to win the grand final.

Mr Packer said his late father Kerry was a "big Souths fan" in his day.

"I think he'd be smiling," he said. "He'd be very happy that Crown was supporting Souths and look down with incredible pride at what Russell's done with the team."

Mr Packer said he was shocked when the sponsorship became available.

It coincides with Mr Packer's massive plans for Barangaroo, the $1 billion-plus harbourside casino development.

"This is a fantastic result for Crown. We were absolutely stunned that The Star walked away," he said.

"Souths are a wonderful community club and we're extremely excited about partnering with them for the next three seasons."

 Crowe had also thrown his support behind Mr Packer's Barangaroo development despite his connections to The Star at the time.

"(Mr Packer is) very well aware when it comes to Australia - Sydney is the golden gate," Crowe said.

He said he approached Mr Packer in the wake of the split from The Star. " I thought it was a natural fit," he said.

A spokeswoman for The Star said Echo Entertainment Group's new management was actively reviewing all sponsorships as part of a wider repositioning strategy. 

"The Star’s Managing Director has had ongoing talks with the Rabbitohs CEO and our decision not to renew the major sponsorship has been communicated to the Souths Chairman and management over the past few weeks," she said. 

"This doesn't detract from our past and ongoing involvement with the Rabbitohs to the end of the season.  The Star has been happy to be part of the rebuild of Souths.  We are proud to have made a contribution to the success the Rabbitohs are enjoying this year and we wish them all the very best this season.

"The Star is responsibly investing its funds across a variety of sporting codes and other important community initiatives, including charities and other worthy causes.

"We have ongoing arrangements with a variety of sports including rugby league, AFL, the A-League, horse racing and more, along with the support we give to many local charities." 

The spokeswoman said The Star would announce more partnerships in the coming weeks.