James Packer steps down from Crown board over ‘mental health’ issues

James Packer’s resignation from Crown’s board for “mental health” reasons follows tumultuous years for the tycoon.

James Packer leaves the Crown Resorts AGM in Melbourne last October. Pic: AAP

Australian billionaire James Packer has stepped down from the board of his casino empire, citing mental health reasons.

A spokesman for Mr Packer’s private investment vehicle, Consolidated Press Holdings, said today the tycoon had resigned from the board of Crown Resorts for personal reasons.

“Mr Packer is suffering from mental health issues. At this time he intends to step back from all commitments,” the spokesman said.

Shares in Crown were 1.4 per cent, lower at $12.89 shortly before noon (AEDT) but Lucas Review market strategist Evan Lucas said the impact of Mr Packer’s departure may not have a large impact on Crown shares, given he was departing Crown for health reasons.

Mr Packer has been in the spotlight for personal reasons over the past couple of years after his high profile engagement to, and then break up with, American singing star Mariah Carey.

He has also been caught up in a corruption inquiry into Israeli Prime Minister Benjamin Netanyahu. He was interviewed by the Australian Federal Police about the case but was not suspected of criminal conduct in either Israel or Australia.

There was no allegation of wrongdoing on Mr Packer’s behalf and the Israeli and Australian police have confirmed that he was interviewed as a witness, not a suspect.

Mr Packer had stepped down from the Crown board at the end of 2015, returning in August 2017. The stay has been brief.

Crown’s executive chairman, John Alexander, said today the board respected Mr Packer’s decision to step down from his role as a director at this time.

When The Weekend Australian Magazine visited Mr Packer last October at Ellerstina, his polo ranch an hour’s drive out of Buenos Aires in Argentina, the billionaire talked of a simpler life after some hectic years where he rubbed shoulders in Hollywood with the likes of Martin Scorsese, Robert De Niro, Leonardo DiCaprio and Brad Pitt.

“I have always been shy. I have never liked the publicity — I get more publicity than anyone and have for 20 years. Most of it is negative. And you get gun-shy of getting hit,” he told Victorian business editor Damon Kitney.

The billionaire, who told the magazine that the past four or five years had been tumultuous, acknowledged in October that he had lost friends, put on weight and, for the past year, become a recluse.

Mr Packer has long made headlines for personal dramas and in May 2014 he was involved in a fight with then Nine Entertainment boss David Gyngell outside Mr Packer’s Bondi home. The two were long-time friends, who had known each other since school and acted as best men at each other’s weddings.

He also said during that wideranging interview in October that two years ago he was “terrified” because of the debt levels at his private investment vehicle and Crown Resorts, while he was also trying to finalise a settlement with his sister Gretel, who wanted to crystallise some of the wealth she was left in their late father’s estate.

“Then, a year later, I’ve got China falling apart, the Australian casino businesses missing budgets by big amounts, I’ve got Mariah breaking up with me and I’m thinking, ‘F. k!’” Mr Packer said.

The confidential framework of the deal with Gretel was negotiated over 12 months. Mr Packer told The Weekend Australian Magazine that, at times, the talks were not pleasant.

“Stages of the negotiation with Gretel were difficult, but a framework for future resolution was achieved,’’ he said.

Asked how he and Gretel get on now. “We have not spent a lot of time together,’’ he said. “She is getting on with her life and I am doing the same.”

Being James Packer

VIEW GALLERY

Mr Packer’s casino empire, Crown Resorts, surprised the market in December with news of several transactions underway to reduce its exposure to international assets and non-casino interests. The $700 million planned asset sales include its Las Vegas property and also two floors of its Sydney project to Mr Packer for his future Australian home.

Mr Packer had long held ambitions for a ­successful Las Vegas project and in 2014 Crown bought that land, which was next to a casino owned by Steve Wynn.

The cost-cutting drive came after the company paid a heavy price following the arrests in 2016 of its staff in China — a move that hit its lucrative VIP business. It also exited its Macau interests after the China arrests and has played down the prospects of pushing for a casino licence in Japan.

Crown has also recently sold its 62 per cent interest in online bookmaker CrownBet. The group also axed sponsorships of the nation’s top rugby league teams and sporting stars, the Spring Racing carnival, reviewed its fleet of private jets and cut staff.

Crown also said earlier this month that it was under investigation by the Victoria gaming regulator for a trial involving the use of “blanking buttons” on electronic gaming machines.