Former Crown Resorts and Lendlease boss Steve McCann is understood to have been in talks about taking on the top job at Star Entertainment after earlier speculation in the market he was a leading choice to be Tabcorp chief executive, now awarded to ex AFL boss Gillon McLachlan.
Mr McCann, a known horse racing enthusiast and once top poker player, has the pitch that he can turn the company into a real estate play in what most suspect could see him steady the ship in a short-term turn around job.
DataRoom sources told this column that Mr McCann was a leading choice by Tabcorp directors to run the business, with the prospects of former AFL boss Gillon McLachlan winning the job unlikely.
The market chatter was that Mr McCann turned the opportunity down after being tapped by Tabcorp’s head hunter.
Multiple sources said that Tabcorp’s board had favoured Mr McCann, with former experience running a top Australian Securities Exchange-listed company.
But others well-placed say that Mr McCann was not interviewed by the Tabcorp board in the final stages of the process, given his background was more in casinos and real estate rather than wagering and media.
Market observers say that the Tabcorp role will be a test for Mr McLachlan when he starts in the role on August 5, as first flagged by The Weekend Australian, because the AFL was a monopoly, but had the qualities to be up for the task.
One of the key challenges for the well-connected Melburnian will be remaining onside with the powerful racing body Racing NSW, run by CEO Peter V’landys, and proving that his loyalties do not lie more strongly with Victoria.
As an aside, there are some suggestions that a role in Australia working with New York private equity firm Blackstone, the owner of Crown Resorts, may have been Mr McLachlan’s first preference.
Tabcorp’s market value has more than halved since bidders Apollo and Entain came forward with offers that value the business at $3bn in 2021, prompting the demerger of its lotteries arm.
Industry sources say that Mr McLachlan’s focus should be on fixing the technology.
Suitors are still believed to be around the hoop, but expectations are that the shares gain under Mr McLachlan’s leadership.
Meanwhile, Star Entertainment is being run by director David Foster until a replacement can be found following the departure of Robbie Cooke.
Shareholders await the outcome of the Bell II inquiry by Adam Bell SC on behalf of the NSW Independent Casino Commission.
The inquiry is to assess its responses to an earlier inquiry that ordered changes at the group over how it operates to prevent illegal gambling activity.
There’s no sure bet it will retain its casino licence after being subject to investigations into anti-money laundering law breaches at its casinos where it operates in NSW and Queensland.
Star’s real estate is only as valuable as its ability to operate as a casino, but a sale and leaseback has previously been discussed.
Billionaire publican Bruce Mathieson Snr, who owns 10 per cent, may privatise the company with private equity.
Mr McCann, a Scentre Group director, ran Crown Resorts from 2021 to 2022 when it was privatised by Blackstone and some suggest he was frustrated at not being able to achieve the upside from Crown he hoped for.
Chairman Bruce Akhurst stepped into the position of Tabcorp executive chair following the shock departure on March 14 of Tabcorp boss Adam Rytenskild for inappropriate and offensive language in the workplace.
Star Entertainment has been fighting to maintain its casino licences in two states after having been probed by anti-money laundering agency Austrac, and has faced hefty fines and expensive undertakings as a result.
Mr McCann has already passed probity checks and would know how to appease the regulators with his Crown experience.
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