Josh treasures a private gig; Peter Dutton in Rheinmetall outfit; Crown boss Steve McCann and Blackstone
Josh Frydenberg’s political aspirations were prematurely snuffed out on election night with his loss in the Victorian seat of Kooyong, held by the Liberal Party since the era of Sir Robert Menzies. If he did have one eye trained on the leadership – and frankly, who wouldn’t – those trampled dreams have certainly been parked for the moment.
So what’s next for the former treasurer?
Margin Call has confirmed that Frydenberg is setting up an office in Melbourne’s Como Centre and he will keep an assistant drawn from his old ministerial staff, a position that will be privately funded.
All roads from here lead to the private sector, apparently; hence the need for some working space.
Allies say there have been a few inbound calls sounding him out for work, which makes sense given his priors at Deutsche Bank and that stint at Mallesons during the mid-1990s.
Let’s also not forget that Frydenberg has one of the best black books in Australian politics. And what about that rat-pack he formed with Merivale hospitality billionaire Justin Hemmes, former Aussie Homes Loans boss James Symond and media scion Ryan Stokes? Recall, too, the treasurer was best man during Stokes’s 2016 wedding to shoe heiress Claire Campbell.
So is there a sequel to come for Frydenberg’s political career? Do we call it a comeback? He’s told friends that he’s ruled out any run for the red leather of the Senate or a campaign for the parochial backwaters of the Victorian parliament.
But a federal tilt – either for Kooyong or another seat – remains a possibility. Then again, a week is a long time in politics. Much can happen between now and 2025.
His pals say they are certain he will return, but Frydenberg himself wouldn’t be drawn on the matter, other than to reiterate more or less what he told supporters on election night – that he still has “some gas in this tank”.
Full metal jacket
Yes, it may have happened weeks ago, but only now has a photograph been brought to our attention of Peter Dutton sporting some curious product placement for German weapons manufacturer Rheinmetall.
The snap was taken on May 21, election day, at Albany Creek State School, where Dutton wore a branded jacket featuring the company’s logo. This while voting and conducting television interviews in the seat of Dickson.
Why does this matter? It just so happens that Rheinmetall is one of only two companies vying for a $27bn Australian Defence Force contract running since 2018.
The successful candidate will provide 450 next-generation fighting vehicles. Rheinmetall’s competitor is South Korean defence conglomerate Hanwha, which has completed testing of its vehicle.
It will be up to the Albanese government and its newly appointed Defence Minister, Richard Marles, to announce which bid has been successful. The decision was due to be made weeks before the election but that was pushed back to September.
But for now we have an inkling of where Dutton may have been leaning, and perhaps which outfit he would have chosen, if he had remained in government.
Odds-on winner
Earlier this week Steve McCann marked off exactly one year at the helm of the James Packer-backed Crown Resorts.
McCann is highly unlikely to hit another milestone anniversary as the pieces fall into place for Blackstone’s $8.9bn takeover offer for the entertainment group.
As revealed this week, the private equity giant has received regulatory approval from the NSW Independent Liquor and Gaming Authority, with a formal announcement expected to be made next week.
That leaves similar approvals in Victoria and West Australia still pending before Crown investors – including 37 per cent shareholder Packer – can be paid their $13.10 a share. Packer’s direct deposit will be in the neighbourhood of $3.2bn.
Margin Call’s back of the envelope calculations suggest McCann – regardless of whether he stays with the entertainment empire – could obtain more than $10m for his 12 months leading Crown’s transformation.
Formerly of Lendlease, McCann walked through the door at Crown on June 1 last year before commencing as CEO in late October after clearing probity hurdles.
His fixed base pay is $2.5m a year. McCann is also entitled to a short-term incentive of up to $2.5m, subject to financial and non-financial hurdles.
There is no long-term incentive for him this year, but don’t feel too sad, given the $5.4m in performance rights McCann received just for signing on to the Crown role and which will immediately vest if the company is taken over.
The fine print reveals that McCann will still get the $5.4m even if he stays on to work for new owner Blackstone.
A clause in his deal states McCann gets the millions if “he is no longer CEO of an Australian publicly listed company”.
He can’t lose.
Regulatory race
Meanwhile, the NSW gaming regulator’s green light for Blackstone’s acquisition of Crown has raised questions of its interstate counterparts and what on earth is causing them to tarry endlessly with their decision.
Victorian Gambling and Casino Control Commission chair Fran Thorn provided no great excuse on Friday when she said her newly minted agency was working with other state casino regulators on the matter. This includes extensive inquiries into Crown’s affiliated business abroad.
“To inform any decision, we undertake extensive and comprehensive probity assessments and investigations. (Blackstone) is a large corporate entity and the commission is considering all relevant associates of the group. In particular, it has various operations in other countries which we are also assessing.”
Across the Nullabor, a spokesperson for the West Australian Gaming and Wagering Commission would only say it was “still considering an application for probity approval submitted by the Blackstone Group in December 2021”.
Six months and counting.
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