David Gyngell takes the blame but hurt James Packer’s in no mood to forgive

BILLIONAIRE James Packer’s close, 35-year friendship with Nine CEO David Gyngell may not ­survive the weekend’s public street fight.

BILLIONAIRE James Packer’s close, 35-year friendship with Nine Entertainment chief exec­utive David Gyngell may not ­survive the weekend’s public street fight.

While the Crown Resorts chairman sought to limit the business consequences of his brawl with Mr Gyngell, news of a police investigation into the fight, along with embarrassing images, went global, potentially damaging his international gambling interests in Sri Lanka, Macau, The Philippines and Japan.

Attempting to contain the ­fallout, Mr Gyngell released a statement accepting responsibility for instigating the fight, while Mr Packer’s lawyers contacted NSW police, pledging co-operation with the formal investigation launched yesterday morning. Sources close to Mr Packer said he had acted in self-defence and it would be very difficult for him to forgive Mr Gyngell. They said the pair’s 35-year friendship was now permanently damaged.

“I don’t think he will ever ­forgive him,” one source said. “It was so public and embarrassing.”

Another source said Mr Packer was deeply hurt and angry at Mr Gyngell’s ambush outside his house on the esplanade at Sydney’s Bondi Beach on Sunday, but said the media chief executive was like a brother to him and he accepted his apology during a visit on Monday morning.

“They’ve had fights before and their friendship will overcome it,’’ the source said. “I don’t think the relationship is irreparably damaged. They are like brothers.”

The dispute between the two is understood to be deeply personal, with Mr Gyngell wiping Mr Packer as a friend after he split from his wife, Erica, a year ago.

Mr Packer sought legal advice on Monday, with his chief legal counsel Guy Jalland attending his home in the aftermath of the brawl.

News Corp Australia newspapers report today that Mr Packer had considered taking legal action against Mr Gyngell, but decided against it so as not to inflame the situation. Mr Packer had just stepped off a long flight from Israel, where he had business meetings with friends and associates, including film producer Arnon Milchan, and was unprepared for the confrontation and ambush outside his Bondi home in Sydney’s east.

Mr Gyngell yesterday publicly apologised, releasing a statement to Nine Network News that said he “respects the job police do and will co-operate fully with their ­investigation”.

Mr Packer, sporting a black eye, emerged from his Bondi home, where he had been holed up since the Sunday afternoon public melee, to have lunch with Mr Gyngell’s arch media rival, Seven executive chairman Kerry Stokes. at his private Woolloomooloo office, east of the Sydney CBD.

A spokesman for Mr Packer said it was a longstanding lunch ­appointment in Mr Stokes’s ­office. “Kerry and James are good mates and always try to catch up when they’re in the same town. They had a good lunch and discussed a lot, including business,’’ a Seven source said.

Speaking after the lunch, Mr Stokes said: “Everything is fine. James doesn’t need any advice. He was a little bruised, but otherwise OK.”

The Australian understands Mr Packer’s friendship with Mr Stokes has been one of many points of contention between him and Mr Gyngell, whose Nine Network is in a fierce ratings battle with Seven.

Mr Packer and Mr Stokes became close friends in 2010, with Mr Stokes hosting Mr Packer and his then-wife in the US ski resort of Vail over Christmas. The pair are now doing business together, with Seven investing in a film on Gallipoli produced by RatPac, which Mr Packer owns with Brett Ratner.

Following the lunch with Mr Stokes, and after liaising with his lawyers and closest advisers, Mr Packer flew to his Crown casino in Melbourne, in an effort to ­escape the media camped outside his home, limiting his movements. “He is deeply hurt and wants to be left in peace,’’ a source said.

Detectives from the Eastern Suburbs Local Area Command were doorknocking yesterday, looking to speak with anyone who may have witnessed the incident.

Police have also contacted the photographer, Brendan Beirne, who photographed the alleged dispute and who is expected to provide a statement later today.

It is understood News Corp Australia, publisher of The Australian, has also been contacted by police seeking access to the images, after the company paid a six-figure sum to secure exclusive rights to the still and video footage on Monday.

The brawl between the gaming billionaire and his long-time best friend became a global media story, including in The Times of London.

The board of Nine Entertainment Co assembled for a regularly scheduled board meeting at the Nine Network’s Willoughby head office yesterday. It is understood the behaviour of board member Mr Gyngell was not raised as a formal agenda item.

NEC board members and chairman David Haslingden had discussed the matter with Mr Gyngell on Monday after news of the first images emerged. Mr Haslingden released a statement reiterating the board’s ongoing confidence in Mr Gyngell.

Additional reporting: Damon Kitney, Michael Bodey