Troubled tycoon James Packer’s priorities moving away from business

James Packer has signalled that once again he’s prepared to do a deal on a grand scale.

James Packer in October 2017. Picture: AAP

James Packer’s Aspen home boasts some of the best mountain views of any property in the ritzy resort town regarded as the winter playground of America’s elite.

Known as West Buttermilk ­Estate, the ceiling-to-floor windows of the 18th century-inspired property highlight the picturesque Colorado snow country of Mount Daly, Mount Sopris and Owl Creek Valley.

But as the rays of the spring sun melted the snow across the valley on Monday afternoon, inside West Buttermilk James Packer was firmly rooted to his couch in front of the television, glued to his iPad and iPhone.

For the past four weeks the board of his casino company Crown Resorts has been in confidential discussions about an ­apparently unsolicited takeover approach it received from one of the world’s biggest casino companies, Wynn Resorts. Yesterday, the world learnt about the deal and wondered what it might mean for Packer and the business legacy he would leave behind. Just 12 hours after details of the deal emerged, any sign of progress evaporated after Wynn walked away, blaming the “premature disclosure” of the talks.

The Wynn deal may have fallen over, but James Packer, seen here is Aspen with Kylie Lim, isn’t prepared to give up the business world just yet, although he does want a simpler life. Picture: Nemo/Backgrid

“Following the premature disclosure of preliminary discussions, Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction,” Wynn said in a statement released early Wednesday morning.

Any deal would have been a seminal ­moment for the 51-year-old, who was aggressive and arguably prescient in reshaping the family ­empire following his famed father Kerry’s death. He quit sunset industries such as free-to-air television and put the proceeds into a business offering stable returns in gambling, before making massive mistakes in his personal and business lives.

It would have marked the end of an era in Australian business, with the Packer family no longer owning and operating a large public ­company.

There was talk in the market late last year in the wake of the ­release of my biography of Packer, The Price of Fortune, that the billionaire might look to cash in after suffering his third nervous breakdown and courageously opening up to tell his story.

Mr Packer steps out for a workout with his friend in Aspen. Picture: Nemo/Backgrid

James Packer with Mariah Carey in 2016. Picture: Brent N. Clarke/FilmMagic

If you are looking for a clue four months later about the billionaire’s current intentions for his 46 per cent interest in Crown, it comes from one of the final pages of the book.

“Some people handle pressure well and some don’t. I don’t. I don’t know if that is because I am wired that way,” Packer told me.

“Or if it is because bad things have actually happened to me.

“I am tired of being on this ­rollercoaster. I don’t want to do it any more.

“I’m ready to put my hands up for a few years. I really am.”

Packer also acknowledged in the book that the cocktail of ­medications prescribed to him to deal with his mental health ­condition made him feel “very dulled”.

“I am not sure I really see a light at the end of the tunnel in terms of getting off the medications I am on,” he said.

“Which sort of reminds me why health is 18 per cent of the US GDP. You get caught on the treadmill.’’

In the lead up to the talks I would have expected Packer to roll his entire Crown stake into the Wynn deal, which at the current price of $14.85 a share, would deliver him a $2.33 billion cheque and a stake of just under 9 per cent in Wynn Resorts.

It would leave Packer completely debt free after he has previously acknowledged his inability, psychologically, to deal with high levels of borrowings.

But this won’t be the end of the Packer business story.

On paper he would have been be left as a passive investor in Wynn, without a seat on the board, and sit ­alongside other minority shareholders in the company such as Galaxy, which owns a 4.8 per cent interest.

James Packer exits his private jet in Melbiurne during a short visit this year. Picture: Diimex

But his gaming investment — which still accounts for most of his wealth — would be diversified and he will regain exposure to gaming markets in the US, Asia and Macau.

There is some irony that after spending years building his own gaming group under the Crown brand — which retreated to Australia in 2016-17 following the ­arrest of its staff in China — this deal of this nature — had it progressed — would have delivered Packer his long-held dream of being part of a global gaming company.

He would have also had skin in the game — albeit far less than now — for the development of his dream, Crown’s six-star hotel, residential and gaming venue in Sydney, which is due for completion in 2021.

More importantly, leading into the Wynn transaction this had shown that despite his current physical appearance and psychological challenges, he hasn’t lost his appetite for deals.

And that he isn’t prepared to give up on the business world just yet.

In fact, friends say Packer has been in a far better state mentally since Christmas, when he again reunited with his second wife, Erica, and their three children for their second family Christmas in Aspen. He and Erica jointly own West Buttermilk Estate.

James Packer and then-wife Erica Baxter in 2007. The pair remain close. They shared Christmas in Aspen with their three children. Picture: AFP

In the first week of February, Packer also attended the Super Bowl in Atlanta, where he caught up with several business leaders from Australia, including his good friend Paul Bassat.

In mid-February, when he returned to Australia for the first time in 14 months, he briefly ­visited Sydney — the city he ­declared in my book that he was “scared” of.

Packer also spent time at Crown Melbourne, where he spent several hours with the ­godfather of the casino and his good friend Lloyd Williams, and other friends such as Eddie McGuire and AFL boss Gillon McLachlan.

Later during his Australian ­sojourn, at Crown Perth, he met with other friends and businesspeople including Crown’s executive chairman, John Alexander, and the executive in charge of the Crown Sydney project, Todd Nisbet.

So far this year, Packer has also been spending time at his $80 million mansion in Los Angeles, the former home of Hollywood actor Danny DeVito, in Beverly Hills.

It features a wing for guests to stay, which this year have included his first wife, Jodhi Meares, and a family wing where his children, Indigo, Jackson and Emmanuelle, each have their own bedrooms.

His Aspen property also features a children’s wing, complete with six timber bunk beds, and an outdoor waterslide for his children to play on during the warmer months above a swimming pool that doubles as a hot tub during winter.

In the living room, Emman­uelle’s drawings still take pride of place on the wall next to the ­fireplace.

As do the photos of her with Jackson and Indigo on the desk of their father’s study.

They are a reminder that business now comes second in the life of James Packer.

The billionaire simply wants a simpler life.

“I think this deal, if it happens, will make James a happier person,’’ one close friend told me yesterday.

“And that’s worth a lot.”

James Packer’s Beverly Hills home, where he’s spending an increasing amount of time. Picture: Joe Bryant