James Packer’s Crown Resorts has completed the sale of its Las Vegas building project to Wynn Resorts for a reported $370 million.
Prior to agreeing to the sale, Packer’s Crown had wanted to build a new casino and 1,100-room hotel named Alon Las Vegas. However, after deciding to scale back its international interests, Crown will now add around $326 million to its account after minority interests have received their cut.
Packer Times It Right
The sale of the 38-acre building plot to Wynn Resorts appears to have come at an opportune time for Packer. Since the Wall Street Journal’s January 26 report on CEO Steve Wynn’s alleged sexual misconduct, the company’s finances have taken a pounding.
According to recent share prices, Wynn Resorts’ value has dropped $4.3 billon, while Wynn’s personal fortune is down hundreds of millions.
Since the story broke, the casino magnate has denied the allegations, suggesting that the newspaper report is part of a conspiracy by his ex-wife Elain.
Despite denying the allegations, Wynn has resigned from his position as Republican National Committee Finance Chair, but he’s yet to stepdown as CEO of Wynn Resorts.
However, with three gaming commissions, including Nevada’s, reviewing his status as a licence holder, the billionaire may be ousted regardless of his personal decision.
Crown Using Cash to Rebuild
While the latest news has caused problems for Wynn and his eponymous company, Packer will be letting a sigh of relief that the Vegas sale was pushed through in time. With Wynn Resorts’ finances falling, a $300 million+ deal in a building plot isn’t ideal.
For Crown, the completion of the deal is yet another cash injection that will help plug its current debt. Along with the sale of its stake in Macau’s Melco Crown Entertainment and shares in Caesars Entertainment Corporation, Crown has also agreed to offload 62 percent of its interest in CrownBet.
Through the sale of multiple assets, the casino brand hopes to generate approximately $700 million. Although those funds won’t complety clear the company’s debt, it will reduce it to a level that will allow it to push on with various projects, including the $2 billion Barangaroo hotel-casino.
Set to open in 2021, the six-star venue will not only boost Crown’s presence in Australia, but help attract more Asian gamers to the Sydney suburb as they look for betting opportunities outside of Macau.