Crown Resorts is exploring the potential sale of its renowned Capital Golf Club, part of its broader strategy to stabilize finances amid a challenging economic period. The prestigious 18-hole course, located in Heatherton, Melbourne, was designed by famed golfer Peter Thomson and opened in 1997. Originally reserved for Crown’s elite clientele, including celebrities like Tiger Woods and Celine Dion, the course has seen decreased usage due to a decline in high-roller attendance at Australian casinos, especially following the COVID-19 pandemic.

Potential buyers and future prospects:

Acquired by Crown in 2013 for AU$67.6 million (US$45.9 million) during James Packer’s leadership, Capital Golf Club is now considered a non-essential asset. Crown’s new owner, private equity firm Blackstone, which purchased the company in 2022 for AU$8.9 billion (US$6 billion), is looking to streamline operations by selling off assets that don’t directly contribute to Crown’s core business.

As Australian Financial Review (AFR) reports, several wealthy parties have expressed interest in acquiring the golf course. Among the potential buyers are the billionaire Fox family, owners of the Linfox trucking empire, and Melbourne Storm chairman Matthew Tripp, who has been exploring a bid with a consortium of business figures. While discussions have been held with these parties, there has yet to be any formal auction or sale process initiated. If the sale moves forward, one possibility is that the property could be transformed into a luxury golf resort, modeled after the prestigious Augusta National Golf Club in the United States, which boasts high-profile members like Warren Buffett and Bill Gates.

Alternatively, the property could be developed into luxury housing. The Fox family, particularly patriarch Lindsay Fox, has a history of major property investments, including ownership of Essendon Airport and Melbourne’s Luna Park.

Crown Resorts has yet to comment publicly on the sale, and the process remains in the early stages of discussion. However, the potential sale aligns with the company’s broader efforts to reduce costs and strengthen its financial position in the wake of significant challenges.

Financial struggles and other asset sales:

Crown’s financial difficulties stem from several factors, including the COVID-19 pandemic and two damaging royal commissions in 2021, which uncovered major regulatory breaches. The commissions found that Crown had violated anti-money laundering and counterterrorism laws, including allowing operators with links to organized crime to facilitate large sums of money being transferred to Crown properties from China.

Despite regaining its gambling licenses in Melbourne and Sydney earlier this year, the company continues to face financial pressure. According to Asia Gaming Brief, Crown is also exploring other asset sales, such as its 20% stake in the renowned Nobu restaurant and hotel chain, which was sold in a deal worth AU$180 million. Additionally, the company has received interest from potential buyers for its high-end private casino in London, Aspinall’s Club.

The Capital Golf Club sale is seen as one more step in Crown’s broader strategy to divest non-core assets and focus on streamlining its operations. David Tsai, currently serving as interim CEO following the departure of Ciaran Carruthers, is overseeing these efforts. The sale of the golf course would provide a financial boost to the company while potentially giving new life to one of Australia’s most exclusive golf venues.