Peter Holmes a Court - Who says you can't make money out of Sports Teams?

So its official. James Packer is buying Peter Holmes a Court's stake in the Souths Rugby League club for $12.5 million.


Not a bad return for Peter. He and Russell Crowe paid $1.5 million cash each (as well as taking on 8 million in debt between them).


So you can roughly say, they paid $5.5 million each for their stake in the Rabbits.


8 years later, Peter gets 12.5 million (cash), but has to write off excess debt of 4.5 million owed to him. But that still works out at a nice $8 million return.


Now, I'm not sure how much else was injected by Peter over the years...but if we just look at the initial capital, compounded over the years, the investment was worth 10% a year. Not bad when you look at the fact that this was during the GFC.


So you can make money out of Sports Club ownership! It's just that it isn't a particular liquid investment.


But selling after the Rabbits had just won the Premiership is surely selling at the peak! It can't get any better than that.


Well played Pete!