Breeder McCann seen as casino group Star’s executive ace
Vinery partner signs on as chief executive of troubled gambling business
Powerful Australian thoroughbred industry figure Steve McCann will lead beleaguered casino empire Star Entertainment Group, the company announced to the ASX on Wednesday.
McCann, who is a partner in renowned Hunter Valley farms Vinery Stud and chair of neighbouring Kia Ora Stud, will return to the casino sector, having led rival Crown Resorts for 12 months during one of its most tumultuous periods from June 2021 until Blackstone’s privatisation deal in 2022.
The well-known businessman, who previously spent more than a decade as construction firm Lendlease’s Group chief executive, will receive a $2.5 million upfront sign-on cash bonus and an annual $2.5 million salary for the first three years.
McCann replaces Robbie Cooke who resigned in March after it was announced that the NSW Independent Casino Commission would conduct a second inquiry into allegations that Star had not adequately addressed damning findings relating to evidence of money laundering, criminal infiltration and large scale fraud at Star’s Sydney casino.
His appointment saw him branded by some of the financial media as a “white knight” for the troubled Star Entertainment group, which operates The Star Sydney and The Star Gold Coast casinos and the Treasury Brisbane casino.
“I look forward to joining The Star at this crucial time,” McCann said.
“I recognise that there are many complex issues and challenges for the company to address.
“I am committed to working with the board and the various stakeholders to help drive change, restore confidence and achieve a sustainable resolution.”
Pending regulatory approval, McCann will start his new role on July 8. He resigned from the board of Scentre Group on Wednesday.
Star chair Anne Ward said a comprehensive recruitment process was undertaken and the board believed that McCann possessed the right credentials to be the new chief executive.
“Given his time with Crown and previous long standing leadership at Lendlease, he has the right credentials to lead The Star’s remediation program,” Star chair Anne Ward said.
“His track record reflects his capability to work collaboratively with multiple stakeholders and lead meaningful transformational change and cultural renewal.
“This experience will be invaluable as we work towards rebuilding trust and expediting the sustainable transformation of The Star.”
McCann, who co-owns a slot in The Everest (1200m) with Vinery partner Neil Werrett and Max Whitby and Colin Madden, was a key architect in the merger of Vinery and Kia Ora studs in January 2023.
The move led to long-time Kia Ora owner, Malaysian-born billionaire Ananda Krishnan, becoming an equity partner in Vinery alongside McCann, Werrett, Gerry Harvey, Alan Green, David Paradice and Greg Perry.
McCann, whose personal thoroughbred portfolio trades under Encompass Bloodstock, became chairman of Kia Ora Stud upon the merger, which took the combined landholding to more than 5,500 acres in the sought after Segenhoe Valley near Scone, and he has been a familiar face at many of the yearling and breeding stock sales in the 18 months since, both in Australia and internationally.
At the time of the Vinery-Kia Ora merger, McCann told ANZ Bloodstock News: “The way that we look at it is that there are some great aspects of both businesses..
“The most significant of that is the combined property. We’re going to be at more than 5,500 continuous acres of some of the best horse property in the country. So that offers something that very few farms can offer and hopefully clients will benefit from that.
“The pooled expertise and knowledge takes us to another level, as does the combined capital and resources, but we’ll formulate our own strategy.
“It will be business as usual to a large extent. But, moving forward, we will be combining together on the acquisition of bloodstock and stallions et cetera, and making sure that our best combined resources are working together across a number of areas.”
The McCann co-bred Roots (Press Statement) will run in Saturday’s Tattersall’s Tiara (Gr 1, 1400m) at Eagle Farm.
Star Entertainment’s share price closed at $0.465 on Wednesday, the same price as when the ASX closed on Tuesday.