Jack Cowin's extra large slice of Domino's Pizza got cold pretty quickly after peaking at a value of $1.3 billion in August last year.
It has now shrunk by about $600 million in value.Â
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What went wrong for the Domino's chairman who has a 26 per cent stake in the pizza maker?Â
It is fair to say that the indigestion started at another company that has Cowin on the board, CBD publisher Fairfax Media.Â
![Hungry Jacks founder and Domino's chairman Jack Cowin.](http://web.archive.org./web/20170718230400im_/https://www.fairfaxstatic.com.au/content/dam/images/g/l/q/1/9/s/image.related.articleLeadwide.620x349.gwvokr.png/1498163578299.jpg)
An expose earlier this year revealed how cash-strapped franchisees were forced to underpay staff in order to keep their heads above water, a theme that has played out in other franchise operations like 7-Eleven.Â
The uneven split of the spoils between the company and its franchisees has exposed the inner workings of its business model in a way that has given the markets indigestion.Â
And now analysts like Citi say more of the dough will have to be shared with franchisees if Domino's wants to continue to grow.  Â
![Illustration: John Shakespeare](http://web.archive.org./web/20170718230400im_/https://www.fairfaxstatic.com.au/content/dam/images/g/w/w/r/n/2/image.related.articleLeadNarrow.300x0.gwvokr.png/1498163578299.jpg)
"The health of the franchisee is crucial to further success," said Citi's Craig Woolford.Â
Citi's Sell rating, and valuation on the stock, indicates Cowin could see another $170 million sliced from his pizza fortune.Â
The good news is that Cowin's investment in Fairfax Media has gone gangbusters.Â
The shares he picked up in 2012 at 44 to 46c each are now trading at more than $1.20.Â
The downside is that he only picked up three million Fairfax shares, which means his $2 million gain has not done much to offset the losses at Domino's.
Fit to print
Speaking of Fairfax, the media group's most vocal investor, billionaire Alex Waislitz, was crowing about his success with the media group in the latest update from Thorney Opportunities Ltd (TOP).Â
"It is still early days in the due diligence process but Fairfax is now 'in play'Â and will be forever changed," he said.Â
Not that Waislitz is about to cave in to the private equity barbarians – Hellman & Friedman and TPG – which are still in the 'data room' crunching the numbers on potential rival bids for Fairfax.Â
He said the "prize" is the potential for Domain to generate earnings before interest, tax, depreciation and amortisation (EBITDA) of $200 million over time – compared to the current levels of around $115 million. He reckons this would value Fairfax at around $4 billion compared to the current $3 billion indicative bids from private equity.Â
"Fairfax's shareholders must decide if that potential value uplift can be achieved by the existing team over time or whether it is better to exit now and leave private equity to pursue the upside."Â
Ten playÂ
What better way to prepare for the shark-infested waters of the Network Ten administration than swimming naked on the shortest day of the year in Tasmania's chilly waters.Â
Veteran spinner John Connolly, who is Lachlan Murdoch's man with all the answers at Illyria, took the big plunge as part of Dark Mofo's naked solstice swim on Wednesday evening.
![Participants prepare before the Nude Solstice Swim, as part of the Dark Mofo winter festival.](http://web.archive.org./web/20170718230400im_/http://www.smh.com.au/content/dam/images/g/w/v/x/q/8/image.imgtype.articleLeadwide.620x349.png/1498045631184.png)
Participants prepare before the Nude Solstice Swim, as part of the Dark Mofo winter festival. Photo: Rob Blakers
And not being a shy and retiring type, Connolly wrote about it in Rupert Murdoch's local rag, The Australian.
"Apart from the snow and the sleet ice and the lack of smashed avocado, quinoa and almond milk lattes, it was bearable," he reported.Â
CBD had to ask Connolly whether he spotted any corporate identities at the performance art event.
"I was trying to avert my eyes," protested Connolly who is now very awake as Illyria – Lachlan's private media group – negotiates alongside Bruce Gordon's Birketu, about whether they will provide debt funding for Ten.Â
For those who have not kept up with the mechanics of the administration. James Packer, Gordon and Murdoch jnr have not only done their dough on their collective investment in Ten, they are also now on the hook for the network's outstanding debt after pulling their debt guarantee.Â
The administrators from Korda Mentha are operating the business on cash flow – and doing their best to keep the broadcaster broadcasting – until some new arrangement can be reached, or, a new buyer is found.  Â
Follow CBD on Twitter. Got a tip? ckruger@fairfaxmedia.com.au