How Gillon McLachlan’s running mate could be embroiled in a fresh racing fight

It was Gillon McLachlan who first tapped his friend Tim Rourke on the shoulder.

The former AFL chief had been privately sought out by Racing Minister Anthony Carbines to become the industry’s next chairman, and wanted a capable sidekick to join him on the board.

Gillon McLachlan is out of the race to become the next Racing Victoria chairman.Credit: Getty Images

Rourke, his ex-teammate at University Blues, took little convincing. He loved racing, he had business acumen, and agreed with McLachlan that together they could help calm an industry besieged by uncertainty and unrest.

But suddenly, and surprisingly, Rourke finds himself on his own.

He and Macedon Lodge chair Mark Player were on Friday appointed to the Racing Victoria board by Carbines, while McLachlan’s name was nowhere to be seen.

Instead, the one-time AFL supremo’s focus lies elsewhere, unable to commit to joining any board as he settles into a new job in the corporate world, a process that took months longer than he thought.

The Australian Financial Review reported on Friday that McLachlan had been signed on as a senior adviser to Blackstone, the New York-based private equity company that owns Crown Resorts.

McLachlan was contacted for comment.

As a result, Rourke, the CEO of the Victoria Power Networks group, has now emerged as a potential plan B: the outsider most capable of bringing stability to Racing Victoria’s under siege board.

Whether he lands the role is another matter. Two sources, who were not authorised to speak publicly because the process is confidential, told this masthead that Rourke is prepared to take on the challenging chairman’s position, but five members of the sitting board prefer fellow director Tim Eddy.

Backing Eddy would be a bold move by Carbines, who is already suffering from the poor optics of making the industry wait months for a man, McLachlan, he could not deliver.

Energy industry heavyweight Tim Rourke, pictured on a charity bike ride, has joined the Racing Victoria board.Credit: Damian White

Eddy was one five directors that the Thoroughbred Racehorse Owners Association, led by chairman Jonathan Munz, tried to have sacked at a special general meeting in February. His appointment could set Racing Victoria on another collision course with Munz.

Adding to this potential tinderbox, the two sources told this masthead that the push for Eddy has been reached without consulting new directors Rourke and Player – hardly the refreshed approach that Munz had so vehemently demanded.

Carbines said on Friday that “no decision has been made about who will become the Racing Victoria board chair”.

“The board will make a nomination for the chair later this month for my consideration. Until then, it would be inappropriate to comment further,” he said.

Munz warned the minister it would be “a huge mistake” to appoint a new chairman from the “much -criticised incumbent directors”.

“The industry has been clear that the majority of the board needs to be replaced and that the new chairman needs to be a fresh outside person,” he said.

“The minister has delayed us since January waiting for Gill McLachlan and now looks like he has again changed tack and is proposing to limit us to only two new directors and impose Tim Eddy on the industry as the new RVL Chair, which no-one wants.”

For months, the McLachlan-Rourke pairing to fill vacancies on the Racing Victoria board seemed like a done deal.

Both applied to become directors, both sat before a five-man interview panel in Exhibition Street and both were recommended to the minister for the gig.

They also had a history of getting things done. They played together at University Blues Football Club – one a raw-boned ruckman, the other a dour midfielder – and later worked in tandem off-field to lift the beleaguered amateur outfit back into the premier division.

But McLachlan’s search for a job proved a constant stumbling block. When he walked away from the AFL in October, he said he would give himself until February to unwind, spend time with his family and then sort out his business life. That has only just happened.

Racing Victoria director Tim Eddy is being touted as the new industry chairman.Credit: Eamon Gallagher

In the end, Carbines simply ran out of time. He needs a new chairman to be voted in at a board meeting next Friday when interim Mike Hirst walks away for good.

While Eddy, a former managing partner of operations at Ernst & Young, has emerged as favourite, people should not underestimate Rourke, says friend and former Uni Blues teammate Quinton Gleeson.

“Gill is more of a public figure, and media personality … Tim is more understated, but … they are both great at galvanising thousands of people at many different levels,” Gleeson said.

Gleeson should know. He was appointed coach of Uni Blues by McLachlan and Rourke at the end of 2013 when their proud amateur club had been embarrassingly relegated from the premier division.

“Gill was obviously quite busy at the time with the AFL, but I was left wanting for nothing – ground support, resources, team support, and everything he could do off the field,” Gleeson recalls.

“And then Rourkey was unbelievable to me on the field. He’d run a $10 billion company during the week and then report to me as an assistant coach on the weekends, saying, ‘I’ll do your boards and be your chairman of selectors’, and do all that sort of stuff to help me mitigate all the noise that comes from coaching a footy club.”

Having seen both men operate, Gleeson is not surprised that Carbines first sought out McLachlan, who then handpicked Rourke.

“Gill would have liked to surround himself with people that could make a difference on the board. And I know that would have been part of the conversation, ‘Well, if I am doing this, would you be interested, too’?,” he said.

Former AFL CEO Gillon McLachlan in action during a polo match.Credit: Getty Images

With McLachlan’s future now on hold, Gleeson said the prospect of becoming chairman would have convinced Rourke to “go it alone”.

“What he is phenomenal at is he can talk to the bottle shop owner or the dry cleaners, and then he is knocking around with people at the top-end of town,” he said. “He has the ability to see everyone’s perspective and lens on issues and topics, and then find common ground with all these people.”

Gleeson said the racing industry should not underestimate Rourke as a soft touch. As the CEO of Powercor, CitiPower and United Energy he oversees 2500 staff, 1000 contractors, and 70 per cent of Victoria’s power grid.

“The one notable thing about Tim is his exceptional ability to cut through the noise and stay focused on his vision,” Gleeson said.

“If someone tries to undermine the integrity and culture that Tim is diligently cultivating, he addresses it swiftly and decisively.”

Munz was part of the panel that interviewed board candidates and said Rourke was “impressive and sensible” and “brings no baggage”.

Rourke already has strong connections within the racing industry. He went to Xavier College with Melbourne Cup-winning trainer Danny O’Brien, who was later a groomsman at his wedding, while another of his former Uni Blues teammates Adam Lennen is chairman of Moonee Valley Race Club.

The big question now is whether McLachlan will reconsider his nomination for the Racing Victoria board. When he settles into his new job in the coming weeks, and is potentially cleared of any conflict of interest, could he sit on a board under Eddy or Rourke?

“It would be nice to have Gill and Rourkey there,” Gleeson said. “Knowing them both, I know they would have a huge impact. That would be a perfect world. But I don’t know if Gill would do it if he wasn’t the ultimate chairman.”

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