Tabcorp shakes up executive team as it focuses on wagering, media

Tabcorp chief executive Gillon McLachlan will change his executive team, bringing on a former Paramount executive to head the wagering giant’s media business.

Former AFL CEO Gillon McLachlan is shaking up the executive team at Tabcorp.

Tabcorp chief executive Gillon McLachlan will shake up his executive team, bringing on former Paramount executive Jarrod Villani to head the wagering giant’s media business.

The changes, foreshadowed earlier this year by Mr McLachlan, also will see the creation of a chief wagering officer role as the former AFL boss beefs-up Tabcorp’s core business. 

Mr Villani, who led the successful restructure and sale of Network 10 to American television and entertainment network CBS, has been appointed chief commercial and media officer. Narelle McKenzie has been appointed chief legal officer while Robert Fraser has been appointed chief technology and transformation officer.

“The changes to our structure will increase our wagering capability and drive growth across both wagering and media,” said Mr McLachlan.

“It allows one executive to control the key wagering assets within our ecosystem. It’s a simpler model that brings our wagering team together to drive first class execution.’

As part of the changes, chief customer officer Jenni Barnett and chief information officer Alan Sharvin will be leaving the business. Tabcorp shares fell 1.4 per cent to 56 cents.

Mr Villani, who will be in charge of Sky Racing and the company’s retail outlets, said he was looking forward to working with Mr McLachlan ‘to unlock the value” of Tabcorp’s assets. “There’s no sports entertainment ecosystem like it in Australia and I’m excited by the growth opportunities as we continue the company’s transformation,” said Mr Villani. “Sky Racing is a world leader in live racing broadcast and there’s no television network in Australia that broadcasts more live television than Sky Racing. It’s a stable of rising stars and content opportunities which are untapped.”

Jarrod Villani is joining Tabcorp.

The shake-up comes as Mr McLachlan earlier this month slashed about 200 jobs from the wagering giant as part of a plan to turn the company into a “fitter organisation”.

Mr McLachlan foreshadowed the job losses — equal to about 10 per cent of the company’s workforce — at the company’s annual general meeting in October where he stressed the need for Tabcorp to move more quickly in a changing market.

“We are targeting further savings this financial year,” he told shareholders.

“In addition, I am working with the team on a detailed review of our entire operating cost base as well as our capital spend to identify and execute on further opportunities to reduce our cost base. I’m focused on making Tabcorp a fitter organisation.”

Mr McLachlan said this would require a reset of team, culture and cadence around the business. “I acknowledge much work has been done in reducing headcount, management layers and outsourcing transactional work,” he said.

“You will see continued change in the business. The people will change as the plan evolves. I’ve got a laser focus on people, capability and execution.

“A key focus will be bringing in additional wagering capability and experience at senior leadership levels. Wagering is the foundation of our company.”

Tabcorp in August booked a worse-than-expected $1.36bn loss for the year amid belt-tightening by customers and heavy writedowns on wagering assets in NSW and South Australia.

The company has faced increasing competition from major international bookmakers such as Ladbrokes and Sportsbet as customers placed more bets online.

Tabcorp, which has a substantial network of betting shops, pays double the wagering fees and taxes of bookies such as Sportsbet and Ladbrokes, which only licensed in the Northern Territory and only pay a point of consumption tax on a state-by-state basis.

Originally published as Tabcorp shakes up executive team as it focuses on wagering, media