Former AFL boss Gillon McLachlan appointed Tabcorp chief executive

The former AFL boss will take over the top job at Melbourne-based wagering giant Tabcorp, picking up a base pay of $1.5m and the opportunity to earn far more in incentive payments.

Former AFL boss Gillon McLachlan has been appointed chief executive of Tabcorp.

The Melbourne-based wagering giant announced the appointment on Monday morning.

Mr McLachlan, who ran the AFL for a decade, had been courted for the Tabcorp role that has been vacant since Adam Rytenskild’s sudden resignation in March.

Mr Rytenskild’s departure followed allegations he made inappropriate and offensive comments to a gambling regulator.

Mr McLachlan will formally take over the role on August 5, subject to regulatory approvals.

He will serve as an observer to Tabcorp’s executive chairman in the meantime.

The Tabcorp appointment follows Mr McLachlan pulling out of the race to be chairman of Racing Victoria.

Gillon McLachlan will start of a base pay of $1.5m. Picture: David Crosling

Mr McLachlan’s remuneration package includes an annual base pay of $1.5m with the opportunity to earn short-term incentive payments of 150 per cent of this and long-term incentive payments of 200 per cent.

The short-term incentive payment will be split between cash and shares while the long-term inventive payment will be made in share options.

Tabcorp chairman Bruce Akhurst said Mr McLachlan had driven significant change at the AFL, doubling revenues to more than $1bn, securing the largest sports broadcasting rights deal in Australian history, and expanding the competition to 18 clubs.

He also had extensive racing knowledge as a thoroughbred owner and breeder, Mr Akurst said.

“Gill needs no introduction – he is recognised as one of Australia’s leading CEOs and securing Gill is a great vote of confidence for Tabcorp’s future,” Mr Akhurst said on Monday.

“We’ve laid strong foundations and Gill brings a growth mindset and the capability to capitalise on the opportunities ahead of us.”

Mr McLachlan arrives at Tabcorp as it battles to retain market share from international bookmakers such as Sportsbet and Ladbrokes.

It’s share price has dropped 40 per cent over the past year to close out Friday at 66c.

Mr McLachlan said he would be focused on accelerating the growth of the company.

“Tabcorp is a wagering, broadcast and integrity service business and the challenges of growing it are appealing,” he said.

“Tabcorp is part way through its transformation journey and I’m looking forward to working with the leadership team to accelerate and deliver on the growth opportunities.

“It’s about creating entertainment for our customers in a safe way and providing a unique customer omni-channel entertainment offering across digital, retail and the media business.”