Former Tennis Australia directors face federal action over Australian Open TV deal
Businessman Harold Mitchell has resigned as chair of Free TV Australia in the wake of Federal Court action against his role in a former Australian Open TV deal.
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Businessman Harold Mitchell has resigned as chair of Free TV Australia in the wake of Federal Court action against his role in a former Australian Open TV deal.
The former Tennis Australia vice president this morning tendered his resignation from the post and declared he would fight civil proceedings by the corporate watchdog over a broadcast deal he helped broker for the Melbourne Grand Slam.
“It is with regret that I have been forced to make this decision following the false accusations by the Australian Securities and Investment Commission, which I intend to vigorously defend,’’ he said in a statement.
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The case relates to a 2013 Tennis Australia board decision to award broadcast rights for the Open to the Seven Network for five years, without a competitive tender process.
Free TV chief executive Bridget Fair said: “It is with great regret that Free TV announces that Mr Harold Mitchell AC has taken the decision to resign as Chairman of Free TV.
“Harold’s contributions to the industry cannot be overstated.”
ASIC alleges Mr Mitchell and former Tennis Australia president Steve Healy withheld information from the TA board when a decision was made to award the broadcast rights.
ASIC is seeking pecuniary interests in the matter, to be held in Melbourne this month, and has called for the pair to be banned from managing corporations.
Mr Healy said on Monday he would fight to clear his name.
“I have received notice today that ASIC has commenced proceedings against me,’’ he said.
“I intend to vigorously defend the claim. “
The Herald Sun last May revealed tensions surrounding Mr Mitchell’s lead role in steering the controversial $40 million-a-year Open rights deal.
Court documents claim Mr Mitchell and Mr Healy failed to ensure the TA board was fully informed about the value of domestic broadcast rights and interest from parties other than Seven.
ASIC alleges former TA vice president Mr Mitchell passed the Seven network confidential information about competitors vying for the broadcast rights.
And it suggests the successful businessman “encouraged the TA board to strike an agreement with Seven Network instead of putting the broadcast rights out to competitive tender.”
“Mitchell breached … the Corporations Act in that he improperly used his position as a director of TA and improperly used information obtained by him in that capacity to advantage Seven Network,’’ it said.
ASIC believes Mr Mitchell contravened several sections of the Act and that Mr Healy contravened one section of the Act.
Tennis Australia said: “This matter does not relate to our current operations. As this is a legal matter and we are not a party to the proceedings we are unable to offer further comment at this time.”
An independent report valued the rights at up to $45 million a year
IMG offered to acquire both the domestic and the international broadcast rights for seven years for $210 million
On the eve of the 2017 Open it was revealed ASIC was probing the deal which led to a boardroom split and the departure of several TA directors.
Mr Healy resigned as Tennis Australia president in April 2017.
Tennis Australia announced Mr Mitchell’s retirement from the board on October 29 this year.
Tennis Australia awarded broadcast rights for the Australian Open from 2020 to 2024 to the Nine Network, replacing Seven after more than 40 years in a $300 million deal.
The maximum penalty for the breaches of the Corporations Act is a $200,000 fine.
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