PBL firms brace for changes as group revamp takes effect

TOP-LEVEL changes at James Packer's Publishing and Broadcasting Ltd empire have started to take effect at the money-spinning vehicle that owns the Fox Sports channels, Premier Media Group.

TOP-LEVEL changes at James Packer's Publishing and Broadcasting Ltd empire have started to take effect at the money-spinning vehicle that owns the Fox Sports channels, Premier Media Group.

Documents obtained by The Australian indicate PBL's outgoing chief executive, John Alexander, and "new media" boss Martin Dalgleish have taken two of PBL's three positions on the Premier Media board.

The documents show Mr Alexander and Mr Dalgleish took up the roles on June 12, replacing PBL chief financial officer Geoff Kleemann and business development director Anthony Klok.

It is understood Mr Kleemann will take up a role at Crown, while the exact nature of Mr Klok's future role in the PBL group remains unclear.

The moves come amid management upheaval at PBL, following its two big announcements this year: its imminent split into separately listed gaming and media companies - Crown and Consolidated Media Holdings - and its selldown to a 25 per cent stake in PBL Media, its joint venture with CVC Asia Pacific, which owns the Nine Network and ACP Magazines.

The upcoming split - to be put to PBL shareholders later this year - will cement the dominance of gaming in Mr Packer's future vision for the group, but leaves the company overstaffed in the media operations.

This, according to senior PBL sources, will reduce the need for a "big head office staff" at PBL's Park Street headquarters. The positions of a number of executives, IT and administrative personnel are under review.

Some senior PBL executives, like Mr Kleemann, will be re-deployed in the Crown gaming operations, but others face an uncertain future.

PBL owns 50 per cent of Premier Media, with News Limited - publisher of The Australian - owning the other half of the pay-TV sports broadcaster. PBL and News both have three directors on the Premier Media board.

Consolidated Media Holdings is expected to be largely a holding company for PBL's stakes in companies such as Foxtel (25 per cent), Fox Sports (50 per cent) and Seek (27 per cent). But a senior PBL source has made it clear these investments will need little day-to-day management, saying that all entities had "strong management teams".

The board changes at Premier Media will not be the last in companies associated with PBL. Already at PBL Media, significant board changes have been announced in the wake of CVC Asia Pacific moving to a 75 per cent stake. Mr Dalgleish and PBL executive deputy chairman Chris Anderson are to leave the board.

More PBL directors are expected to resign as directors of Ninemsn and Sky News in the months to come, in the wake of the group's selldown in PBL Media. Four PBL directors are currently on the Ninemsn board: Mr Packer, Mr Alexander, Mr Anderson and Mr Dalgleish. This figure is certain to be cut now that PBL effectively has only a 12.5 per cent stake in Ninemsn.

The Sky News board is also expected to lose up to two PBL appointees in coming months.