Corporate case resolved with mixed results as tennis moves to COVID crisis

The former president of Tennis Australia has been cleared of wrongdoing in a Federal Court over contractual negotiations for the broadcast rights to the Australian Open.

Former president of Tennis Australia Stephen Healy at Melbourne Park

Former president of Tennis Australia Stephen Healy has been cleared of wrongdoing in a Federal Court over contractual negotiations associated with the lucrative broadcast rights to the Australian Open.

TA is facing significant headwinds in relation to the upcoming summer of tennis given the coronavirus crisis, which is also causing great concern for members involved in the sport at the grassroots level.

But the long-running broadcast dealings case brought by the Australian Securities and Investments Commission that has dogged its board in recent years is over.

A resolution was reached on Friday in Melbourne with a finding against businessman Harold Mitchell, a former board member, but not Stephen Healy, who was the TA president between 2010 and 2017.

Healy, a Sydney-based lawyer, was cleared in the Federal Court over a civil suit laid against him by the Australian Securities and Investments Commission in 2018.

Stephen Healy outside Federal Court

A former touring player, Healy always denied any wrongdoing in the decision to award the television rights to Seven West Media for five years.

ASIC, which believed the deal was completed without a competitive tender process, was ordered to pay his costs.

Healy said he was proud of his involvement in what he called a “far-sighted and innovative approach” by the TA Board and management in relation to the television deal.

“The very strong financial position that Tennis Australia, and the sport of tennis generally, now enjoys is very much due to the unanimous decision made by the Board and management at the time,” he said.

“I trust that my lifetime contribution to Australian tennis and, in particular, the nine-year period at Tennis Australia can now be properly recognised and celebrated as one of the most successful eras in its history.”

Mitchell, who has served multiple stints on the TA Board, was found to have breached his directors duties under the Corporations Act.

Justice Jonathan Beach found for ASIC, but on “a narrow basis only”, while noting Mitchell also undermined then chief executive Steve Wood.

He said Mitchell failed to discharge his duty of care on three occasions, though he ruled no damage had been done to TA.

The case was brought amid allegations rival networks and a sports marketing agency had been poised to offer more than the Seven deal, which was worth about $35m annually.

The resolution of a matter dating back to 2013 comes with the 2021 AO due to begin in just over five months time without any certainty given the current health crisis.

Harold Mitchell was found to have breached his directors duties

The optimism of January, when Ash Barty reached the semi-finals of an Australian Open that drew a record attendance 812,174 fans, is long gone.

Similarly to other sports, tennis is not immune to the impact of coronavirus, though it is a sport that can be played with social distancing measures.

The COVID-19 outbreak is causing significant concerns from the professional level through to the grassroots community of clubs and coaches.

TA has been openly ambitious about creating a grand slam that has far more to offer than simply the dazzling tennis played over almost three weeks at Melbourne Park.

World-renowned bands and chefs, kids activities and a site that stretches from Federation Square to Richmond Station has created the feel of a festival to culminate a month of world-class tennis.

But the Australian Open of 2021, at least, will be very different, even if there is a sharp improvement from a health perspective in coming weeks and months.

In one sense, the prospect remains that it will be a more traditional tennis tournament given probable restrictions for concerts and live performances.

It is almost certain there will be no international fans in attendance, barring those from New Zealand if a trans-Tasman bubble is created.

Organisers are planning for a significantly reduced capacity, though any attendance will obviously be pending an improvement in the COVID-19 outlook.

The national body had already announced a restructure of its high performance coaching program which led to several redundancies around the country in June.

It has also reduced staffing levels in other areas of the business amid cost-cutting moves.

Of great concern is the impact the health crisis is having on community clubs and also tennis coaches.

An email from TA was sent to clubs and associations midweek boasting of a surge in court bookings during the current crisis as people turned to the sport for exercise.

But that seems at odds with those who are involved at this level in Victoria at the very least.

The Weekend Australian was privy to a call featuring coaches, association secretaries and club committee members, predominantly from Victoria, on Friday.

The picture they painted about the health of tennis at the local level in the time of COVID-19 was dire yet and they felt largely abandoned by the national and state organisations.

Clubs are struggling to afford affiliation fees which have not been reduced at a time memberships are being shelved and other income streams shattered.

Coaching numbers have decreased given the constraints of the health crisis, which has led to group lessons being abandoned in Melbourne. The broader economic issues Australians are grappling is likely to create ongoing problems.

There is also a concern that the volunteers who help run clubs are being stretched even thinner than usual as they attempt to police COVID-19 guidelines to keep courts open.

As one committee member of a northern suburban club said; “We are facing a major crisis here and I am starting to get really worried.”