Harold Mitchell ‘stepped over the line’ with Seven deal, court finds
Harold Mitchell has been found by the Federal Court to have breached his duties as a director of Tennis Australia for passing on information to Seven West Media executive Bruce McWilliam.
Mr Mitchell and former Tennis Australia president Steve Healy were accused by the Australian Securities and Investments Commission of several breaches of the Corporations Act over their decision to grant a five-year broadcast rights deal for the Australian Open in 2012 to Seven.
The corporate watchdog accused Mr Mitchell and Mr Healy of withholding material from the Tennis Australia board when it made its decision to award the rights, and of failing to inform the board of the value of the rights and the interest of parties other than the Seven Network, notably Network 10 and US group IMG.
On Friday, Justice Jonathan Beach threw out the majority of the case against Mr Mitchell but found he did, on “a narrow basis only”, breach the law. He also completely dismissed the case against Mr Mitchell’s co-accused Mr Healy.
“Mr Mitchell stepped over the line in his dealings with Mr McWilliam,” Justice Beach said.
“And his overall conduct had the tendency to undermine the stance and approach of Mr Steven wood, the CEO, There were some things that he communicated with Mr McWilliam that he ought not to have done particularly in the later part of 2012,” Justice Beach said.
“None of this ultimately caused damaged to Tennis Australia and none of this was motivated by anything other than Mr Mitchell’s perception that it was in the interest of Tennis Australia that the deal with Seven was stitched up sooner and rather than later.
“His contraventions are far narrower in scope than ASIC would have it,” Justice Beach added.
Justice Beach said he would be unlikely to ban Mr Mitchell and suggested a declaration from the court and a pecuniary penalty would suffice.
Sarah Danckert is a business reporter.
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