ASIC takes action against Harold Mitchell over Australian Open rights
Prominent businessman and media industry figure Harold Mitchell allegedly supplied confidential information to the Seven Network to help it win the rights for the Australian Open while he was on the board of Tennis Australia, according to the corporate watchdog.
Mr Mitchell and Tennis Australia’s former president, Stephen Healy, have been named in new Federal Court proceedings brought by the Australian Securities and Investments Commission (ASIC), in the wake of an investigation into Tennis Australia's 2013 decision to award television rights for a five-year period without a competitive tender process.
The pair allegedly “withheld material from the Tennis Australia board when it made its decision”, court documents claim, and “failed to ensure that the board was fully informed about the value of the rights and the interest of parties other than the Seven Network” in acquiring them.
A former media buyer, businessman and philanthropist, Mr Mitchell holds board positions at the James Packer-backed casino company Crown Resorts and several other organisations, including the Florey Institute of Neuroscience and Mental Health, the New York Philharmonic, and the Australia-Indonesia Centre.
Responding to ASIC's allegations on Monday, Mr Mitchell said he had, for “ten successful years”, always “acted in the best interests of Tennis Australia”.
“The matter is with my lawyers,” he said.
ASIC is applying for penalties against Mr Mitchell and Mr Healy and seeking orders to have them disqualified from managing corporations. If obtained, the orders would force him to relinquish his board positions.
The regulator, in a statement on Monday morning, alleges Mr Mitchell alone “passed on to the Seven Network confidential information about the interest of its competitors in acquiring the rights” to the Australian Open, and failed to advise the board that Seven was worried about its competitor, Network Ten, acquiring the rights.
It also alleges that he encouraged the Tennis Australia board to strike the agreement with Seven instead of putting the rights out to a competitive tender.
Crown Resorts has been contacted for comment.
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