Top Seven execs won't give evidence in Tennis Australia case

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This was published 4 years ago

Top Seven execs won't give evidence in Tennis Australia case

By Sarah Danckert

The corporate regulator is not planning to ask recently departed Seven West Media chief executive Tim Worner or chief Bruce McWilliam to give evidence against two former Tennis Australia directors in a court case over the awarding of rights to the Australian Open in 2013.

The Australian Securities and Investments Commission has decided not to call Mr Worner or Mr McWilliam as witnesses in its case against former Tennis Australia directors, adman Harold Mitchell and executive Steve Healy, despite subjecting them to compulsory interviews as part of its investigation, documents filed with the court reveal.

Recently departed Seven Network CEO Tim Worner.

Recently departed Seven Network CEO Tim Worner.Credit: Daniel Munoz

ASIC last year launched civil action against Mr Mitchell and Mr Healy seeking to have them banned as directors and fined.

ASIC alleges the former directors withheld material from the Tennis Australia board when it made its decision to award the rights and did not inform the board of the interest of parties other than the Seven Network - namely Network Ten and US group IMG Media.

Both men are vigorously defending the allegations and have denied any wrongdoing.

Legal letters between lawyers for Mr Mitchell and ASIC do not explain why ASIC has decided not to call two witnesses to the broadcast rights negotiations is unclear.  ASIC declined to comment.

The Age and the Herald revealed last week corporate regulator has allegedly struck an immunity deal with the former boss of Tennis Australia Steve Wood as part of its court action against Mr Mitchell and Mr Healy.

Mr Worner was chief executive broadcast television at Seven West Media during the negotiations for five year rights to broadcast the Australian Open.

Weeks after the rights deal was signed in late May 2013, Mr Worner was named CEO of Seven West Media.  Mr Worner retired on Friday from his position and replaced immediately with former Ten Network boss James Warburton.

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Mr Warburton was Network Ten chief executive at the time of the rights negotiations. He has agreed to give evidence to support Mr Mitchell's defence of the ASIC allegations as will former IMG chief executive Martin Jolly.

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The court documents obtained by The Age and the Herald also show the increasing frustration of Mr Mitchell's legal team, led by Gilbert + Tobin's Janet Whiting with ASIC and its external lawyers from Norton Rose Fulbright, over their handling of the investigation, particularly that ASIC took so long to take court action against the men.

"The conduct complained of by ASIC dates back to as early as 25 November 2012 and no later than 20 May 2013. ASIC first contacted our client with respect to its investigation in 2017. Nevertheless; ASIC did not serve our client with proceedings until six days before the limitations period in respect of the first conduct complained of was due to expire -- 11 minutes before it circulated a press release," Ms Whiting wrote to ASIC's legal team.

Court documents include an email from ASIC senior lawyer Mathew Bastianon to Mr Mitchell's personal lawyer, Rod Lamplugh at 9.02am on November 19 notifying Mr Lamplugh action had been filed in the Federal Court. The email notes a phone conversation relating to Mr Lamplugh accepting service from ASIC three days earlier.

ASIC's press release mail out, also included in the court documents, is time-stamped 9.13am the same day.  Sources said Mr Lamplugh had not had the time to notify Mr Mitchell of the court filing or the press release and Mr Mitchell first found out about it through the press.

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