John Stephens court case exposes network negotiations

The most compelling television courtcase since Seven tried to stop James Warburton for working for TEN began in the NSW Supreme Court yesterday, as TEN tries to prevent John Stephens, 67, for working for Seven.

The witnesses and evidence are laying bare the way negotiations work at the top levels of television.

TEN CEO Hamish McLennan took the stand yesterday.

His discussions with the veteran Seven programmer took place across 8 days from late February, during which Stephens had elective surgery on his hip.

Stephens was initially offered a full-time role reporting directly to McLennan, noting that he “got the impression (Stephens) was quite excited about the role”.

Four days after Stephens’ surgery on February 26, and four days before he signed with TEN on March 6, McLennan told Stephens he proposed to put a contract for a part-time, two-year contract. He suggested Stephens hold off telling Seven CEO Tim Worner.

“I was trying to help Mr Stephens with the situation. I felt they would be pressuring him so I was trying to help Mr Stephens,” he said.

The next morning McLennan issued a press release announcing Stephens’ appointment as director of scheduling and acquisitions.

“I assumed he would end up talking to Seven anyway so it was a matter of managing the announcement,” McClennan said. “I thought they would apply a lot of pressure to him on that Thursday night, but at the end of the day I had a contract.”

But an email from Seven CEO Tim Worner on hearing of Stephens’ resignation indicates shock by his current employers.

“Stevo this is not what brothers do to one another, I refuse to believe you have done it.”

Bruce McWilliam, legal counsel for Seven, told Stephens, “don’t accept”.

But Stephens replied: “Whoops… I accept you’re not accepting but may be too late.”

“PS. If you feel you were taken advantage of when you were taking medication then please make that clear,” McWilliams wrote.

TEN Counsel David Studdy SC says Stephens had also said: “I was under the influence of painkiller when I was in hospital but not yesterday when I signed with TEN, but I will keep it in mind.”

Seven COO Nick Chan suggested offering Stephens a job working two days per week at Stream Co, a joint online streaming venture with Nine.

“Nine has as much of a vested interest in him not going as we do,” he wrote, to which Worner replied: “Great idea.”

Seven  also asked David Gyngell if Nine had footage of Stephens taking confidential documents when he departed Nine.

Seven West Media boss Kerry Stokes said in an email he was “pissed” at Stephens for leaving, and Worner later appealed to Stokes to convince Stephens to stay.

Worner also emailed Stephens about his resignation to say: “If you feel as though you have made a wrong call under durress we will assist you in doing so.”

Worner offered Stephens a new role at Seven with a two year contract working three days a week, including one from home, as head of international development. Stephens then informed Seven he would withdraw his resignation from TEN.

It also emerged that should Stephens join TEN, Beverly McGarvey would have retained her senior position, Hamish McLennan said, with her reporting to Stephens.

McLennan told the court he felt Stephens was the only person to turn around the networks ratings woes.

“Channel TEN has had a few hard years, yes,” McLennan told the court.

McLennan said he had been aware Stephens was ­recovering from surgery but did not know he was on medication.

The case continues.

Source: Mumbrella