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Emails allege Tennis Australia deal

The ASIC case around rights for the 2013 Australian Open has commenced in the Federal Court.

The case around rights for the 2013 Australian Open has commenced in the Federal Court of Australia today.

The Australian Securities and Investments Commission alleges Harold Mitchell secretly helped Seven win broadcasting rights when he was vice-president of Tennis Australia.

Seven won the broadcasting rights for five years for $195 million. ASIC claims Mitchell and former Tennis Australia president Stephen Healy breached their directors’ duties by not telling the Tennis Australia board a bid from 10’s Lachlan Murdoch offered to pay up to $250 million.

Mitchell, previously chairman of Free TV Australia, and Healy have both denied the allegations, claiming the deal was reached during an exclusive negotiating period.

Today the court heard emails between former Tennis Australia chief executive Steven Wood and Seven Network director Bruce McWilliam from late January 2012

“You and Harold [Mitchell] came in and we agreed for a two-year extension … Here’s the letter, let’s just sign this,” McWilliam wrote.

“Bruce, we need to get some more clarity around a number of items before we can extend,” Wood wrote back.

In the letter, McWilliam admonishes Wood for talking to rival bidders during a period when Seven thought it had exclusive negotiating rights, calling Wood’s conduct “insulting” and “unnecessary”.

The court heard McWilliam made this statement before the official period of exclusive negotiations between the incumbent holder of the rights and Tennis Australia had begun. “We are very disappointed that you would meet with the 10 Network,” he said in the letter.

“Harold says Ten has been down trying to upset the apple cart … Warburton is involved,” McWilliam wrote.

“Seven clearly knew about 10’s interest,” said Counsel for the Australian Securities and Investments Commission, Michael Pearce, SC. “That was communicated to them by Mr Mitchell.”

James Warburton has since been appointed CEO of Seven West Media.

The case continues.

Source: AFR.com, smh.com.au