Harold Mitchell fined $90,000 over Tennis Australia case

Former chairman of Free TV and Tennis Australia director Harold Mitchell has been fined $90,000 following an ASIC case in the Federal Court.

Mitchell and former Tennis Australia president Steve Healy were both 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, worth about $35m annually, in 2012 to Seven.

In July, Federal Court Justice Jonathan Beach found that while Mitchell stepped over the line in his dealings with Seven Commercial Director Bruce McWilliam when negotiating the broadcast rights, he did not deliberately place Seven’s interests over Tennis Australia’s. But the breaches were deemed serious in how much they fell short of the standards of care and diligence required by company directors.

The $90,000 penalty is well short of the maximum available fine of $600,000 for the three contraventions and the $150,000 sought by ASIC. Mitchell is also allowed to continue acting as a director.

A spokesman said the regulator’s case had been based on “hearsay from former Tennis Australia executives and board members with an axe to grind” but that the penalty would be paid and not appealed.

Source: AFR.com.au