Advertising mogul Harold Mitchell has been slapped with a $90,000 fine from Tennis Australia after he breached his duties as director amid Australia Open’s broadcast rights negotiations with Seven in 2012 and 2013.
The Federal Court Justice Jonathan Beach ruled Mitchell acted inappropriately by divulging secret information about Tennis Australia to Seven, which helped the network secure the rights.
Seven won the AO rights in 2013 for a five year contract, however, there was no competitive tender process.
Nine currently holds the AO broadcast rights in a $300 million deal the network won in 2018.
The lawsuit was brought by ASIC, which also went after TA president Stephen Healy. However, the case was dismissed earlier this year.
Beach said in his judgement that Mitchell’s “contraventions were serious” and “his conduct had the tendency to undermine the authority of [Tennis Australia CEO Steve] Wood.”
Beach added: “His conduct in forwarding internal Tennis Australia communications to Seven was quite unusual and unacceptable.
“And his conduct generally was undisciplined and fell well short of what was expected of a director in his position given the centrality and significance to Tennis Australia of the negotiations with Seven.”
Mitchell will not be banned from managing corporations, however, and did not receive the maximum penalty of $600,000 for three breaches during his duties as director,
