Don’t worry, McLachlan is waving away potential conflicts and Blackstone assures he was chosen for his expertise in hospitality, tourism and entertainment, and not part of some advisory role with the Crown Resorts, run by Blackstone real estate boss Chris Tynan.
Pay and benefits
That brings us to Monday’s ASX announcement that McLachlan would take over Tabcorp, whose last CEO Adam Rytenskild resigned after reportedly maybe, or maybe not, making a sexual comment about CEO of Victoria’s gambling regulator (and Crown nemesis) Annette Kimmitt. Yes, that’s the former MinterEllison chief who left in 2021 after this column revealed an email she sent staff lamenting the law firm’s representation of Christian Porter. Wheels within wheels.
Faced with options, one might guess that McLachlan opened the ASX-listed CEO door for the pay. McLachlan’s exact salary during his later AFL years was kept secret – helped in that regard by a commission led by doe-eyed boss Richard Goyder. His predecessor Andrew Demetriou’s packets were public, making $3.8 million in total pay in his final year. Safe to assume McLachlan matched that by the end of his long stint.
In Tabcorp’s announcement, the company said its celebrity CEO will start on $1.5 million in salary, but also eligible for short and long-term incentives. If he blows the lights out by lifting Tabcorp’s share price, he could potentially take home $3.75 million in cash, before slugs of share options. His proverbial door two was leading the board of Racing Victoria, where even becoming executive chairman would have offered peanuts in comparison.
Running Tabcorp still puts him on a collision course with Racing NSW CEO and NRL big dog Peter V’landys. Racing NSW is suing Tabcorp for claims the company failed in its advertising commitments around The Everest and The Kosciuszko. When the $6 million lawsuit dropped last month, Tabcorp labelled the action “vague, embarrassing and irrelevant”. That was then. V’Landys was singing McLachlan’s praises on Monday while analysts even talked up their firm friendship as a plus! Who knows: maybe when you’re in the tent, these sorts of commercial disputes just slide away.
So the door revolves
And that’s all before you get to whether this passes for whatever still amounts to the pub test in this country. The immediate CEO of Australia’s largest sporting code leaves his post to slide into the largest public gambling company. It’s the type of thing that makes the regular footy fan retch. “F*ck meeeeeeee,” ex-Sydney Swan Brandon Jack posted online. “Can’t wait to watch games on TV with graphics following each player showing their live odds of getting the next goal.”
It has the hallmarks of the worst revolving door appointments. Mr Exhausted Mark McGowan taking up four post-premier roles, including one with BHP. Small business enthusiast Bruce Billson taking a job with the Franchise Council (while still in parliament). Trade minister Andrew Robb’s exit into working for a China billionaire who owned the controversial Port of Darwin lease. We really could go on.
But McLachlan is hardly alone on his own patch. Former CEO of the NRL and Football Federation David Gallop sits on the board of Tabcorp. After leaving the AFL, Demetriou had many roles, among them sitting them on the ill-fated board of James Packer’s Crown Resorts, and his wagering outfit CrownBet.
Is it too much to ask that our top sporting administrators – those who control its finances – shouldn’t expect, or even want, to walk directly into lucrative gambling jobs at the end of their terms? Perhaps that’s silly. It’s just not the way the country works.
It’s why this all feels so warmly familiar. Like seeing an old friend, or family member, on your first day of a new gig.
Update: This column was updated after publication to reflect a claim the family conflict at Blackstone was declared.