Why Tabcorp is looking to end the fight with its ex-CEO

Tabcorp and its former boss, Adam Rytenskild, have put their legal tussle on hold as both sides look to settle the dispute and avoid the release of sensitive communications between a who’s who of the sporting and media industry over what they knew of events leading up to Rytenskild’s removal.

A Federal Court hearing was scheduled for September 9 to determine which documents would need to be handed over to each side as part of the discovery process. It did not take place.

The names in the documents, which were due to be exchanged last Friday, include Racing NSW boss and NRL chairman Peter V’Landys, former AFL boss and current Tabcorp chief executive Gillon McLachlan, and Tabcorp directors David Gallop – the former NRL and soccer boss – as well as former ABC chairman Justin Milne.

Sources close to the proceedings who are not authorised to comment while sensitive negotiations take place said that a resolution could be reached as early as this week. Tabcorp and Rytenskild’s lawyers from Giles George declined to comment on Friday.

Rytenskild denies the allegation central to his sacking – that he suggested to senior Tabcorp executives that he would be willing to perform a sex act on a female regulator to secure a gambling licence.

“I denied it in three ways. I said I didn’t say it. I said I don’t recall it … and I said I don’t use language like that, so why would I have suddenly chosen to,” Rytenskild told a hearing of the Fair Work Commission last year, when Tabcorp attempted to have his wrongful dismissal claim dismissed.

The commission allowed Rytenskild to continue his case late last year.

Rytenskild is claiming he was unfairly terminated in March last year – having resigned “in a panic” – because the board had made it clear that he had no other option other than being sacked, irrespective of his denials of the alleged comments.

The document discovery his lawyers have been seeking goes beyond the Tabcorp board’s communications around the time of his abrupt departure. Rytenskild was seeking evidence from current Tabcorp boss, McLachlan, of discussions he allegedly had with the Tabcorp board dating back a year before Rytenskild’s sacking.

Tabcorp shares have soared more than 40 per cent since its full-year results last month, when McLachlan delivered a profit in his first year in charge. He delivered on $40 million worth of cost-cutting and announced plans to deliver a national tote pool this financial year.

A national tote would deliver a larger volume of wagering and allow more sophisticated betting options that would help it more effectively compete against sports betting, which is growing in popularity among younger customers.

Part of Rytenskild’s claim is over the share options he lost, which would also potentially be worth many millions of dollars.

Rytenskild is also seeking communications between the Tabcorp board and V’Landys in his role as the chief executive of Racing NSW.

V’Landys told The Australian last month that he did not lobby the Tabcorp board to sack Rytenskild.

“Adam is obviously not a good fisherman,” he told the publication.

“I only ever communicated to Adam himself when he was CEO … never had communications with anyone on the board,” V’Landys said.

Rytenskild commenced his action in the Federal Court in February this year. If a settlement is not reached, it is expected to go to trial next year.

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