Former AFL chief executive Gillon McLachlan has been chosen to help transform Tabcorp’s fortunes, appointed as the new chief executive and managing director on a $1.5-million-a-year base salary.
McLachlan, who was chief executive of the AFL for over nine years until last September, will begin his role on August 5, assuming control from executive chairman Bruce Akhurst, who has been in charge since previous CEO Adam Rytenskild’s sudden departure in March.
While McLachlan doesn’t have executive experience in charge of a public company or a specific wagering industry leadership background, Akhurst said he had the right attributes to accelerate growth at Tabcorp.
“Gill needs no introduction - he is recognised as one of Australia's leading CEOs and securing Gill is a great vote of confidence for Tabcorp’s future. We’ve laid strong foundations and Gill brings a growth mindset and the capability to capitalise on the opportunities ahead of us,” Akhurst said.
"Gill has a deep understanding of sport, racing and wagering, combined with significant commercial acumen which was highlighted in the substantial growth of AFL revenues under his leadership.
“Importantly for us, Gill brings an added dimension of having been responsible for some of the most significant media rights deals in Australian sports history and we're excited about the potential growth opportunities for our wagering and media business under his leadership.”
McLachlan had been heavily courted for the job as chairman of Racing Victoria but rejected that offer last week when it became apparent that he was in a position to win the Tabcorp role. He could not hold both as it would be a conflict of interest.
Warwick Barr
His new salary has been disclosed as $1.5 million with opportunities for significant bonuses of up to 150 per cent for short-term incentives and 200 per cent for long-term incentives.
"Tabcorp is a wagering, broadcast and integrity services business and the challenges of growing it are appealing,” McLachlan said.
“It’s about creating entertainment for our customers in a safe way and providing a unique customer omnichannel entertainment offering across digital, retail and the media business.”
It didn’t take long for McLachlan to extol Tabcorp's contribution to the racing industry, highlighting the $1.1 billion it contributed last year.
“This is a really important component of my decision. There are enormous opportunities ahead and I’m looking forward to driving the sport category among other things. Tabcorp is part way through its transformation journey and I’m looking forward to working with the leadership team to accelerate and deliver on the growth opportunities,” he said.
As well as his wealth of experience as a sports executive, McLachlan has been involved in racing as an owner and punter.
"Tabcorp is part way through its transformation journey and I’m looking forward to working with the leadership team to accelerate and deliver on the growth opportunities." - Gillon McLachlan
Tabcorp is midway through a major pivot in its strategy. It has secured new wagering deals in Queensland and Victoria, which it says puts it on a ‘level playing field’ with its wagering competitors. Last week, it confirmed that it had begun discussions with the NSW government about exiting its current deal there, which extends until 2033.
The digital-first strategy TAB25 targetted a 30 per cent digital market share by the end 2025. That figure declined from 24.9 per cent to 24.5 per cent in 2023. Overall, including its retail and parimutuel operations, Tabcorp has 34.6 per cent total revenue market share.
Bren O’Brien
Akhurst took control of the executive on March 14 after Rytenskild left the company following a probe into an offensive comment made about a Victorian regulator.
The Straight understands that Rystenskild’s sudden exit is now in the hands of lawyers.
It has also been widely reported that a string of senior executives have left Tabcorp over the past two years, which will be another significant challenge for the new boss.
However, Akhurst said Tabcorp is well-placed for its next stage of growth.
"In the two years since demerger, we have significantly improved our customer offering and delivered key structural reforms in Queensland and Victoria. The transformation of Tabcorp is not complete and I am delighted that Gill is joining us to continue to drive change and growth,” he said.
"We're pleased that Gill will commence shortly, and until then, along with the executive team, we’re focussed on executing on our key strategic goals and adding value for our shareholders."
