(Reuters) – Australian gambling services company Tabcorp Holdings on Monday appointed former Australian Football League (AFL) president Gillon McLachlan as its chief executive and managing director.
The appointment comes months after former president Adam Rettenskilde resigned over allegations of using “offensive” and “inappropriate” language in the workplace and as the company navigates a strategic shift amid increasing competitive pressures.
“TAH has been without a CEO since March 24, and given the diversity of initiatives underway within the company, the appointment of Gillon McLachlan should be viewed as a positive,” Jefferies analysts wrote in a note.
The betting company's shares were trading 1.5% higher at A$0.67 as of 0457 GMT, after falling 3.8% earlier in their biggest intraday drop in nearly three weeks.
By Friday's close, the stock was down about 22% this year, under pressure from a first-half loss due to a one-time non-cash impairment charge related to its betting and media businesses.
MacLachlan was the AFL's CEO for a decade during which he contributed to significant revenue growth and oversaw its expansion.
The company said that he will join Tabcorp on August 5 and assume the positions of CEO and Managing Director after obtaining regulatory approvals. He will receive a fixed annual bonus of 1.5 million Australian dollars (991,800 US dollars).
“In the two years since the separation, we have significantly improved our client offerings and implemented major structural reforms in Queensland and Victoria,” Tabcorp CEO Bruce Achurst said in a statement.
“Gale brings an added dimension to having been responsible for some of the most significant media rights deals in the history of Australian sport, and we are excited about the potential growth opportunities for our betting and media businesses under his leadership.”
($1 = 1.5124 Australian dollars)