What happens if Ten’s new CEO Warburton can’t start for another year and a half?
It did not take long for Seven’s affidavit to reach the public domain.
And it’s a page turner.
You can take a look at the PDF here. If you’d like to hear Seven’s version of the emotional events in the minutes after James Warburton told his bosses that he was resigning to take the helm of Ten, it’s worth the ten minutes it takes to read.
We’re all about to see an interesting case study in restraint of trade clauses.
Ten – and James Warburton – think he is free to start in July. Seven argues that he’s not taking into account restrictions under the executive share scheme which means he’s not free to start until next October. As in October next year.
Regardless of who’s right, the move by Seven has had one immediate effect.
This time last week, Ten shares were trading on the ASX at around $1.35. Yesterday they dropped as low as $1.16. That’s a long way back from a month ago, before Grant Blackley was sacked as CEO and the price was closer to $1.40.
The market will now be wondering: what if Seven wins? Will Lachlan Murdoch be willing to be acting CEO for the next 19 months? Can the network be allowed to drift with an interim CEO for that long? Will agencies want to make long term spending commitments in an uncertain atmosphere?
That’s why Ten will be keen for a quick legal resolution.
Tim Burrowes
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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So Tim, will you be filing stories from the NSW Supreme Court this morning?
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Hi Paddy,
I’d love to be there. Unfrotuantely, I’m about to dive into the studio to film a batch of Mumbo Reports (includign with one of your colleagues). It’s always the way…
Cheers,
Tim – Mumbrella
unfortunate distraction for Ten board and Warburton – especially if it’s dragged out in court
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Seven is definatly worried about Warburton trying to poach staff across to Ten…thanks for putting up the affidavit
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Why don’t they film it and turn it into a prime time courtroom drama – Seven and Ten could share it.
“Packed to the NCIS”
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Or “Better Homes and Gardening Leave”
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Woops…
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Was an interesting read. Wonder how it will play out.
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I don’t understand how people could have thought he DIDN’T have a non-compete period, or Seven would have been happy for him to go?!
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Salad says TEN is the new shorthand for “Clusterf*ck”
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No , I don’t want a copy, send to it my lawyer.
Pure gold and I am not sure why I find that statement so amusing. Sticking it to HR must just be something I like to see……
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There are four cases listed for 10.00am with the Duty Judge together with 7 v JW. This is just the initial skirmish to set future timetables.
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@The other guy,
Gold. Pure gold. Thanks for the laugh.
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this is also a huge distraction for Seven, who never really win their court battles. Still, it’s a nice distraction whilst they get on with filling their gap.
Seven shouldn’t underestimate that as much as the market loves a television blood bath, Warburton is popular amongst agencies etc … so I know who will be getting the sympathy vote there.
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Blackley and his band of cowboys have left a mindset of imcompetence at TEN
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