EXCLUSIVE
Nine’s outgoing chief executive threatened to unleash a legal firestorm on a rival media outlet if it aired serious allegations about him which he fiercely denies.
Mike Sneesby quit as the network’s CEO on Thursday, although his shock resignation was completely unrelated to the legal row.
It is understood he had come under intense boardroom pressure after Nine’s Olympics coverage proved a commercial flop and cost the channel up to $75million.
Nine sources have told Daily Mail Australia he fired off a fierce legal warning in May after he was questioned about alleged interactions with a high-profile female celebrity at last year’s Logie Awards.
The enquiries related to an explosive report being prepared by Sky News host Sharri Markson, as part of her coverage of the Nine Network’s inner turmoil following the departure of news boss Darren Wick.
It is understood the Walkley Award-winning journalist had interviewed the female celebrity – who Daily Mail Australia has chosen not to name – about the alleged incident and was planning to broadcast her version of the disputed interaction.
Network insiders said Nine’s board became aware of the allegations before Mr Sneesby – who vehemently denies any wrongdoing – engaged leading law firm Gadens to tackle the situation.
Outgoing Nine boss Mike Sneesby has vehemently denied any wrongdoing after facing queries about his interactions with a high-profile female celebrity at last year’s Logie Awards
Sky News host Sharri Markson would not reveal why her contentious report was pulled
His lawyers warned both Sky News and Ms Markson he intended to commence immediate defamation proceedings if the unproven allegations were ever put to air.
It is understood the contentious report was ultimately pulled following a flurry of negotiations between executives at the respective media organisations.
Nine refused to comment to Daily Mail Australia about the legal saga on Thursday.
Ms Markson would not comment on the controversial report – nor the reasons it was spiked – when contacted by Daily Mail Australia.
The legal tussle came as Nine faced ongoing scrutiny about an alleged culture of bullying and sexual harassment at the nation’s largest media entertainment company.
Mr Sneesby has spent most of the year under fire for his handling of the scandal – along with a string of calls he made amid his company’s cost-cutting crisis.
He attracted particular ire for flying to Paris at great expense to carry the Olympic torch ahead of this year’s Games.
The debacle – which included a stay in one of the French capital’s most luxurious hotels – came at the same time the company’s hard-pressed journalists were striking for a fair pay rise back in Australia.
Nine revealed his exit from the network on Thursday and said the CEO would wind up his three-and-a-half year tenure as boss at the end of the month.
‘I want to be completely open about the circumstances surrounding my departure,’ Mr Sneesby said as part of the announcement.
‘To give some context, this year has been one of the most challenging in my career – one where our resilience has been tested.
‘Despite the intensity of the scrutiny, my focus has not wavered from achieving the best outcomes for our people and for Nine.’
Mike Sneesby enjoyed a trip to five-star trip to Paris for the Olympic Games – even hobnobbing with network star Karl Stefanovic – as furious staff were striking for a fair pay rise back home
Daily Mail Australia does not suggest the accusations were true or that they played any part in his decision to stand down.
His resignation is understood to be prompted by the commercial, rather than cultural, concerns.
Network sources said Mr Sneesby had been under increasing pressure over the company’s ailing profits, with the catastrophic cost of the Olympic Games proving the ultimate tipping point.
Mr Sneesby offered a public ‘guarantee’ in July that the network would bank a net profit off the back of the sports extravaganza.
But Nine insiders said the coverage had ended up a financial disaster that had ended up costing the cash-strapped broadcaster up to $75million.
‘Sneesby went out and publicly claimed they had written about $140million worth of revenue across the Olympic Games,’ one senior network executive told Daily Mail Australia.
‘Well, okay, but they have to pay 10 per cent of that to [media buying] agencies – which pegs that back to $126million.
‘Then, when you take into account that they would have written about $100million against the same 17 days last year, you’re left with a lift of just $26million.
‘At the same time, they’ve paid out about $60million for the broadcast rights and spent another $40million on production costs – so what you’re left with is a massive budget blackhole.
‘It’s a unmitigated – and unforgiveable – disaster for Nine.
‘Right now, it’s still all smoke and mirrors – we’re not even going to know the full extent of the nightmare until the FY25 results are released next year.’
Insiders said Nine’s Olympic Games coverage proved to be a financial disaster for the network
Another network insider added: ‘Sneesby’s exit was only a matter of time…when he ran with the torch that was the signal: “I don’t care and I’m out of here”.’
Nine sources said the company was now re-examining all of its sports rights agreements as it desperately tries to strip costs.
‘The Australian Open is one event weighing heavily on the budget,’ said one insider.
‘The rights cost $60million per year when Nine first got them and now we’re paying $100million and it’s a loss-maker.
‘The higher NRL costs are also a massive headache when FoxSports have the best package – and more games – and Nine often doesn’t even win in Sydney with the Friday night game.’
The financial pressure on sports rights comes after Daily Mail Australia last month revealed the contracts of every single on-air personality were also ‘under review’.
Stars at the network are now bracing for the worst talent purge in the network’s history with some of its highest profile and paid personalities in the firing line.
It comes after Mr Sneesby first mooted widespread redundancies across Nine’s media empire in June.
Mr Sneesby had been under commercial and cultural pressure for much of the year before stepping down from Nine’s high-paying top job on Thursday morning
Since then, about 200 staffers have already been retrenched as part of a brutal $30million cost-cutting exercise.
But the pain is destined to continue with the company’s chief financial officer Matt Stanton announcing plans to trim a further $50million from the business’s underlying costs this financial year.
It is understood Mr Sneesby’s successor will be left with the unpopular task of axing some of the network’s most beloved stars.
They will also be left to contend with the fallout of the company’s looming independent report into its newsroom culture.
Mr Sneesby announced the external investigation – to be carried out by workplace culture firm Intersection – in June, following a raft of complaints about ‘predatory behaviour’ by senior executives within the company.
Nine confirmed on Wednesday that the findings of the months-long investigation would be released by the end of October.
Departing Foxtel exec Amanda Laing is among the firm favourites to take over as Nine boss
Daily Mail Australia is aware of numerous confidential complaints lodged against some of the Nine’s most senior male and female sitting executives.
However, it is believed the report will not make adverse findings against any particular individuals and will instead provide a ‘big picture’ snapshot of cultural issues the company needs to address internally.
Despite the immediate pressure facing the company’s new chief executive, a number of internal candidates are already jockeying for high-paying position.
Nine sources said the company’s highly-revered sales boss, Michael Stephenson, is among the leading contenders, with insiders speculating he could even threaten to walk if he misses out on the top job this time around.
‘Michael will definitely leave if he’s not made CEO because he was overlooked last time when Sneesby was selected,’ one source said.
‘He’s the best salesmen in the country and he knows the industry inside out – so he would be able to assume the position with minimal fuss.’
Counting against Stevenson, who has been in his current role since 2016, will be lingering memories of the unwanted attention he received last year following revelations he had struck up a romantic relationship with a colleague.
The Sunday Telegraph’s Annette Sharp revealed the newly single father-of-four was now dating Nine’s former group GM (sales), Anna Quinn – and that she had left the company after ‘news of their relationship threatened to break in the public domain’.
Nine’s sale boss Michael Stephenson is the top pick to take over the embattled media company
Mr Stephenson made headlines after confirming he was dating former colleague Anna Quinn
Foxtel’s outgoing chief commercial and content officer Amanda Laing is also said to be shaping as a strong contender for the posting.
She resigned from her current role in April but, in stark contrast to Mr Sneesby, who is serving out just two weeks’ notice, she has stayed on for five months to ensure a smooth transition.
Coincidentally that would see her finish at Foxtel on the same day Mr Sneesby heads for the door at Nine.
Meanwhile, Nine’s chief financial officer, Matt Stanton, will also be vying to prove himself after being handed the reins of the company in an interim capacity until Mr Sneesby’s full-time successor is announced.
Outside the main candidates, other options being mooted include Nine Radio boss Tom Malone, Nine creative genius Michael Healy and Foxtel chief Patrick Delany.
‘Nine’s a company that’s never been afraid of a wildcard pick,’ one source said.
‘We’re talking about an organisation that once made a game show host [Eddie McGuire] their chief executive…so anything is possible at this point.’
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