Tennis Australia is under investigation by the corporate watchdog over allegations a $200 million deal to sell the broadcast rights of the Australian Open to Seven West Media may have broken the law.
The revelation comes just days before the finals in Australia's premier tennis tournament, which will be televised to a massive international audience.
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The Australian Securities and Investment Commission is investigating Tennis Australia's decision to sell the 2015-2019 broadcasting rights to long-time partner Seven in 2013 without launching a competitive bidding process.
The deal is estimated to have cost Tennis Australia up to $50 million in lost revenue.
![ASIC is investigating Tennis Australia's decision to sell broadcasting rights to Seven.](/web/20170126145047im_/http://www.smh.com.au/content/dam/images/g/t/o/f/v/v/image.related.articleLeadwide.620x349.gtxfkv.png/1485218464378.jpg)
Fairfax Media understands current and past directors of Tennis Australia have been served with notices to produce documents and answer questions about the negotiations and the board's decision-making process.
An ASIC spokesman said the agency does not confirm or deny the existence of investigations.
Tennis Australia did not respond to a request for comment.
Seven's commercial director Bruce McWilliam denied an ASIC investigation was underway and said the media group had not been asked to participate.
![Seven West Media said a disaffected former board director has made the allegation.](/web/20170126145047im_/http://www.smh.com.au/content/dam/images/g/k/d/1/b/r/image.related.articleLeadwide.620x349.gtxfkv.png/1485218464378.jpg)
"Tennis Australia has secured an amazing uplift in earnings from local and international rights at the same time as they have massively upgraded Melbourne Park to secure and enhance the longevity and pre-eminence of the Australian Open," McWilliam said.
"A disaffected former board director has made the allegation notwithstanding they voted for the deal. The deal was a fantastic deal unanimously approved by the Board."
The investigation comes after Tennis Australia president Steve Healy last year ordered an independent review into whether a serving board member in 2013 had an undisclosed material conflict of interest during the negotiations.
Tennis Australia has not revealed what the review found.
"Tennis Australia is very comfortable that no such conflict existed in relation to the sale of its domestic broadcast rights," a spokeswoman said in December when Fairfax Media revealed the existence of the internal review.
The board of Tennis Australia in 2013 included Mr Healy, Dr Janet Young, Harold Mitchell, Chris Freeman, Ashley Cooper, Jim Davies, John Fitzgerald, Graeme Holloway and Scott Tanner.
At the time of the deal, the Tennis Australia board was sharply divided over whether to extend its long-standing broadcasting deal with Seven West Media or launch a new competitive tender.
Seven West Media ultimately secured the five-year free-to-air, digital and mobile rights for the Australian Open without having to face off against its rivals for the lucrative contract.
The decision to forego other offers from some of Australia's largest media conglomerates shocked industry operators.
The ASIC investigation is the latest in a series of crises to buffet Tennis Australia, which has been riven by internal conflicts for more than a year.
In mid-January 2016, board members Dr Janet Young, Peter Armstrong and Kerryn Pratt resigned under circumstances that have never been publicly explained.
Sources say the the trio was forced out after raising concerns about the way the organisation was being run.
Their departure followed the resignation of board member Scott Tanner just a month earlier.
Dr Young has since filed a lawsuit against TA president Steve Healy alleging she was defamed by him during board meetings and in email communications.
Ms Pratt has previously told the media that since resigning, Tennis Australia has cancelled her long-running commentary job and withheld benefits commonly extended to former board members.
It is also understood that Dr Young's benefits, including an invitation to the prestigious Last8 Club at the Australian Open, were also revoked.