Hawthorn have budgeted to pay a total of more than $2.5 million in legal fees and potential payouts in the fallout from the investigation into alleged mistreatment of First Nations players and their families.
The Hawks have specified a potential cost of $1.5 million in the club’s 2023 annual report for what they say are legal and associated costs from the racism saga, having already spent more than $1m in legal fees since the scandal erupted in late 2022.
Thus, they have allowed for a total of more than $2.5m in payments for the investigation and subsequent fallout over two years.
The Hawks have counted that sum of $1.5m in the annual report under the heading of “provisions” – an estimate of what they might spend on legal fees and/or other costs. This includes settlements with either the players and partners affected, or the coaches and officials – headed by active senior coaches Alastair Clarkson and Chris Fagan. But Hawthorn believe legal costs would form the majority of any outlay.
North Melbourne coach and former Hawthorn coach Alastair Clarkson.Credit: Getty Images
Hawthorn have not paid out any of that $1.5m yet, but that potential liability is counted against the club’s bottom line. In their official financial statements, the Hawks also revealed a massive cost of $6,885,277 in “other expenses” – an increase of more than $3 million compared with 2022 ($3,851,230) in that item.
Hawthorn confirmed that this huge $3m increase in unspecified “other expenses” consisted of three factors: First, the legal costs (for the racism probe); second, the allocation of $1.5m for future legal bills or compensation; and third, the major increase in costs, post-COVID, of running the football club this year.
“It’s financially prudent and it’s for legal costs and expenses,” Hawthorn president Andy Gowers said of the $1.5 million allocated. Gowers said he and the Hawks did not know what they would end up spending on the First Nations investigation fallout. “It’s undetermined.”
Gowers was grilled by outspoken former skipper and club great Don Scott at the Hawthorn annual general meeting (AGM) on Tuesday night – including questions about the extra costs of $3 million and the provision of the $1.5 million, the cultural safety review and conflicts of interest among board members. Scott refused to relinquish the microphone when a staff member sought to take the microphone, having asked several questions.
Gowers had told the meeting that, at this stage, there was no commitment to compensate any of the parties affected by the racism investigation, which the AFL set up late in 2022 to address allegations made by First Nations players and their partners.
The allegations that first were reported by the ABC in grand final week of 2022, sparking the AFL inquiry, which ended without any adverse findings against Clarkson, Fagan or welfare manager Jason Burt, who had all strenuously denied any wrongdoing. Hawthorn’s handling of the matter is still subject to a separate AFL probe, the findings of which not have been completed.
Some of the former players and their current or former partners have taken the matter to the human rights commission, which is due to have a mediation process between parties early in 2024.
