Demons accused of wage theft and probity breaches by former CEO

A former chief executive of the Melbourne Demons has accused the football club of widespread wage theft and breaches of probity standards following his abrupt dismissal earlier this year. Paul Guerra, who held the position for just seven months, alleges he was fired after bringing attention to systemic issues involving the underpayment of administrative staff and questioning the club's reliance on a consultancy firm linked to former Victorian Premier Daniel Andrews. His claims are detailed in Federal Court documents filed in August, marking the beginning of a legal battle between Guerra and the Melbourne Football Club. According to the statement of claim, Guerra was terminated in April 2026, shortly after presenting findings from a review conducted by newly appointed chief people officer Sara Marriott. This review identified discrepancies in how administrative staff were classified under industrial awards, leading to potential underpayments affecting multiple employees. Among these cases was one involving a worker with a disability whose wages had reportedly been underpaid for over a decade, possibly complicating future government assistance claims. Guerra asserts that his concerns were initially met with resistance within the club. Within weeks of assuming his role, he learned from general manager of partnerships Donna Kennett that her team was expected to perform additional duties on match days without compensation. Kennett reportedly informed Guerra that such issues had been previously raised but consistently disregarded. Subsequent discussions with human resources general manager Jess Vandelaak and chief commercial officer Chris Kearon confirmed that the club had historically overlooked these matters. Vandelaak reportedly indicated that administrative staff, encompassing roles in executive affairs, events management, marketing, partnerships, retail, and media, were all subject to the same industrial award. However, Guerra grew increasingly concerned that other modern awards might apply to certain positions, potentially revealing more extensive underpayment issues. In February 2026, Guerra initiated a comprehensive review led by Marriott to reassess staff classifications and ensure adherence to appropriate industrial awards. Despite these efforts, he claims that several board members rejected his findings, insisting that previous audits by consultancy firm EY had already validated compliance with pay regulations. On April 20, approximately one week prior to his termination, Guerra reportedly shared the results of Marriott’s review with the board. These findings highlighted the underpayment of six employees and the misclassification of seven others, necessitating urgent further assessments. The board’s response, however, appears to have contributed directly to Guerra’s subsequent dismissal. Beyond financial concerns, Guerra also raised questions regarding the club’s engagement with FMRS Advisory, a consultancy firm associated with former officials from the Andrews government. He expressed reservations about the transparency and propriety of this relationship, particularly in the context of planning new headquarters at Caulfield Racecourse alongside the Melbourne Racing Club. The Australian Football League (AFL) maintains a legal advisory service available to clubs for guidance on industrial awards and compliance. Nonetheless, responsibility for ensuring adherence to these standards ultimately rests with each individual club. While the AFL acknowledges awareness of similar issues across the league, the specific actions of the Melbourne Football Club remain under scrutiny. The Melbourne Football Club has yet to formally respond to Guerra’s allegations, as it has not filed a defense to his statement of claim. Until a court hearing takes place, the validity of Guerra’s claims remains unverified. The case could set a precedent for other AFL clubs facing similar challenges related to industrial relations and corporate governance. Guerra continues to hold a position on the board of Racing Victoria, indicating his ongoing involvement in sports administration despite the controversy surrounding his tenure at the Melbourne Demons. As the legal proceedings unfold, the outcome will likely influence future practices concerning employee classification and consultancy engagements within professional sports organizations.