Eminence Capital CEO takes Entain Capital Allocation Committee position

Entain has added Eminence Capital CEO Ricky Sandler to the group’s newly formed Capital Allocation Committee in a further strengthening of the activist’s presence in the business.

Sandler, whose investment firm has been outspoken in its view on Entain’s recent performance and M&A strategy, was named as a non-executive director at the start of the year.

He has been named alongside Entain chair Barry Gibson and fellow non-executive director Pierre Bouchut, who was drafted to the board late last year, as members of the new committee.

As detailed by Entain, the Capital Allocation Committee has been put in place to “review all material strategic capital investment and divestment opportunities, including the acquisition and disposal of minority investments, joint venture interests and non-core assets”.

The three-man body will also be able to challenge proposals to ensure “capital allocation is aligned with strategic priorities, maximises long-term shareholder value, delivers on market prioritisation objectives and accelerates organic growth”.

Sandler’s presence on the committee, and the committee’s responsibilities, come after Eminence Capital labelled Entain’s £750m move for Polish market leader STS as “tone deaf” in the summer.

The Capital Allocation Committee will also make recommendations to “maximise the value and performance of BetMGM”, Entain’s US-facing JV with MGM Resorts.

Gibson, Sandler and Bouchut will also consider financing plans and how best to return capital to shareholders.

Entain is currently being led by former non-executive director Stella David as interim CEO following the departure of Jette Nygaard-Andersen last year.

The FTSE 100 firm has seen several senior execs leave in recent months, including group M&A director Nicholas Batram, while group operations director Peter Marcus is due to leave the company in June.