The Demons sacked their CEO after seven months in the job. Now a legal battle looms

Melbourne have sacked Paul Guerra after just seven months as chief executive and now face the prospect of legal action from the ousted club boss, who was left “puzzled” and blindsided by his axing on Tuesday.

The lack of an explanation from the Demons for Guerra’s departure raised immediate questions about what unfolded behind closed doors at a club that was, until now, one of the AFL’s success stories of season 2026. However, late on Tuesday club president Steven Smith did provide some insight into the decision, saying “there was a loss of confidence in his [Guerra’s] ability to lead the club and a breakdown of relationships with the board”.

Those comments were reported by The Age’s Caroline Wilson on Seven’s The Agenda Setters on Tuesday night, shortly after Guerra had appeared on a number of 6pm TV news bulletins.

“I have engaged lawyers and there’s not much more I can say at this point,” Guerra told Nine News.

“It’s been a challenging day, I’m puzzled by the decision made by the board today. I’m really proud of the team we’ve put together in a really short period of time, and I’m really proud of the role I’ve played in the success of the club.”

The club’s statement was brief, polite and notably silent on detail. Guerra himself, according to a source familiar with his situation, was not provided with a reason for the decision.

While the Demons said they expected to appoint a permanent CEO “shortly”, club great Garry Lyon told Fox Footy’s AFL 360 on Tuesday night he understood the club would announce Guerra’s successor as soon as Wednesday.

Melbourne confirmed Guerra’s departure on Tuesday evening after multiple outlets, including this masthead, verified the news earlier in the day.

Veteran administrator Brian Cook – a close ally of president Steven Smith and one of the AFL’s most experienced executives – was announced as interim CEO. Cook had only recently been engaged in a mentoring capacity to support Guerra in the role, making the rapid escalation all the more striking.

“On behalf of Melbourne Football Club, I thank Paul for his contribution to the club and wish him all the best for the future,” Smith said.

“Brian is a highly respected operator, and with over 35 years of experience in AFL clubs, he will provide much-needed leadership and guidance through this period.

“We are pleased that Brian has agreed to step into the role in an interim capacity until a permanent CEO can commence.”

Guerra was contacted for comment by this masthead.

He started in the role in September last year, following his appointment in April 2025 while serving as chief executive of the Victorian Chamber of Commerce and Industry. He arrived at Melbourne as an outsider to the AFL club system but with a strong corporate resume and significant ties across Victoria’s sporting and business sectors.

There had been no public signs of tension at board level, nor any indication that Guerra’s position was under threat. If anything, Melbourne’s start to the 2026 season under new coach Steven King had helped steady the broader narrative around the club.

Despite losing star midfielders Christian Petracca and Clayton Oliver in the off-season, the Demons have won five of their opening seven matches to sit fourth on the ladder – a start that exceeded expectations and reinforced belief in the club’s football program.

Lyon told Fox he was shocked and surprised by the timing of Guerra’s departure.

“When your footy club’s 5-2 against all odds and expectations, things appear on the surface to be going well on field. I guess you never know what’s going [on] off field.

“I’m told [there was] a loss of confidence in Paul. There was a genuine breakdown with the board.

“In the end it was a unanimous board decision. They’re standing on the fact that they haven’t shied away from making hard decisions in recent times – and that includes the sacking of Simon Goodwin, the trading of Christian Petracca and the appointment of [coach] Steven King out of nowhere.”

Lyon said he believes Cook will have the interim role for three to four months.

“As I sit here tonight I understand that [the announcement of the club’s new CEO] will be as early as tomorrow.”

Despite the positive signs on the field, the picture has been more complicated off field for the Demons.

It’s well known across the industry that Smith and Guerra were not close friends. That in itself is not uncommon, given the varying nature in roles of presidents and chief executives.

Earlier this month, Melbourne was forced into an apology after details of a pre-season meeting involving senior officials and players’ partners were made public. The online forum – attended by Guerra, King and football boss Alan Richardson – sparked controversy amid claims confidential and sensitive information was shared, including details relating to the relationship between premiership defender Steven May and his partner Sachi Dade.

The fallout was uncomfortable. May, a central figure in the club’s 2021 flag, retired on the eve of the season following a period of personal leave.

Whether that episode played any role in Tuesday’s decision remains unclear – and Melbourne is not saying.

Beyond that, Guerra had inherited one of the club’s most complex and high-stakes projects: securing a permanent home base.

The Demons’ long-running push to establish a new headquarters at Caulfield Racecourse – in partnership with the Melbourne Racing Club and alongside a proposed Mount Scopus College campus – has been complicated by a reported $70 million funding shortfall.

Guerra, also a Racing Victoria director, was tasked with navigating that financial challenge and delivering what his predecessor Gary Pert had long pursued – a centrally located, elite training and administration facility.

“We want Melbourne to have a real home that everybody can enjoy, but we can get elite performance out of it,” Guerra said at the time of his appointment.

That vision now sits in limbo.

Alternative options, including a potential move to AFL-owned Waverley Park, remain in play – particularly with Richmond also exploring temporary relocation solutions during the redevelopment of Punt Road Oval.

For now, though, Melbourne’s focus shifts to stabilising its executive structure.

Cook’s appointment offers experience and authority, but it also underscores the scale of the disruption. Clubs do not turn to operators of his standing lightly – and rarely in circumstances this opaque.

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