Alan Bond
Alan Bond | |
|---|---|
| Born | April 22, 1938 Hammersmith, London, England |
| Died | June 5, 2015 (aged 77) |
| Occupation | Businessman |
| Known for | Backing the victorious 1983 America's Cup challenge; founder of Bond University; involvement in WA Inc controversies |
Alan Bond (22 April 1938 – 5 June 2015) was a businessman originally from England who became a prominent figure in Australia, noted for his often contentious commercial ventures. He was a key player in the WA Inc controversies during the 1980s, which culminated in Australia's most significant corporate failure, and he was later convicted of corporate fraud, serving a prison sentence of four years. Bond is also remembered for backing the victorious 1983 America's Cup challenge that ended the New York Yacht Club's 132-year dominance. Furthermore, he established Bond University on Australia's Gold Coast.
Early life
Born on 22 April 1938 in Hammersmith, London, Alan Bond was the son of Frank and Kathleen Bond. At the age of 12, in 1950, he relocated with his family to Australia, settling in Fremantle, near Perth. During his adolescence, Bond encountered legal troubles including accusations related to theft and unlawful entry.
Career
Bond launched his professional journey as a signwriter under the brand 'Nu-Signs' after cutting short his apprenticeship by eighteen months. In 1956, he faced charges for attempted burglary after being discovered wearing overalls belonging to the State Electricity Commission and carrying tools. The business 'Nu-Signs' was later renamed Lesmurdie Heights, named after Bond's largest property development, before evolving into Bond Corporation in 1959. Throughout the property boom of the 1960s, Bond became one of Western Australia's top borrowers from finance companies that accepted his estate valuations without scrutiny. His projects included apartment complexes along the Swan River and Lesmurdie Heights.
Operating out of Perth, Bond diversified his interests beyond real estate into industries such as brewing, where he controlled Castlemaine Tooheys in Australia and G. Heileman Brewing Company in the United States; as well as ventures in gold mining, television, and airships. Under his direction, Castlemaine Tooheys successfully contested a significant constitutional law case, Castlemaine Tooheys Ltd v South Australia. The Bond Corporation also pioneered Australia's first private university with the establishment of Bond University in 1987. Bond acquired Brisbane's QTQ-9 television station and settled a defamation claim with Queensland premier Joh Bjelke-Petersen by paying A$400,000 to preserve positive business ties.
In 1987, Bond made headlines by purchasing Vincent van Gogh's Irises for $54 million—a record sum for a single artwork at that time. This acquisition was primarily funded through a loan from auction house Sotheby's, which Bond subsequently failed to repay. The transaction attracted criticism amid allegations it might have been intended to artificially boost art market prices. The painting was later sold in 1990 to the J. Paul Getty Museum located in Los Angeles.
During the same year, Bond launched the Bond Centre in Hong Kong, a twin-tower skyscraper complex that was eventually sold to Indonesia's Lippo Group and renamed the Lippo Centre.
The America's Cup
Bond earned widespread recognition across Australia by financing multiple challenges for the prestigious America's Cup. In 1978, he was honored as Australian of the Year, an award he shared with Galarrwuy Yunupingu. His Australia II syndicate secured victory at the 1983 America's Cup, ending an unprecedented 132-year winning streak held by the New York Yacht Club. This historic triumph became one of Australia's greatest sporting milestones and led to Bond being appointed an Officer of the Order of Australia.
Acquisition of the Nine Network
In 1987, Bond purchased the national Channel Nine television network from Kerry Packer's PBL for $1.05 billion. The transaction comprised $800 million in cash and $250 million in subordinated debt within Bond Media, secured against his other broadcasting assets. His strategy involved merging these holdings with Sky Channel and subsequently listing the combined company to generate funds.
Following Bond's bankruptcy, Packer converted the subordinated debt into a 37% ownership stake in Bond Media, which included Channel 9 Brisbane. Although Bond Media was valued at approximately $1 billion, it carried a debt burden of $500 million. Reflecting on the experience, Packer commented, "You only get one Alan Bond in your lifetime, and I've had mine."
Bankruptcy and Fraud Conviction
Bond was declared bankrupt in 1992 after defaulting on a $194 million personal guarantee tied to a nickel-mining loan, with total liabilities reported around $1.8 billion. During bankruptcy proceedings, he feigned brain injury but ceased the act thereafter. He was compelled to sell Glympton Park in England, an estate acquired in 1988.
In 1995, his family arranged to buy him out of bankruptcy, with creditors agreeing to recover A$12 million—just over half a cent per dollar owed.
In 1997, Bond received a seven-year prison sentence after admitting guilt for diverting A$1.2 billion from Bell Resources into Bond Corporation using his controlling interest. This maneuver aimed to support Bond Corporation’s liquidity but left Bell Resources exposed financially. Consequently, he was stripped of his Officer of the Order of Australia honor awarded in 1984.
Bond was released from Karnet Prison Farm in 2000 after serving four years within Western Australian correctional facilities.
Resumption of Investment Ventures
Post-release, Bond concentrated on mining ventures in Africa, notably Madagascar Oil PLC and Global Diamond Resources in Lesotho. He reappeared on Business Review Weekly's "Rich 200 List" in 2008.
In 2003, he earned induction into the America's Cup Hall of Fame. Subsequently, he partnered with his son Craig and Robert Quinn through Strategic Investments Ltd.
The Bond family maintains control over Global Diamond Resources plc (formerly Lesotho Diamond Corporation), which is developing the Kao diamond pipe in Lesotho. In 2007, the Federal Court of Australia dismissed Bond's defamation suit against journalist Paul Barry regarding an article about his African business interests; his appeal in 2008 was also denied.
Bond pursued defamation proceedings against The West Australian newspaper and journalists Mark Drummond and Sean Cowan over reports alleging efforts to conceal his involvement with Lesotho Diamond Corporation, Madagascar Oil, and a gold mining company. During litigation, he sought contempt charges following the loss of electronic documents.
By 2008, Bond re-entered the Business Review Weekly Rich 200 List at rank 157 with an estimated net worth of $265 million, largely derived from holdings in Madagascar Oil and Global Diamond Resources.
Family
Bond married Eileen Hughes in 1955; she hailed from a notable Catholic family in Fremantle and was cousin to car dealer John Hughes. Both were seventeen at the time, and Bond converted from Protestantism to Catholicism for their marriage. They had four children: John, Craig, Susanne, and Jody. The couple divorced in 1992. Susanne competed as an equestrian showjumper for Australia for seven years before passing away in 2000 from an apparent accidental overdose of prescribed medication.
In 1995, Bond wed Diana Bliss, a public relations professional and theatre producer. On 28 January 2012, Bliss was discovered deceased in their swimming pool; authorities ruled her death a suicide attributed to long-term depression.
Health Decline and Passing
On 2 June 2015, Bond underwent open-heart surgery in Perth to repair and replace heart valves. Following complications, he was transferred to Fiona Stanley Hospital where he was placed on life support under an induced coma. He passed away on the morning of 5 June 2015.
Representation in Popular Culture
John Wood portrayed Bond twice: first in the miniseries The Challenge (1986), chronicling Australia's 1983 America's Cup triumph, and later in Killing Time (2011). The 2017 miniseries House of Bond, a highly dramatized version of his life story starring Ben Mingay as Bond, aired on the Nine Network.
In 2021, Perth-based band Pond released the song "America's Cup" on their album 9, which references Bond with the lyric "Alan was a rolling stone."
Bond’s legal representation included criminal lawyer Andrew Fraser, known for defending prominent Australian underworld figures; Fraser himself later served time in prison.
Projects and Developments
Western Australia
- Observation City located in Scarborough, WA
- Yanchep Sun City development situated in Yanchep, WA
- Property at 9 Parker Street in South Perth, WA
- Lesmurdie Heights residential area in Lesmurdie, WA
- South32 Tower (previously Bankwest Tower, Bond Tower, R&I Tower) based in Perth, WA
- Bunbury Tower located in Bunbury, WA
- Kalgoorlie Super Pit gold mining operation near Kalgoorlie, WA
Other Australian Locations
- Bond University situated at Robina, within the City of Gold Coast, QLD
International
- Bond Centre (currently known as Lippo Tower) located in Hong Kong