Regrettably for sports fans there are a number of sports locally, nationally and Internationally that face an uncertain future. Sports and clubs that find themselves in dire straits. Some have accepted the predicament that they find themselves in and have taken this time to re-assess where they are at and look at ways that they can do things better. Thereby ensuring that their sport is on stronger foundations moving forward.
Others will hide behind the Covid-19 Pandemics and use this as a screen to hide their shortcomings.
One thing that that the Covid-19 Pandemic has done is expose many individuals and many organisations whose structures lacked good governance. Those who have entered the sporting arena to satisfy their own ego, have been exposed.
The composition of a Board in a sports environment is exactly the same as in a business environment. It is essential that you have the right people sitting around the table making the key decisions. If you have the wrong people, or people who lack the backbone to argue against a decision then the chances are the organisation is always going to be unstable.
Just like putting a team on the pitch you need a blend of people with a variety of skills that compliment each other, and who have the same goals. Everyone knows that in a team if someone is only interested in their own game, the team simply fails to succeed.
What is astounding in the world of sport, and we are seeing this come to the fore at this time in a number of sports is this belief that because someone excelled in their chosen sport, that they will be the right person at Board level. We see this across many facets of sport, in managerial positions, administration and even media.
If we flip this concept on its head, would any sporting club give someone with no experience in that sport a first team debut in a major competition? Would you give them an International cap? Yet retired athletes, who will be the first to tell you how long and how much hard work and dedication it took to get to the top, are excused the same hard work when it comes to the business world. Many simply have not built up any experience in other areas and yet are parachuted into managerial roles with no practical experience. Would this happen in any other walk of life?
What is terrifying is how many of the sports that find themselves in trouble are made up almost totally of people with a connection to that sport. Ex players, coaches, CEO’s of clubs or affiliate bodies are the ones making the decisions.
The Football Federation of Australia is a prime example of an organisation that went in the opposite direction when it was created. The Chairman of the Board, Frank Lowy had a passion for the game, there is no doubting that. Yet by his own admission he is a stubborn man who likes getting his own way. One journalist at the time of Australia’s failed World Cup bid quite rightly likened him to Shakespeare’s King Lear. A man who succumbed to flattery and paid the ultimate price. Of course Lowy didn’t pay the ultimate price with his vain hope of bringing a World Cup to Australia, as he did not invest in the bid personally; but the Australian Tax Payer did to the tune of $43million.
At the head of the FFA during Lowy’s tenure as Chairman there was never a CEO who knew the game of football, John O’Neill came from Rugby Union, Ben Buckley from AFL and David Gallop from Rugby League. Only now, with James Johnson at the helm is the right rhetoric coming out of head office. He has quite rightly involved ex players in suggesting structures that will assist in getting the game back on the right track. These former players are not being asked to be Board Members, but are being asked for their input in an area where they do have skills and expertise.
As one expert in Governance stated, it is detrimental to an organisation to have a Chairman who has an office within the Head office of that sport or organisation. They believed that it was vital that Board Members kept their distance from the staff that they have employed.
Experts are in agreement that a board’s effectiveness depends on obtaining the right mix of skills and experience, and although board composition may vary significantly between organisations it is influenced by the same things.
These include the structure of the shareholding or membership. In other words it is vital that all involved in the sport or club at all levels have a voice and the chance to be heard, verbally or by way of a vote at board level. It is amazing how often out-spoken individuals or individuals whose ideas are breaking with tradition are blocked from gaining Board positions. It is interesting to hear experts in Governance say that these people are often the best people to have as they open up the thinking of the other board members. They may not change the course of action, however they may change the approach taken to achieve that course of action. Often they are the trigger to seeing alternative ways of doing things, and sometimes those ways are better than the tried and tested ways.
The length of the terms of office for directors needs to be clear and adhered to so that the sport or club’s interests are always put first. Most experts in this field suggest two three year terms as the ideal length of time in office.
Linked very strongly to this is the board size. The more people you have sitting on a board the harder it can be to reach the right decisions. The bigger the board the more likely you are to have factions emerge and individuals making power plays. One strong board member on a large board can take control if they have enough meek quiet members who do not ave a voice. That is why again, the experts state that the ideal number should be eight or ten Board Members.
It is also important that those elected understand the legal requirements and the organisation’s constitution and purpose, to ensure that there are no conflicts of interest. This is an area legal experts in Governance have the most concerns having told Not The Footy Show that most boards have members who are totally unaware that they have members with huge conflicts of interest, and nothing is said. They also confirmed how few Board members in Australia, Europe and many other countries are unaware that they can personally be held financially responsible if they are involved in a decision that ends up costing the organisation, and if it is declared insolvent. (Board Members Walking A Tightrope To Protect Sports)
This should come as no surprise. Taking two International sporting federations as examples – we could have taken more and the story would be the same – one has a Board made up of sixteen members the other fourteen. The first has six ex-players as part of that Board, and nine who currently work in that sport in an administrative capacity around the globe. So 15 of the 16 people have only ever been involved in that sport!
In the other sport seven of the 14 are ex players, and five are currently working in the sports administration across the globe. One was an ex official, and like the other sport only one member of the executive Board comes from outside of the sport!
Where is the balance required to make informed decisions? Is this why both of these sports are currently facing hard times, too inward thinking?
Clearly to be involved these people are passionate about their sport, but does that lifetime of involvement and passion actually prevent them from making the hard calls when the time comes?
Looking at the world of sport today, you would have say that in many cases it has.
Are they too wedded to views that have been ingrained over all the time of their involvement?
There is a reason why in medicine surgeons are not allowed to operate on their own families. They are too emotionally attached and it is believed it puts the patient at risk. Is this not the same with those entrenched in a sport making vital decisions about its future?
One of the crucial aspects of any board is the area of Director competencies. In other words each board member should bring to the table a set of skills that enables them to make informed decisions so that those administering the game can do their job effectively and well.
For example it is usually wise to have at least one board member with a legal background and another with an accounting background. These are vital. Yet how many sporting organisations when you search who makes up the board fail to advise who the Treasurer is? The person to oversee the company accounts and make sure that what is presented to the board is correct and flag any worrying areas. A person that understands the difference between a forecast and actual income.
It always pays the higher the level of administration you go to have a media and marketing expert who can help with the narrative and image the sport wishes to project to the world. Each and every board member should bring added value; a love of the sport or a lifetime involvement may not be supported with the relevant skills. Most constitutions state very clearly that once elected a directors duty is to represent the game as a whole, and not their home country, state or club. Which can be hard, but that is why you need to be careful who you elect.
The skills that those elected bring to the table should always be aligned with the strategic direction decided upon. Which means that every dog has its day. Of course if the strategic direction is constantly changing or there isn’t one, then this is going to be impossible to implement, and that is when dysfunctional boards sit around the table and little is achieved.
At international level it can be harder to ensure that each elected member is a cultural fit with the board. Therefore it is essential that a set of guidelines are given to every newly elected Board member as a form of induction relating to the ideas, customs, and social behaviour expected.
There have been many in the past two decades who have taken positions on Boards because it will enhance their standing in the game, and will look good on their resume and assist them to climb the corporate ladder. These are some of the people now being found out.
So too are those Boards whose budgeting has been solely reliant on Government or similar hand outs. Those that have failed to become self-funding and self-sufficient are now facing testing times.
The hard facts are that when it comes to Governance you need expertise, people who will question and challenge, who are not influenced by an involvement within the sport. You need people who only see the big picture, which is looking after the health of the sport, and ensuring it has a long lasting future for the next generation of players and fans, and the one after that. To have as quoted from two World Bodies so many people with a vested interest, hard decisions are not going to be made.
For sports lovers these are sad times. Many experts are predicting that some professional sports are clearly going to have to revert to the days of yore when the top players were semi-professional, as they rebuild. Whether that will be a good thing or not we will have to wait and see. However if that does happen more than ever the Boards of the various sports are going to need the skills and expertise to negotiate the sport through this period.
