Imagine your sport without any rules. It would be complete mayhem.
Even when kids play their own games they create an imaginary boundary along the edge of their playing area, they have jumpers an equal distance apart for goals, if the ball goes over the neighbour’s fence its ‘six and out. Most important of all they self-officiate; with the person whose ball it is having the most power! Despite their age, and lack of experience they already appreciate that for the game to work there has to be some structure.
So why is it that in the past ten to twenty years we have seen so many sports looking to ignore the structures that have been in place for decades?
As one wise man once said it seems that ‘when smart businessmen become involved in sport they forget the very principles that made them successful.’ Maybe this is the reason we see so many squander a fortune. Maybe this is why we have seen the structures on which clubs and sports have been built eroded, and as a result the sport and many clubs crumbling before our eyes.
There is no doubt that working in sport is seen by many as the perfect job, along with working in travel. Yet the truth is in both industries it is a job. Which means that often in travel, when you travel you are working, you don’t get to sightsee. Just as in sport when it is match day that is when you are working, rather than sitting back and enjoying the game and a chilled chardonnay. Although, some do manage to do both!
All sporting organisations have a constitution, or statutes as to how they are supposed to operate. Most clubs have a similar constitution. Yet in recent times it would appear that either those whose job it is to oversee the Governance of the sport, the board, have not read their constitution or fail to comprehend it’s meaning. It is truly scary how many Board members fail to understand not only their moral obligations but also their legal responsibilities.
One of the biggest issues facing many sports falls under the banner of “a conflict of interest.” Clearly many individuals fail to understand what is meant by “a conflict of interest.” To exacerbate the situation, their management and Board, also fail to recognise such conflicts.
A Conflict of Interest is best explained as being a situation in which a person or an organisation is involved in multiple interests, financial or otherwise, and serving one of those interests could involve working against another. In most cases this relates to situations in which the personal interest of an individual or organisation could adversely affect a duty owed to make decisions for the benefit of a third party.
Examples of such conflicts are occurring at board level, and now are becoming more prevalent amongst regular employees. Which means that the foundations of some organisations are becoming more than a little shaky.
It used to be written into many constitutions that Board Members were not allowed to be a sponsor of any part of the sport whose board they were sitting on. While that was still part of one sport’s constitution and a board member was a regular sponsor of an event, the Chair of the board’s response when quizzed on this issue was ‘that we have to be practical about this.”
Not The Footy Show on numerous occasions asked the Football Federation of Australia to reveal the investment made by it’s former Chairmen in return for sponsorship of some of the organisations key competitions and teams. The response was that they could not reveal such information “due to commercial confidentiality,” even though there was a clear conflict of interest.
Currently another President of another sport has their company as a major sponsor of two events within that sport. Once again an enquiry was made of the CEO as to whether the financial details would be revealed to their members. The response was similar, that they would not be revealing the amount, as they had made no secret as to the link between the two.
The CEO then implied that the amount ‘was not a huge sum of money’ so nothing to be concerned about. This is however the crux of the issue, as it was with the FFA. If these Board members are being granted sponsorship rights at below the market value then the conflict of interest looks to be even greater. Were other organisations offered the same opportunity at a reduced rate? The perception is that they have benefitted as a result of their position on the Board.
This is becoming more and more prevalent across a number of sports. Go to the webpage, check out the Executive Board and then see which organisations sponsor the sport or club. It is remarkable how many occasions you will find that a Board Member is also a sponsor. How many have declared that investment and what they receive in return? How many are preferred suppliers? They may be there to try and help the game, but these are unfortunately clear conflicts of interest and that is why such agreements need to be out in the open.
There are many people who are concerned about such issues, so much so that Not The Footy Show is in possession of one document where a Board Member has written in an email that 68% of their board “can be considered having a conflict of interest.” That is a dreadful admission, and the question has to be asked why has no one spoken up?
It also raises the question as to why these people are holding the positions they do? Is it because it suits their personal interests?
If the Board does not speak up, then what hope is there for the sport or the club? How can they impose good governance on staff when they are not ensuring that it exists at Board Level?
Virtually every sports body has in their constitution that Board Members cannot hold any official position with a club if they are to be on the Board of the governing body. In one instant we have a Board member of the Governing body, who although not listed as a board member of the club they used to play for attends every single club board meeting and is clearly involved with the decision process. They are involved in coaching, and no player signs for that club without this individual being involved. Most would say that this is not acceptable. Another sport has a board member turning up to games of the club that they have represented in an administrative level week in week out and wearing that club’s colours. That may appear harmless, as everyone knows their links to that club, but is it appropriate when holding down such a position?
Unfortunately as a result of conflicts of interest at Board level we are now seeing conflicts of interest amongst paid employees. One senior executive who is employed by a sporting body, also has a company of their own carrying out the same business as the role that they hold down. They are not alone in this. There are several people doing the exact same thing in other sports. Is this not the perfect situation? To be paid a salary to carry out one role, yet at the same time be able to run a business specialising in the same line of work. How easy is it to split the businesses and your time between the two? This is however clearly a conflict of interest.
If they had a business away from their work which was in a completely different field that would not be an issue. However, to be operating a business involved in the same specialised area that they are employed is clearly a conflict.
Many years ago there were many sales reps who were employed by one company, but when out on the road would also be making sales calls for a Direct Selling product that they were involved with. This writer actually worked with one person who was holding down two full time jobs at the same time as a Sales Rep! They were caught eventually and all hell broke loose, including litigation.
In another sport we have a senior manager also coaching a senior team within a club that falls under their jurisdiction as an administrator of the game. There is also a case of a development coach within a sporting organisation coaching a senior side in the same sport. Both would again appear to be a conflicts of interest. Incredibly the employer in both cases appears to think that this is acceptable. Yet clearly in both situations the integrity of the individuals and the organisation is being compromised.
In both of these cases the individuals need to decide which role is more important. The administrator is privy to information that other coaches and clubs would not have, and therefore there is a situation where the organisation runs the risk of a perceived belief that their club could gain an advantage over their rivals due to that information. The employee could also be perceived to have influence that would benefit their club and their reputation.
The second case is an even more obvious conflict. A development coach is going to see first hand the talent coming through and so to be employed by a club as a head coach, the perception will be that they may direct those talented players to that club. The players will be tempted to go as they will believe that it will assist them when it comes to State selection, and they get to work with the coach on a full time basis.
Everyone has heard the saying ‘perception is reality.’ What this means is that people build up a mental impression of something, and as a result it defines how they see that something, irrespective of the truth.
Which is the reason why we have Constitutions and Statutes. These are here, like the rules of the sports we love to give structure and make it absolutely clear what is acceptable and what isn’t.
Maybe sport has lost its way because as mentioned good business people have forgotten the principles that made them successful when they come into sport. What has not helped is that the various bodies that oversee corporate governance see sport as small fry compared to the major corporations when it comes to prosecutions. As successful prosecutions and exposing corrupt corporate governance at the highest level is their goal they have allowed unscrupulous and ignorant individuals to take advantage on a smaller scale. Yet the crime is exactly the same.
Maybe having two differing opinions around a boardroom table is like two people each with a compass. Both wanting to take the organisation in a different direction. If those two compasses are too close they throw each other out. In many of these cases it is the moral compass that has been affected.
When you play a team sport if a player continually refuses to play by the rules they are kicked off the team. Why don’t the same standards apply when it comes to the administration of the same sport? Those who are guilty of a conflicts of interest are not hiding the fact, yet they are allowed to get away with it. Clearly they are like the selfish player within the team, only looking after number one. Many will hide behind the same line that ‘their sport is their life,’ that is why they are involved on so many levels. What they are really saying is I am making as much money from the sport as I can.
One thing is obvious there is a distinct lack of leadership to stamp out such practices. Those working alongside these people who do not have a conflict of interest need to find their voice. Sport is supposed to be for the masses, not for the chosen few. As we saw with FIFA there were numerous conflicts of interests by those who were on the Executive Committee and were arrested. Many of these held senior positions within Confederations, and nations. The same applies in many other sports at various levels.
So how does sport clean up its act? The only way is through men and women with the courage to stand up for the good of the sport. Yet that is not easy when those you look to for support in making that stand are the very people who are rorting the system. This is when your own principles are put to the test, and when you find out whether you can make a difference or not. Not surprisingly many good people have walked away. Some because they know they cannot bring about change, others because they understandably do not want their own reputation tarnished by being associated with clear conflicts of interest, which can often be labelled unethical.
As we saw with FIFA, a few people spoke up, and paid a heavy price. Then the masses echoed their cries. Corporate sponsors withdrew, and then change had to happen. Whether that change went far enough is still debatable. Where there are clear and known conflicts of interest everyone has a duty to speak up, confront it, and eradicate it. Only then will the sports we love thrive.
Sadly, if sport is not prepared to make those changes then we may as well rip up the rule book.
