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APPENDIX I
Threat
Description and rationale
Example
Incompetent Financial
Management–
”Financial Fair Play”
Clubs or organisations become financially insol-
vent due to irresponsible financial practices and
may bring sport into disrepute.
Clubs receiving large benefactor loans can
fast-track success and undermine the audience
relationship with clubs/leagues.
• 2010:
UEFA
: UEFA adopted new “Financial Fair Play”
regulations aimed at encouraging clubs to be fiscally
responsible, not to spend more than they earn. Study
finds that the 732 top division European clubs lost
578 million in 2008.
Conflicts of Interest
Those involved in management or governance
might have conflict of interest given continued
role in operation of a business, which might lead
to preferential treatment.
• 1990s:
Bud Selig and the Milwaukee Brewers
:
After Selig became the Commissioner of Major
League Baseball in 1998; he transferred ownership of
the Milwaukee Brewers club to daughter. Commis-
sioner’s relationship with Milwaukee club created
public perception of favouritism until his family sold
its stake in 2005.
“Fit and
Proper Persons”
Some sport sponsors/directors/managers may
not be suitable to run clubs or franchises as they
may lead them into disrepute or financial difficul-
ties. Such people may include those who have:
• Criminal convictions or indictments.
• Businesses in receivership.
• Been declared bankrupt.
• 2009:
Stephen Vaughan
: Liverpool businessman,
owner of Chester City Football Club, became the first
owner to fail the FA “Fit and Proper Persons” test for
his involvement in £500,000 VAT fraud. Club put up
for sale, expelled from the Football Conference for
breaches of league rules, and formally liquidated in
March 2010.
10. Health and Welfare Negligence
Rising Risk of
Severe Injury
As players get bigger and stronger and spend
more hours on the field playing and training, risk
of injury increases.
Increasing size and speed of players means
sports injuries can be more serious and put play-
ers out of action for longer.
• 2010:
Rugby
: Injury audit of England’s Rugby Football
Union revealed serious injuries in the 2008-09 season
were up 20 per cent on the previous year, while the
number of missed playing days also increased 20
per cent; injuries, days missed had been static since
2003.
Long-term
Health Risks
As medical science progresses, serious long
term implications for playing sports are emerg-
ing, replete with worried public response.
• 2009-2010:
Concussions in the NFL
: Perceived
league negligence in helping players who had suf-
fered concussions, increased public knowledge of
long-term health problems experienced by former
players bring league under intense scrutiny. NFL
responds by instituting new guidelines on managing
players who have suffered concussions in 2009.
© MONITOR QUEST LTD. 2011
GUARDING THE GAME Preserving the Integrity of Sport
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