09.08.2013 Views

Governance in Sport Best Practice Principles

Governance in Sport Best Practice Principles

Governance in Sport Best Practice Principles

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

<strong>Governance</strong> - structures for<br />

success, or work<strong>in</strong>g aga<strong>in</strong>st us?<br />

Jackie Solakovski<br />

Our <strong>Sport</strong><strong>in</strong>g Future 2003<br />

13 March 2003<br />

Lander & Rogers<br />

Lawyers


Outl<strong>in</strong>e<br />

– Summary of Good <strong>Governance</strong> Pr<strong>in</strong>ciples<br />

– Federal Structure or Unitary Structure?<br />

– Pros and Cons of Federal Structure<br />

– Pros and Cons of Unitary Structure<br />

– Practical Issues - Unitary Structure<br />

– Preferred Structure<br />

Jackie Solakovski<br />

Lander & Rogers<br />

Lawyers


Summary of Good<br />

<strong>Governance</strong> Pr<strong>in</strong>ciples<br />

– Clear del<strong>in</strong>eation of governance role<br />

– Govern<strong>in</strong>g role should be with Board not<br />

members <strong>in</strong> general meet<strong>in</strong>g<br />

– Clear separation of powers between Board<br />

(m<strong>in</strong>d of the organisation) and the CEO and<br />

staff (hands of organisation)<br />

Jackie Solakovski<br />

Lander & Rogers<br />

Lawyers


Summary of Good<br />

<strong>Governance</strong> Pr<strong>in</strong>ciples<br />

– Board structure:<br />

– 5 to 9 directors depend<strong>in</strong>g on size<br />

– Skill based as opposed to representative based<br />

– Ability of elected directors to appo<strong>in</strong>t directors to<br />

fill necessary skill gap<br />

– Elected <strong>in</strong> alternate years, for 2-3 2 3 year term<br />

– Maximum terms<br />

– CEO not a director<br />

– Independent chair<br />

Jackie Solakovski<br />

Lander & Rogers<br />

Lawyers


Jackie Solakovski<br />

Federal Structure<br />

SSA<br />

NSO<br />

SSA<br />

SSA<br />

– 9 separately <strong>in</strong>corporated entities<br />

– 9 govern<strong>in</strong>g bodies<br />

– States exist <strong>in</strong>dependently from NSO<br />

Lander & Rogers<br />

Lawyers


Federal Structure<br />

– NSO constitution should recognise SSAs<br />

and other stakeholders <strong>in</strong> sport such as<br />

regions, clubs and <strong>in</strong>dividual members<br />

– SSA constitution should recognise NSO<br />

– Consistent objects and purposes should<br />

be adopted by NSO and SSAs<br />

– MOU or charter should be entered <strong>in</strong>to<br />

between NSO and SSA to clarify roles and<br />

responsibilities of each<br />

Jackie Solakovski<br />

Lander & Rogers<br />

Lawyers


Jackie Solakovski<br />

Unitary Structure<br />

NSO<br />

State C’tee State C’tee<br />

State C’tee<br />

– One s<strong>in</strong>gle legal entity<br />

– One govern<strong>in</strong>g body<br />

– State committees exist as delegated<br />

bodies of NSO board<br />

Lander & Rogers<br />

Lawyers


– Pros<br />

Pros and Cons of Federal<br />

Structure<br />

– Servic<strong>in</strong>g a number of segments <strong>in</strong> market<br />

– Participation and representation at greater<br />

levels<br />

– Structure provides career path for<br />

volunteer adm<strong>in</strong>istrators<br />

– Widespread sense of ownership<br />

– Allows for differences <strong>in</strong> local<br />

circumstances<br />

Jackie Solakovski<br />

Lander & Rogers<br />

Lawyers


– Cons<br />

Pros and Cons of Federal<br />

Structure<br />

– Inefficient use of resources<br />

– Duplication of efforts and systems<br />

– Inefficient communication channels<br />

– NSO far removed from grass roots<br />

– Conflict <strong>in</strong> market<strong>in</strong>g, policy, promotion etc<br />

– Structure fragmented and no overall<br />

responsibility for development of sport<br />

– Reliance on constitution or charter for<br />

compliance<br />

Jackie Solakovski<br />

Lander & Rogers<br />

Lawyers


– Pros<br />

Pros and Cons of Unitary<br />

Structure<br />

– Uniformity of practices and outcomes<br />

– Tighter f<strong>in</strong>ancial controls and accountability<br />

– Strong l<strong>in</strong>k between strategy and<br />

implementation<br />

– Outcomes deliverable via State committee<br />

– Reduction <strong>in</strong> duplication of efforts and<br />

systems<br />

– Greater <strong>in</strong>come potential through national<br />

approach and brand<strong>in</strong>g<br />

Jackie Solakovski<br />

Lander & Rogers<br />

Lawyers


– Pros<br />

Pros and Cons of Unitary<br />

Structure<br />

– Control over personnel and systems<br />

– Decision mak<strong>in</strong>g is straight forward<br />

– Greater authority to implement decisions<br />

– S<strong>in</strong>gle l<strong>in</strong>e of management accountability<br />

– Greater control over systems and<br />

structures<br />

Jackie Solakovski<br />

Lander & Rogers<br />

Lawyers


– Cons<br />

Pros and Cons of Unitary<br />

Structure<br />

– Difficult to implement<br />

– Clubs, <strong>in</strong>dividual members and volunteers<br />

may be further disenfranchised if SSA is<br />

removed<br />

– Well developed processes and systems<br />

required<br />

– Greater perception of control and power<br />

– Centralised power may be used <strong>in</strong><br />

destructive way<br />

Jackie Solakovski<br />

Lander & Rogers<br />

Lawyers


Practical Issues - Unitary Structure<br />

– Who are the members?<br />

– Who elects the govern<strong>in</strong>g body?<br />

– Who appo<strong>in</strong>ts the State committee<br />

members?<br />

– State government fund<strong>in</strong>g<br />

– Protection of State assets<br />

– Will the SSAs approve new Constitution<br />

and w<strong>in</strong>d up exist<strong>in</strong>g entities?<br />

Jackie Solakovski<br />

Lander & Rogers<br />

Lawyers


Preferred Structure<br />

– No right or wrong<br />

– Federal structure is the most common<br />

– Unitary structure may be desirable for<br />

some NSOs<br />

– Practical issues for implementation<br />

need to be overcome<br />

Jackie Solakovski<br />

Lander & Rogers<br />

Lawyers


Jackie Solakovski<br />

Senior Associate<br />

<strong>Sport</strong>s Law<br />

E-mail: jsolakovski@landers.com.au<br />

mobile: 0439 800 032<br />

Melbourne Office<br />

Level 12 Bourke Place<br />

600 Bourke Street<br />

Melbourne, VIC 3000<br />

Telephone (613) 9672 9111<br />

Facsimile (613) 9670 2723<br />

Sydney Office<br />

Level 5 Angel Place<br />

123 Pitt Street<br />

Sydney, NSW 2000<br />

Telephone (612) 9233 5092<br />

Facsimile (612) 9233 5091<br />

These notes conta<strong>in</strong> comments of a general nature only and is not <strong>in</strong>tended to be relied upon, not as a substitute for specific specific<br />

professional advice.<br />

No responsibility can be accepted by Lander and Rogers or the authors authors<br />

for loss occasioned to any person do<strong>in</strong>g anyth<strong>in</strong>g as a result result<br />

of any<br />

material <strong>in</strong> this publication.<br />

Lander & Rogers<br />

Lawyers

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!