Governance in Sport Best Practice Principles
Governance in Sport Best Practice Principles
Governance in Sport Best Practice Principles
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<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