FOCUS ON SPORTS CORRUPTION

FOCUS ON SPORTS CORRUPTION

Saturday, 17 January 2009

9:19 PM

Melbourne – 12 January, 2009

FOCUS ON SPORTS CORRUPTION ©  

By Sports Integrity Consultant Peter McMillan

A rapidly changing international wagering landscape and an increase in negative publicity around gambling involvement and drug use by professional sportsmen and women, should be of real concern among administrators of leading sports bodies in the current economic downturn.

In Australia, official fears continue to grow in the race to retain public confidence, sustain ongoing growth in consumer numbers and related spending and as importantly, ensure the retention of major sponsorship deals.

Now, sports are wondering how best to exploit financially crucial betting product and turnover/profit fees from wagering service providers, (WSP's) well into the future. 

At the same time, officials understandably become frustrated and privately angry when forced to defend their sport in the face of negative publicity generated by serious competitor misconduct.

Elsewhere, a great many of the world’s sports chiefs with a tangible interest in “the brand” are somewhat warily contemplating just what may happen next.

In life and in business, it used to be said that any publicity is good publicity.

Perhaps in some cases, that analogy is true, but whoever said, (or for a moment suspected) the wagering public are happy to invest  hard earned money in what may be a less than credible, or significantly flawed sporting idol or, indeed, the contingencies or matches he or she is involved in?

Globally, tennis, major football codes and racing are more sharply aware than ever, that complex integrity challenges and unhappy customers are instantly created when rumors, and sometimes the facts, of direct and indirect competitor gambling activity and drug abuse, are publicly aired.

In this new age of gambling, officials in main stream and perhaps, a growing number of cash starved lesser sports, are faced then with a real dilemma.

Given the turmoil generated by increasingly unsavory allegations around some sports today, just how secure are lucrative sources of sponsorship and/or the monies generated by the "take out" from the betting public?

The latter of course is largely passive income. That is to say, when deals are finalised with approved WSP's, there is not a great deal more to do.

The WSP's themselves make the necessary deductions, whether it be from turnover, or their profit margin, before simply mailing the cheque.   

Maintaining and growing turnover and other sources of funding however, is closely linked to the capacity and will of sports bodies in maintaining the delicate confidence of sponsors and those who enjoy betting on sporting contests.

Major competitions and the participants therein, are attracting unprecedented media coverage, creating multiple stakeholders and gilt edged business and career opportunities. 

Frequently however, we also see and hear really destructive news. It mostly runs along the lines of player X has today admitted......... The story is inevitably accompanied, or "boosted" by the kinds of news photographs or footage we are now used to seeing around gangland killings, police media conferences and subsequent court appearances. 

For that reason, "image and brand sensitive" sponsors, quite understandably, are looking far more critically at sports authorities who are increasingly expected to effectively deal with the many sensitive and complex issues around maintaining the integrity of the competition, individual/team on-field performance and off-field behavior.

Recent international examples of highly damaging gambling related publicity have included the Kieran Fallon and Chris Munce racing related criminal trials, the latter of course igniting an explosive fall out among the racing authorities of New South Wales and Hong Kong.

There have also been persistent, yet unsubstantiated allegations of Eastern Bloc organized crime groups exerting pressure over several international tennis professionals. 

As a result, officials have reacted quickly in addressing the rumours by closely examining and implementing facets of the integrity programs and investigative measures utilised for generations in horse racing and casinos.

Around the world, it is no longer unusual to witness the exposure of illicit betting in varying proportions by players of almost all major sports. Unfortunately, in several of the more high profile cases, it is evident competitors have willingly associated themselves with unsavoury individuals and entities right out on the fringes of society.

For example, a number of elite international footballers  are now prepared to admit to frequently betting on matches, an activity that wrecked the reputation of US baseball twice last century.

The result? The annals of elite “ball” are far less attractive than they clearly should be.

One only has to browse the net to understand the sad legacy of the Chicago “Black Sox” and some years later, Cincinnati Reds superstar and gambling addict, Pete Rose.

In the late 90’s and in the words of former ICC Chief Executive Malcolm Speed, the exposure of player related gambling and links to illegal bookmaking had international cricket “on its knees”.

Cricket immediately reacted, establishing an international integrity arm consisting of well experienced security, investigative and intelligence personnel with a charter to probe deeply into alleged corruption and bring the guilty to account.

As is widely known, the fight against illicit and performance drug abuse in elite athletics, swimming and cycling continues to consume enormous funding.

All sports lovers have, at least, a rudimentary knowledge of the sophisticated and sustained efforts undertaken by competitors and black market laboratories to foil the testers. It is now obvious to officials that spending on research and development is vital for these sports and particularly, for the Olympic movement.

Sports authorities should quickly act to ensure existing protocols are demonstrably adequate and future plans are far more likely than not to ensure their brand is well protected.

This can only be achieved if the major sporting codes and clubs look, for example, toward the racing industry, as a means of understanding that gambling, and the financial benefits it may create for the sport, also brings greatly increased levels of accountability, both for officials and competitors.

Sports have an obligation to ensure integrity and compliance processes, particularly around attitudes toward competitor education, general deterrence and of course, sanctions for wrongdoers, is very carefully thought through and really quite meaningful for individual environments.

Several major international sports have been rocked by corruption scandals in recent years. One of the difficulties for  nervous authorities is just how to measure the impact these events have on sports consumers, including those who wager regularly, our current and future stars, governments and the minds of commercially lucrative sponsors.

In the author's experience, most people believe administrators and elite sports professionals have a clear and now unavoidable responsibility to think very carefully about their structures, integrity processes and the problem of certain off-field behaviours.

It’s troubling a small, but increasing number of participants have, in making poor choices, become deeply indebted to the fans, the majority of whom much prefer it when players and officials are exhibiting, through their on and off-field actions, a clear desire to enthusiastically protect the image and future wellbeing of much loved sporting contests.

As the world economy continues to tighten, main stream sports already have growing concerns for their “bottom line”.

Some genuinely fear too, the specter of competitors continuing to wager in and on their sport, will further bruise a fragile public and may lead to an unwanted  decrease in the many long term financial rewards associated with sport as a platform for both major sponsorship deals and serious wagering growth.

One way of protecting the image of sports is an integrity program with “teeth”, coupled with committed, strong and unrelenting corporate governance.

Setting aside bettors and sponsors for a moment, average fans too are easily disenfranchised by the meagre scent of corruption, particularly where involvement in the sinister culture of drugs is evident or where intentional, gambling related, below par performance is suspected, or worse, proven.

As adults, we very much prefer positive media reports around our favorite champions. For adoring kids, some of the current headlines are a little  confusing.   

Pasted from <http://petermcmillanconsulting.com/sports_corruption>