Every sporting club or organisation has its own unique goals. What your club looks like now and what you want it to look like in the future may be vastly different. However many clubs don’t achieve the goals they set out to, pandemic aside. In your sporting club, organisation or association do you see untapped potential? How long has it been since you’ve had your sports club Constitutions reviewed?

Some of the questions we hear from board members that want to drive change but haven’t been able to accomplish it yet say things like:

We’ve been trying to grow our member base, it’s not growing as much as we’d like…

Other clubs seem to have more support from the community, we want to develop a great culture…

We need to be doing better financially so we can attract better coaching staff….

We need more income to upgrade our equipment….

We’re doing well as a club but now is the time to take that stability and turn it into on-field success….

Generally speaking, we hear various opinions about why some clubs have success easier or earlier than others, but they are only assumptions. From our years of working with growing and successful professional, semi-professional and amateur organisations of all sizes, we know that all significant and positive growth and change begins with a solid sports club Constitution, coupled with a strong 3-5 year strategic plan, and sound policies.  

The Constitution is the most important document for any sports organisation – it gives your club, league, organisation or association the authority to act and do anything it does. It also sets boundaries as to what it can not do, as we’ll explore shortly.

Any sports club Constitution needs to be clear, but also clearly understood. An unclear or misunderstood Constitution may mean the Board is acting outside its powers, and this leaves its decisions open to legal challenge.

How to avoid legal challenges

Take for example, when something like the grievance and discipline procedures in a club’s Constitution don’t match back to the actions of the board or management. 

A historical case, but one that highlights the genuine risk of the omission of important information in a club’s Constitution, was that of former Richmond player Dale Weightman. He was suspended for striking an opponent in the lead up to a Tasmanian Football League Grand Final. When Weightman’s lawyer reviewed the rules of the League’s Constitution, they discovered that the rules didn’t properly grant permission to the tribunal to hear cases or dispense penalties. Weightman succeeded, the penalties were thrown out and the club had to pay their own legal costs as well as Weightman’s legal costs. 

While this is only one example of a flawed Constitution, when a legal challenge is brought against a sports organisation, the Constitution is the first place the opposing party looks to for evidence that contradicts the actions undertaken.

These undesirable outcomes for organisations and its board members often arise because:

• Decisions are made without careful consultation with the Constitution 
• References are made to regulations and by-laws that no longer exist
• The Constitution is hard to decipher
• The Constitution that is in place is out-of-date

In the event there is a disparity between the Constitution and actions delivered by a board, the result is disruptive and expensive. Adding insult to injury, it is also entirely avoidable.

Having to go to Court and pay for legal costs is a direct result of not having a solid club Constitution. Given how litigious sport is today, this is avoidable when:

1. The Constitution is collaboratively and comprehensively drafted 
2. The Constitution is written in clear language that all members and board/committee members can make sense of; and
3. There is an effective plan to educate all members and board member’s about the Constitution.

This final piece is often the most overlooked element in the process. 

When there is no considered education plan rolled out, then it is effectively useless. It is not enough when a case goes to Court and rebut with ‘it is detailed in the Constitution’. Clubs have a responsibility to demonstrate that the board and management are routinely and effectively educating themselves as well as everyone in the club community about the Constitution (as well as policies, code of conduct etc).

How can your community adhere to club rules and expectations they are not aware of?

How can club goals be achieved when most people are unfamiliar with them? 

Conversely, imagine what could be achieved when everyone is aware? 

Steps to Enhance your Sporting Club, League, Organisation or Association

As a sports lawyer and sports lover, I have been invested in the benefits of best practices in the governance of sports clubs, pro and amateur, large and small, for many years. This includes contributions to the Australian and New Zealand Sports Law Journal to analyse what is at the core of exceptional clubs and to highlight the consequences of poor governance. Importantly, it is what can be achieved financially, culturally and performance-wise, when there is good governance, that is particularly interesting.

No one will tell you that their Club success comes down to the way their sports club Constitution was put together. What will be the focus are other elements like the coaching staff, the management and the culture. However, individuals do not single-handedly enhance sports clubs. Long term, sustainable success is by design. At its core is a good, solid Constitution, strategic plan, board charter and policies by which everyone operates and thrives.

Sports Club Constitution basics

A sports club Constitution essentially covers the rules of how your club, league, organisation or association is to operate.

A sports club Constitution will typically detail:

• The overarching goals of the club/league/organisation/association
• Conditions for membership
• Election process of board/committee
• Voting rights
• Subscriptions and fees
• Key roles and responsibilities
• Correct record keeping
• Inspection of records
• Requirements of meetings for the committee or board
• Requirements of meetings for the organisation or club/league as a whole
• Grievance and disciplinary procedures 
• Procedures in the event the club, league, organisation or association needs to be wound up.

While not mandated it is highly recommended that in addition to your Constitution, you also have a Board Charter to set out how the board is to manage issues relating to performance and compliance, including issues such as conflicts of interest, as well as policy implementation and compliance. When a Board Charter is well-drafted, it serves as an additional reminder to board members of the legal framework they are operating in and is also highly beneficial when onboarding new board members and management.

When a Sports Club Constitution could prove useless

Some organisations make their changes to their Constitution but do not forward the relevant documents, or in the correct form, to the relevant Government body to officially register the Constitution, or the changes to the Constitution. That missed step renders those changes ineffective. Only a Constitution registered with the relevant government body (in Victoria, Consumer Affairs Victoria) is considered valid. 

While many sporting organisations may use a template as the basis for their Constitution, or make changes themselves to reflect changes, it should ideally be reviewed by a professional before being registered with the relevant government body. The danger of copying or updating the Constitution without specialist legal advice is that the Constitution will not provide proper and adequate protection to board members and the club, from legal risk.

As mentioned above, having a solid Constitution is the very first step. Ensuring all Board members receive proper induction from the Board Chair or General Manager is the next. This includes being provided with key documents such as the Constitution, any key policies such as a Board Charter, a copy of the organisation’s strategic plan (usually a 3-5 year plan), copies of the last three annual and financial reports, copies of any Director insurance policy.

We are called on by boards and committees to provide education and advice on governance and risk management. Our team reviews Constitutions and where required, re-draft or rewrite them, to ensure it is comprehensive and in plain English. 

This can also be a good time to review other elements that go hand-in-hand for good governance such as Board Charters, Codes of Conduct and policies. The final very important piece to drive the change you are looking for, is by ensuring the effective education and rollout of any new or revised governance and risk management elements.

When is it time to have your Constitution reviewed?

An outdated or old Constitution that is not current and not easily understood, or doesn’t say what it should, requires immediate attention.

Generally speaking, a club’s Constitution should be reviewed every three years. A club’s strategic plan should be rewritten every three to five years, and reviewed at least every six months.

Driving change starts with a customised Sports Club Constitution

When your sports club Constitution is:

• Drafted or updated by a professional
• Is not generic but takes into account the specific needs and nuances of your organisation
• Written effectively so that all members and board/committee members understand it; and
• Supported by an effective rollout to educate all members and board members about the Constitution

Then you have good foundations for a thriving club and culture. 

To enhance a club in any way starts with a comprehensive club Constitution and a strategic plan. 

So, if your club goal is to increase members from 500 to 1500, or to move from one sponsor to six sponsors in 12 months, and then to 10 sponsors in three years. Or, perhaps the goal is to take an operationally and financially strong club and turn that stability into better on-field performance, then you will need a strategic plan.

But, no strategic plan ever achieved and maintained does so without the solid foundations of a solid, customised Constitution in place.

Strong personalities on boards with great business or management skills and new plans don’t achieve significant success in sporting clubs, leagues, organisations or associations. Strong cultures do. 

How are strong cultures formed? When people join who fit in with the board and the existing plan to carry out the strategic plan over a period of time. That is how sporting clubs and organisations get to a strong position.

When people know their roles – the President, board members, employees, coaches, team managers, parents and everyone in between – and when there is an understanding of the rules and what is acceptable and not acceptable, then everyone is moving in the same direction. That is where momentum is gained and the most significant goals materialise.

Given the litigious nature of the world today, when you consider the risk that comes with having to go to Court, and potentially having to pay the costs of the other side (as well as your own), having a professional review and update the Constitution every three years is far less disruptive, does not adversely affect the organisation’s reputation, and saves negative attention, stress and expense for all involved, in the long run.

When was your club Constitution last reviewed by a lawyer with a deep understanding of the nuances specific to sport?

Article by Paul Horvath

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Could your Constitution be out of date? Our team can assist with the review of your Constitution, redrafting as required, and the rollout via seminars in-house or online. Our team of sports lawyers work with clubs and organisations across all states and territories of Australia. Call our Sports Lawyer team on 03 9642 0435 or fill in our contact form here.

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Poor sideline behaviour can vary from mild through to shocking, and it is such a concern that in Australia there are tens of thousands of searches made online every year by people looking to resolve this issue.

This behaviour is not exclusive to team sports. Parents in solo sports also witness poor behaviour, sometimes directed towards their own or other people’s children. Naturally, this can put observers and organisers in a challenging position.

‘Do I say something?’

‘It’s their child, should I mind my own business?’

Regardless of the sport you or your children are involved in, wouldn’t it be brilliant if this year your sport,  club or association could eradicate problematic parents’ sideline behaviour? The good news is, it is possible. 

Bad Spectator Behaviour During Sport

Poor spectator behaviour in individual sports and in the team context can present in both strong and subtle forms. This is not an exhaustive list, but some examples include:

• Verbal abuse
• Physical abuse
• Violence
• Bullying
• Racial, sexual or gender discrimination
• Negative dialogue or discrimination of other children
• Abuse of umpires – verbal or physical
• Parents undermining an umpire to their own child
• Spectators undermining umpires
• Criticising or blaming players
• Encouraging others to criticise or blame players 

When these behaviours are allowed to play out on the sidelines in our sports, it teaches children that as a community we accept that people speak poorly, are abusive or discriminatory and blame others, without consequence. It encourages poor sportsmanship. 

While it is incredibly important for kids to be encouraged to try harder, make better decisions in competition and enjoy some big wins along the way, sport is also a place for other important life lessons.

Sport is where children develop their social skills and learn about health, fitness and wellness. For that reason, the environments children learn those skills in, must be healthy too. If children are learning to blame others, be abusive to strangers, or to be overly-competitive, they are learning bad habits that may harm them not just on the sporting field, but in all aspects of their life. 

Consequences of poor sideline behaviour 

So what are the consequences of poor behaviour from the sidelines?

In competition, there are a range of possible consequences including:

• Penalties being awarded against the team or a player
• Loss of Premiership points
• Being kicked out of a competition
• Reputational damage to a team, club or organisation
• Financial damage to a club or organisation

For the children themselves, the consequences of exposing them to poor role models and tolerating  negative behaviours can lead to a lack of respect for authority. And where parents are behaving poorly, it has been seen to contribute to children experiencing significant embarrassment or anxiety, or a reduced sense of safety.

Where violence has occurred from the sidelines, the consequences can be significant. For example, in South Australia, at a girls’ junior football match in 2021, an umpire, and the umpire’s parents, were assaulted by a parent. The incident was investigated and the consequences were that the parent was found to be responsible for the assaults and consequently suspended from future games. In some cases we have had in tennis or go-karting, the child is held responsible and suspended for a parent’s poor behaviour. Additionally, both clubs were fined over the incident. Worldwide, there have been instances where referees or umpires have been murdered or suffered serious physical injuries at the hands of spectators or players for decisions made during a game. 

As an umpire myself, I’ve seen many issues, particularly in sports that are very physical. Where there is a  lot of passion, as will often be the case with children’s sport, there may be more incidents. 

The risk for clubs and organisations

However sporting organisations large and small can experience additional consequences from these types of issues. It is not uncommon for investigations to reveal that, for example, the code of conduct was found not to be enforced by the club, or that there were insufficient policies in place, or there was not proper awareness or circulation of policies. This is where legal claims can arise. When a club or organisation is required to seek legal representation to deal with an issue like this, it can have a significant impact on the club and its finances, as well as its reputation in the community. Sometimes it can spell the end of sporting organisation all together.

The risk for high performers

When poor behaviour from the sidelines isn’t managed, it can also contribute to limitations for high performing children with a bright sporting future. Children may learn bad habits from their parents which they carry themselves into their lives. This may have a negative impact on their own sports career or participation. A captaincy for instance, isn’t often given to participants who aren’t good role models or don’t demonstrate good sportspersonship. Positions on teams are won and lost when poor behaviour contributes to them being too much of a risk. The culture children are immersed in shapes them, so what we accept and allow in their sporting environments is serious business.

So what can be done to manage poor behaviour at the sidelines?

For people who organise training, competitions and give their time and energy to all the other tasks that come hand in hand with organised sport, what is a realistic way to manage and minimise these risks?

Committee or board members need to organise to have their Constitution reviewed, to identify by-laws or policies that are missing or are outdated. Member Protection policies or those relating to LGBTIQ participation, codes of conduct, social media, child safety or discipline are a few that spring to mind.

When we review a Constitution and supporting documents, we can identify if there are any immediate  risks and if required, identify solutions to reduce or remove those risks. A review may result in, along with a player’s code of conduct, there being a Parent’s Code of Conduct or Spectator Code of Conduct created for parents. 

When issues are proactively identified and solutions put into place, there is then an established process that can be followed when problems arise. When parents are aware of the expectations and the consequences of their poor sideline behaviour, it can be managed effectively.

With many sports returning after the school holidays, now is the time to have your club or organisation’s  Constitution or Policies reviewed, to start the year on the right foot. 

Article by Alexandria Anthony

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Our team specialises in working with sporting organisations of all sizes, across all capital cities and regions of Australia. We focus on managing and minimising your risk so you can focus on your sport.  To enquire about a review of policies or constitution, fill in this form or call our office on 03) 9642 0435.

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Whether you are a parent involved in the organisation of a children’s local sporting team or you are on the committee, board or in management for a sporting organisation, this article was written with you in mind.

As I write this article, we are currently experiencing a surge in the Omicron variant of Covid-19, and over the last couple of weeks have seen the impact it has had on a number of professional teams. 

While case numbers are surging, former deputy chief medical officer Dr Nick Coatsworth has said this morning that because this new outbreak is so widespread and peaking, it will settle. He also said we’ll be able to get back to our regular everyday activities sooner.

That being said, after this wave settles, 2022 is looking like the best chance we have had in a while, to enjoy uninterrupted access to the sports we love.

Pandemic aside, as we embark on the sporting year ahead, we want to bring your attention to some of the common mistakes we see clubs and organisations of all sizes making, and what to do this year to avoid unnecessary risks. We don’t have to look back too far for evidence that sporting organisations of all sizes could do things differently in 2022.

Common risks to sporting clubs and organisers 

Major stories have broken in the last few years relating to gymnastics, swimming and women’s soccer that have gained national attention, created significant issues for the codes and have had a financial and reputational impact on the clubs and codes involved. But it’s not just national sporting teams that experience these issues.

In suburban Melbourne, in 2007 the Diamond Valley football league discovered that the CEO was, over time, siphoning funds that amounted to $600,000, before it was realised. The result for the League? They essentially had to rebuild from scratch, along with a new name due to the reputational damage. While the financial impact was also significant, it’s not too much of a stretch to imagine the level of stress experienced by the board or committee members who would have been required to be involved in the investigation process into criminal offences. 

Over in the US, it was discovered that an Olympics gymnastics team doctor assaulted over 300 victims over a 20 year period. The legal claims amounted to over $500 million in damages and it triggered a major investigation in many countries, including Australia, by the Human Rights Commission. Consequently a number of Court cases, including class actions, have commenced.

And then there is the Swimming Australia investigation into culture as well as the Football Australia investigations into allegations of sexual harassment and indecent assault in women’s football, going back 20 years.

If these issues are happening in sports organisations on highly scrutinised national platforms, you can be almost certain that they are occurring under the radar, in our local sporting communities. 

So, what can be done to minimise risks now and into the future?

Importantly, no sporting club or organisation is immune to these risks. In many of these circumstances, no one on the committee or board suspected misconduct and had confidence that the structures and policies in place were sufficient. 

It’s not a problem, until it’s a problem.

Depending on the structure of your club or organisation, it will be considered either incorporated or unincorporated. That is, your sport or club is registered with a government entity and you operate following some specific terms and conditions, or not.

In the event your group is unincorporated, individuals who coordinate the sport can be at significant risk of personal liability if they do not have an adequate Constitution in place. In the event someone is injured as a result of participation in the sport, organisers can be at risk of losing personal assets like the family home. 

Typically incorporated associations have Constitutions in place and the company that runs the sport has limited liability by guarantee. There are still risks for those on the board or committee even if the Constitution is in place. That is if the Constitution is not up to date or there are policies that have been overlooked. When policies are not up to date or if they are not being followed, there is the added risk of both financial and reputational damage to the club or competition.

If large, professional sporting organisations are experiencing these issues, including financial and reputational risk with all of the structures and governance they have in place, then all sport is at risk. There are some key mistakes to avoid that lead to these consequences.

Risk management in sports clubs and organisations

The most common ways in which people put their club or organisation and members at risk, include: 

An outdated sports club constitution

Constitutions are essentially the rules for how your organisation is run, and give authority to the board to carry out their functions. Approximately half of our sporting organisations’ Constitutions are outdated. This can be problematic if an issue or dispute arises. A comprehensive Constitution will cover everything that needs to be followed and actioned to ensure that misconduct, child abuse and other risks can be minimised.

A comprehensive sports club constitution is not achieved by copying another Constitution and amending it to fit, or updating an existing one. To effectively reduce risk, a specialist review is essential.

Outdated or insufficient policies

Any policies relating to harassment, child safety, discrimination and bullying and anti-doping need to be up to date, easy to read and clear. This includes policies relating to LGBTIQ participation in the sport, and the need for fair treatment of all participants. 

Member protection or disciplinary processes must also be documented and up to date. Members (and their parents, if relevant) need to be provided with these policies and it is recommended that you have them sign a document to confirm they have read and agree to all policies. 

A suboptimal strategic plan

All clubs and organisations need a strategic plan that will apply for ideally, three to five years. This may need to be adjusted due to circumstances (including COVID or major financial changes) so it is not set in stone, but it should cover all the elements that make up a strong road map of where your organisation expects to be in 3-5 years time. 

There is a lot to consider when shaping and updating the strategic plan. This includes taking into account implementation of upcoming legislative requirements and what will be involved in the roll out.

Ineffective Rollout

To ensure that new Committee or Board members are properly inducted, they must be provided key documents like the Constitution, key policies, Board Charter or Code of Conduct, any strategic plan, and copies of the financial report for say, the past 3 years. Typically what is included in a Board Induction Pack. This helps give these key role holders a broad overview of the organisation and how it is to be run. 

The content of these key documents for role holders and members are often forgotten about. Having these documents in a desk or folder somewhere is almost as unhelpful as not having them at all. 

We know that local or community sporting organisations are often run and coordinated by volunteers. Individuals and parents committed to the sport and it’s community. We know that taking on these roles involves significant time and effort and that everyone is giving their best. We know this because our team at Sports Lawyer are involved in various sporting communities ourselves.

However busy you or your board or committee are, these issues must be addressed. If the cost of seeking specialist legal advice is a concern, know that while most small clubs argue that they cannot find the funds to get this done, the costs skyrocket when a legal issue arises that needs to be dealt with. Consider initial legal advice as a form of insurance, a preventative cost that minimises the risk of bankruptcy, a common outcome when a legal dispute ensues.

The problem you walk past is the risk you accept.

As organisers and members of sporting communities, none of us want to wake up one day to learn that funds mismanagement, harassment, bullying or abuse was occurring during our time. You will agree that our kids, members and the sporting community deserve better.

The clubs and organisations we work with typically first reach out to us for a Constitutional Health Check.

We review their Constitution, Board Charter or Board Code of Conduct, depending on what is in place and provide an assessment. This is usually the best place to start to know where your club stands. If the health check brings up any flags, we can work with you to get your club or organisation in a better place, fast. 

Is your sports club constitution comprehensive enough to ensure your club or organisation and its members are protected? 

Article by Paul Horvath

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Parents’ Sideline Behaviour at Sport | How to manage the risk at the sidelines

Sports Tribunals | What Happens at a Disciplinary Hearing

Do you belong to a sporting club or community? Minimising risk for everyone involved in sporting clubs or organisations, begins with awareness. Forward this article to parents or members of your club or organisation to ensure everyone is aware of what can be avoided in 2022.

Ready for a Constitutional Health Check or wish to seek advice about anything else we have covered in this article? We work with clubs and organisations across all states and territories of Australia. Call our Sports Lawyer team on (03) 9642 0435 or fill in our contact form here.

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We are here to help.  For further insight into how we help clients develop and action good governance in their organisations, see our  Good Governance Handbook – January 2020

We offer good governance seminars and provide detailed risk management advise where required.  We also work on constitutions, policies and other legal documentation for sporting organisations.

Simply call (03) 9642 0435 or email us at info@sportslawyer.com.au.

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