Sport Industry Sectors and Governance

• The sport industry includes professional, Olympic/Paralympic, and local sports, as well as events, marketing/promotion/legal and technical services.

Sport Industry Sectors

• Public Sector: Governed by law and politics, focusing on infrastructures, funding, and international relations.
• Commercial Sector: Driven by entrepreneurs, owners, investors, and shareholders, operating from local to global levels.
• Citizens Sector: Involves membership and collective interests, spanning from local to international participation.

Governance and Management Functions

• Effective management involves both "doing things right" and "doing the right thing".
• "Doing things right" includes planning, organizing, and decision-making.
• "Doing the right thing" encompasses diversity, equity, inclusion, and ethics (social responsibility).

Industry and Sport Industry Defined

• Industry refers to a group of organizations involved in the production of specific goods or services.
• The sport industry includes organizations involved in the production and delivery of sport services and products.

Meaningfulness of the Sport Industry

• Economic Impact: The sport industry's value was $388 billion (US) in 2021.
• The sport industry relies on both paid and volunteer human resources.
• The sport industry receives significant media attention.
• The sport industry operates across multiple sectors: public, not-for-profit, and commercial.

Sport Governance Defined

• Sport governance involves power and authority to determine organizational missions, memberships, eligibility, and regulatory power.
• Regulatory power includes enforcing rules and imposing punishments or sanctions.

Influences on Sport Industry Governance

• Sport Organization: Influenced by its governance structure and processes.
• Task Environment: Influenced by customers, clients, members, competition, human resources, and suppliers.
• General Environment: Influenced by economic, social, political, and technological factors.

Outcomes of Good Governance

• Commitment to vision, mission, mandate, and goals.
• Upholding integrity and financial goals.
• Ensuring accountability and transparency.
• Managing human resources effectively.
• Considering all stakeholders.

Location of Governance

• Governance occurs within sport organizations, which are formalized entities with rules about mission, membership, structure, operation, and authority.

Attributes of an Organization

• Identity: A distinct organizational identity.
• A defined program of activity.
• Membership criteria.
• Clear boundaries.
• Permanency.
• Division of labor.
• Hierarchy of authority.
• Formal rules and procedures.

Why Study Sport Governance?

• Understand the big picture of the sports landscape.
• Understand how governance fits within the sport management curriculum.
• Understand how governance relates to career opportunities.

Good Governance Characteristics

• Transparent.
• Accountable.
• Follows rules of law.
• Responsible.
• Equitable and Inclusive.
• Consensus-oriented.

Importance of Planning

• Proactive approach to influence outcomes.
• Systematic rather than haphazard methods.
• Improves financial and operational performance.
• Considers the environment/context.
• Enhances coordination, control, and teamwork.

Types of Plans

• Short Term: for projects and events within 1–3 years.
• Long Term: for projects/events 3+ years in the future.
• Standing: In place and consulted as certain events repeat.
• Single use: For unique or one-time events.

Key Elements of Planning

• Vision: Where you want to go.
• Mission: The purpose of the organization.
• Goals: Qualitative direction.
• Objectives: Specific and measurable (quantitative).

Tactics and Roles in Achieving Goals

• Goal: To increase membership.
• Objective: To increase membership across all provinces and territories by 25% in 2024.
• Tactic #1: Purchase ten 30-second advertising slots on TSN during the Rogers Cup (Tennis).
• Role: Marketing Committee.
• Tactic #2: Support provincial associates.

Performance Criteria for Evaluating Alternatives

• Cost and benefits.
• Potential contribution.
• Ease of implementation.
• Ease of measurement.
• Conformity to expectations.
• Availability of able personnel/resources.

Organizing Defined

• Organizing is "the process of delegating and coordinating tasks and resources to achieve objectives."
• Organizations are social entities that are goal-directed, designed as deliberately structured and coordinated activity systems, and linked to the external environment.

Decision Making

• Involves gathering and analyzing information.
• There are two types of decisions: Routine (programmed) and Complex (nonprogrammed).

Role of Decision Making in Sport Governance

• Can have far-reaching implications.
• Shapes the direction of the organization.
• Decisions are open to public scrutiny.
• Requires a concrete method.

Key Management Functions of Governance

• Planning: Mission & Vision, Goals & Objectives, Tactics & Roles, Evaluation.
• Organizing: Structure/Chart, Responsibility & Authority, Hierarchy & Relations.
• Decision Making: Rationality in decision making, Significance of decisions, Social Process and Bias.

Governance and Ethics

• An organization's ethics are the collective behavior of its employees and volunteers.

Examples of Ethical Issues in Sport

• External: Scandals, controversies surrounding sport and athletes (e.g., domestic violence, abuse, harassment, discrimination, socio-economic problems).
• Internal: Issues related to the structure and purpose of sport, the justification of rules, and the moral for sport (e.g., officiating fairness, player conduct, substance abuse, fair opportunities, mental health, artificial intelligence, "sportswashing", and sports betting).

Ethical Governance Challenges in Sport

• Examples include the CEO of Athletics Canada fired after sexual Twitter exchanges, World Athletics policy on Transgender athletes, fans shouting racial slurs, bribes for selecting host cities, and state-sponsored doping programs.

Role of Organizations and Governing Bodies

• Organizations such as the International Olympic Committee (IOC), U Sports, World Athletics, and Curling Ontario play key roles.

Current Ethical Issues in Sports

• Transgender athletes in competitive sports.
• Mental health and athlete well-being.
• The role of artificial intelligence in sports.
• Sportswashing by governments and corporations.
• The growth and influence of sports betting.

Ethical Dilemmas

• Conflicts between important values.
• The decision maker must choose between those values.
• Multiple stakeholders may be involved, with significant consequences for all.

Ethics and Sport Managers

• Understand the effects of their decisions and the number of people affected.
• Shape the culture/values of the organization.
• Impact an organization’s ethical climate and stance on being a good corporate citizen.

The Sport Industry and Social Responsibility

• Triple Bottom Line: People, Planet, Prosperity.
• Focus on Human Rights, Labor Relations, DEI, Environmental Sustainability, Community Investment & Development, and Philanthropy.

What Makes “Good” Governance?

• Diversity: Refers to the demographic identities of/in a group.
• Inclusion: Focuses on how individuals are treated, valuing differences, ensuring all feel seen and heard, and fostering a sense of belonging.
• Equity: Addresses why individuals are or are not represented in planning processes or certain roles.

Governance Perspective - Types of Crises

• Natural, Technological, Internal, External, Organizational, and Financial.

Crisis vs. Issue

• Issue: Time to Assess, Able to articulate the issue, Able to implement immediate solution, Operations continue, No major threat, Middle Managers responsible.
• Crisis: Can stop or hinder operations, Can include injury, illness, death, Requires immediate response, Requires top management/leader response, Involves multiple stakeholders.

Causes of Crises

• Internal shortcomings, external factors, handling of the crisis.
• Sudden Crises (COVID-19, 9/11 attack, natural disasters).
• Smoldering crises (sexual abuse scandals, organizational cheating).

Phases of a Crisis

• Signal Detection: Early detection of warning signs, Communication to decision-makers.
• Preparation and Prevention: Crisis management procedures, protocols, plans, teams, Training and simulations.
• Containment and Damage Control: Protect and preserve, damage control.
• Recovery: Short-term and long-term goals.
• Learning and Reflecting.

Understanding Sport Industry Macro Sectors

• Macro perspective, the organization as a whole.
• Focus on vision, mandate, and how to achieve them.
• "Doing the right thing": plan, organize, decide.
• Focus on Organizational Role in Society
• Focus on values.
• "Doing the right thing": ethics, responsibility.

Balancing Interests

• Tension between "Doing things right" and "Doing the right thing."
• Balancing Act: Converging interests between efficiency and ethics.

Overview of the sport industry, including public, commercial, and citizens sectors and governance/management functions. Effective management involves both 'doing things right' (planning, organizing, decision-making) and 'doing the right thing' (diversity, equity, inclusion, ethics). The sport industry includes professional, Olympic/Paralympic, and local sports.