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Current Threats to the Integrity of Sport Professor Richard H. McLaren Faculty of Law, Western University Canada McKenzie Lake Lawyers LLP, London, Ontario October 18, 2012

Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

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Page 1: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Current Threats to the Integrity of Sport

Professor Richard H. McLaren

Faculty of Law, Western University Canada

McKenzie Lake Lawyers LLP, London, Ontario

October 18, 2012

Page 2: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Threats to Integrity

• Doping

• Match-Fixing

• Weak governance

Page 3: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Doping in Sport

• Why is it such a problem?

• The role of Sport Governing Bodies (SGBs) and WADA

• The role of government

• What has been done and what needs to be done…

Page 4: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Sport Governing Bodies (SGBs) and WADA

• Contract relationship

• Ensured consistency across sports– BOA v. WADA [CAS 2011/A/2658]– USOC v. IOC [CAS 2011/O/2422]

• Is the WADC enough?

Page 5: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Governments and Doping

• Can criminally prosecute

• Greater resources

• International cooperation

Page 6: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Governments and Doping

• The Spanish Operations– Operacion Puerto– Operacion Greyhound– Operacion Skype

• 2006 Turin Olympics

• The United States– The BALCO Investigation

Page 7: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

MLB and Cycling

• MLB– Mitchell Report

• Cycling– Tyler Hamilton & Floyd Landis– UCI/ WADA v. Alberto Contador Velaso & RFEC

(CAS 2011/A/2384; CAS 2011/A/2386) – USADA v. Lance Armstrong

Page 8: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Match-Fixing in Sport

• Corruption not unique to sport

• Threat to integrity

• Different forms of corruption– Match-fixing– Spot-fixing– Insider information

Page 9: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Growth of Sports Betting Market

• Global betting market has grown substantially

• Technological advancements

• Liberalization of anti-betting laws and acceptance by society

Page 10: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

SGBs Efforts to Address Match-Fixing

• SGBs slow to address match-fixing

• Anti-corruption codes

• No global anti-corruption organization equivalent to WADA

Page 11: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

SGBs Efforts to Address Match-Fixing

• Integrity units– Gathering evidence – MOUs

• Electronic data analysis systems – EUFA– FIFA

• Criticisms of SGBs

Page 12: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Recent Match-Fixing Scandals

• Corruption still very prevalent

• Handball scandal in France (2012)

• UK cricket scandal (2010)

Page 13: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Government, Organized Crime, and Match-Fixing

• Government’s role

• Organized crime– Profitable– Money laundering

- Nikolay Davydenko (2007)

Page 14: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Weak Governance of SGBs

• How it is defined

• Lack of research

• Why it is important

Page 15: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Weak Governance – A Structural Problem

• Significant autonomy • Low accountability/ transparency • Lack of clear beneficiary • Who will pressure SGBs to reform?

Page 16: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Specific Governance Issues

• Code of ethics

• Conflicts of Interest – personal/ institutional

• Gifting and hospitality

• Enforcement

Page 17: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

FIFA Case Study

• Structural issues

• Scandals at FIFA– ISL marketing corporation – 2018/ 2022 World Cup site selection– 2011 FIFA presidential election

• Current reforms – Mark Pieth

Page 18: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Weak Governance and Sports Corruption

• Self-interest is at the core of both

• Internal roadblocks

• Cultural implications

Page 19: Current Threats to the Integrity of Sport€¦ · • Different forms of corruption – Match-fixing – Spot-fixing – Insider information. Growth of Sports Betting Market • Global

Moving Forward

• Sport as a microcosm of society • Doping and match-fixing will continue as

threats to integrity• SGBs must maximize their efforts before

relying on government assistance• Technological advancements will continue• An anti-corruption WADA?• Governance deserves more attention.