Corruptionis generally known as deception. It could be some form of unethical practicesin an organization or dishonest behaviors exhibited by a person in position ofauthority. This act could be carried out by a single person, a group of peopleor firm as a whole. In the modern day society, corruption can prevent itself indifferent ways.
Almost every industry has experienced some kind of corruption. Overthe past century, the sports industry has experienced various trends such as medicalization which began in the 1960s, politicizationand commercialization which has resulted sport being a business that is worthmore than US$141 billion on an annual basis. Each of these trends hasexperienced a corrupting factor on what is usually described as the golden ageof sport. In 21st century, there are more public funds that arebeing used for sports in all nations across the globe.
With this being said, itcan be said that sport industry has entered into a new trend that can bedefined as criminalization, which in turn has brought in more corruption. Thisarticle will focus on corruption in the sport industry. How it is fast becomingthe greatest threat to the future of sport and how it is becoming evolved ininternational policy issue.
The diverse nature of sport, as well as itsworldwide popularity, means corruption in sports can be found in almost everycorner on the face of the earth. Nonetheless, the sport world remains anintegral aspect of the economy; its importance cannot be overestimated. Thus,it is important to critically assess of the situation, and possibly come upwith ways to either prevent fraudulent occurrences, or to manage it. TABLE OF CONTENT ABSTRACT.. 1 Introduction. 3 Defining Corruption in the Sport Industry.
4 Corruption and Sport 6 Analysis of Corruption in Sports. 7 CASE STUDY: Calciopoli Scandal 9 Conclusion. 10 Bibliography. 11 Introduction 2018 is relatively quite a busy year for global sports.
Thewinter Olympics will be hosted this year in South Korea. The Australia Open fortennis took place from 15-28 January, 2018. The Super Bowl is scheduled tostart on 4th February 2018. FIFA World cup 2018 will take place inRussian this year between June and July. There are many other sportinternational and national sport competition that will take place throughoutthe whole year in football, rugby, cricket and many more.
Annual competitionsuch as NBA Finals, Tour de France, and Wimbledon will gear up for the season. However, in the midst of all these positive socialinteractions, lurk the presents of corruption and the threats it bring. Thecorruption found within the industry can prevent sport from fulfilling its fullpotential to benefit individuals as well as the societies. There are manystories and scandals that are broadcasted by media in regards to corruptionwithin the sports industry in various forms. These corrupted stories andscandals were usually left to the sport officials to handle as sport occupiedthe private sphere.
Recently, public officials have been involved in handlingthese situations. The term corruption is a conundrum, albeit seems so straightforward and easily understandable, its paradoxical nature also means it canprove to be a difficult barrier towards a successful event or establishment.The purpose of this report is to bring corruption, found within the sportindustry, forward as well as critically assess the single greatest threat tothe management of sport’s future. This will be supported using clear evidence.A case study will be discussed in order to further explain and analyze thecorruption. Conclusions will then be drawn as to how the corruption within theindustry can be addressed by implementing new strategies in order to improvethe image of sport in the marketplace globally.
Defining Corruption in the Sport Industry Corruption in the sport industry can be defined andunderstood as an illegal immoral, or an unethical activity that takes place inorder to intentionally distort the outcome of a sport contest. This act is donefor the material personal gain of one or more parties that are involved in thatactivity (Gorse and Chadwick, 2013). When looked at from an economic point ofview, corruption was firstly meant to refer to an action’s intention is tosucceed in earning money with misleading the outcome of a sport competition bybribing or by nonmonetary benefits. However, this definition mentioned above does not cover theactivities of bodies that govern sports as well as the apportionment of hostrights. Furthermore, when dealing with international competition, it isimportant to ask whose morals and whose ethics provide the yardstick fordetermining what is, or is not, corruption in sport.Today, corruption in sport has extended to other unethicalbehaviors like distorting the allocation of mega sport events, bias decisionsthat are made by bodies governing the sport, as well as fixing bet relatedmatches and games. The corruption of sport started way back in the earliestcentury when sport events started.
There are documented cases of bribery of thecompetitors that dates back to the Olympic Games in 388, 332, and 12 BC(Maennig, 2006). There has been an increase in the sport scandals in modernsport over the past centuries. Corruption in sport has become a great criminalactivity and it needs to be focused on greatly. Sport corruptions are mainlyfocused on sport betting that are related to match fixing. Since the beginningof online betting, the latter has become the spearhead of borderline economicbehavior, as well as the latter of naked criminality. These are both out ofreach for national governmental regulation and sanctions that are designed bythe national and international bodies that govern the sport industry.
A simpler definition of corruption in sport equates to thedeviation from the expectation of the public, that the sport will be played aswell as administered in such a manner that is honest. In this definition,playing sports consists of an athletic preparation and the actual competition.There are different and numerous levels of administration in sport such as:athletes that compete individually, teams, clubs, leagues, nationalassociations, and organizations (national and international). All of theseadministrations come from both private and public spheres. The honesty expectedincludes proper handling of information that is related to an athlete or ateam. The knowledge of this information should not be used in an impropermanner or taken advantage of. The public is associated with fans and non-fansalike, including those that are engaged in legal as well as illegal gambling. When it comes to setting rules, there is also corruptionthat can take place.
While breaches of rules often overlap the definition ofcorruption in the industry of sport as previously mentioned, one cannotdisregard the previous saga with FIFA and the allegations of corruption inregards to the 2018 and 2022 World Cup finals. The organization’s headquarterslocated in Switzerland has set their own rules when it comes to operating inthe international sphere. The organization’s ability to set and manipulatetheir own rules has not done much to reduce the rumors that the organizationhas been unsuccessful in meeting the expectations of the public, which are thatfootball is being administered in an honest manner. As a result, as FIFAsubmits its self to the law of Switzerland, the overall actions in relation tothe World Cup bidding process has not alleviated the concerns of their honestyto the global public.
Corruption and Sport The sports industry has been through a lot of dramaticevolutions that have resulted in numerous challenges as well as opportunities.There are many benefits the industry has gained due to an increase inprofessionalization, the expansion in the scope of the industry of sport, and adiverse and multifaceted method in the regulation and governance oforganizations in sport. However, there has not been a proper assessment ormitigation on some risks that hinder the evolution of sport organizations aswell as the law enforcement agencies and other stakeholders.The law enforcement has been through great constraints whenit comes to investigating as well as fruitfully prosecuting cases that havesome form of corruption like illegal betting, bribing, doping, and matchfixing. There a various reason why this happened such as limited or lack ofdomestic legislation. Poor level of involvement and participation ofstakeholders (bodies governing sports, law enforcement, etc.) Awareness of the role of organized crime in sport has notbeen viewed as important by investigators and other officials.
There is a greatchallenge when it comes to bringing these relevant stakeholders together. As aresult, this leads to many sports being deprived of developing internationalstandards, creating practical tools, and delivering technical assistance thatwill in turn promote proper governance and prevent the sports corruption. Ifcorruption in sport is approached, and involved with complex internationalcriminal activities through the means of criminal justice, then a great amountof stakeholders could be made aware of this corruption and find ways to preventit. Analysis of Corruption in Sports There are many activities that are untrue that can becategorized under the rubric of sport corruption. In the year 2014, theAustralian Institute of Criminology (AIC) conducted a survey on the mediareports that were broadcasted about sport corruption between the years2010-2013 (Bricknell 2014). The findings of the institute were focused on thetypology of corruption in sport developed by Gorse and Chadwick (2011) whichare: match fixing (betting), Match fixing (non-betting), doping, and insiderinformation.
The study conducted by AIC shows match betting related to betting includescases of players gamblers, horse trainers and racing stewards being involved ina number of cases of corrupt behavior in order to change the outcome of thesport event to influence betting markets. The match fixing related to none betting cases involved an Australianrules football team to intentionally underperform in order to ensure that therewas a better draft players selection for the next season. There was an investigation by the Australian SportsAnti-Doping Authority in regards to the use of PIEDS in two football clubs in twodifferent competitions controlled media reports on doping. Doping is known asthe presence of forbidden substances/drugs in athletes. The AIC study also discovered insider information was mainlycorruptly used within the horse racing industry. While the AIC report provideda useful point of reference when it comes to the corruption in sport, the studyconducted was somehow limited analytically as the model focused on a relativelyshort time period within the country. Sport industry undergoes all forms of corruption.
Bribery istypically known as an act done in private of bribing a governing official forsome form of unfair and undeserved advantage. Referees can take bribes in orderto fix matches, owners of sport clubs can demand for a transfer of a player,and companies and governments can rig bids in order to gain contracts with thesport organization. A player can even be paid to underperform. The main reasonbehind organized crime in sport is betting, which has diminished the reputationof sport. Another widespread bribery act commonly done is money laundering,which can be done through arrangements done for advertisement or sponsorship. The recent FIFA report into bidding for the rights to hostthe Football World Cup has clearly shown that the governing officials arebribers, who pay private organizations from the public’s purse in order tosecure sports events that are of high status (TI 2014). Nepotism does not clearly fit in the arena of sports when itcomes to corruption.
A child or family relative of a great sport performer cando well in sport due to familial socialization, better and greater access tobetter coaching, and attention from due to their successful relative. Theseathletes may get better opportunities and a closer look from professional sportofficials, administrators, and other scouts. A great example of this is DenverBroncos, the quarterback for Peyton Manning; he is the son of the formerNational Football League quarterback Archie Manning. There have been great efforts from sport bodies andorganizations in their attempt to input the public’s control in corruption ofthe sports industry. It is well understood by sport organizations as well asgambling operators that are licensed that competition needs a strong element ofunpredictability when it comes to sports.
If not, fans sponsors, andbroadcasters will lose their appeal.There is a threat created by match fixing in terms of theunpredictability of sport. Evidence of this can be analyzed by looking at theTaiwan incidence that took place in 1997. The bribery and gambling scandalsthat took place demoralized the legitimacy of the Taiwan Baseball League, wherethere was a huge drop in the attendance of fans (Lee, 2008).
This incidentpushed the government to be more involved in the protection of sport fromcorruption. CASE STUDY: Calciopoli Scandal Calciopoli ScandalIn 2006, the football club Juventus was relegated from SerieA and also stripped off two of their championship title, as they were involvedin the Calciopoli Scandal. This was the biggest match fixing scandal that hastaken place in the recent history of football.
The effects of this footballscandal are still evident and are being felt in Italy today. There werehearings, trails, and investigations that were taking place at various timeperiods, waking the mess of the scandal. No one felt the sting as the Juventusfans did. The match fixing that ignited the investigations as well aspunishments that were handed out in the year 2006, resulted from the illegal,unethical, and immorality on a multitude of fronts. The punishments andpenalties that were handed to the club, as well as the other football clubs (ACMilan, ACF Fiorentina, SS Lazio and Reggina ), weremore than deserved and earned. Insteadof the scandal dying down and being forgotten about, it has left unhealedwounds that the clubs still suffer up until today. Serie A and Italian footballis yet to return to its status that it once possessed before the corruption ofmatch fixing revelation.
The initial impact was that Juventus was lowered to thesecond division, as the investigation revealed match fixing the club had beeninvolved in. this stripped Serie A from its historical successful club and onepacked with talent. Initially, Fiorentina and Lazio were meant to join then inSerie B,, however they had their relegations reversed during the appeal. Thetwo teams faced reduction in their stiff points as well as the other two clubs,AC Milan and Reggina.
Juventus were able to maintain a few core loyal players,however many major starts such as Zlatan Ibrahimovic and Fabian Cannavaro leftthe club at the wake of the scandal. In addition, about 30 other players whohad participated in the World Cup, that Italy had won, soon flee from Italianclubs. They left Serie A and went to join other leagues. This left many Italian teams scrambling toput together complete teams that would participate domestic and Europeanfootball competitions.
This scramble that took place set off a spree of desperationspending from the Italian clubs that were left (including AC Milan, InterMilan, and Roma) in trying to rebuild their teams as well as stay competitive.Though there were a few strategic gains (that only benefited these clubs on ashort -term basis, such as Milan becoming the dominant side of Italian footballand Inter Milan rejoicing in their success (the European treble which resultedin a long term impact, leaving many teams financially overstretched), thescandal and situation went from bad to worse when the economy of the countrytook a huge dive that it is yet to fully recover from. A lot of clubs that used to be competitive with some of thebest sides that were in Serie A were now left with a shadow of their formerselves. Other clubs such as Reggina and Parma were completely destroyed.
Reggina faced a tough time in Serie A for a few years after their prior totheir Calciopoli punishment. When they were relegatedfinally, they fell hard, and have been sitting below the lowest division ofprofessional football in Italy after they were bankrupted. All of the financial struggles that Italian football facescannot be blamed on Calciopoli. The struggle that the Italian economy bears iswhat should be blamed mainly. The over spending that the scandal caused leftmany clubs in a terrible condition when there was an economic downturn in 2008. Guilty punished Party Penalty Juventus Transferred to Serie B. Must start the following season with a 30-point deficit.
Stripped of two previous league titles Fiorentina Transferred to Serie B with a 12-point deficit Lazio Transferred to Serie B with seven-point deficit Milan Begin next season in Serie A with a 15-point deficit. Docked 44 points from last season’s total Luciano Moggi ex-Juventus general manager banned for five years Andrea Della Valle president of Juventus banned for four years Claudio Lotito Lazio president, banned for three years Adriano Galliani Milan’s vice-president, banned for one-year Italy’s Champions League entrants Internazionale, Roma, Chievo and Palermo Uefa Cup entrants Livorno, Parma and Empoli Addressing corruption of practice