DEFINITION



“Corruption in sport involves any illegal, immoral or unethical activity that attempts to deliberately distort the result of a sporting contest for the personal material gain of one or more parties involved in that activity” - (Gorse & Chadwick, 2010)



  In its simplest form, Corruption is a dishonest or illegal behaviour.



BACKGROUND



Sport is a multi-billion dollar business. It has intricate ties to political and private interests. This means rich opportunities for corruption. Yet across the sporting sector, most deals and decisions take place behind closed doors. This allows corruption to go unchecked and unpunished.



Corruption in sport has many forms. Referees and players can take bribes to fix matches. Club owners can demand kickbacks for player transfers. Companies and governments can rig bids for construction contracts. Organised crime is behind many of the betting scandals that have dented sport’s reputation. And money laundering is widespread. This can take place through sponsorship and advertising arrangements. Or it may be through the purchase of clubs, players and image rights. Complex techniques are used to launder money through football and other sports. These include cross-border transfers, tax havens and front companies.



ISSUE



It is stressed by many that sport itself is not corrupted, but merely a target for criminal people and gangs. However, there are points that could indicate that the sport environment is not immune to corruption. Apparently, there are a number of ways on how corruption can exist in sports. Connections with huge amount of money on one hand and autonomy and self-government on the other hand are perhaps the most serious of these indications.



Below are some points which indicate on why the sports environment may be vulnerable to corruption:



- It attracts organised crime

There are no ‘sport mafias’ but mafias invest into sports. With the huge potential for financial returns and the generally rather low standards of professionalism in the administration of
clubs, sports attract criminal activities such as the trafficking of young players, money laundering, illegal betting etc. The risks for criminals are minimal and control systems are weak. Players are normally young and easy to influence, while by bribing one key player, the outcome of a game can be bought and generate revenues from betting.



- Self Regulation and Lack of Democracy

One of the alleged caused of corruption in sport is its closed, family like nature, mainly those of international sport federations. “Sport family” is often used term to describe cordial mutual relations between people engaged in sport. It points to sharing of common values and of common experience. It may, however, have also another connotation. It may indicate closeness towards outer word. “Family” is also a word related to Mafia and indicates a principle of Omerta, a law silence, discretion. If a certain body is inflicted by corruption it is very difficult to reveal, analyze and describe it from outside. Outsiders just cannot get the appropriate information. And whistleblowers are rare in “the family”.

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DIFFERENT WAYS OF CORRUPTION IN SPORTS:

-  Match-fixing

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Spectators expect that sport will be played following an agreed set of rules, with each participant or side intending to win.  But there have been past allegations of match-fixing in several of the 26 Olympic sports, with bribes paid to participants to under-perform or manipulate an event, usually so that a bet can be placed on the outcome.  It is inconceivable that so many athletes from so many countries will all be pure. 

- Hospitality

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Seats at the key events are in demand and corporate hospitality is a way of getting to events and with the best seats.  The hospitality packages are of high value. Are any companies offering or receiving hospitality falling foul of the Bribery Act? Corporate hospitality can be a perfectly acceptable way of doing business if it is bona fide, reasonable and transparent.  But history has shown that it is also an area where abuses are rife.  Some hospitality is intended to be a bribe, and creates a sense of expectation and obligation by the giver and recipient. 

- The guest list

This gets into difficult territory, and well beyond what the IOC (International Olympic Committee) or any individual Games can realistically control.  But step back and consider this: how are the heads of sports and National Olympic Committees (NOCs) appointed?  Through cronyism or because they are the best qualified for the job? How many of them have been subject to corruption allegations?



- Ticket allocations

NOCs are given an allocation of tickets for national distribution.  How many end up in the hands of cronies or are sold for personal profit? 



- Sale of television rights

This is another classic red flag area for corruption - for example, where rights are sold on the cheap to an intermediary who sells them on to a broadcaster at the proper price. 



- Corporate sponsors

There has been much focus on the human rights record of Dow Chemical as well as restrictions on rivals to the official sponsors’ products to prevent ambush marketing. But of the 53 official corporate sponsors in the recent London olympics (known as ‘partners’ – for a full list click here) several have also been subject to investigation under the US Foreign Corrupt Practices Act (FCPA) or equivalent laws. 

RELATED LITERATURE



It is important to understand the characteristics specific to sportspeople that help to explain a certain vulnerability to corruption. One distinguishing element relates to their education and environment. A large number of athletes are trained and live in a closed circle within which their behaviour is predefined and calculated, and where there is significant pressure from sports management, family, medical advisors and even journalists. A lack of perspective outside this closed environment can tend to inhibit an athlete’s ethical judgments. How will a high-level athlete react to a request from a person (or group of people) who for years has devoted their time (and money) to training, coaching, and supporting them in their sporting and personal life and problems? In some societies, individuals relate differently to illegality, and corruption in sport is more widespread than it is elsewhere. It is a fact that in globalised disciplines like football and tennis, particular attention must for example be paid by the sports authorities to players from Eastern Europe and the Balkan States.



A second key to understanding lies in the relationship between money and sport. Athletes are in essence individuals who are extremely familiar with the concept of “risk.” (risk of losing a match or competition, risk of injury etc.). The excitement, the adrenaline rush from playing sport and competing can sometimes extend into gambling, and particularly sports betting. In January 2011 a German footballer, Rene Schnitzler, who had come up through the German Second Division in the St Pauli team, admitted having accepted bribes to pay off very substantial gambling debts.



Lastly, the lack of financial security among sportspeople should not be ignored. Despite the images portrayed by the press of leading sportspeople with extravagant salaries, the majority of sportspeople do not receive as much money as popular belief would seem to indicate. The average net salary of athletes in disciplines such as handball or volleyball can be surprising. Even in football, the lower leagues are not particularly rich.



CONCLUSION



Much can be done to break the ties between sport and corruption. But it needs to get everyone involved to work together. Openness in decisions and policies is vital. Governments must work closely with the international gaming industry and anti-fraud organisations. Then they can follow the money in betting. Sporting organisations can write anti-corruption measures into their constitutions and codes of conduct. Clear regulations and openness in player transfers will protect the employment market but we must make sure rules are actively enforced.



Open, competitive bidding processes will help prevent corruption when host cities or venues are chosen for sporting events. They’re also essential in bids for major projects, such as building stadiums. Bids need to be monitored to make sure they’re fair. Sponsors can play their part by promoting ethics in sport as part of their corporate responsibility programmes. The media also has the power to raise awareness about corruption in sport. With these changes to the rules of the game, the sector can regain its reputation for fair play.