Addleshaw Goddard's Sports Sector hosted a phenomenally successful Sports Risk Summit at Manchester City FC's Etihad Stadium.
In a stunning venue, attendees heard some fascinating insights from experts involved at the sharp end of UK and global sporting issues – from venue safety through to the risk of corporate crime in what is now such a lucrative sector.
As Polly Sprenger, Head of AG Sports Sector has pointed out, the sporting world has matured into a massive, global industry, but with unique features that bring unique risks. "Sport holds a special place in the hearts and minds of the public," she said. "Big sporting organisations face all of the challenges of other large corporates, but with the added test of making all of their decisions in the full glare of the public spotlight, and the added stakeholders of the fans."
Here, we give some takeaway points from each of the three panel sessions:
Safe hands: ensuring safety and security at major venues
Panel: Priscilla Addo-Quaye, Addleshaw Goddard; Tom Grant, Marylebone Cricket Club, Matty Butcher, the Sports Ground Safety Authority ("SGSA").
This session tackled the impact of the Protect Duty brought in by the Terrorism (Protection of Premises) Bill, known as Martyn's Law in honour of Martyn Hett, one of the victims of the Manchester Arena bombing in 2017. The new law is expected to come into force in the very near future.
Priscilla was part of the Addleshaw Goddard team that represented three of the bereaved families as core participants at the Manchester Arena Bombing Public Enquiry, and she set out the implications of the Bill which places a 'Protect Duty' on those responsible for publicly accessible venues and events.
Enhanced Duty requirements apply to large sporting venues, and Tom Grant of the MCC explained how venues such as Lord's Cricket Ground already take extensive measures to protect those attending events, extending to carrying out exercises simulating attacks in the arena. One aspect he highlighted was the role the various bodies with a role in venue safety – the SIA, local authorities, and the SGSA – will have, and the need to work out where responsibility lies for meeting the law's requirements.
Matty Butcher of the SGSA picked out the wording in the Bill which acknowledged the possibility of the law placing an undue burden on smaller businesses less equipped to put in place costly measures. He explained that how that is measured in practice will be of huge interest, particularly for smaller and non-league clubs. However, anything that will reduce risk to the public is welcomed with open arms by those involved in venue safety.
The session also included an update from Addleshaw Goddard's Sufia Saqib on the new duty on employers relating to protection from sexual harassment in the workplace, and what that means for businesses in the sector.
Foul play: tackling corporate crime in sports
Panel: Ross Lennox, Addleshaw Goddard; Robert Brophy, Interpath Advisory; Christ Coltart KC, 2 Hare Court; Krystle Sargent, UK Sport.
Chris Coltart KC explained the impact of the new Economic Crime and Corporate Transparency Act ("ECCTA") on sporting organisations, with the publication of new guidance the day before the event. ECCTA imposes criminal liability on large organisations which fail to prevent fraud, with liability extending to senior managers. He highlighted specific examples in sport where the change in the law would mean that the same circumstances today would lead to a conviction for the club and have huge ramifications.
Robert Brophy shared some fascinating insights from his nearly three decades at World Rugby, where he was CFO until 2023. His time at the organisation saw him play an influential role in the development of the game globally, with the corresponding growth of rugby's financial impact, the increased scrutiny and challenges that brought as the Rugby World Cup became one of the largest sporting tournaments in the world.
Krystle Sargent, General Counsel of UK Sport gave a fascinating insight into the lengths her organisation – which distributes £300 million in government funding for Olympic and Paralympic sport in the UK – must go to, to ensure that the money it provides is used for the purposes intended.
The new government guidance on ECCTA offers some direction to companies on steps they can take to prevent fraud, but all the panellists agreed that the top tip for any organisation was to keep an audit trail of the measures you have put in place, so you are ready for any event of alleged fraud. As Krystle pointed out, it's no use just telling someone what you are doing, you need to be able to prove it.
Sin bin: navigating tax and pr scandals in sports
Panel: Noel Power, Addleshaw Goddard; Rebecca Chalkley KC, Red Lion Chambers; Katherine Hardcastle, Fountain Court Chambers; Pablo Tejerizo, Addleshaw Goddard Madrid.
In the final session, the panellists focussed on some of the biggest sporting scandals of recent years, from tax to insolvency offences by big names who ended up in the dock. For clubs and sports governing bodies, the knock-on reputational impact of a player or participant's misconduct can cause damage even when the sport has no connection to it.
Rebecca Chalkley KC, who prosecuted former tennis star Boris Becker for insolvency offences in 2022 explained that the one thing sports organisations can't protect against is individual misconduct. Katherine Hardcastle, who defended former Formula 1 boss Bernie Ecclestone in an HMRC prosecution of an alleged £400 million tax fraud, agreed.
Both barristers agreed that issues arise for sports stars when they are badly advised by an array of advisers, perhaps built up over many years, all working on different issues with little or no communication between them.
Pablo Tejerizo, of AG's Madrid office, a specialist in tax-related issues who advises FC Valencia, gave insight from his experience giving evidence in the long-running Spanish tax case against footballer Cristiano Ronaldo, which raised complicated issues of the taxation of income generated through the sale of image rights..
Pablo also drew attention to the huge issue of agents' fees. The rules relating to these have changed over time and in certain circumstances, where an agent has a pre-existing relationship with a player, a payment to their agent can be seen as a payment to the player themselves, with the tax implications that brings – something that tax authorities all over the world are now examining closely.
Charity Boots
The day concluded with a word from Charity Boots, a charity working to recycle used sports kit and distribute it to kids who struggle to afford it. The presentation from Milo O'Connor, Neil Smith, Oscar Harris and Fernando Rojas was a fitting reminder that the special role that sport plays in the world doesn't start in a stadium, but on the playing field.
AG in Sport
Addleshaw Goddard's specialist lawyers help some of the largest clubs, governing bodies, international brand sponsors and professional players to keep events, venues and teams stay ahead of their legal needs, as well as working with amateur and grass-roots sporting organisations to keep participants safe, advance in their sport and achieve at their optimal performance.
We cover all areas that affect businesses and have worked on some of the world's most high-profile sporting events such as: the Olympics and Paralympics, FIFA World Cup, the Commonwealth Games, and the Rugby World Cup.
We don't just write contracts, we help navigate disputes, protect match officials, players and fans, and manage how organisations approach regulations when the rules change. From day-to-day governance to the construction of new or expanded venues and stadia, our approach works with the satisfaction of organisations and fans in mind.
