How Should National Governing Bodies of Sport Be Governed in the UK? An Exploratory Study of Board Structure

• Author: Marc Taylor,Noel O'Sullivan
• DOI: http://doi.org/10.1111/j.1467-8683.2009.00767.x
• Date: 01 November 2009
• Published date: 01 November 2009

How Should National Governing Bodies of

Sport Be Governed in the UK? An Exploratory

Study of Board Structure

Marc Taylor and Noel O’Sullivan*

ABSTRACT

Manuscript Type: Empirical

Research Question/Issue: This study explores the most appropriate board structure for national governing bodies (NGBs)

of sport in the UK. Sports are a very important aspect of UK society, involving a signif‌icant number of participants and

spectators, occupying a key role in furthering the nation’s health, and, at the elite level, a source of considerable national

pride. From a governanceperspective, NGBs of sport are non-prof‌it organizations, managing both professional and amateur

sports, and administering the allocation of considerable amounts of funds, especiallypublic funds. The study was motivated

by a renewed interest, not least from government, in ensuring NGBs had an appropriate structure to ensure optimal

decision-making for their stakeholders.

Research Findings/Insights: We interviewed 22 senior administrators involved in sports in the UK. Our interviews sought

to ascertain their views on the appropriateness of applying a number of key board reforms, currently seen as good practice,

to NGBs of sport. Theoverall consensus is as follows: (1) NGBs should reform the composition of their boards to better ref‌lect

business demands; (2) board size should be in the range of f‌ive to 12 members; (3) NGBs should have different individuals

occupying the positions of CEO and chairman; and (4) boards of NGBs should possess more non-executive directors.

Theoretical/Academic Implications: This research adds to our understanding of governance in non-prof‌it organizations

generally and NGBs of sport in particular. Ascertaining the views of key administrators and advisors in sport provides a

novel contribution to the governancein sport literature. Our f‌indings allow us to develop a number of propositions capable

of being examined further in subsequent research.

Practitioner/Policy Implications: The resultsof this study feed into an important on-going debate regarding the appropriate

governance structure of sport NGBs in the UK. A key f‌inding is that boards in NGBs should move away from being only

representative, but should also include members with specif‌ic business expertise as well as a greater element of non-

executive monitoring.

Keywords: Corporate Governance, Non-prof‌it Governance, Sport, NGBs, Directors, Board Structure

INTRODUCTION

Sport is an important activity in the UK, both at an eco-

nomic and social level. It is estimated that as many as

27 million people participate in sports activities in the UK

annually (UK Sport, 2002). Furthermore, during 2004 it is

estimated that over 36.7 million people over the age of 15

experienced live sports (Mintel, 2005). Sports contribute

£5.5 billion to the central government (Campbell, 2005) and

over £2 billion of the central government and national

lottery money was to be invested in sports between 2002

and 2005 (Department of Culture, Media, and Sport/

Strategy Unit, 2002). Not surprisingly, with so many people

involved and with such signif‌icant resources employed, the

way in which sports organizations are structured and

managed is currently attracting increased scrutiny. Accord-

ing to the Department of Culture, Media, and Sport/

Strategy Unit (2002) there are over 300 governing bodies

covering the 112 sports recognized in the UK. Like all

other organizations these national governing bodies

(NGBs) operate in a continuously changing socio-economic

environment and consequently require effective systems of

governance to safeguard against any misappropriation

of funds as well as ensuring the long-term viability and

vitality of their sport (Deloitte & Touche, 2003; Scissons,

2002).

*Address for correspondence: Professor of Corporate Governance, Management

School, University of Sheff‌ield, 9 Mappin Street, Sheff‌ield, S1 4DT, UK. E-mail:

c.n.osullivan@sheff‌ield.ac.uk

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Corporate Governance: An International Review, 2009, 17(6): 681–693

© 2009 Blackwell Publishing Ltd

doi:10.1111/j.1467-8683.2009.00767.x