First step developing a early-warning system against corruption for sports associations

Abstract

The business model of sports is based on trust, reputation and fairness. In recent years sports associations have often engaged in crime, corruption and non-compliance, which has damaged the reputation of sports. A professional compliance tool to counteract the loss of trust is still missing, an early-warning system for sports organisations could provide a solution. It simulates how they react to non-tolerable instances of corruption, doping or violations of competitive integrity. The aim of this article is to present the first step developing an early-warning system for sports associations. The approach of New Institutional Economics was chosen to be the theoretical framework to understand the characteristics of corrupt deals and from that identify indicators that uncover corruption at an early stage. To support the normative process of indicator finding a literature research and a case study were carried out. The results indicate that corrupt deals involve three phases and that the relationship between the corrupt partners is central. Regarding to the strong bonds in corrupt relationships a lack of term limitations, no rotation in leadership positions, missing systems of whistleblowing or insufficient transparency could be possible indicators for corruption and non-compliance in sports associations.