From Good to Great
Every sporting club or organisation has its own unique goals. What your club looks like now and what you want it to look like in the future may be vastly different. However many clubs don’t achieve the goals they set out to, pandemic aside. In your sporting club, organisation or association do you see untapped potential? How long has it been since you’ve had your sports club Constitutions reviewed?
Some of the questions we hear from board members that want to drive change but haven’t been able to accomplish it yet say things like:
We’ve been trying to grow our member base, it’s not growing as much as we’d like…
Other clubs seem to have more support from the community, we want to develop a great culture…
We need to be doing better financially so we can attract better coaching staff….
We need more income to upgrade our equipment….
We’re doing well as a club but now is the time to take that stability and turn it into on-field success….
Generally speaking, we hear various opinions about why some clubs have success easier or earlier than others, but they are only assumptions. From our years of working with growing and successful professional, semi-professional and amateur organisations of all sizes, we know that all significant and positive growth and change begins with a solid sports club Constitution, coupled with a strong 3-5 year strategic plan, and sound policies.
The Constitution is the most important document for any sports organisation – it gives your club, league, organisation or association the authority to act and do anything it does. It also sets boundaries as to what it can not do, as we’ll explore shortly.
Any sports club Constitution needs to be clear, but also clearly understood. An unclear or misunderstood Constitution may mean the Board is acting outside its powers, and this leaves its decisions open to legal challenge.
How to avoid legal challenges
Take for example, when something like the grievance and discipline procedures in a club’s Constitution don’t match back to the actions of the board or management.
A historical case, but one that highlights the genuine risk of the omission of important information in a club’s Constitution, was that of former Richmond player Dale Weightman. He was suspended for striking an opponent in the lead up to a Tasmanian Football League Grand Final. When Weightman’s lawyer reviewed the rules of the League’s Constitution, they discovered that the rules didn’t properly grant permission to the tribunal to hear cases or dispense penalties. Weightman succeeded, the penalties were thrown out and the club had to pay their own legal costs as well as Weightman’s legal costs.
While this is only one example of a flawed Constitution, when a legal challenge is brought against a sports organisation, the Constitution is the first place the opposing party looks to for evidence that contradicts the actions undertaken.
These undesirable outcomes for organisations and its board members often arise because:
- Decisions are made without careful consultation with the Constitution
- References are made to regulations and by-laws that no longer exist
- The Constitution is hard to decipher
- The Constitution that is in place is out-of-date
In the event there is a disparity between the Constitution and actions delivered by a board, the result is disruptive and expensive. Adding insult to injury, it is also entirely avoidable.
Having to go to Court and pay for legal costs is a direct result of not having a solid club Constitution. Given how litigious sport is today, this is avoidable when:
- The Constitution is collaboratively and comprehensively drafted
- The Constitution is written in clear language that all members and board/committee members can make sense of; and
- There is an effective plan to educate all members and board member’s about the Constitution.
This final piece is often the most overlooked element in the process.
When there is no considered education plan rolled out, then it is effectively useless. It is not enough when a case goes to Court and rebut with ‘it is detailed in the Constitution’. Clubs have a responsibility to demonstrate that the board and management are routinely and effectively educating themselves as well as everyone in the club community about the Constitution (as well as policies, code of conduct etc).
How can your community adhere to club rules and expectations they are not aware of?
How can club goals be achieved when most people are unfamiliar with them?
Conversely, imagine what could be achieved when everyone is aware?
Steps to Enhance your Sporting Club, League, Organisation or Association
As a sports lawyer and sports lover, I have been invested in the benefits of best practices in the governance of sports clubs, pro and amateur, large and small, for many years. This includes contributions to the Australian and New Zealand Sports Law Journal to analyse what is at the core of exceptional clubs and to highlight the consequences of poor governance. Importantly, it is what can be achieved financially, culturally and performance-wise, when there is good governance, that is particularly interesting.
No one will tell you that their Club success comes down to the way their sports club Constitution was put together. What will be the focus are other elements like the coaching staff, the management and the culture. However, individuals do not single-handedly enhance sports clubs. Long term, sustainable success is by design. At its core is a good, solid Constitution, strategic plan, board charter and policies by which everyone operates and thrives.
Sports Club Constitution basics
A sports club Constitution essentially covers the rules of how your club, league, organisation or association is to operate.
A sports club Constitution will typically detail:
- The overarching goals of the club/league/organisation/association
- Conditions for membership
- Election process of board/committee
- Voting rights
- Subscriptions and fees
- Key roles and responsibilities
- Correct record keeping
- Inspection of records
- Requirements of meetings for the committee or board
- Requirements of meetings for the organisation or club/league as a whole
- Grievance and disciplinary procedures
- Procedures in the event the club, league, organisation or association needs to be wound up.
While not mandated it is highly recommended that in addition to your Constitution, you also have a Board Charter to set out how the board is to manage issues relating to performance and compliance, including issues such as conflicts of interest, as well as policy implementation and compliance. When a Board Charter is well-drafted, it serves as an additional reminder to board members of the legal framework they are operating in and is also highly beneficial when onboarding new board members and management.
When a Sports Club Constitution could prove useless
Some organisations make their changes to their Constitution but do not forward the relevant documents, or in the correct form, to the relevant Government body to officially register the Constitution, or the changes to the Constitution. That missed step renders those changes ineffective. Only a Constitution registered with the relevant government body (in Victoria, Consumer Affairs Victoria) is considered valid.
While many sporting organisations may use a template as the basis for their Constitution, or make changes themselves to reflect changes, it should ideally be reviewed by a professional before being registered with the relevant government body. The danger of copying or updating the Constitution without specialist legal advice is that the Constitution will not provide proper and adequate protection to board members and the club, from legal risk.
As mentioned above, having a solid Constitution is the very first step. Ensuring all Board members receive proper induction from the Board Chair or General Manager is the next. This includes being provided with key documents such as the Constitution, any key policies such as a Board Charter, a copy of the organisation’s strategic plan (usually a 3-5 year plan), copies of the last three annual and financial reports, copies of any Director insurance policy.
We are called on by boards and committees to provide education and advice on governance and risk management. Our team reviews Constitutions and where required, re-draft or rewrite them, to ensure it is comprehensive and in plain English.
This can also be a good time to review other elements that go hand-in-hand for good governance such as Board Charters, Codes of Conduct and policies. The final very important piece to drive the change you are looking for, is by ensuring the effective education and rollout of any new or revised governance and risk management elements.
When is it time to have your Constitution reviewed?
An outdated or old Constitution that is not current and not easily understood, or doesn’t say what it should, requires immediate attention.
Generally speaking, a club’s Constitution should be reviewed every three years. A club’s strategic plan should be rewritten every three to five years, and reviewed at least every six months.
Driving change starts with a customised Sports Club Constitution
When your sports club Constitution is:
- Drafted or updated by a professional
- Is not generic but takes into account the specific needs and nuances of your organisation
- Written effectively so that all members and board/committee members understand it; and
- Supported by an effective rollout to educate all members and board members about the Constitution
Then you have good foundations for a thriving club and culture.
To enhance a club in any way starts with a comprehensive club Constitution and a strategic plan.
So, if your club goal is to increase members from 500 to 1500, or to move from one sponsor to six sponsors in 12 months, and then to 10 sponsors in three years. Or, perhaps the goal is to take an operationally and financially strong club and turn that stability into better on-field performance, then you will need a strategic plan.
But, no strategic plan ever achieved and maintained does so without the solid foundations of a solid, customised Constitution in place.
Strong personalities on boards with great business or management skills and new plans don’t achieve significant success in sporting clubs, leagues, organisations or associations. Strong cultures do.
How are strong cultures formed? When people join who fit in with the board and the existing plan to carry out the strategic plan over a period of time. That is how sporting clubs and organisations get to a strong position.
When people know their roles – the President, board members, employees, coaches, team managers, parents and everyone in between – and when there is an understanding of the rules and what is acceptable and not acceptable, then everyone is moving in the same direction. That is where momentum is gained and the most significant goals materialise.
Given the litigious nature of the world today, when you consider the risk that comes with having to go to Court, and potentially having to pay the costs of the other side (as well as your own), having a professional review and update the Constitution every three years is far less disruptive, does not adversely affect the organisation’s reputation, and saves negative attention, stress and expense for all involved, in the long run.
When was your club Constitution last reviewed by a lawyer with a deep understanding of the nuances specific to sport?
Article by Paul Horvath
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Could your Constitution be out of date? Our team can assist with the review of your Constitution, redrafting as required, and the rollout via seminars in-house or online. Our team of sports lawyers work with clubs and organisations across all states and territories of Australia. Call our Sports Lawyer team on 03 9642 0435 or fill in our contact form here.
