Funding warning for sports governing bodies under new gender diversity code

Sporting Best News Mag governing bodies must bring in more women or lose public funding, UK Sport and Sports England have warned. Under the new ‘Code for Sports Governance,’ organizations must adhere to “gold standards” of transparency, accountability, and financial integrity. The code sets out a target of at least 30% gender diversity on boards. If the Sport wants to be publicly funded, it must reflect the public it serves,” said the chief executive of Women in Sport, Ruth Holdaway. She said the code sent that message “loud and clear.

The code calls for:

Increased skills and diversity in decision-making, with a target of at least 30% gender diversity on boards Greater transparency, for example, publishing more information on the structure, strategy, and financial position of the organization Constitutional arrangements that give boards the prime role in decision-making The new code applies to governing bodies who ask for UK government and National Lottery funding from April 2017. UK Sport predicts changes in practice should evidence the 2020 Tokyo Olympics.

It is vital that our domestic sports bodies and organizations uphold the very highest standards of governance and lead the world in this area,” sports minister Tracey Crouch said. If authorities do not comply with the code, funding could be hit, as well. The government could also take other punitive measures, including withdrawing the support sporting bodies need when bidding to host major events.

Who benefits from the funding at present?

UK Sport and Sports England allocate government and National Lottery money to grassroots initiatives, clubs, charities, local authorities, and national governing bodies. Sports England invested £493m into 46 sports between 2013 and 2017, while UK Sport invested about £350m in the same period. The Football Association is among the many recipients and will receive £30m from Sports England from 2013-2017. However, the sports minister warned the FA earlier this year that it would be stripped of further funding unless it changed its governance.

The FA has just one woman on its board, independent non-executive director Dame Heather Rabbatts, who has been “frustrated” and “disappointed” at its failure to implement reform. However, FA chairman Greg Clarke welcomed the new code: “It will rightly protect public investment in sport by ensuring that transparency, controls, and financial probity are a prerequisite for all organizations in receipt of government money.” British Cycling, the England and Wales Cricket Board, the Lawn Tennis Association, UK Athletics, and UK Gymnastics are other funding recipients, along with many Olympic and Paralympic sports.

What will governing bodies have to do now?

UK Sport’s chief operating officer, Simon Morton, told BBC Sport: “This code includes over 50 requirements that sporting organizations receiving public funding must now implement. It will take different times for every single organization. They all have different constitutions, so we’ll agree on bespoke timescales. However, starting in 2017, they will need to comply with these standards as we move into the next funding cycle. Sports bodies have already done well in governance terms, but there’s a huge amount of public funding going into the Sport, and the key message is [for them] to justify the budget, give the public confidence that the governance of Sport is right.

GB Funding to medals

GB’s success at the recent Olympic Games has demonstrated the importance of UK Sport and Sports England funding.

How has the new code come about?

The government announced a new code developed in its Sporting Future strategy, published in December 2015. In response, UK Sport and Sports England embarked on a consultation period with governing bodies and found strong support for higher governance standards. Of the more than 200 organizations consulted, 98% backed a drive for greater transparency, and 78% agreed on increased diversity. There have been significant improvements in governance standards, which is to be welcomed, but there is still much to do,” Sports England chair Nick Bitel said.

Diversity in sports sector boardrooms is still an issue and requires a mandatory code to achieve sustainable change.” UK Sports chairman Rod Carr added: “We are confident that despite the recent historic successes at the Rio 2016 Olympic and Paralympic Games, we can be even stronger as a high-performance system with better representation and more openness. This is also about encouraging more diversity ineadership positions in SsSports. I fully expect to see a broad range of talent coming into key roles during the Tokyo cycle.”

Analysis

Dan Roan, BBC sports editor

This could be very serious for governing bodies like the FA. In addition to cutting investment through its funding agencies for sports that fail to reform, the government is prepared to withdraw essential support and guarantees required for bids to host major international events. That could mean the FA’s plans to bid for the 2030 World Cup are blocked if it refuses to modernize. Very few British governing bodies meet the new governance criteria, so this code significantly changes how sports are run. UK Sport is also considering establishing a compliance unit to investigate governing bodies.

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