Analyzing the Governance Structure of a Sport Organization

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

MANAGEMENT1
Table of Content
Introduction................................................................................................................................3
Organizational Background - Chelsea Football Ltd...............................................................3
Current Board Structure.........................................................................................................4
Extent to which board reflects best-practices as developed in governance codes.....................6
Practices in the governing body ‘...........................................................................................6
Best practices structure, responsibility and accountability....................................................7
Best practice governance system in the organization............................................................7
Extent to which theories and academic studies inform the understanding of board structure...9
Accountability........................................................................................................................9
Responsibility.........................................................................................................................9
Transparency:.......................................................................................................................10
Social Responsibility:...........................................................................................................10
Independence........................................................................................................................11
Recommendation for the reformation......................................................................................11
Conclusion................................................................................................................................13

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Topic- Analysing the governance structure of a sport organisation.
Introduction
This research report is an analysis of the governance structure of a sport organization
called Chelsea Football Ltd in UK. It has been identified that governance is kind of an
exercise of authority and power failing under management of an organization. Governance is
the process based on which a group of people make decisions that help to form collective
opinions and efforts. Technique of decision-making of governance is that the stakeholders
plays a great role. This means in one hand, stakeholder of an organization articulate their
interest and on the other side, it influences how decisions are taken and made and eventually
determine the actions that are needed to be applied. One significant fact is that governance
could involve the concept such as rules, responsibility, policies, transparencies,
communication. On the other side, fundamental governance is decision-making.
However, in the field of governance of sport, there are three fundamental issues in
governance like how organization formulates strategic goals and business direction, how the
board of organization supervise the performance of organization to ensure that it is able to
achieve organizational goals and ensuring that the board performs its action in the best
interest organizational members. Nonetheless, an effective governance of sport organization
might depend upon how the rules and responsibility that are defined, enforced and monitored
by governing organizations. Likewise, there are several other pitfalls in the concept of
governance of sports organization. Thus, the purpose of this report is study and investigate
how the governance structure of sport organization to develop a better understanding about
governance framework in the organization.

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Organizational Background - Chelsea Football Ltd
It has been identified that Chelsea Football Ltd is a professional football Ltd in
Fulham, London and it competes in the premier league which is the highest tier of English
Football. Chelsea is the seventh most valuable football Ltd in the world with the value of
£1.54 billion and earnings of €428 million in the 2017–18 season (chelseafc.com 2019).
Roman Abramovich owns Chelsea Ltd and the chairman of the company is Bruce Buck. The
organization developed a large football Ltd in which members are chosen from varied and
distant nations. Principal partners of the team is Nike, Yokohama, Carabao Energy Drink,
and the official partner of organization is Bangkok Bank, Ericsson, Hubolt, Hyundai
(chelseafc.com 2019)
Current Board Structure
The organization Chelsea Football ltd is based on governing board structure, which
leads the agency using authority to direct and control provided by owner as well as legal act
of formation. The owner Roman Abramovich sets the initial direction as well as have the
full authority to act in the owners of best interests (chelseafc.com 2019). Governing board of
the organization tends to function at arm’s length from the operational organization. Bruce
Buck holds the chairman position of the organization. On the other side, Marina
Granovskaia holds the chairman position in the company. As it stands that Chelsea has five
different people on Chelsea FC Board and all of whom significantly have good backgrounds
in their area of expertise. It has been identified that Buck, Tenenbum and Granovskaia and
David Barnard is the longest serving Board Member. Hence, the most significant fact is that
none of the members of the Board have contacted with the football beyond its business side.
As put forward by Hums and MacLean (2017), board structure and clarity of purpose
could directly influence board functionality and ability of the board as well as retain suitably
qualified members. Governance structure of sport organization tend to comprise of board as