Case Study on Essendon Football Club

Sport Governance 1
SPORT GOVERNANCE AND STRATEGY: CASE STUDY- ESSENDON FOOTBALL
CLUB
Student’s Name
Class
Professor’s Name
Institutional Affiliation
Date

Sport Governance 2
Question 1
Image you are an Essendon FC Board member receiving a call from your CEO on 5
February 2013 relating to allegations that a major report accusing the Club of doping is
about to be made public. In considering what course of action to take, what types of “risks”
can you identify (a) to the club and (b) to yourself personally?
As the Essendon FC Board Member, I think the reported allegations to doping pose a
significant risk to the public image of the football club. To start with, it is a risk to the financial
status of the club considering the charges and sanctions imposed under the anti-doping code.
Besides, institutions that fund and sponsor the club may withdraw their financial funding support
from the club due to ethical considerations of relationship with Essendon. This would pose
management challenges to club considering the club requires financial assistance to run its
activities. Secondly, the club is at the risk of public scrutiny across the media. The issue of
doping by the club relayed on several media will raise concerns to the public and more questions
with regards to doping behaviors. Lastly, the club faces the risk of suspension during the
investigation period, or if found guilty, the club may be facing a ban from participating in the
national and international leagues. The board members are at the risk of facing sanctions and
doping charges. The set regulations may impose fines to board members of the club for failing to
abide by anti-doping laws. Also, the board members may be accused of poor governance and
management which reduces the board’s competitive edge in the sports industry. In essence,
government intervention and control from regulatory bodies may strip off the board its power
and rights to host and manage the club (essendonfc.com.au, 2013).