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Finance & Governance Forum 2009 Finance & Governance Forum The Oval 19 th May 2010.

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Presentation on theme: "Finance & Governance Forum 2009 Finance & Governance Forum The Oval 19 th May 2010."— Presentation transcript:

1 Finance & Governance Forum 2009 Finance & Governance Forum The Oval 19 th May 2010

2 Finance & Governance Forum 2009 Welcome John Crowther, Chair

3 Finance & Governance Forum 2009 Baroness Sue Campbell CBE Chair UK Sport

4 Finance & Governance Forum 2009 The Sporting Legacy from 2012

5 Finance & Governance Forum 2009 Sport At Heart of 2012 British athlete success is not just the icing on the cake – its pretty much the whole ingredients. Its crucial. Lord Sebastian Coe, Chairman London 2012

6 Finance & Governance Forum : Legacy Now

7 Finance & Governance Forum : Legacy Now

8 Finance & Governance Forum : Legacy Now

9 Finance & Governance Forum : Legacy Now International Inspiration: To enrich the lives of 12 million children of all abilities in schools and communities in 20 countries through the power of high quality and inclusive physical education, sport and play

10 Finance & Governance Forum 2009 Hard Legacy: The Decade of Sport General Election CSR

11 Finance & Governance Forum Legacy: Vision Thanks to unprecedented amounts of public funding, British Olympic and Paralympic sport is a success story: unrecognisable from even ten years ago. The current system is working and has achieved an incredible amount. The true legacy of 2012 will be whether we continue to sustain and build on that momentum, or fail to capitalise and believe the job is done after the Games. London should be a key stage of a long journey, not our destination. The UK has and sustains THE world-leading high performance sport system post 2012

12 Finance & Governance Forum Legacy: Vision All involved in high performance sport must: maintain through to major Olympic, Paralympic and Commonwealth events - like Glasgow 2014, Sochi 2014, Rio 2016 and beyond - a strategic long-term target for medal success; continue to demonstrate that sport can have a substantial positive impact on society and wider government policy; build on current levels of investment through effective partnership between the public and private sectors; continue to build on the substantial learning, achievements and improvements of the past decade, recognising that the current system works and provides a strong foundation on which to build.

13 Finance & Governance Forum 2009 Sustaining the Vision

14 Finance & Governance Forum 2009 Funding Principles Our performance mandate is success in Olympic and Paralympic sport Our investments recognise best practice in teamship, openness and accountability in support of UK athletes The principles for Olympic and Paralympic investment are the same whilst the Olympic and Paralympic models reflect the different domains

15 Finance & Governance Forum 2009 Funding Principles Awards are based on current performances and future medal potential using an investment model that links resources directly to athlete places UK Sport strives to make four-year investments to cover a complete Olympic/Paralympic cycle but base these on an eight-year development model Awards are reviewed annually to ensure maximum impact on the resources available at that time WCP Funding is a privilege not a right!

16 Finance & Governance Forum 2009 Conclusion 2012 Legacy happening NOW Key will be maintaining this post 2012 – resources, structure, intent, people Tough times ahead – need to be smart, agile and together Need to show the power of sport - what it can be, what it can deliver Ultimate legacy will be evidence of transformational ability that sport has to touch and change lives

17 Finance & Governance Forum 2009 Baroness Sue Campbell CBE Chair UK Sport

18 Finance & Governance Forum 2009 Your name The your job title and organisation You can delete this box and replace it with your logo Break

19 Finance & Governance Forum 2009 Team 2012 fundraising and the commercial landscape in elite sport Tim Hollingsworth, Director of Policy and Communications, UK Sport

20 Finance & Governance Forum 2009 Current Commercial Landscape Unprecedented levels of sponsorship revenues within Olympic/Paralympic movement LOCOG - 28 x Domestic Partners (7 x Tier 1; 6 x Tier 2; 15 x Tier 3) - Over £600M already raised towards £700M sponsorship target NGBs and Athletes also benefiting - British Gas / Swimming, Sky / British Cycling, GE / British Triathlon -Victoria Pendleton / Hovis; But … many Olympic and Paralympic sports remain un-sponsored! And … many sports outside of that environment

21 Finance & Governance Forum 2009 NGB Commercial Deal Summary (excluding Football and Tennis) Tier 1 High Level Deals Tier 2 Mid Level Deals Tier 3 Unsponsored Athletics Aviva Badminton CenterParcs Boxing Swimming British Gas Basketball Standard Life Gymnastics Cycling Sky Equestrian Subaru Hockey Sailing Skandia Triathlon GE Judo Rowing Siemens Fencing Lloyd and Partners Modern Pentathlon Canoeing Tesco All other funded sports 20 x sponsored and 27 x unsponsored sporting disciplines

22 Finance & Governance Forum 2009 Olympic/Paralympic Sport Commercial Structure OlympicFootball FIFA/UEFA PartnersPremier League PartnersIOC/LOCOG PartnersBOA/BPA PartnersUK Sport/Team 2012 Partners NGB Partners Athlete Endorsements Club SponsorsPlayer EndorsementsEngland Partners

23 Finance & Governance Forum 2009 What is Team 2012? The worlds largest national team ever sponsored with over 1,200 athletes from 47 sports and disciplines Joint venture between UK Sport, BOA, BPA and LOCOG Designed to create a private sector stream of funding for Olympic and Paralympic sport to compliment Lottery and Exchequer funding

24 Finance & Governance Forum 2009 What is Team 2012? £25 million revenue target Utilising rights and properties provided by the partners – including athlete appearances and image rights Money primarily distributed through UK Sports World Class Performance Programme

25 Finance & Governance Forum 2009 Overall Ambitions of Team 2012? £25m? Sponsorship Programme Fundraising Programme Patron of British Sport Individual/Corporate donations SME Programme £13m? £12m? Public Appeal

26 Finance & Governance Forum 2009 Visa – The Presenting Partner Exclusive status as Presenting Partner until December 2012 Plan to take Team 2012 into every household and every retailer Three principle benefits – - Athlete Personal Appearances - Money-cant-buy Experiences - Access to athlete image rights for marketing campaigns (controlled)

27 Finance & Governance Forum 2009 What next for Team 2012? Secondary Partners - Active negotiations with 2012 sponsors Appeal - 2 x Patrons of British Sport and 25 x Ambassadors confirmed SME Programme - Aiming to launch in next quarter - Initial target of 250 x SMEs Media Partner - On-going discussions with News International and Telegraph / Mirror Group

28 Finance & Governance Forum 2009 Post 2012 Commercial Landscape – Team 2012 Team 2012 designed to create a lasting legacy of private sector income into elite sport Commitment from UK Sport, BOA and BPA to retain the joint venture post 2012 Real opportunity for third stream to evolve into Team 2016 or similar On-going stakeholder discussions as to whether to incorporate Winter Sports – Team 2014

29 Finance & Governance Forum 2009 Post 2012 Commercial Landscape – Key Questions Will LOCOG commercial partners retain an association with sport? - Has London 2012 games demonstrated a measurable return on investment? - What percentage of the £700M LOCOG sponsorship fees will continue to be channelled into elite sport? How will the British Olympic and Paralympic Associations take forward Team GB and Paralympics GB after the rights revert to them in 2013?

30 Finance & Governance Forum 2009 Post 2012 Commercial Landscape – Key Questions Will NGBs/Athletes be able to renew their existing sponsorship deals at similar fee levels? - Delivering real value from innovative partnerships will be crucial to ensuring their longevity Will other external factors influence the commercial revenues invested into sport? - Focus on elite sport will move from Olympic/Paralympic sports to Rugby, Cricket and Football - Will financial markets undermine the commercial success of a decade of elite sport in the UK?

31 Finance & Governance Forum 2009 Conclusion London 2012 can be the catalyst for the on-going commercial success of elite Olympic/Paralympic sport in this country Team 2012 has demonstrated the power of athletes in attracting sponsors Government will expect and require a third stream to continue All sports must be thinking now about the post 2012 funding landscape

32 Finance & Governance Forum 2009 Team 2012 fundraising and commercial landscape in elite sport Tim Hollingsworth, Director of Policy and Communications, UK Sport

33 Finance & Governance Forum 2009 Antonis Patrikios Senior Associate Field Fisher Waterhouse

34 Finance & Governance Forum 2009 Data and Information Security and NGBs Key data protection concepts The new legal framework for data security Achieving legal compliance

35 Finance & Governance Forum 2009 What is data protection law about? Gives individuals the right to control how their personal data is used Places obligations on organisations that use personal data NGBs are subject to data protection law because they process personal data of individuals, e.g. employees, volunteers, athletes, etc and possibly share it with, e.g., other NGBs, sports medicine and science consultants Key legal instruments: EU Data Protection Directive 1995 UK Data Protection Act 1998

36 Finance & Governance Forum 2009 Key data protection concepts Personal data Sensitive personal data Processing Data controller Data processor Data subject

37 Finance & Governance Forum 2009 Obligations Notification Information provision (Principle 1) Fair processing conditions (Sch. 2 & 3) Quality of data (Principles 3, 4 and 5) Security (Principle 7) When engaging a data processor, a contract is required Appropriate technical and organisational measures Adequate protection for international transfers (Principle 8)

38 Finance & Governance Forum 2009 Individuals rights Subject access Preventing damage and distress Objecting to direct marketing Blocking automated decision-taking Rectification, blocking, erasure and destruction Compensation if damage or distress is suffered

39 Finance & Governance Forum 2009 Enforcement Request for assessment by individual Information notices Enforcement notices Criminal offences New assessment notices regime New fines up to £500,000

40 Finance & Governance Forum 2009 Reputational and brand damage

41 Finance & Governance Forum 2009 The new legal framework for data security Data security law Key themes: A new cycle of legal development commenced in 2003 The Regulatory Bear Market The trajectory of the law is towards more disputes and litigation

42 Finance & Governance Forum 2009 The Terminator targets security breaches SB 1386, 2003 Political dynamic Transparency mechanism Mandating PETs Mitigation Power shift

43 Finance & Governance Forum 2009 Political dynamic in the UK - HMRC 2 disks 25,000,000 people 7,000,000 households £1.5 bn value to criminals £20,000 reward for return 3 inquiries 1 Data Handling Review 1 enforcement notice

44 Finance & Governance Forum 2009 Blast off! Encryption guidance, November 2007 Breach handling & disclosure, March 2008 FSA financial crime report, April 2008 Criminal Justice & Immigration Act, May 2008 Coroners & Justice Act, November 2009

45 Finance & Governance Forum 2009 Components of the new legal framework Legislation Government policy Regulatory guidance Rules for best practice Enforcement actions Case law Private law arrangements Breach disclosure (forthcoming EU regime)

46 Finance & Governance Forum 2009 The regulatory bear market cf Financial Bear Market: pessimism, loss of confidence & negative sentiment leading to uncertainty and negative outcome Regulatory Bear Market Ability of controllers to keep data safe & secure Ability of law to cure this problem Regulators own standing Increased regulatory activism: Campaigning for new powers and penalties Regulating for publicity Increased intervention: Transition from light touch to heavy touch Greater use of enforcement powers

47 Finance & Governance Forum 2009 Financial penalties Serious contravention of data protection principles Likely to cause substantial damage or distress Deliberate, or Knew or ought to have known (a) risk, (b) likely to cause damage … but failed to take reasonable steps to prevent

48 Finance & Governance Forum 2009 Audits and inspections Assessment notices Government departments, public authorities & designated data controllers Allow access to premises, equipment, people etc Links to search warrants

49 Finance & Governance Forum 2009 Beating the bear by focusing on systems Systems v. operational regulation Security policy Contract initiation Project initiation Worker adequacy Third party assurance Culture

50 Finance & Governance Forum 2009 Why systems? Systems and operations Open to scrutiny With potential for great downside Due to high probability of security incidents Tools of regulation Regulatory preferences Time, cost, resources

51 Finance & Governance Forum 2009 Systems compliance in 10 steps (1) Step 1 – who is in charge? Strong management Multi-disciplinary team Step 2 – incident response Behavioural considerations Dealing with an emergency situation Detecting, containing and recovering data Step 3 – the lens of litigation Considering what transparency really means Understanding the privileged environment

52 Finance & Governance Forum 2009 Systems compliance in 10 steps (2) Step 4 – immediate technology Encryption – what is the state of readiness for an examination of your systems encryption? Step 5 – the security policy A documented system that is legally compliant Legal references Step 6 - Culture change Corporate governance Ethics Regulatory investigation Financial loss Brand and reputation

53 Finance & Governance Forum 2009 Systems compliance in 10 steps (3) Step 7 – people issues Trusting people and minimising risk Step 8 – doing business with contractors Effect on control Engagement due diligence and contracting Step 9 – New projects How the business goes about business Building a risk assessment and mitigation process Step 10 – Ongoing review of systems Making sustainable progress after the quick wins

54 Finance & Governance Forum 2009 Thank you! Questions?

55 Finance & Governance Forum 2009 Antonis Patrikios Senior Associate Field Fisher Waterhouse

56 Finance & Governance Forum Lunch

57 Finance & Governance Forum 2009 News Update

58 Finance & Governance Forum 2009 Tim Waterhouse Employment Taxes, Senior Manager Deloitte LLP

59 Finance & Governance Forum 2009 Employment Status PAYE/NIC must be operated by an NGB on earnings of employees and office holders Case law requires an assessment of the facts against certain tests: –Mutuality, substitution and personal service –The type of work and level of control exercised over the work they do –The financial risk/opportunity to profit –Are they in business on their own account? Can apply to all types of work: coaching/performance, medical/physiotherapy, management and administration If you get it wrong, HMRC will seek to recover PAYE/NIC plus interest and penalties from you but…… Demibourne What about those operating via personal service companies?

60 Finance & Governance Forum 2009 Home workers and Travel Expenses Do employees work from home and receive expenses for costs incurred and/or costs for travel to and from home to the NGB offices/ sports locations? There are complicated rules on whether an employer can make these payments to employees without a tax/NIC charge arising Consider the following to help you decide: –Where is each employees permanent workplace? –The 40% rule –Do they work at home through personal choice or job requirement? –Do they travel extensively in a particular geographical area as part of their role? Settling the tax/NIC cost on the employees behalf can be costly

61 Finance & Governance Forum 2009 Athletes Tax Status Not a matter of choice whether an athlete is considered to be amateur or professional for tax purposes Approach to generating income from their sport is a key factor in determining status Some of the issues to consider (Yes = more likely to be professional): –Does the athlete receive any kind of attendance or performance fees/reward? –Does the athlete receive any sponsorship or endorsement fees? –Does the athlete receive any income from associated activities such as journalism/ TV appearances? –Does the athlete work full time in relation to their sport (i.e. they have no other separate occupation) If an athlete becomes a professional the Athlete Performance Award becomes taxable London 2012 may present opportunities for more athletes to profit from raised profile and attain professional status. It is important they are aware of the implications

62 Finance & Governance Forum 2009 Questions?

63 Finance & Governance Forum 2009 Andrew Hanson Head of Policy CCPR

64 Finance & Governance Forum 2009

65 The Panel John Inverdale – Chair Derrick Andersen – Chief Executive, Lambeth Council Adrian Christy – Chief Executive, Badminton England Cath Flitcroft – British Mountaineering Council Steve Philpott – Chief Executive, DC Leisure Sarah Winckless – World Champion and Olympian

66 Finance & Governance Forum 2009 The Process 263 online survey responses 55 formal written submissions 11 expert witnesses 7 sites visited Analysis, discussion: report and recommendations

67 Finance & Governance Forum 2009 Recommendation 1 Local authorities must not be afraid to rationalise facilities where they are no longer fit for purpose or located in the wrong place.

68 Finance & Governance Forum 2009 Recommendation 2 Schools must be obliged to open the premises for out of hours sporting usage.

69 Finance & Governance Forum 2009 Recommendation 3 Greater research is required to understand the current location, condition and usage of facilities.

70 Finance & Governance Forum 2009 Recommendation 4 All new facilities, whether on school or community sites must include social space for players, spectators and others.

71 Finance & Governance Forum 2009 Recommendation 5 Voluntary and community groups must be more fully involved in facility provision

72 Finance & Governance Forum 2009 Recommendation 6 Freely available outdoor space must appear more accessible.

73 Finance & Governance Forum 2009 Recommendation 7 Access to and maintenance of waterways must be improved.

74 Finance & Governance Forum 2009

75 Dominic Goggins Fiscal and Regulatory Officer CCPR

76 Finance & Governance Forum May 2010 Great Sporting Drama

77 Finance & Governance Forum 2009 Listed Events/Crown Jewels GROUP A The Olympic Games The FIFA World Cup Finals Tournament The FA Cup Final The Scottish FA Cup Final (in Scotland) The Grand National The Derby The Wimbledon Tennis Finals The European Football Championship Finals Tournament The Rugby League Challenge Cup Final The Rugby Union World Cup Final GROUP B Cricket Test Matches played in England Non-Finals play in the Wimbledon Tournament All Other Matches in the Rugby Union World Cup Finals Tournament Six Nations Rugby Tournament Matches Involving Home Countries The Commonwealth Games The World Athletics Championship The Cricket World Cup – the Final, Semi-finals and Matches Involving Home Nations Teams The Ryder Cup The British Open Golf Championship

78 Finance & Governance Forum 2009 David Davies Review Remove B List Widen the List –The Summer Olympic Games –FIFA World Cup Finals –UEFA European Football Championship Finals –The Grand National –The FA Cup Final in England, Wales and Northern Ireland –The Scottish FA Cup in Scotland –FIFA World Cup and UEFA European Football Championship Qualifiers –Wimbledon Lawn Tennis Championship –The Open Golf Championship –Home Ashes Test series –The Rugby Union World Cup –Wales Six Nations Rugby matches (Wales only)

79 Finance & Governance Forum 2009 Concern for Sport Threat to NGB Income Timing No Independent Economic Impact Assessment Politicisation

80 Finance & Governance Forum 2009 CCPR Response Voluntary Code –Governing bodies are best places to strike the balance between audience and revenue that is most appropriate for their sports –Minimum 5% reinvestment –FA, ECB, RFL, LTA/AELTC, UK Athletics, PGA European Tour, Premier League, R&A

81 Finance & Governance Forum 2009 Current Situation Government unable to rush through before the General Election –Conservatives: Economic Impact Assessment Required –Liberal Democrats: Relist the Ashes CCPR and Signatories – Voluntary Code Principles Sport at all levels will be better off

82 Finance & Governance Forum 2009 Dominic Goggins Fiscal and Regulatory Officer CCPR

83 Finance & Governance Forum 2009 Legal Panel

84 Finance & Governance Forum 2009 Janice Shardlow Head of Governance and Legal British Equestrian Federation

85 UK ANTI-DOPING An Update © UKAD All rights reserved.

86 86 A new organisation Completely separate from UK Sport A clear remit to take a lead role in the fight against doping in sport

87 87 STRUCTURE : EXECUTIVE Chief Executive OperationsLegal Business Support Education & Communicatio ns

88 88 Board (7 Members) Audit Committee Remunerati on Committee Athlete Committee STRUCTURE: BOARD / COMMITTEES

89 89 to protect the right of athletes to compete in doping-free sport THE MISSION

90 90

91 91 THE TOOLS Education Testing Intelligence Compliance International Influence

92 92 EDUCATION 100% me NGB Education Strategies Outreach Athlete support - whereabouts Social research

93 93 TESTING In- and out-of-competition DCOs

94 94 From 2 June: Hotline INTELLIGENCE

95 95 COMPLIANCE Results Management Case to Answer –Independent Review Prosecution National Anti-Doping Panel

96 96 A level playing field NADO Assistance On-going consultations INTERNATIONAL INFLUENCE

97

98 Finance & Governance Forum 2009 Serena Hedley-Dent Partner, Farrer & Co

99 Finance & Governance Forum 2009 Integrity Issues in Sport High Profile Instances of Cheating (eg bloodgate; crashgate) Strike at the heart of the integrity of the match/ competition How did the relevant sports governing bodies respond? What general lessons can NGBs learn from these instances?

100 Finance & Governance Forum 2009 Integrity Issues in Sport Be prepared! Regulatory Infrastructure and Enforcement Have clear rules against general misconduct (as well as breach of sporting rules) Be clear which organisation in the sports regulatory structure must take action Respond quickly Media Strategy

101 Finance & Governance Forum 2009 Serena Hedley-Dent Partner, Farrer & Co

102 Finance & Governance Forum 2009 Lisa OKeefe Director Of Sport Sport England

103 Finance & Governance Forum 2009 Insert text here World Leading Community Sport System

104 Finance & Governance Forum 2009 Insert text here Good Governance Any NGB which takes public subscriptions, receives public funds or organises and provides competitions, or teaches aspiring sports men/women will be able to certify that it complies with minimum standards of good governance Dutton Report, December 2009

105 Finance & Governance Forum 2009 Recognition Process More streamlined Greater Clarity Access to resources

106 Finance & Governance Forum 2009 Measurement & Understanding Delivery of Outcomes Spend Consistent with Award Good Stewardship of Awards

107 Finance & Governance Forum 2009 Recognise NGBs as experts in their sport Hold our partners accountable for delivery of outcomes No compromise on good governance Our Approach

108 Finance & Governance Forum 2009 Lisa OKeefe Director Of Sport Sport England

109 Finance & Governance Forum Break

110 Finance & Governance Forum 2009 Lloyd Conaway Director team BEDS&LUTON

111 Finance & Governance Forum 2009 County Sports Partnerships – Supporting the National Governing Bodies..... Delivery and Doing Stuff

112 Finance & Governance Forum 2009 County Sports Partnerships. A powerful national network demonstrating leadership and connectivity in sport and physical activity X49 – Many Good People. A focus on Grow and Sustain County Sports Partnership Network (CSPN) £10m per year from Sport England Hunter Gatherers

113 Finance & Governance Forum 2009 CSPs – The Core Offer Connecting NGBs to the CSP area Club, Coach and Volunteer Development Children and Young People Facilities Investment Strategic Influencing and Networking Knowledge Management Operations (Governance)

114 Finance & Governance Forum 2009 GROW – Get Back Into Get Back Into Adult participation scheme PLUS x3 Schemes per year (September, January & April) Beds & Luton = x50 courses, x400 sessions, x600 participants, x3000 throughput, per scheme. East Region x30 NGBs Clubs, Coaches & Volunteers Rural Theme £177K Potential national Roll-out.

115 Finance & Governance Forum 2009

116 SUSTAIN - Coaching Coach Development Manager Coach Development Days Coaching System Support Network Cedars Coaching Academy (X420 Coaches Qualified October 2009 half term) Coach Agency Coach registration and data management scheme

117 Finance & Governance Forum 2009 SUSTAIN – Coaching continued ESF – 125 Bursaries for Coaching, 33 for officiating, 5 for tutoring. Young Coaches Conference Communications Recruit Into Coaching (x3 NGBs) Girls Active Hub Generic Coach Education programme (safeguarding, equity & first aid)

118 Finance & Governance Forum 2009 SUSTAIN – Workforce Development 2007/10 team BEDS&LUTON Workforce Development Plan £800K scheme £450K partnership and in kind support £350K Community Investment Fund (CIF) - East Region KPIs delivered; Coaches 371Regular Coaching 89 Sports Qs 3051Volunteers 733 Regular Volunteering 182Non-Sport Specific Qs1288

119 Finance & Governance Forum 2009 Local Area Agreement NI8 in all 3 Unitary Authorities £100k Pump Prime funding (Government Office) Leveraged a £270K project (Supported by CIF) Significant added funds into sport Funded participation, clubs, coaches and volunteers b-live.com – Young Person Communication initiative.

120 Finance & Governance Forum 2009 Theres more..... Building Schools for the Future (BSF) – Facilities N-Ergy ; retention programme Sport Unlimited Health – Department of Health and local PCT funding (£160K to date) County Sports Partnership Network (CSPN) – NGB Group

121 Finance & Governance Forum 2009 even more..... County Networking Days (X3) Club Development Forums (X4) = 94 Clubs Volunteers X3 London 2012 inspired development events. Education and Training Programme Funding Advice Regional NGB Forum

122 Finance & Governance Forum 2009 NGBs get a great deal from team BEDS&LUTON

123 Finance & Governance Forum 2009 Many Thanks Lloyd Conaway

124 Finance & Governance Forum 2009 Thank you John Crowther, Chair

125 Finance & Governance Forum 2009 Cricket & Bar


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