Fraud, Corruption and Sport

G. Brooks, A. Aleem, M. Button

• Publisher: Palgrave Macmillan
• Year: 2013
• Print ISBN: 9780230299788
• eBook ISBN: 9781137290717
• Topic: Social Sciences
• Subtopic: International Law
• Index: Social Sciences

This book offers historical and contemporary international analysis of fraud and corruption in sport, including a diverse range of cases from the sporting world including football, cricket, horse racing and boxing.

1

Introduction: Fraud, Corruption and Sport

There is a wealth of literature on the sociology of sport (Newman, 1968, Taylor, 1971; Newman, 1972; Dunning and Sheard, 1979; Chinn, 1991; Philips and Tomlinson, 1992; Giulianotti, 1999; Dunning, 1999; Horne et al., 1999; Hoberman, 2001; Gutmann, 2004; Dimeo, 2007; Giulianotti and Robertson, 2009; Millward, 2011; Spaaij, 2012; McGuire, 2012; Horne et al., 2012; Dennis and Grix, 2012). This covers a range of specific sociological, political and cultural issues in sport, such as racism, gambling, images of sport, globalisation and club ownership. The focus of this book, however, is the reach and depth of individual and organisational fraud and corruption in sport; as such, we see it as a pioneering study of the subject and hope that it provides a contribution to the wealth of ongoing sociological debates and the world of sport.

There are a few historical rather than sociological accounts of specific fraud and corruption in sport, such as Issac (1984, American college basketball), Sack (1991, American college football), Figone (1989, ‘vested gambling interests’ in college basketball), Thelin (1994, corruption in intercollegiate athletics), Ginsburg (1995, corruption in amateur and ‘modern’ baseball) and Jennings (2007, organisational corruption in international sporting bodies).

Sport is therefore more than an athletic endeavour and reaches beyond ‘pitch and track’ into the worlds of politics, business, fashion, entertainment, film and ‘crime’; it is often used as a ‘tool’ to promote a nation’s credentials on an international stage (Allison, 2005; Cronin and Mayall, 1998; Riordan and Kruger, 1999; Wilson, 2009). This ‘national promotion’ is only one part of the usefulness of sport; it has provided legitimacy to military regimes, increased international prestige and national pride and stimulated economic and commercial success (Gems, 2006; Ok, 2006). These important roles that sport has played are not in order of importance and are open to manipulation. Instead of trying to put them in some sort of order, it is better to see sport as playing a collective social, political and cultural role, of which the associated elements of commercial interests are a recent development.

One of these commercial interests, gambling and its associated negative elements, however, has a reputation for damaging the integrity of sport (Brooks 2012b). In the past few years there have been numerous cases of fraud and corruption. These are diverse and include match-fixing in football (Foot, 2007; Jennings, 2007; Hill, 2008, 2010; O’Connor, 2010; Blitz, 2011; Pfanner, 2011; Lee, 2011) spot-fixing in cricket (Atherton, 2011; ICC Report, 2011; Mahmood, 2011; Radford, 2011), use of illegal substances in baseball (Mitchell Report, 2007), vote-rigging in sporting institutions (Crowther, 2002; Jennings, 2007), money-laundering (Brooks, 2012, Christian Aid, 2010; Foot, 2006) and ticket fraud for major sporting events such as the European Football Cup Final in Istanbul and Moscow to name a few. These frauds and acts of corruption encompass athletes, officials, judges/referees and sporting institutions.

While fraud and corruption in sport are nothing new, the context in which some frauds and acts of corruption occur, however, is now different. The changes – the codification of sport from amateur to professional status (Horne et al., 1999; Malcolm, 2011, 2012), the manipulation of sport as a form of national propaganda (Wilson, 2009) and the increased commercialisation of sport – have all contributed to acts of fraud and corruption. However, rather than dwell on the fear that professional codification would lead to increased corruption, which has been dealt with elsewhere (Tranter, 1998; Horne et al., 1999; Roberts, 2011) and the abuses of athletes by nations in search of glory and justification of political systems (Ungerleider, 2001; Dennis and Grix, 2012) we primarily focus on the cultural and commercial development of sport. Fletcher and Herrmann (2012) recently suggested that there is the ‘internationalisation of corruption’. However, sport, if anything, unless there is a gambling scandal or corrupt sporting institution, is often downplayed as an aberration in need of self-regulation by its relevant self-governing body.

Furthermore, the international commercial sponsorship of sport has changed the way in which we watch, pay for and experience it (Gorse and Chadwick, 2012). Sport is a global business that now seeks muscular competition in the boardroom as much as athleticism on the pitch and track. The sponsoring of major sporting events and the competitive nature of winning contracts can, however, lead to fraud and corruption, particularly if the sporting institution tasked with ‘running the sport’ is considered corrupt (Simson and Jennings, 1992; Jennings and Sambrook, 2000; Crowther, 2002; Jennings, 2007; Leahy and Fontanella, 2010; Blitz, 2011).

Prevention of and responses to fraud and corruption in sport are dependent on the sport and type of corruption they are associated with. There is, however, little coordination in countering fraud and corruption within some sports, and it is therefore hardly surprising, even when encountering the same type of fraud (such as match-fixing), that sporting institutions offer little advice and/or assistance to one another. Instead, self-regulation and the promotion of personal and organisational interests rather than regulatory oversight are how sport is controlled. If the sporting institution has integrity its self-regulation is seen as a positive development; however, if it is seen as corrupt it damages the reputation of the sport more than a wayward athlete.

The occurrence of fraud and corruption in sport, as with other sectors, suffers from the same problem. Due to the internationalisation of sport and international tournaments it is difficult to define what we mean by fraud and corruption. For example, the British Olympic Committee (BOA) had a system in place, until 2012, which prohibited all athletes found guilty of employing illegal substances to increase personal performance from representing them in the Olympics; this was different to other nations that used the talents of an athlete once the prohibition period expired (Kidd and Broadbent, 2012).

Indeed, this is compounded when trying to review the social, cultural and legal ‘attitudes’ towards fraud and corruption. Attempting to define fraud and corruption, particularly across jurisdictions, is therefore a problem. Even with a clear definition, which would be difficult, if not impossible, to implement, the measurement of fraud and corruption is also problematic (Brooks et al., 2011), and due to the secretive nature of fraud and corruption, it is difficult to police (Sandholtz and Gray, 2003). The complex nature of these acts, and differences in social, cultural and political developments, only ‘muddies the waters’ of what fraud and corruption is, and who has jurisdictional control once an act has been discovered.

There are common elements of corruption such as the misuse of power, violation of trust and position, and personal or organisational financial benefit (Bowman and Gilligan, 2007). These elements are not exhaustive, as typologies of corruption have developed in an attempt to classify what is ‘corrupt’; to make this matter increasingly difficult, corruption, of which fraud is a part (see Chapter 2), is part of a continuum ranging from legal but unethical acts to illegal and criminal acts. In saying this, we still attempt to classify the types of fraud and corruption in sport below as a ‘guide’ to the extensive list of fraud and corrupt acts in international sport.

Fraud and corruption in sport

There are wide-ranging types of fraud and corruption to be found in sport. The table below is not an exhaustive list; rather, it is intended to show that sport as a business is not immune to fraud and corruption; in fact, it is an area in need of specialist attention and research. A recurring theme in this book is that fraud and corruption, though part of sport, are often ignored or downplayed and defended as different from that occurring in other businesses. This is incorrect. Sport is a business and as such it will countenance the same types of fraud and corruption as businesses everywhere, such as payroll fraud, procurement fraud, vote-rigging, tax evasion, as well as the more sensational and specific problems of match- and spot-fixing (Brooks et al., 2012).

While there are many different types of fraud and corruption in sport, which are found elsewhere, below is a table with a brief description of how they might be defined, along with a description of what the acts might consist of. While the table is a ‘guide’ to the range of corruption in sport rather than a comprehensive account of all corruption, it offers a flavour of the range of fraud and corruption that is found in sport. Many of the acts below will also have common characteristics and blur the boundaries as to what category they should fall under. For example, there is the category of bribery and gifts and hospitality; in the category of bribery an ‘inducement’ could be offered if the ‘correct’ service or outcome is provided, but in the category of gifts and hospitality a ‘free’ ticket to an event is dispensed in appreciation and recognition of ‘services’ completed. Furthermore, it is useful to keep in mind that corruption is part of a continuum and as such corrupt acts range from unethical and legal to illegal and criminal.

Table 1.1 Fraud and corruption in sport

As can be seen from the above table the opportunity to commit fraud and corruption in sport is substantial. Furthermore, the complex nature and blurring of boundaries as to what is acceptable is a recurring theme in the rest of this book. Some examples will be obvious acts of fraud and/or corruption, but others will be on the cusp of illegality and can be seen as morally questionable while still legally acceptable.

Organisation of the book

This book has been written by three authors, and while we mostly agree as to what we think fraud and corruption in sport comprise, and how they should and can be defined, there are elements based on our personal, cultural attitudes that reflect the differences, documented in this book, as to what fraud and corruption is and how it can be countered and dealt with. In this sense, we simply reflect the present and ongoing problem of trying to classify acts of fraud and corruption in a national and international context.

The book is split into two main sections. Part I, Fraud, Corruption and Sport in Context, consists of four chapters: Chapter 2 focuses on the definition of fraud and corruption in sport and the development of a typology to help explain the diverse types of frauds and corrupt acts that are found in international sport. We highlight the problem of distinguishing between ‘cheating’ to gain an advantage in a match/sport, breaking a set of codified rules, the culture of corruption in sport, and gambling and its influence on people and the integrity of sport.

Chapter 3 addresses the problem of measuring fraud and corruption in sport. While this problem has been documented elsewhere (Gee et al., 2009, 2010; Button and Brooks, 2012) there are similar issues that arise here, as with other types of businesses, although there is a dearth of contemporary academic analysis, with the exception of Gorse and Chadwick (2012). There is therefore little research available that attempts to analyse and examine a variety of different sports and how they counter and deal with fraud and corruption above and beyond recourse to a criminal justice system.

To assess the level of fraud and corruption in sport and the reach of the problem beyond sensational media coverage, a measure of fraud and corruption is needed. Measuring fraud has, however, been referred to as a chimera (Levi, 2008); we suggest that measuring fraud and corruption is difficult rather than impossible and akin to looking for a mythical beast. It is difficult, as is measuring crime in general (Maguire, 2007), and made increasingly difficult because of the deceptive nature of fraud and corruption (Doig and Levi, 2009; Doig and Macaulay, 2008; Gannon and Doig, 2010) and the legality and illegality of these acts; it is, however, a worthwhile if flawed task.

In Chapter 4 we focus on why people involved in sport, such as athletes, officials and referees, commit fraud and acts of corruption. Drawing on existing theoretical approaches, we apply Sykes and Matza’s (1957) techniques of neutralisation and Dittenhofer’s (1995) classification of syndromes. These, as far as we are aware, have not been used to explain why those involved in sport, in particular sport ‘stars’, commit acts of fraud and corruption. We also examine the organisational context of acts of fraud and corruption in sport and the social and cultural explanations offered so far which are useful in helping our understanding of them.

In Chapter 5 we consider the impact that the Internet has had on sport. The main focus of this chapter is how the Internet is used as a medium to commit fraud via gambling websites. Furthermore, while it is seen as a feature of ‘vested gambling interests’ to use such a medium, we dispel this myth by highlighting how online gambling sites are the focus of organised criminal elements and therefore are a bulwark against (Brooks, 2012) rather than a conduit of fraud and corruption, depending on the jurisdiction, and help inform sporting institutions of ‘suspicious’ gambling of which they would otherwise be blissfully unaware.

In Part II, Fraud and Corruption in Sport: Key Bodies: Enforcement and Governance, each chapter is a case study of a particular sport. There is a brief review of the extent of the main types of fraud and corruption that are primarily associated with the sport, attempts to counter and prevent fraud and corruption and/or how the structure and management of the sport is a contributory factor in the fraud and corruption it encounters. Some suggestions are then made, if possible, on how to increase detection and prevent acts of fraud and corruption in the future.

The sports reviewed are football/soccer (Chapter 6; we prefer to use the term football as the majority of the world refers to it as such and it is, as mentioned above, our cultural interpretation of this sport). The number of leagues around the world is phenomenal; so is the potential for fraud and corruption. We review the most damning aspect of corruption in football – match-fixing. This is, however, only one type of fraud committed and thus ticket sales, money-laundering, paying of agent fees, and questionable player transfers comprise the subject of this chapter as well.

This is followed, in Chapter 7, by a review of corruption in cricket. Played primarily by members of the British Commonwealth it is nonetheless an international sport and is so popular in India and Pakistan that it is seen as a national sport. Often exposed for its association with ‘gambling interests’, international cricket has been beset by fraud and corruption (Atherton, 2011). Exposing such fraud and corruption is, however, difficult as this chapter explains how ‘witnesses’ to such acts are often also involved in them. Finding a credible witness is a problem that all national and international law enforcement bodies encounter and evidence is often tainted.

Chapter 8 is concerned with horse racing. Referred to as the ‘Sport of Kings’, it has often succumbed to fraud and corruption. This is perhaps because its survival is linked to gambling (Forrest and Simmons, 2010). This dependence is a double-edged sword, as gambling is a source of funding for the sport as well as being the cause of many acts of fraud. We, however, move beyond ‘putting in the fix’ to secure a gambling coup and highlight the ease with which fraud and corruption occurs at thoroughbred auctions.

The sport of basketball is dominated by the USA as we focus in Chapter 9 on fraud and corruption in the National College Athletic Association (NCAA) and the professional National Basketball Association (NBA). In particular we focus on the impact of gambling on the sport and the issues of point shaving (Bernhardt and Heston, 2009) (playing to win a match while failing to cover the spread of points set) and tanking (losing matches mostly at end of the season to secure high-ranked players the following year). The NCAA and NBA are aware of the problem of preventing these ‘acts’ and have attempted to deal with them. However, they have failed to dissuade college basketball players from ‘putting in the fix’, and working with vested gambling interests, as this chapter will show.

Chapter 10 is a review of pugilism (boxing) that is portrayed more than any other sport as corrupt, with links to organised crime, particularly in the USA (Sammons, 1990). The focus of our attention here, however, is on more than ‘fixed ‘fights’; it is also concerned with the treatment, organisation and structure of the sport which leads to the abuse that boxers encounter in a brief and brutal career from the managers, promoters and sanctioning bodies that determine the contestants and location(s) of fights.

Chapter 11 is concerned with baseball. If the USA has a national sport, this is it. However, it has successfully transported it to Cuba and also to Japan, Korea and Taiwan, where it is a very popular spectator sport. Drawing on examples of fraud and corruption regarding match-fixing in the USA and Taiwan (Junwei, 2007), we also provide examples of how fraud and corruption in sport reaches beyond adults to children. The Little League Baseball tournament held in the USA was subjected to manipulation by the Taiwanese state in search of national glory and political prestige. We also consider the willingness of players to consume illegal substances and Major League Baseball’s (MLB) progress towards ‘making the sport clean’ and protecting players and MLB’s own personal vested interests (Mitchell Report, 2007).

In Chapter 12 we reflect on the key themes ra...

Table of contents

• Cover
• Title Page
• Copyright
• Contents
• Table
• 1. Introduction: Fraud, Corruption and Sport
• Part I: Fraud, Corruption and Sport in Context
• Part II: Fraud and Corruption in Sport: Key Bodies: Enforcement and Governance
• Bibliography
• Index