The future of sports governance

As Hong Kong’s sports sector moves toward greater formalisation and the implementation of higher standards, governance professionals are leading the transformation toward integrity, accountability and public trust in sport.

Sports governance in transition

Globally, sports governance has entered a period of transformation. Integrity scandals, conflicts of interest and governance gaps in major sporting organisations such as FIFA and national federations have exposed deep vulnerabilities. Hong Kong’s sports ecosystem, though smaller in scale, faces parallel challenges – conflicts of interest within selection committees, inconsistent oversight mechanisms, limited board diversity and inadequate transparency in funding and decision-making.

For decades, many national sports associations (NSAs) operated under informal systems built on trust and volunteerism. While that community spirit remains vital, it often comes at the expense of transparency and consistency. ‘Stakeholder demands, media exposure and international scandals have challenged the sports sector to move on from its historic preference for autonomy and self-regulation, and to enter the professional sphere of corporate governance,’ explained Dr Trisha Leahy PhD JD SBS BBS, former Chief Executive of the Hong Kong Sports Institute.

Dr Leahy emphasised that this shift requires more than mere compliance. She described sport as a permitted social institution that delivers significant physical, psychological and social benefits – from national identity to inclusion and public health – yet also one that must now operate under increasing scrutiny. ‘The key challenges for sports organisations in moving from autonomy to corporate-style governance should not be underestimated,’ she warned. ‘Resources and corporate governance expertise are needed to facilitate this development.’

Gill Meller FCG HKFCG(PE), International Vice President and Institute Past President, and Legal and Governance Director, MTR Corporation Ltd, observed that while financial sustainability remains fundamental, the governance expectations placed on sports bodies extend far beyond the corporate realm. Unlike listed companies, which are accountable mainly to shareholders or investors, sports organisations must answer to a far wider range of stakeholders – athletes, coaches, fans, sponsors and the broader community. ‘Their purpose is both social and competitive – and that creates a complex governance environment.’

An effective governance framework, therefore, must go beyond financial prudence to embrace social and environmental responsibility. It should consider the needs of staff, business partners, players, fans and the communities in which the organisation operates. Ms Meller added that good governance in sport depends not only on formal mechanisms – such as committee structures, internal controls and clear procedures – but also on softer elements like organisational culture and ethical leadership. At the same time, sports bodies face distinct governance challenges of their own, which means that their governance frameworks should also include themes such as safeguarding athletes, ensuring fairness in selection and maintaining integrity in competitions.

Hong Kong’s sports governance reform and the role of governance professionals

Hong Kong has already taken decisive steps toward this balance. In November 2024, the Sports Federation & Olympic Committee of Hong Kong, China (SF&OC) introduced its Code of Governance, which provides a comprehensive framework that will soon be a prerequisite for NSAs to receive government funding.

The SF&OC’s Code offers clear guidance on accountability, board diversity, conflict-of-interest management and transparency in funding. For sports bodies long reliant on voluntary leadership, this transition is both significant and demanding. ‘Resources and corporate governance expertise are needed to facilitate this development,’ Dr Leahy stressed.

As a result, Ms Meller noted, ‘there is also an opportunity for company secretaries and governance professionals to support the Institute in providing training to NSAs to upskill their management and their boards of directors on the principles and practicalities of good governance.’

The SF&OC now requires every NSA to appoint a company secretary, pursuant to Section 474 of the Companies Ordinance, recognising that governance professionals are essential for accountability. Company secretaries are uniquely positioned to translate governance principles into practice. ‘Company secretaries and governance specialists will be a key resource for NSAs,’ remarked Dr Leahy. ‘They can advise the board, assist with standard-setting and compliance monitoring, and facilitate capacity-building and positive growth of the personnel behind the organisation.’

Ms Meller agreed, stating that governance professionals can help NSAs design and implement frameworks that fit their size and stage of development. ‘Governance professionals need to be prepared to take what they have learned in the corporate sector and apply it to a different kind of organisation, which may be smaller and more financially constrained, often run by volunteers and with a different risk profile,’ Ms Meller said. ‘They probably also need to be prepared to roll up their sleeves and help find and implement solutions, as well as providing advice.’

Both Dr Leahy and Ms Meller agreed that governance professionals should bring not just technical knowledge but also relational skills. ‘In sport, relationships are highly valued,’ Dr Leahy explained. ‘Teamwork is at the centre of sports excellence. For governance experts to be regarded as trusted members of the ecosystem, authentic communication and a genuine interest in sport are essential.’

Governance landscape: progress and gaps

The Corporate Governance Review Report, published in late 2024 by the SF&OC, revealed both progress and persistent gaps across 77 NSAs. While some larger associations have adopted board committees and formal risk management systems, many smaller ones remain reliant on informal decision-making and part-time staff. Only 13% of the NSAs had audit committees, while fewer than 26% had achieved gender diversity on their boards.

Matthew Young FCG HKFCG(PE), Institute Council member, and Deputy Company Secretary, The Hong Kong Jockey Club highlighted a clear correlation between governance maturity and public funding. NSAs receiving government subventions consistently scored higher on governance indicators, suggesting that structured accountability frameworks drive improvement.

He believes that the governance profession can help close these gaps. ‘Some NSAs have no salaried staff at all, which shows how limited their resources are. That’s why company secretaries – a compulsory role under section 1.9.1 of the SF&OC’s Code of Governance – must take an active leadership role in promoting integrity, professionalism and transparency,’ Mr Young proposed. ‘This is not just about compliance, it’s about setting the tone for how public trust is earned and sustained in sport. Governance professionals should be visible leaders, helping boards navigate challenges, build systems and embed integrity as a culture.’

Building integrity from the ground up

Beyond compliance, Hong Kong’s sports governance reform movement seeks to embed integrity as a cultural norm. The Independent Commission Against Corruption (ICAC) has long advocated for preventive approaches, promoting ethical decision-making at all levels of sports administration. Formed through collaboration between the ICAC, the SF&OC, the Jockey Club and the Institute, the new Sports Governance and Integrity Alliance was launched on 28 August 2025, marking a pivotal moment for Hong Kong’s sports community. Through this Alliance, the Institute is now working to codevelop practical training and case-based materials for the sector, and is helping to strengthen integrity and accountability across the sports community.

Dr Lobo Louie, Senior Lecturer, Department of Health and Physical Education, The Education University of Hong Kong, believes the focus on integrity is well timed. ‘Transparency is the most urgent issue to address,’ he said. ‘Publishing financial reports, setting term limits for council members and forming independent ethics or audit committees are essential steps. These measures build public trust and prevent the consolidation of power.’

Dr Louie added that Hong Kong’s sports sector is caught between its ambitions and its constraints. On one hand, the government is investing heavily in sports infrastructure and talent development, while on the other hand, governance maturity among NSAs varies widely. ‘Addressing these challenges requires a balanced strategy that not only supports elite success, but also strongly invests in and revitalises the grassroots foundation of sport for all, particularly in team sports,’ he recommended.

Dr Leahy agreed, adding that across all sectors of sport, from youth, persons with disabilities, community participants and elite performers, the issues of integrity and safeguarding have received much media attention internationally. ‘Evolving business models and approaches to sponsorship, as well as new challenges to doping controls, present a myriad of risk factors that sports organisations without robust governance systems in place will fail to negotiate, resulting in a reputational risk for the sport and, in some jurisdictions, risking access to public funding,’ she cautioned.

Looking ahead

As Hong Kong prepares to position itself as a regional sports hub, governance will increasingly define its credibility on the global stage. With initiatives like the SF&OC’s Code of Governance, the city is setting benchmarks that align with international standards such as the International Olympic Committee’s governance indicators and the UK’s Code for Sports Governance.

‘At a time when Hong Kong is promoting sport and mega events, building trust in the sports sector through good governance, with its key pillars of accountability, fairness, transparency and responsibility, will create solid foundations to support this growth,’ said Ms Meller.

For Mr Young, the message is one of civic duty as much as professional responsibility. ‘The growth of Hong Kong as an international sports hub will depend on governance that’s credible and transparent,’ he asserted. ‘Our profession has the skills and the duty to make that happen.’