Sporting clubs and scandals – Lessons in governance

• The case examines the use of performance enhancing drugs in two well-known football teams – The Cronulla Sharks and the Essendon Football Club.
• The case investigates issues in corporate governance.
• Case questions allow students to compare issues in governance between sporting club entities and listed companies.

This case study is based on actual events surrounding the 2011–2012 scandals relating to the use of performance enhancing drugs in two high profile sporting clubs in Australia: the Cronulla Sharks Rugby League Club and the Essendon Football Club. Both clubs were handed down sanctions that included fines and suspension of their respective senior coaches and players. The case explores events leading up to the scandal and its aftermath. The case includes a series of questions that can be used to stimulate class discussion in areas of governance, ownership structure, drugs in sport and stakeholders. It also includes ideas for more in-depth discussion of issues relating to the commercialisation of sport and shortcomings in governance with supporting references from academic and practitioner related articles. The case is ideal for any later year undergraduate or postgraduate courses with a business, strategy, sports management, or accounting focus.