Follow new rules or risk funding

Henry Siu

The Sports Federation and Olympic Committee of Hong Kong has rolled out guidelines to improve its member associations' governance, which they must comply with by the end of 2026- or lose their government subsidy.

This came after the 2020 Audit Commission report indicated governance issues within the federation, including dipping into the red for years, not listing out selection criteria for athletes and lack of an appeal mechanism.

Vice president Kenneth Fok Kai-kong, in a news conference yesterday, said the federation held a closed-door session to promulgate the results of the corporate governance review, with some 100 representatives of member associations attending.

A code of governance and reference materials were distributed to the associations, providing them with a practical and pragmatic guiding framework to improve their corporate governance level, Fok said.

"The review covered six major areas - board governance, integrity management, selection of athletes, management of coaches and umpires, administration of membership and general administration - totaling 243 items of good governance," he said.

The suggestions include setting up a maximum tenure and length for a board of director's term of office, with a age limit of not older than 70 or 75, according to the code of governance.

The code also required associations to establish a mechanism for membership promotion or demotion among its affiliated clubs, improve its athlete selection mechanism and establish a mechanism for coach registration.

Among a total of 77 associations, most hit the mark on integrity management and administration of membership, with 67 percent fulfilling the requirements, Fok said.

"However, only about 44 percent of associations achieved good governance regarding the management of coaches and umpires as well as board governance and selection of athletes, which must also be improved," he added.

Results of the review showed that 58 percent of the good governance items were "fully implemented" or "partially implemented."

The federation will review the implementation of the code by associations in early 2027 and issue a certificate of compliance to associations that meet the governance standards, said federation honorary secretary general Edgar Yang Joe-tsi.

"SF&OC will intervene, depending on the actual circumstances and the level of rectification needed, to help those associations enhance their governance practices," Yang said.

"Since the Leisure and Cultural Services Department will take into account the certificate when considering the disbursement of subventions, associations might lose their subventions if they fail to produce the certificate, [which they will not receive] until they improve their governance level and obtain confirmation from the federation."

Fok said: "Many associations have reported lacking in manpower. In order to improve their corporate governance, we will set up a group of professionals to help each [association]."

The federation will establish a mechanism so that measures can be taken to intervene when necessary to help those associations whose governance continues to fall short of the required standards.

"In the worst scenario, SF&OC may escalate the actions according to circumstances, such as issuing warnings, assigning observers to the board of directors, or taking over the management of the associations through a 'management cadre' until a satisfactory level is attained," Yang said. "We will ensure athletes' participation in competitions and training and their resources distributed remain unaffected while implementing the code of governance."

Secretary for Culture, Sports and Tourism Kevin Yeung Yun-hung said the review marked the beginning of improving the sports industry in Hong Kong.

He added: "I am happy that the sports industry is getting more professional and it is more efficient and transparent in governing."

Raymond Lo Ho-yin, chairman of the Hong Kong China Canoe Union, said: "I was also an athlete, I think that this code for selection may benefit future athletes.

"This code also improves the bargaining power of attracting more athletes to unpopular sports and I hope the government will continue to provide more resources. But amid the improving resources, governance also has to be improved."

But some, including Wilfred Ng Sau-kei, president of the Volleyball Association of Hong Kong, said they are worried that some of the board members will be forced to retire despite having a role in the sport's international governing body.

Lawmaker Adrian Ho King-hong said the new code is the first step in Hong Kong's sports reform after blunders by the Hong Kong Weightlifting and Powerlifting Association as well as the Hong Kong China Swimming Association.

"This is a very good start, and I agree two years is an appropriate time for associations to rectify their flaws," Ho added.

henry.siu@singtaonewscorp.com