GT Verdict: Sport is Built on Fair Play—But What About Finance?

In sports, we generally assume that everyone plays by the rules. This trust is a natural part of the game, much like the fact that everyone on the field knows the regulations. If someone breaks them, a "striped authority" is there to set them straight immediately. However, the world of finance operates differently. Yet, there are still those who rely more on trust than on a transparent system.

And that is a mistake. At the first sign of trouble, they quickly discover that no one actually set clear rules in the first place.

This was one of the central themes of the professional seminar "Transparent Finance in Sport: How to Protect Reputation and the Personal Liability of Statutory Officers," held last week in Prague. The interest shown by nearly 80 sports unions and associations proves that this topic resonates deeply within the community.

I want to believe—and my experience over recent years confirms it—that Czech sport feels the need to move toward greater transparency, control, and professionalization in financial management. To be fair to the associations, I must emphasize that most of the problems we see today do not stem from an intent to bypass the law. They stem from an absence of a system.

A Recipe for Disaster

Historically, the sporting environment functioned on personal ties and mutual trust. But today’s reality is different. Associations manage multi-million budgets, draw on public subsidies, and face growing demands for oversight and accountability. The combination of "big money" and "informal processes" is the perfect recipe for disaster.

Practical experience is surprisingly consistent in this regard. The same scenarios repeat: a single payment card for an entire team, cash transactions without receipts, invoices without approval, and "urgent" payments made outside the standard process. This isn't a failure of individuals; it is a failure of a setup that allows such situations to occur.

The moment it becomes unclear who approves what, when expenses aren't traceable, and when one person orders, approves, and pays, it is no longer a question of if, but when a problem will arise. And when it does, it rarely stops at a simple accounting error. It leads to financial losses, the mandatory return of subsidies, and reputational damage. Increasingly, it also leads to the personal liability of statutory bodies.

From Trust to Transparency

This is the moment when "trust" rapidly turns into a liability. Yet, the solution is not a matter of complex transformations or expensive projects. It is a change in mindset.

The basic principles are surprisingly simple:

• Segregate roles.

• Establish approval workflows.

• Keep data and documents under control (ideally digitally and in real-time).

A good illustration is our experience with the Czech Tennis Association (CTS). In the past, the association went through a situation where missing processes, non-existent control mechanisms, and untraceable documents led to a police intervention and a fundamental loss of public trust.

Together with my colleagues from Grant Thornton, we helped the association set up a new system and—crucially—change their approach. Digitalization, multi-level approvals, and clearly defined responsibilities provided the missing oversight and control. Most importantly, it brought peace of mind to the management, partners, and the athletes themselves.

The Major Realization

Let’s return to the conference and end on a positive note. Perhaps the most interesting takeaway from the entire debate was not how much is wrong, but the fact that the sporting world is beginning to realize it. The willingness to discuss, share experiences, and seek solutions across different associations shows a major awakening.

CHANGE SHOULDN'T BEGIN ONLY AFTER A CRISIS.

This text was translated by AI.