Finding nexus between sport sponsorship transaction and corporate governance principles, namely (accountability and transparency)
In South Africa today those who lead sport are facing increasing scrutiny which has inevitably resulted in questioning governance practices. The transition of many sports from predominantly volunteer administered organizations anchored in an amateur ethos, to professionally managed entities catering to a more sophisticated market place has created unique challenges for the governance of sport sponsorship. This evolution gives rise to possible conceptual linkage between sport sponsorship and corporate governance or none thereof. This study focuses on the ABSA-Premier Soccer League (PSL) sponsorship transaction as a case study to explore this linkage. The research is aimed at finding the nexus between sport sponsorship and corporate governance principles, namely accountability and transparency in the conclusion of this transaction. The research consists of four phases; literature review which provides a detailed analysis of all primary and secondary material available on this topic. The second phase is a qualitative case study research methodology which comprises of in-depth interviews with targeted stakeholders. The third part presents the research findings and discussion section, and lastly the way forward through reflections and recommendations including highlighting potential future research areas. This work is timely when there has been generally a heightened evolution in sport sponsorship and its focus was to explore the nexus and compliance to the founding principles of the organizations (laws of governance). Factually, good corporate governance aims at ensuring a higher degree of transparency in an organization by encouraging full disclosure of transactions in the company accounts as well as accountability. Academics have been exploring the notion of sports sponsorship and corporate governance with much of the debates grounded on understanding its commercial value. The focus for this study is on the conceptual nexus or non-thereof, between sponsorship and corporate governance. Information was collected through in-depth and experience interviews, documented reviews and analysis (such as the review and analysis of the constitution of the South Africa football Association, PSL, financial/banking sector policy regulations, South African Sports Act, corporate governance reports, annual reports, scholarly journals, academic books, conference papers and Parliamentary Monitoring Group documents etc. to mention but a few.