Risk in professional sports webinar FINAL

Professional sports –protecting from the perilSponsored by the PwC alumni networkJune 29, 2016

www.pwc.com

PwC | Professional sports – protecting from the peril

Panelists

Glenn Ware

Principal, Anti-Corruption &

Program Integrity Leader

PwC

Vernon E. Inge, Jr.

Attorney

LeClairRyan

Robert “Reggie” McClain

Cornerback

Carolina Panthers

Jason Maloni

Senior VP & Chair, Litigation Practice

Levick Strategic Communications

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Sector characteristics and risk management

• 24/7 news cycle culture

• Lack of sector regulatory drivers

• Impact on effective risk management for:

Players

Teams

Sponsors

Representatives

3


Question 1 – which of the following is a reputational risk to teams within professional sports?

A. Off-field player misconduct

B. 24/7 new cycle that focuses intensely on professional sports

C. Perceived lack of industry-specific enforcement

D. All of the above

4


Question 1 – which of the following is a reputational risk to teams within professional sports?

A. Off-field player misconduct

B. 24/7 new cycle that focuses intensely on professional sports

C. Perceived lack of industry-specific enforcement

D. All of the above

5


Main threats facing the sports sector

The risk landscape facing

the sports sector

is evolving

Players

Executives

Sponsors

Vendors

Financial

Advisors

Legal

Counsel

Your

team

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Question 2 – what is the most important risk driver in the professional sports sector?

A. Reputational brand risk

B. The Foreign Corrupt Practices Act (FCPA)

C. League collective bargaining agreements (CBA)

D. Federal domestic violence laws

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Question 2 – what is the most important risk driver in the professional sports sector?

A. Reputational brand risk

B. The Foreign Corrupt Practices Act (FCPA)

C. League collective bargaining agreements (CBA)

D. Federal domestic violence laws

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Considerations for developing internal risk measures

Key questions for team executives when considering sports intelligence capabilities:

• Has a potential draft pick, free agent, trade candidate, or recruit done anything in thepast that could impact our brand?

• How are our fans responding to our recent decision?

• Are threatening comments being shared over social media?

• Are our trade discussions and personal data secure?

• Do we know how to respond if a serious incident occurs while a game is underway?

• How would our fan base expect us to respond to allegations of misconduct?

• Are we confident in the reliability of our third party partners?

Talent risk

assessments &

3rd party due

diligence

• Enable greater confidence in the

players you allow to represent

your brand

• Provide a more complete picture of

players both on and off-the-field

• Increase confidence in the reliability

of your business partners

Social media

monitoring

• Maintain a pulse on what your

players, staff, and fans are saying

through social media

• Identify potential threats to teams,

players, and venues

• Spot potential player

infractions early

Investigations • Obtain independent insight into

potential organizational incidents

and subsequent resolution

• Provide clarity to

complex investigations

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Question 3 – which of the following is not a possible benefit of due diligence in the sports sector?

A. Verifying professional credentialing and ethical practices of representatives, such as financial advisors or legal counsel

B. Reducing regulatory risk exposure

C. Collecting risk information that allows teams to target players more aligned with their specific code of conduct/culture

D. Reducing third-party risk

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Question 3 – which of the following is not a possible benefit of due diligence in the sports sector?

A. Verifying professional credentialing and ethical practices of representatives, such as financial advisors or legal counsel

B. Reducing regulatory risk exposure

C. Collecting risk information that allows teams to target players more aligned with their specific code of conduct/culture

D. Reducing third-party risk

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Key legal issues in the sports sector

01 Constructing progressive ethics programs

and codes of conduct

02Proactive vs. reactive

responses to crisis

03 Brand risk stemming from

personnel transgressions

04Deploying intelligence-based solutions

to mitigate risk and respond to crisis

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Question 4 – which of the following are intended goals of an ethics program/code of conduct?

A. Align personnel behavior with organizational culture

B. Proactively reduce the risk of brand damage following a high-profile incident

C. Enable more confidence in organizational management and business decisions

D. All of the above

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Question 4 – which of the following are intended goals of an ethics program/code of conduct?

A. Align personnel behavior with organizational culture

B. Proactively reduce the risk of brand damage following a high-profile incident

C. Enable more confidence in organizational management and business decisions

D. All of the above

14


The future of risk in the sports sector

• What is the next big risk issue in the sports sector?

• Do you see any regulations entering the sector?

• If you could be league commissioner for a day and could make one change, what would it be?

1 Media coverage

2 Regulatory drivers

3 Threat landscape

4 Ethics programs

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Question 5 – how can sports teams best mitigate the risk of player misconduct?

A. Sports teams have no role in mitigating the risk of off-field misconduct

B. Constructing a formal AML compliance architecture

C. Incorporating more robust ethics programs/codes of conduct for players, executives, and business partners

D. Deploying more physical site security

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Question 5 – how can sports teams best mitigate the risk of player misconduct?

A. Sports teams have no role in mitigating the risk of off-field misconduct

B. Constructing a formal AML compliance architecture

C. Incorporating more robust ethics programs/codes of conduct for players, executives, and business partners

D. Deploying more physical site security

17


PwC Sports Intelligence Contacts

Glenn WarePrincipal, PwC

Telephone +1-202-527-4234

[email protected]

Christopher SanchezDirector, PwC

Telephone +1-504-424-8755

[email protected]

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© 2016 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries

or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate

legal entity. Please see www.pwc.com/structure for further details.

Risk in professional sports webinar FINAL

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