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The Guardian
02-04-2025
- Business
- The Guardian
Minister seeks inquiry into British Basketball's ‘potentially criminal' deal
The sports minister, Stephanie Peacock, has asked the government body responsible for elite funding, UK Sport, to investigate allegations of unlawful tender made against the British Basketball Federation. On Wednesday, the BBF signed a 15-year agreement with an American consortium to operate a new men's professional league from 2026. The existing nine Super League Basketball clubs are deeply unhappy with the BBF's plans for the sport. The Sheffield Sharks owner, Vaughn Millette, wrote to the government on their behalf in February after the BBF had entered exclusive negotiations with Marshall Glickman's GBB League Ltd (GBBL), to outline their concerns. In a reply seen by the Guardian, Peacock describes the issues raised in the letter as varying between 'serious' and 'potentially criminal' and that Department for Culture Media and Sport officials will ask UK Sport to investigate. The allegations are understood to revolve around the legality of the BBF's tender process for operating the new league. SLB had been expected to make a bid to run the league itself, but club sources say they were advised not to on legal grounds. 'Some of the matters you raise in your letter are serious and some are potentially criminal in nature,' Peacock wrote in response to the clubs' concerns. 'The Code for Sports Governance sets out the mandatory governance requirements for organisations receiving public funding from UK Sport or Sport England. DCMS officials will raise the concerns you have set out to UK Sport and Sport England to ensure all of the processes under the Code are being complied with.' The BBF confirmed the new deal with Glickman's group on Wednesday morning, igniting a civil war in the sport that could jeopardise some of the £4.75m in public money basketball receives each year from UK Sport and Sport England, which are responsible for elite and grassroots funding respectively. In response Super League Basketball released a statement in which it threatened to set up a breakaway league in defiance of the governing body, and accused the BBF of running an illegal tender process. 'The new league operator proposed by the British Basketball Federation has no clubs, fans, arenas or expertise to build the infrastructure and future that British basketball and its communities deserve,' an SLB spokesperson said. 'Super League Basketball (SLB) has been clear from the outset that the tender process undertaken by the British Basketball Federation (BBF) was illegal and unjust. 'SLB would like to make clear that it does not legally require the BBF licence to continue to operate the professional basketball league in Britain. SLB clubs and their owners have worked tirelessly and invested well over £15m this season alone to create a sustainable future for professional basketball in Britain, its fans and the communities it serves. All nine partner clubs are united in the vision to continue operating a stable and viable league for the 2025-26 SLB season and beyond.' The British Basketball Federation declined to respond or comment, but has consistently denied claims it has acted improperly and views the backlash as sour grapes from clubs who will no longer be in control of the league. In announcing the deal, the BBF chair, Chris Grant, said: 'We're delighted to welcome GBBL to the British Basketball family. The award of this licence not only heralds the biggest ever level of financial investment into the league, it also brings the knowhow, connections and vision to excite those who already love the game and to attract new fans and participants. Sign up to The Recap The best of our sports journalism from the past seven days and a heads-up on the weekend's action after newsletter promotion 'The GB women's and men's teams have both qualified for Fiba EuroBasket this summer, and our progress on the court will be boosted through the LA Olympic Cycle funding recently announced by UK Sport. To have booming professional leagues which enable our top players to compete in front of British fans, week in and week out, is just what we need in order to fulfil British Basketball's huge potential.' In her letter to the clubs, Peacock suggested appointing an independent mediator if there was insufficient evidence to warrant a criminal investigation into the agreement. 'Should none of the issues you raised be an issue for the police, and should UK Sport and Sport England set out that they do not have subsequent concerns about the BBF's governance, DCMS cannot get involved in commercial disputes between two private parties where there is no criminality and where there has been no misuse of public funds,' the sports minister wrote. 'Were this to be the case and no agreement between the SLB and BBF is reached, then we suggest that both parties enter independent arbitration. We hope that everyone would agree that the survival of a sustainable professional league is the priority and best outcome for the future of basketball in this country, from the elite level to the grassroots game.'
The Guardian
28-02-2025
- Business
- The Guardian
RFL warns clubs that planned coup will financially cripple the sport
The Rugby Football League has warned clubs that an attempt to sideline the sport's governing body and replace its chair could have 'catastrophic financial consequences' after taking legal advice to stave off a planned revolt. Rugby league's professional clubs will assemble in March to consider a proposal put forward by the Super League club Leigh Leopards and Championship side Batley Bulldogs, which calls for the immediate removal of Simon Johnson, after a purported loss of confidence in the direction of the governing body. They also want to lead a drive to appoint a new external implementation committee that would review the governance of the sport, with the clubs rather than the RFL board of directors selecting who sits on the committee. The intention of the dissenting clubs is to bring back Johnson's predecessor Nigel Wood as chair of that panel and as the interim chair of the governing body – despite him being paid a severance package of £300,000 to leave the same role in 2018. Wood is now the chairman of the Championship club Bradford Bulls and, in documents sent to clubs this week that have been seen by the Guardian, the RFL has responded strongly. It has sought legal advice from leading international law firm Pinsents, and insists any such move to bring back Wood would fall foul of its own constitution, as well as Sport England's Code for Sports Governance. The RFL told clubs that the appointment of Wood or any individual currently in position at a competing club would amount to 'multiple breaches' of the sport's governance requirements and could lead to severe financial ramifications. They also allegeIt also claims that any attempt to appoint Wood would be 'impossible' under the sport's Articles of Association and such a move would immediately be revoked. But perhaps most tellingly, clubs were warned that, if such a move succeeded, it would lead to major financial implications for a sport already wrestling with a changing monetary landscape. Failure to adhere to Sport England's code, according to the RFL, could put at risk the £3.4m funding rugby league currently receives every year, with talks ongoing on securing more funding over the next 12 months. And the RFL also stressed that it would potentially compromise the terms of a long-term loan arrangement with the Department for Digital, Culture, Media and Sport secured during the pandemic. The sport currently owes around £4.5m and if that money was liable to be repaid immediately, coupled with the loss of Sport England funding, it would result in a black hole of more than £7m, it claimed. The governing body told clubs: 'This will potentially have catastrophic financial consequences for the RFL, its members and stakeholders.' It subsequently described the proposals as 'unlawful' and 'unreasonable' in the view of its legal counsel, and said it is under no obligation to put the planned proposals forward before members. Johnson's immediate removal as chair is understood to have support, irrespective of whether or not the plans to bring back Wood succeed. A counter-proposal by the RFL suggesting Johnson will step down before the end of 2025 will be heard at the same meeting with the RFL agreeing to a strategic review of the sport: but only with the governing body's input into the appointment of the relevant individuals. However, the clubs driving the proposals – led by Leigh's Derek Beaumont and Leeds's Gary Hetherington – want to be solely responsible for appointing any committee tasked with reviewing rugby league's governance. Beaumont, in further emails seen by the Guardian, wrote to clubs on Thursday insisting the RFL was 'trying to alarm' members by warning of grave financial consequences. In a statement, the RFL said it had shared supporting papers for its spring council meeting according to process, adding: 'New papers include an explanation, from the RFL Board, of the submission of a board resolution to be considered before the four member resolutions, following legal advice on the potential impact of the member resolutions. 'This paper explains why the board has submitted its own resolutions, which aim to demonstrate that the Board has listened to the concerns of blubs and is willing to enable discussion of changes, provided it is in accordance with good governance and ensures smooth and stable leadership. 'The Board and Executive must always remain fully focused on strong governance and the future health of the sport and will continue to listen to and engage with members and stakeholders.' Leigh Leopards, Batley Bulldogs and Leeds Rhinos have been approached for comment.
