Editorial | Hong Kong’s move to settle rows in sport a clear winner

Bid by Hong Kong to develop a clear and effective mechanism for resolving sports disputes is gathering pace. The starting gun was sounded in the chief executive’s October policy address, with a pledge to explore the creation of a centralised system for athletes, sports associations, sponsors and broadcasters.

An advisory committee held its first meeting last month. Draft model arbitration rules are expected by June and a pilot scheme is to launch later in the year. This significant development can help Hong Kong achieve two key objectives – to become an international centre for dispute resolution, while developing a vibrant sports culture.

The growth of the sport sector globally and its increasing commercialisation has led to more diverse and complex disputes. Disagreements might concern events, disciplinary matters, sponsorship or broadcasting. This trend has led to the creation of institutions to settle disputes fairly. The leading international body is the Court of Arbitration for Sport, based in Switzerland.

Such organisations have been developed in Japan, Malaysia, Thailand, mainland China, and other parts of the world. But Hong Kong lacks a dedicated mechanism. The city is lagging behind.

The pilot scheme is expected to operate for two or three years. An arbitration organisation with close links to the sports sector will be appointed to run it. Sports associations that mostly deal with disputes internally will not be required to participate. But they should do so. It is in their long-term interests.

Embracing a system for impartial, independent and expeditious resolution of disputes will improve governance and enhance their integrity. Including arbitration and mediation clauses in association contracts will be critical to the new scheme’s success. The initial focus will be on the use of arbitration for resolution of commercial disputes.