Sports Law 2025

AUSTRALIA Law and Practice Contributed by: Sven Burchartz and Jessica Bell, Kalus Kenny Intelex

6.3 Challenging Sports Governing Bodies Sports governing bodies are able to provide for sporting and financial sanctions (including sus - pensions and monetary penalties) in their own rules, and regularly impose financial and other sanctions on athletes or clubs who fail to comply with the rules and associated codes of conduct. Parties may challenge decisions made by a sports governing body in certain circumstances, including where the parties did not act unreason - ably or acted in such a way that would offend natural justice. Australian courts may intervene in a dispute of this kind where a party contends that the governing body has breached or failed to follow one of its own rules. The particular arrangements in place between an athlete and a sporting club or team will deter - mine whether that athlete is, in fact, an employee and therefore covered by Australia’s strict frame - work of employment law. Given that the express terms of athlete contracts often include promises to play the sport when - ever and wherever directed by the club, wear the club uniform, attend training, and follow the instructions of the coach and team managers – an employer-employee relationship exists in most circumstances. Salary Caps Many of the major sporting codes in Australia have implemented salary caps, such as the AFL, National Rugby League (NRL) and the Men’s 7. Employment 7.1 Sports-Related Employment Contracts Employment

Generally, Australian courts will only get involved in sporting disputes if there has been an allega - tion that natural justice has been denied, or if there is a contractual dispute to be determined – for example, if an athlete alleges that a club has breached its own rules, as set out in the club’s governing documents. 6.2 ADR (Including Arbitration) Australia’s Civil Dispute Resolution Act (2011) (Civil Dispute Resolution Act), aims to ensure that, as far as possible, people take genuine steps to resolve disputes before certain civil proceedings are instituted. The Civil Dispute Resolution Act provides that an applicant who institutes civil proceedings in an eligible Austral - ian court must file “genuine steps statement” (a statement outlining the steps taken by the appli - cant to resolve the dispute prior to litigation or the reasons why no such steps were taken) at the time of filing the application. For the purposes of the Civil Dispute Resolu - tion Act, “genuine steps” include considering whether the dispute could be resolved by a pro - cess facilitated by another person, including an alternative dispute resolution process such as mediation. Alternative dispute resolution processes, includ - ing mediation and arbitration, are often utilised in the sports industry in Australia. For example, early in 2020, one of Australia’s largest free-to- air television channels, Channel 7, was in dis - pute with Cricket Australia in relation to its crick - et broadcasting rights. In an effort to resolve the dispute, Channel 7 made an application to the leading Australian arbitration body, the Austral - ian Chamber for International and Commercial Arbitration (ACICA) seeking a ruling on the dis - pute.

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