Legitimizing amateur status using financial reports: Victorian Football League clubs, 1909–1912

Abstract

It is generally accepted by historians that in the early twentieth century, clubs in Australian Football's Victorian Football League (VFL) made payments to 'amateur' players prior to the legalization of professionalism and that such payments were not disclosed in club financial reports. Previously, financial reports have not been used to support or refute such claims. This paper presents findings from a detailed examination of the financial reports and other records of six of the 10 VFL clubs for the years surrounding the legalization of professional football in 1911 (1909-1912). Prior to 1911, most clubs engaged in fraudulent financial reporting practices by misrepresenting player payments as other forms of permitted expenditures, thus concealing prohibited remunerative payments to players within their financial reports. Using isomorphic influences to explain the reasons for this misrepresentation, we conclude that the financial reports were used to legitimate the majority of clubs as amateur organizations. Competing isomorphic pressures, particularly conflicting coercive factors related to the VFL's prohibition on player payments and normative pressures associated with increasing professionalism amongst players, contributed to clubs engaging in fraudulent financial reporting.

Social responsibility by Australian football clubs in the 1890s

“…Historians of Australian football have rather focused almost extensively on individual players, team scores and premierships won or lost. This attention on team success is to the detriment of individual club's social contribution, particularly in the late nineteenth century (Halabi, 2016). Indeed, the importance of football to the social history of colonial Australia cannot be told without an account of this unusual game (Pascoe, 2003).…”

“…In 1886, (Sportsman, 8 September 1886, p. 8). (Halabi et al, 2016). Empirically, AGMs have shown to be a useful forum for promoting transparency and upholding accountability (Carrington and Johed, 2007).…”

“…The results section is presented according to the SR contribution made to the individuals or groups whose support was needed for the club to fulfil its objectives (Freeman, 1984). As formal payments to players were outlawed in this competition (see Halabi et al, 2016), prizes were the way clubs looked after their "labour". Prizes were many, and given to the best players, the leading goal kicker, or the most 'regular attention to training' (Prahran Telegraph, 1 April 1899, p. 5).…”

“…Generally football clubs appeared more community focused than businesses. Businesses extended their SR to the wider community in the early 1900s (Hoffman, 2007) other publically available information that does not extend to the 1890's (Halabi, et al, 2016) such findings should be more prominently addressed when club histories are (re)-…”

The annual general meeting for Australian football clubs: An accountability and entertainment event

“…In the contemporary sense, there has been some research linking the literature on accounting and various forms of football such as rugby and soccer (Andon and Free, 2014; Baxter et al, 2019; Cooper and Johnston, 2012). Historical studies also demonstrate the important role that accounting and finances played in Australia’s indigenous code (Halabi et al, 2012, 2016). These studies, which were based in the early twentieth century, have uncovered how accounting reports can be used to hide payments to players and in what way financial reports can challenge long-held myths.…”