FORENSIC ECONOMIC EXPERTISE AS A WAY TO PROTECT THE RIGHTS AND INTERESTS OF ATHLETES Project Proposal Prepared by post-graduate student F. Pivovarov PLAN OF THE PROJECT PROPOSAL 1. INTRODUCTION 2. TABLE OF CONTENTS OF THE THESIS 3. DEFINITIONS OF THE KEY TERMS 4. BACKGROUND OF THE STUDY 5. OBJECT, SUBJECT, PURPOSE AND TARGETS OF THE PROJECT PROPOSAL 6. SPORTS DISPUTES 7. MODERN PRACTICE OF DISPUTES IN PROFESSIONAL SPORT RESOLUTION (PROTECTION OF ATHLETE’S RIGHTS) 8. EXPERT SITUATIONS AND FORENSIC ECONOMIC EXAMINATION 9. METHODOLOGICAL ASPECTS OF THE FORENSIC ECONOMICS IN THE FOREIGN LITERATURE INTRODUCTION INTO THE STUDY TABLE OF CONTENTS OF THE THESIS CHAPTER 1. GENERAL PROVISIONS \ THEORETICAL ASPECTS OF RIGHTS AND LEGAL INTERESTS OF ATHLETES AND COACHES, THEIR NON-COMPLIANCE §1.1. Specificity and difference between the rights and legitimate interests of an athlete and a coach (analysis of the property interests of athletes and coaches) §1.2. Types of violations of the rights and legitimate interests of athletes (classification of disputes in professional and elite sports) §1.3. Types \ varieties of forensic examinations assigned as a way to protect the rights of athletes and coaches CHAPTER 2. ORGANIZATIONAL AND METHODOLOGICAL BASIS OF FORENSIC ECONOMIC EXPERTISE ASSIGNED IN CASES ON PROTECTING THE RIGHTS AND LEGAL INTERESTS OF ATHLETES AND COACHES §2.1. Features of the appointment of forensic economic examinations in cases of protection of the rights and legitimate interests of athletes and coaches §2.2. Varieties of expert situations depending on the classification of disputes arising with the participation of athletes and coaches (taking into account the generalized features of resolving sports disputes) §2.3. Methodological support of forensic economic examinations in cases of protection of the rights and legitimate interests of athletes and coaches §2.4. Organizational support of the expertise appointed within the framework of the activities of the national center for sports arbitration (and other sports arbitration courts) A considerable number of private law disputes occurring in the field of professional sports are related to cases of nonpayment by the employer of wages and other types of compulsory deductions assigned by law to athletes as it is noted by the Supreme Court of the Russian Federation in the review of practice Precondition №3 The field of professional sports has undergone significant changes and has become more "commercialized" Precondition №2 Precondition №1 BACKGROUND OF THE STUDY With a significant number of civil legal disputes arising from violations of the rights of athletes, there are also serious offenses in the field of sports, one way or another affecting the rights and legitimate interests of athletes There is a need for the production of economic examinations, the research of which can not only make it possible to make a qualitative analysis of the financial condition of sports organizations, but also reveal the presence of facts that will subsequently qualify the act as a criminal. OBJECT, SUBJECT, PURPOSE AND TARGETS of the PROJECT PROPOSAL The object: • • the scientific and methodological literature, expert practice The subject • • the regularities of the formation of the theoretical foundations the application of methodological approaches in the conduct of forensic economic examination in cases of protection of the rights of athletes and coaches, appointed in criminal and civil proceedings. The purpose is to develop an adequate methodic of forensic economic examination considering the prominent features of the subjects involved in sports disputes. Determination of the meaning and essence of the rights and legitimate interests of an athlete and a coach, establish their differentiation Determination of the meaning and essence of types of sports disputes involving the rights and legitimate interests of athletes Revelation of the classification of forensic economic expertise and establish the place of forensic financial expertise, forensic accounting expertise and forensic tax expertise conducted in cases of sports disputes Analysis of the current characteristics of the methodological support of forensic financial expertise, forensic accounting expertise and forensic tax expertise conducted in cases of sports disputes Suggestion of the most relevant approach to conducting expert research Determination and characterization of the most common expert situations depending on the classification of disputes arising with the participation of athletes and coaches DEFINITIONS OF THE KEY TERMS Forensic economics: economic theories and methods Legal procedures Forensic economics covers, but is not limited to: •the calculation of pecuniary damages in personal and commercial litigation; •the analysis of liability, such as the statistical analysis of discrimination, the analysis of market power in antitrust disputes, and fraud detection; and, •other matters subject to legal review, such as public policy analysis, and business, property, and asset valuation. Forensic accounting Financial forensic engagements may fall into several categories. For example: •Economic damages calculations, whether suffered through tort or breach of contract; •Post-acquisition disputes such as earnouts* or breaches of warranties; •Bankruptcy, insolvency, and reorganization; •Securities fraud; •Tax fraud; •Money laundering; •Business valuation; •Computer forensics/e-discovery. *A provision written into some financial transactions whereby the seller of a business will receive additional payments based on the future performance of the business sold Forensic financialeconomic examination Forensic accounting examination Subject of the examination: Subject of the examination: 1. circumstances of the case established in relation to the financial activities of the organization, 1. circumstances of the case, investigated and established in legal proceedings 2. factual data characterizing the formation and use of income and funds in the organization, 3. negative trends in these processes that: • • influence the indicators of economic activity contributed to the commission of offenses related to non-compliance with financial discipline. 2. using special knowledge in the field of accounting, 3. based on the study of the patterns of business transactions on: • • the state of the assets obligations of the organization 4. the compliance of their documentary reflection with the requirements of the legislation. Special economic knowledge ECONOMIC DISCIPLINES Bookkeeping and tax accounting Financial analysis Economics and finance SPECIAL ECONOMIC KNOWLEDGE (in forensic science theory) Credit NORMS OF LEGISLATION Accounting Banking Taxation Credit Budget Finances competitive disputes disputes arising from the training relationship disputes arising from the relationship of membership in a sports organization disputes arising in connection with an anti-doping rule violation. disputes arising in connection with violation of disciplinary and ethical rules civil disputes labor disputes SPORTS DISPUTES special characteristics of a sport dispute: • a sport dispute arises from a narrow group of relations that develop between the subjects of sports law (only when a sports competition is held as a complex of interrelated procedures or stages) • a sport dispute is resolved by a special category of authorized bodies (panels of judges, special temporary chambers of sports arbitration courts, etc.)" MODERN PRACTICE OF DISPUTES IN PROFESSIONAL SPORT RESOLUTION (possibility of special knowledge implication) PRE-TRIAL DISPUTE RESOLUTION Consider disputes on the basis of committees of sports organizations Should not be considered as an appropriate way to protect the rights of athletes Alternative dispute resolution Most sport disputes are subject to arbitration according to the law Include national and international arbitration professional in relation to the scope of the dispute in question Courts of general jurisdiction Cancellation of an arbitral award not professional in relation to the scope of the dispute in question EXPERT SITUATIONS AND FORENSIC ECONOMIC EXAMINATION CASE №1. LABOR DISPUTES • claims of athletes, coaches against employers for the collection of arrears in the payment of wages and other payments due to the employee, • monetary compensation for violation of the established deadline for their payment • recovery of compensation for moral damage. • demands for reinstatement at work and the recovery of average earnings during the forced absence, • recognition as illegal and cancellation of orders to bring to disciplinary responsibility, and other requirements. FORENSIC ACCOUNTING EXAMINATION OF LABOR AND WAGE OPERATIONS • Verification of the correctness and validity of the calculation of the wage payment • Verification of the documental validity of deductions from employees' wages • calculations of average earnings (e.g. during periods of absence) • Etc. CASE №2. TAX EVASION (FAILURE TO DISCHARGE TAX AGENT'S DUTIES) • claims of athletes, coaches against employers for the collection of arrears in the payment of wages and other payments due to the employee, • monetary compensation for violation of the established deadline for their payment • recovery of compensation for moral damage. • demands for reinstatement at work and the recovery of average earnings during the forced absence, • recognition as illegal and cancellation of orders to bring to disciplinary responsibility, and other requirements. FORENSIC TAX EXAMINATION • Verification of the compliance of the correctness and completeness of the calculation of taxes and fees with the requirements of tax legislation • Identification of violations of the requirements of tax legislation • Determination of documentary evidence of a violation of tax legislation Features of tax regulation in the professional sport Income formation Costs formation Tax regime CASE №3. FRAUD AND MISAPPROPRIATION OF BUDGETARY FUNDS • legislation on professional sports predetermined significant financing of this area from the both the federal and regional budgets to provide the cash cover for the sports events • construction of large sports facilities • overestimated cost and inappropriate spending of the construction • large embezzlement of funds 1.Determining the value of: - property rights; - lease rights; - rights to use 1.Analysis of costs purposes Forensic accounting examination of operations of the budget funds utilization 2.Analysis of budget classification codes 2.Determining the market value of construction materials Forensic appraisal 3.Analysis of budgetary cash flow 3.Evaluation of improvements (buildings, structures, etc.) using several approaches CASE №4. COERCION TO STRIKE A BARGAIN OR REFUSAL TO COMPLETE IT • A large number of civil law contracts are concluded: purchase and sale, rent, transportation, storage, insurance, etc. • Civil law contracts in the field of sports and physical education are not only concluded, changed and terminated, but also invalidated. • a coercion to strike a bargain or refusal to complete it is a consequence of the interest of a potential employer in lowering the price of the contract concluded with the promising athlete by providing the latter with means of coercion. FORENSIC FINANCIAL-ECONOMIC EXAMINATION I STAGE: When analyzing the compliance of the terms of the transactions with market conditions, it is recommended to take into account all the essential conditions of the transactions that are related to • the execution of the transaction (time, place, conditions for the transfer) • the payment procedure (time, method, payment guarantees), • the actual circumstances of such execution (compliance with deadlines for performance of obligations and payment). II STAGE: It is recommended to establish transactions, the terms of which go beyond the usual terms of the common contract, both at the price of the contract and under other conditions. When researching transactions, it is recommended to conduct a research of each transaction for compliance with its terms and conditions of the market. In this case, it is advisable to investigate: • • • • subject of the contract; agreement conditions; the market value of the object of the transaction under the contract; the price of the contract; conditions and order of payment. METHODOLOGICAL ASPECTS OF THE FORENSIC ECONOMICS IN THE FOREIGN LITERATURE Economic research applied to legal matters in personal injury lawsuits financial assessment (of so-called indexes) of injury damages (e.g. profits before or after the person get hurt) economic indexes that are essential for calculating damages in wrongful death lawsuits The forensic economist extends the possibilities of analysis in litigation by offering a prediction of the Plaintiffs likely future situation and monetary damages based on the comparison of the observed features of similarly situated persons. cost estimation of an increasing income an application procedure of the discounts in calculations of the cost estimate Questions?
