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?