The explicit consideration of the role of governance in sport is only very recently receiving both popular and academic attention although the need for improved governance processes has at times been critical. The process of governance in sport generally and the AFL clubs in particular is a complex issue.
In each elite sporting club, the day to day management is usually separated from the board or private owner and in the stock exchange listed franchises in the UK and US, ownership is remote in the hands of professional investors seeking attractive returns. In the AFL clubs, a similar separation occurs between management and the usually voluntary and independent board. However, the ownership of the club is less structured than formal shareholdings and is vested in the hands of members who pay a fee which gives certain entitlements including in most circumstances, voting rights. It is this fragmented membership structure which has allowed the governance of clubs to proceed relatively free of the type of shareholder activism occurring in the business arena.