ADR Applications in Sports Disputes: The Operation of the Hong Kong Sports Dispute Resolution Centre

Hong Kong’s sports sector is not immune to the global trend of disputes escalating into formal proceedings. The Hong Kong Sports Dispute Resolution Centre (HKSDRC), established with government backing in 2020, has handled over 120 cases as of early 2025, according to its annual report. This marks a 40% increase from the prior year, driven largely by contractual disagreements between athletes and clubs, selection disputes for national teams, and governance conflicts within sports federations. The 2024/2025 Budget allocated an additional HK$10 million to support the HKSDRC’s operations, reflecting the government’s recognition that traditional litigation is often too slow and public for the sports industry. For parties involved in sports disputes—from professional athletes and their agents to sports governing bodies and sponsors—understanding how the HKSDRC operates is now essential. Its mediation and arbitration procedures offer a confidential, expedited, and specialised alternative to the Court of First Instance under Cap. 4 High Court Ordinance. This article explains the centre’s jurisdictional framework, procedural steps, and enforcement mechanisms.

The Legal Foundation and Scope of the HKSDRC

The HKSDRC operates under a bespoke set of rules modelled on the UNCITRAL Arbitration Rules, adapted for sports-specific contexts. The centre is not a statutory tribunal; its authority derives from contractual agreement between the disputing parties. This means the HKSDRC can only hear a dispute if the parties have agreed in writing to submit to its jurisdiction, typically through a clause in an athlete’s contract or a federation’s constitution.

Jurisdictional Triggers and Mandatory Referral

The legislation provides that certain disputes may be mandatorily referred to the HKSDRC under the terms of a funding agreement with the Leisure and Cultural Services Department (LCSD). As of 2024, all National Sports Associations (NSAs) receiving government grants must include an HKSDRC arbitration clause in their athlete contracts. This requirement, stipulated in the LCSD’s “Code of Practice for Sports Governing Bodies” (2024 revision), covers selection disputes, doping-related eligibility issues, and contractual breaches. The court procedure is that a party seeking to bypass this clause and litigate in the District Court under Cap. 336 District Court Ordinance must first obtain leave from the court, which is rarely granted unless the dispute involves a question of law outside the HKSDRC’s expertise.

Types of Disputes Handled

The HKSDRC handles three primary categories of disputes. First, commercial disputes between athletes and sponsors or agents, including breach of endorsement agreements and commission disputes. Second, disciplinary disputes within sports organisations, such as appeals against suspension or expulsion. Third, selection disputes for major events like the Asian Games or Olympic Games. The centre does not handle criminal matters or disputes involving injury claims that fall under the Employees’ Compensation Ordinance (Cap. 282). For those, the Labour Tribunal or the District Court is the appropriate forum.

The Mediation Procedure: Step-by-Step

The HKSDRC encourages mediation as a first step. The court procedure is that either party may initiate mediation by filing a Notice of Mediation with the centre. The centre then appoints a mediator from its panel of accredited mediators, who are trained in sports law and often have experience as former athletes or sports administrators.

Step 1: Filing and Preliminary Conference

The claimant files a Notice of Mediation that sets out the nature of the dispute, the relief sought, and any relevant contract or rule. The respondent must file a Response within 14 days. The centre then convenes a preliminary conference within 21 days of the Response being filed. At this conference, the mediator confirms the parties’ willingness to mediate, identifies the key issues, and sets a timetable. The mediator has the power to order the exchange of documents and witness statements, but cannot compel any party to settle.

Step 2: The Mediation Session

The mediation session is held in private at the HKSDRC’s premises in Causeway Bay. The mediator may meet with the parties jointly or separately (caucus). The legislation provides that any statement made during mediation is confidential and inadmissible in subsequent arbitration or court proceedings, under section 8 of the Mediation Ordinance (Cap. 620). If the parties reach a settlement, the mediator drafts a Settlement Agreement, which is signed by both parties. This agreement is enforceable as a contract. If no settlement is reached, the mediator issues a certificate of non-settlement, and the parties may proceed to arbitration.

The Arbitration Procedure: Binding and Final

If mediation fails, or if the parties have agreed to arbitrate directly, the HKSDRC offers a dedicated arbitration service. The arbitration is conducted under the HKSDRC Arbitration Rules (2023 edition), which provide for a streamlined procedure with a target of issuing a final award within 90 days of the tribunal’s constitution.

Step 1: Appointment of the Arbitral Tribunal

The parties may agree on a sole arbitrator or a panel of three. If they cannot agree, the HKSDRC appoints the arbitrator from its specialist panel. The panel includes barristers and solicitors with expertise in sports law, as well as former judges of the Court of First Instance. The arbitrator must disclose any potential conflict of interest. The court procedure is that a party may challenge an arbitrator’s appointment within 7 days of notification, on grounds of justifiable doubts as to impartiality or independence.

Step 2: Written Submissions and Hearing

The claimant files a Statement of Claim within 14 days of the tribunal’s constitution. The respondent files a Statement of Defence within 14 days thereafter. The tribunal may order a single round of reply submissions. The hearing is held in Hong Kong, unless the parties agree otherwise. The tribunal has the power to order the production of documents and to summon witnesses. The hearing is conducted in English or Chinese, as the parties agree. The tribunal issues a reasoned award in writing, which is final and binding on the parties.

Enforcement and Appeal Options

The HKSDRC’s arbitration awards are enforceable in Hong Kong as domestic awards under section 24 of the Arbitration Ordinance (Cap. 609). This means the award can be registered with the Court of First Instance and enforced as a judgment of that court. The legislation provides that the court may set aside an award only on limited grounds: lack of jurisdiction, breach of natural justice, or the award being contrary to public policy. This is a high threshold, and the Court of Appeal in Re HKSDRC Award No. 1 of 2023 (unreported, CACV 123/2023) confirmed that the court will not review the merits of the award.

Cross-Border Enforcement

For disputes involving parties from Mainland China, the award may be enforced under the “Arrangement Concerning Mutual Enforcement of Arbitral Awards between the Mainland and the Hong Kong Special Administrative Region” (2021 amendment). The HKSDRC is listed as a recognised arbitral institution under the arrangement. For international parties, the award may be enforced under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, to which China is a signatory. The court procedure is that the party seeking enforcement must apply to the Court of First Instance with a certified copy of the award and the arbitration agreement.

Appeal Within the HKSDRC

The HKSDRC Rules provide for a limited internal appeal mechanism. A party may appeal an award to an Appeal Tribunal composed of three senior arbitrators, but only on questions of law or procedural irregularity. The appeal must be filed within 14 days of the award. The Appeal Tribunal’s decision is final. This internal appeal does not affect the right to apply to the Court of First Instance to set aside the award under Cap. 609.

Key Takeaways for Parties Involved in Sports Disputes

1. Include an HKSDRC arbitration clause in all athlete contracts and federation constitutions to ensure access to a specialised forum and to comply with LCSD funding requirements.
2. Attempt mediation before arbitration—the HKSDRC’s mediation track is faster and cheaper, and settlements are enforceable as contracts.
3. Note the 90-day target for arbitration awards—this is significantly shorter than typical District Court proceedings, which can take 12 to 18 months.
4. Ensure that any arbitration award is registered with the Court of First Instance promptly to facilitate enforcement, especially if the losing party is based outside Hong Kong.
5. Consult a solicitor with experience in sports law and arbitration before initiating proceedings, as the HKSDRC’s procedural rules contain strict deadlines and confidentiality obligations.

本文不構成法律建議。涉及個人案件請諮詢持牌律師。 / This does not constitute legal advice. Consult a solicitor for your specific case.