World Athletics, the global governing body for track and field, has found itself navigating a landscape of controversies, with President Sebastian Coe often at the helm during turbulent times. The organization, which has worked to build a reputation for reform and transparency, continually faces challenges that test its governance. The most recent incident to emerge is a significant case of internal fraud, placing the administration under renewed scrutiny and demonstrating that financial threats can be as damaging to the sport’s integrity as any athletic scandal.

As reported by Citius Mag on X, the Monaco-based organization was rocked by the discovery of a systematic theft of funds totaling more than €1.5 million (approximately $1.7 million) that occurred over several years. The scheme allegedly involved two of its own employees and a contracted consultant, revealing a significant internal vulnerability. The fraud was uncovered earlier this year during the body’s first annual audit under a new financial leadership team, which identified the suspicious activity and triggered an internal investigation.

By the time the discovery was made, one of the employees involved had already left the organization. World Athletics subsequently terminated the contracts of the other employee and the consultant. The organization has since prepared detailed case files and handed them over to the relevant judicial and legal authorities in both Britain and Monaco for a full criminal investigation.

In response to the incident, World Athletics President Sebastian Coe addressed the situation directly. “Unfortunately, corporate theft happens in organizations around the world and across all industry sectors at different levels. The most important thing is to identify it, review how it was able to happen and then introduce new processes and enhanced controls to ensure it doesn’t happen again,” he acknowledged.

Coe emphasized that the critical steps are to identify the fraud, understand how it was able to occur, and then implement new safeguards. The World Athletics President continued his statement, adding, “This is what we have done. We are also determined to recover whatever monies we are able using the full force of the law to do this. Too many organisations brush incidents like this under the carpet, terminating employment with limited information which allows perpetrators to continue their scams and thefts within new organisations. We are not that type of organisation.”

“We have built a strong reputation for good governance, transparency and for defending what is right, even if it is sometimes a little uncomfortable. This is uncomfortable but it is important that we do the right thing.” The financial blow comes at a time when the financial practices of major sporting bodies are under a microscope.

The sum stolen is equivalent to more than half of the $2.4 million in prize money World Athletics paid to gold medalists at the Paris Olympics, underscoring the material impact of the loss. This scandal also follows other high-profile controversies in athletics, including the recent debt issues of the startup league Grand Slam Track, which left millions owed to athletes.

Pretty different controversy compared to the World Athletics

So, when Michael Johnson introduced Grand Slam Track, it was all about changing the game in the sport. The event was gearing up to feature an impressive $12.6 million prize pool, salaries for its 48 main racers, and some attractive appearance fees for the challengers showing up for the individual meets. Also, they announced an amazing $100,000 payout for winning an event group, which totally overshadowed what you’d typically earn from regular track circuits.

But it all happened really fast. The big season finale in Los Angeles was meant to be the highlight of it all. So, on June 12, Johnson shocked everyone by announcing that the LA meet was cancelled, which put a sudden stop to the inaugural season. Then came the major controversy. Cost-cutting measures came up quickly. Yeah, it’s true that by canceling the LA event and the Philly 5K, they saved more than $3 million. Still, a lot of athletes weren’t getting paid for their hard work in Kingston, Miami, and Philadelphia.

Surely, this reached the ears of World Athletics. Before the London Diamond League, president Sebastian Coe mentioned that he’s been chatting with athletes, agents, and meet directors, but he hasn’t had a conversation with Johnson “for several months.” When someone asked if World Athletics might get involved, Coe replied cautiously, “Well, let’s just watch this space.” So, what was meant to be one of the biggest track events turned out to be one of the most controversial ones instead.

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