Sports Act Proposal Introduced in Parliament: Clubs Can Leave Association Status to become Joint Stock Companies

Formula, DHA

The sports club and sports federation law proposal, prepared with the joint signatures of AKP and MHP deputies, was submitted to the presidency of the Grand National Assembly of Turkey. The bill makes significant changes to the structure of sports clubs and federations. If the proposal to bring criminal liability to club managers becomes law, clubs that still hold the status of “Public Benefit Association” will be able to organize as “Joint Stock Companies”.

Kahit Ozkan, deputy chairman of the AKP group, and former national football player, Izmir deputy Alpe Ozalan, held a joint press conference before presenting the proposal to the presidency of the Grand National Assembly of Turkey.

Kahit Ozkan says sports clubs and especially football clubs are under a huge debt burden. Ozkan noted that a significant portion of the debt burden, which currently exceeds an estimated 30 billion lira, belongs to professional league football clubs.

Pointing out that the debt situation is increasing with each transfer season, Ozkan said, “With the measures taken within this framework, we aim to protect clubs from debt burdens and build a sustainable and strong financial infrastructure.”

The first part of the bill, which consists of 59 articles, sports clubs and companies, the second part, the federation, the third part, the sports arbitration board and management regulations are made and covers all sports branches.

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Ministers And managers will be held responsible for term loans.

Some of the important rules in the proposal are as follows:

  • Sports clubs, which still have the status of “Public Benefit Association”, may be organized as a “Joint Stock Company (A.Ş)” and may be transformed into a commercial company. Together these clubs will be able to form a Supreme Council as a federation and confederation. Clubs will be able to open professional branches within this structure.
  • Applications for the establishment of a sports club will be made directly to the Ministry of Youth and Sports.
  • A balanced budget application will be launched for clubs. Accordingly, each club can borrow the amount of their income. They will be obliged to pay and collect a certain amount through the bank.
  • The presidents and directors of the clubs will be held accountable for their term loans. The “legal and criminal responsibilities” of the directors of sports clubs and sports joint stock companies are regulated, with respect to budget and expenditure policy; It is stipulated that sports clubs and sports joint-stock companies cannot be held accountable to persons under their direct or indirect control and that they cannot “borrow” them.
  • Although it is stipulated that ministries and sports federations are responsible for contributing to the infrastructure and development of sports clubs, municipalities, including metropolitan cities, are prohibited from transferring funds to clubs.

The federation center may be outside Ankara.

  • All federations are organized as “sports federations”, eliminating the distinction between affiliated and independent sports federations. Although it is predicted that federations may be established by law or by presidential decree, the condition that the federations have their headquarters in Ankara has also been abolished.

President for a maximum of three terms

  • Although the number of board members of the federation is defined as “11 main and 11 alternatives”, it is stipulated that at least two members must be “national athletes”. The term of office of the President of the Federation is limited to “not more than three consecutive terms or non-intermittently”.
  • All activities and transactions and expenditure control of sports federations other than the Federation shall be governed by the Ministry of Youth and Sports with a founding law. Like the club management, the president of the federation and the members of the board of directors will be responsible for the damage caused by their fault.
  • The management system is being restructured. It will be possible to notarize the player and sign a management contract for a maximum of two years. The signed management agreement will be sent to the ministry within 30 days.
  • The fee paid to the manager can be up to 10% of this wage if the total income paid to the player at the time of the contract is less than 2 million lira and if it is more than 2 million then up to 5% lira

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