The Egyptian Ministry of Youth and Sports has stated that the law allows for the sale of a controlling stake in club football companies to investors. According to Muhammad Al-Shazly, the spokesperson for the Minister of Sports, the law grants clubs the opportunity to establish a sports company for their football team, with the club retaining 51% of the shares. This ensures that the club maintains control over its football operations.
The law also permits the club's management to transfer the controlling stake to an investor, provided that the general assembly of the club approves the decision. This can be done through an ordinary or extraordinary general assembly, and the Ministry of Sports must also give its approval. If the general assembly does not achieve a quorum, the club's management can be authorized to make the decision.
Al-Shazly explained that the process for approving the establishment of a general assembly involves the club submitting the agenda for discussion to the Ministry of Sports. The Minister then sends the agenda to the legal committee for review, and if the committee finds that the procedures are proper and in line with the law, the Ministry will give its approval.
The spokesperson also mentioned that, according to the Sports Law, it is possible for an investor to be granted 100% of the shares in a club's football company. However, the controlling stake must be transferred with the approval of the general assembly. The club's general assembly has the original right to grant the controlling stake, and the Ministry's role is to approve the decision made by the general assembly.
The issue has gained relevance in the context of Egyptian football club Al-Zamalek, which has not yet announced a final agreement on establishing a football company due to disagreements over certain terms. One of the contentious issues is the percentage of shares that will be allocated to investors versus the club's management.
Al-Shazly's statements come in the wake of Al-Zamalek board member Ahmed Suleiman's refusal to hold a general assembly to discuss the establishment of a football company for the club. Suleiman cited concerns over some of the terms, particularly the percentage of shares that would be allocated to investors.
The Egyptian Sports Law allows for flexibility in the ownership structure of club football companies, and the Ministry of Sports has emphasized that it will not interfere with the decisions made by the clubs' general assemblies. The law aims to provide a framework for the establishment and operation of sports companies in Egypt, while ensuring that the interests of the clubs and their stakeholders are protected.
Key points
- The Egyptian Ministry of Sports has clarified that the law permits the sale of a controlling stake in club football companies to investors.
- The club's general assembly has the final say in granting the controlling stake to an investor.
- The law allows for an investor to be granted up to 100% of the shares in a club's football company.
