24-01-2019

Report On Greek Sports Law

Author/s

  • Dimitrios P. Panagiotopoulos,
    Professor at the National and Kapodistrian University of Athens,
    Attorney at Law in Supreme Court & Council of State,
    President of the International Association of Sports Law (IASL)
    Director at Dimitrios P. Panagiotopoulos & Partners Law Firm

How are the sports clubs (Société Anonyme, S.A.) inspected?

The sports clubs (SA) and the Divisions of Paid/ Professional Athletes of the relevant teams are supervised by the “Special Committee of Professional Sports”, having as a duty: a) the inspection for the compliance with the Sports Law provisions, b) the inspection for the fulfillment of the financial obligations of the sports clubs (S.A.) and c) the inspection of the subsidy being awarded by the General Secretariat of Sports to the relevant professional leagues.

Is there financial interest in Sport?

The field of professional sport is a subject of a great financial interest, which also appears in cases of amateur sport, due to their high publicity. Thus, an increased interest not only from a financial but also from a legal point of view is found on: a) sports clubs (S.A.), b) associations with divisions of paid/ professional athletes and c) the free transfer of players and coaches in the following fields:

  • Contracts between athletes and sports associations or clubs. Salary issues arising from the labour contracts.
  • Free transfer of athletes
  • Service contracts and the financial benefits of athletes and coaches
  • The television broadcasting rights of games, the contracts with clubs and the citizens’ rights to be informed
  • Advertisements and financial relations between athletes and associations – clubs with the advertising companies
  • The capital of sports clubs
  • Exploitation of gyms – leasehold of sports facilities
  • Tax issues – exemptions
  • Sponsorship contracts
  • How is the sportsmanship protected?

    A special legal framework regarding the sportsmanship has been implemented as specificity and interpretation of the rules of the Olympic Constitutional Charter, while a relevant institution for the resolution of the sportsmanship infringements has been established within the Greek Olympic Committee, which is called “Sportsmanship Committee” (Article 130 of Law 2725/1999 “concerning the professional and amateur sports”).

    Which is the procedure for the establishment of a sports association?

    According to Article 2 par. 1 of Law 2725/1999, at least twenty (20) people are required for the establishment of a sports association. Apart from the provisions of the Civil Code, which apply to all kinds of associations, there are certain kinds of associations governed by special laws, such as the professional associations, the trade unions, the nautical and sports associations.

    What is the meaning of the “sports recognition”?

    Following the Court’s decision approving the request for the association’s registration, and in order for the association to be recognized as “sports”, the latter is required to obtain “special sports recognition” and “sportsmanship status”, with the decision of the Minister for Sport or other so authorized body, central or regional (Article 8 of Law 2729/1999), following the decision of the Board of Directors of the association, and under condition that the terms of law are fulfilled.

    Who can join a sports association? Which are the requirements?

    According to the special provisions of the Sports Law, the number of the regular members in each sports association is unlimited. In view of the Greek Civil Code, the Articles of Association may include a clause restricting the entry of new members (Article 86). It is a requirement for the registration as a member of the sports association and the exercising of the membership rights not to fall within the constraints posed by the Sports Law.

    The Law provides special cases in which the membership status is incompatible with other activities, while the member of the association is not allowed to either work or have any other labour relation during the membership period nor represent the sports association (Article 3 of Law 2725/1999).

    In which cases the members of the sports association lose their membership capacity?

    According to Article 3 par. 7 of Law 2725/1999, any person falling within the above mentioned constraints, loses ex officio his capacity as a member.

    Which are the terms of law under which the decisions of the General Assembly of the sports association shall be taken?

    According to Article 101 of the Greek Civil Code, “Decision of the General Assembly is null and void, if it does not comply with the law or the Articles of Association”. The competent Court decides following the action filed by the member who did not consent or by anyone who has legal interest within a six (6) months deadline, starting from the issuance of the General Assembly’s decision. The same applies as regards to the decision of the Board of Directors of a sports association (Decision no. 3725/2003 of the One-Member Court of First Instance of Athens, which declared the decision of the Board of Directors of a sports association null and void, because the relevant decision concerning the specification of the membership fees violates the principle of the equality of members, according to Article 2 par. 1 of Law 2725/1999, as it was amended by the provisions of Law 3057/2002 and the Article 136 par. 2 of the same law).

    In case such an action is filed, the Court, if requested, may allow the suspension of the challenged decision of the General Assembly, according to the provisions of Article 102 of the Civil Code.

    Are the sponsorship contracts permitted?

    The sports association has the right to contract with other natural persons or legal entities regarding sponsoring or advertising issues, under the conditions of the International Olympic Committee Regulations, so as to develop its sports activity. In this case, the concession of the use of the sports association’s trade name, trade mark and the relevant distinctive characteristics for purposes of advertisement and financial exploitation is not permitted (Articles 7 par. 4 of Law 2725/1999 and 2 par. 3 of Code of Accounting Books and Records).

    Which is the legal nature of a sports federation?

    The Greek sports federation is a part of a significant legal framework as a legal entity of private law, taking into account the constitutional provisions regarding the cultivation and development of sports, and, apart from administrative, it is also a legislative as well as disciplinary – judicial institution. The By-Laws consists the internal law of the association, meaning that the General Assembly shall not violate and decide against these terms (Lex Sportiva).

    The federation is under the supervision of the State, as it is provided by the law which puts it in a monopolistic and prevailing position (Articles 61 and 62 of the E.C. Treaty). The participation of the Sports Federation’s members in its bodies is regulated according to Article 24 par. 4 and 5 of Law 2725/1999 and the provisions of the Civil Code, concerning the extent of power of the Board of Directors for the cessation of the power of attorney and the revocation of the mandate.

    Is the sports association obliged to submit budget to the State?

    According to the constitutional provisions and the Sports Law, the state subsidy constitutes the funds of the sports federations. The revenues from the tickets of the games and sports events, as well as the membership dues are also included in the circle of the federation’s funds. The sports federation is obliged to submit its budget to the General Secretary for Sport, as every subsidized entity, for the amount given as a subsidy (Article 50 par. 7 of Law 2725/1999).

    Which is the procedure for the membership registration?

    The registration to the sports federation requires a decision by the Board of Directors and the expulsion by the General Assembly of the federation (Article 20 par. 2 of Law 2725/1999). In the Sports Federation’s General Assembly shall participate any, according to its Articles of Association, associations entitled to vote (Article 93 of Civil Code, Federation’s By-Laws, Articles 24 par. 5 and 6 of Law 2725/1999). The General Assembly supervises and inspects the administration bodies and has the right to depose them whenever.

    What is the meaning of the “Departments of Paid/ Professional Athletes”?

    The athletic branch and the categories of the championship games in the undertaking of which the participation of athletes receiving salary is permitted, is defined by decision of the competent Minister for Sport, following the proposition of the relevant sports federation (Article 59 of Law 2725/1999, as it was amended by the Article 10 of Law 3057/2002). The existence of the financial sustainability of the athletic branch, the degree and the possibilities of its development are an essential prerequisite.

    Which is the procedure for the establishment of a sports club (S.A.)?

    The establishment of a sports club (S.A.) is allowed only via the transformation of the Division of Paid/ Professional Athletes. If such a division does not exist, due to the operation of sports clubs within the scope of the relevant sport, the composition of a sports club (S.A.) via the transformation of the division of amateur athletes is also allowed (Article 64 par. 1 of Law 2725/1999). Following the sports club’s incorporation, it is subrogated in the rights and obligations of the association towards the State, the legal entities of public and private Law and any third person (Article 64 par. 1 and 2 of Law 2725/1999).

    Who can be shareholders? Restrictions – Incompatibilities

    Shareholders of professional sports clubs (S.A.) can be only Greek natural persons (Article 69 par. 1 of Law 2725/1999, as it was amended by Article 17 of Law 3057/2002), entities of the public sector, as well as Greek companies or other Greek legal entities of private law. The same applies for natural persons that hold the nationality of a member state of the European Union or for legal persons that are constituted and have their seat, administration or main establishment in a member state of the European Union.

    According to par. 1a of the same Article, persons that are not nationals of an EU member state may also become shareholders of a professional sports club (S.A.) following a review by the Greek Commission of Professional Sports (an auditing body that belongs to the sports ministry). Article 69 par. 2 further provides for the possibility of legal persons becoming shareholders of a professional sports club (S.A.). According to a recent amendment that was introduced by Law 4049/2012, non-EU nationals may also participate in the legal persons that wish to become shareholders of a professional sports club (S.A.), as long as they qualify for the permission acquired after the review by the Greek Commission of Professional Sports, as provided for in par. 1a of the same article (Article 69 par. 2b in fine).

    In paragraphs 8 and 9 of the same Article, it is provided that the in –active-athletes, trainers, referees, referee observers, mediators, owners of agency offices of games prognostics or bets, their spouses and up to second degree relatives, are not allowed, under the penalty of the absolute nullity of the contract, to obtain shares of the sports club (S.A.) they deal with on an athletic or professional basis, also a sports club, its shareholders, members or administrators of a legal entity of private law or a company participating in the capital of a sports club (S.A.), as well as the spouses and up to second degree relatives of all the above natural persons, are not allowed, under the penalty of the absolute nullity of the contract, to obtain, in a direct or indirect way, especially via intermediaries, shares or administration rights or to undertake managerial duties in other sports club (S.A.) of the same or different sport.

    Finally, in case of the infringement of any of the provisions of the previous paragraphs by fault of the sports club’s bodies, its team is expelled from the Championship, by decision of the relevant judicial institution, which has the responsibility, following a report of the Committee of Professional Sports or after recourse of any person who has legal interest.

    What is the status of the “referees’ leagues”?

    The referees’ league is an association according to the provisions of the Civil Code (Articles 78 and following). The Law provides only one referees’ league for each athletic branch (Article 43 of Law 2725/1999, as it was amended by Article 66 of Law 3057/2002) in the area of responsibility of each sports union (Article 11 par. 1 of Law 2725/1999). Members of the referees’ leagues are exclusively referees with diploma, having their permanent residency in the area of responsibility of the league. The evaluation of the referees is provided by the regulations of the sports federation and it is inspected by the competent Minister (Article 27 par. 1 of Law 2725/1999).

    Which is the nature of the control of the sports entities by the central administration?

    The control is financial and operational. All the subsidized sports entities are inspected by the audit council for the compliance: a) with the provisions concerning the operational and accounting rules of the Sports Law, b) with the regulatory administrative acts and c) for the fulfillment of their financial obligations (Article 52, par. 1 -2 of Law 2725/1999, as it is amended by Article 77 of Law 3057/2002 and 26 of Law 3262/2004).

    Which is the status of the sports services?

    According to the law, the sports activity, apart from the professional athletes either in the Divisions of Paid/Professional Athletes or in sports clubs is not considered to be “professional sports activity”. The provisions of Article 33 of Law 2725/1999 (entitled “Rights and Obligations” of the athletes) apply to athletes who are performing in a Division of Paid/ Professional Athletes of a sports association or a sports club.

    The amateur athlete is not entitled to contract with the sports association, despite the fact that his activity (training, games etc.) may be long-lasting and intense. In support of the above mentioned, the athlete (individual/ team) has the right to conclude a contract with a natural or a legal entity on a sponsoring or an advertising basis, on condition that the contract does not infringe the technical regulations of the sport and the regulations of the relevant sports federation or the International Olympic Committee.

    Which is the procedure for the athletes’ transfer?

    Every athlete is free to choose the sports association he prefers, in which, in accordance with the Greek case law, he is able to develop his personality in the world of sports (Council of the State, Decision No. 3586/1995).

    The terms and conditions for the registration and transfer, the time period, the process, as well as the competent for the transfer approval bodies are determined by special regulations (Article 27 of Law 2725/1999 in combination with Article 33 par. 3 of the same Law).

    Free transfer of athlete, namely transfer without his consent, from one sports association to another is feasible, if special grounds justifying his release are explicitly stated in a regulatory administrative act (Article 33 par. 3 of Law 2725/1999, Council of the State, Decision No. 2488/1986). The clause included in the transferring regulation, according to which the transfer is not on the first place allowed without the consent of the athlete’s association was enacted by excess of the legislatory authorization (Article 33 of Law 2725/1999, in comparison to the Decision No. 207/2002 of the Council of the State and the Decisions 110, 112/2004 of the Supreme Council for the Resolution of Sport Disputes, in Greek “A.S.E.A.D.”).

    As regards to team sports, the athlete’s transfer can be conducted only for special cases provided by the law and without the consent of the association.

    What constitutes a serious ground for the athlete’s release?

    According to the case-law, as serious grounds for the athletes’ release (apart from the athletes– players), are considered to be the following: a) reasons relating to family, professional reasons (transposition – appointment, sports activity of siblings in the same association), b) studies, c) circumstances, such as the disruption of the relations between the athlete and the association without his fault, due to negligence and failure to cover the costs, the rupture in the relationship with the coach and the alienation.

    Are the foreign athletes been entitled to participate in the Championships?

    Foreign athletes as well as ethnic Greeks can participate in the Championships, following the proposal of the relevant Federation after the decision of the competent Minister for Sport (Article 33, par. 7 and 8 of Law 2725/1999). In particular, the foreign athletes registration procedure, as well as the terms and conditions of their registration and transfer are determined by special regulatory administrative acts (ministerial decrees).

    Which is the legal framework for the athlete receiving payment for his performance and the professional athlete?

    By the term athlete receiving payment for his performance is considered to be the athlete who concludes contract for sports services with a sports association, having a Division of Paid/ Professional Athletes, where as the “professional athlete” concludes contract for sports services with a sports club (S.A.), according to Articles 85, 90 par. 1 -95 of Law 2725/1999.

    According to the 2725/1999 to Law, the provision of sports services constitutes a labor contract. The minor athletes are not entitled to conclude labor contracts (Article 90 par. 1 of Law 2725/1999). The contract of the athlete receiving payment for his performance is regulated by the provisions of Labor Law (Article 33 par. 1 and 2 without prejudice to Article 85 par. 1 and 2 of the same Law). The contracting athletes (either with associations or clubs) receive regular salary, which is determined in the contract without restrictions in the framework of the relevant regulations. In particular, as regards to professional athletes, there is an issue concerning the transferring system of the non E.U. athletes, as well as the participation in games due to nationality.

    Is a professional license required for the exercising of the profession of coach?

    According to Article 31 par. 1 of Law 2725/1999, it is in any case required a professional license, issued by the General Administration for Sport (as it is obrogated by Article 48 of Law 4373/2016). In addition, the Sports Law provides the written form of the contract.

    Are there provisions for torts in the sports field?

    The sports liability is either contractual or tort, with administrative-disciplinary, ethic and penal aspect.
    The crime of impersonation as well as any other violation of the terms of the Championship’s Proclamation legalizes the lodging of a complaint by the association harmed by this violation during and until the termination of the game.

    Which is the legal treatment of doping in sport?

    In accordance with the provisions of the 2725/1999 Law (Articles 128A-128ID) on “the fight against doping”, the use of banned pharmacological substances in an international level, having as a purpose to enhance the athlete’s performance is not permitted. The national sports federations should implement through their regulations (Article 26, par. 4 in combination with Article 27 of the same Law) the provisions of the Anti-doping Code of the World Anti-Doping Agency (WADA). The Greek Sports Law approaches the issue of doping not only as a crime (penal aspect), but also as a disciplinary – ethical offense (disciplinary aspect), as it is obrogated by the law 4373/2016, in which are included all the articles of WADA Code, as it is in force after the latest from WADA council modifications ( see Declaratory part of the law, Greek parliament on March 2016).

    Which is the legal framework for the broadcasting of sports games and sponsoring?

    The TV broadcasting rights of sports events are regulated by the special provisions of Law 2725/1999. There are also special provisions concerning the free of charge, as well as the paid TV broadcasting of sports games (Article 84 of Law 2725/1999).

    With the term “sponsoring” in sports it is defined the contract of a contributory financial support of a sports activity, an athlete or a sports event, under the terms of the contract.

    The agency contract for sports sponsoring is treated in most legal orders as brokerage, according to the provisions of Article 703 of the Civil Code, as the services and payment concern exclusively the agency and the designation of the other contracting party.

    Which is the procedure for the resolution of sports disputes?

    The sports jurisdictional order is set up out of the framework of the constitutional meaning of “court” (Articles93 - 96 of the Constitution) as a resolution system of special bodies, either in the form of public institutions (such as the Supreme Council for the Resolution of Sport Disputes), or in the form of private law bodies in the framework of the operation of the sports legal entities.

    Which bodies have jurisdiction in sports disputes?

    The structure of the sports jurisdictional order is the following: 1) the Committees for the Resolution of Financial Disputes (Article 95 par. 1, 2 of Law 2725/1999) resolve the disputes arising from the contracts between athletes or coaches and sports clubs or associations, as institutions of permanent arbitration, b) the jurisdictional institutions of disciplinary nature in the framework of the sports federations and the professional leagues regarding the team sports, namely football, basketball, tennis, handball and waterpolo, c) the Appeals Committee of the Greek Football Federation (Article 127 B΄ of Law 2725/1999) and the “Supreme Council for the Resolution of Sport Disputes” (in Greek “A.S.E.A.D.”), which is competent for the disputes resolution at the first and last instance (Article 124 of Law 2725/1999).

    Which are the first instance institutions for the resolution of sports disputes?

    The resolution of the sports disciplinary and financial disputes at first instance belongs to special jurisdictional institutions within the Federations and the professional leagues, as it is mentioned above, as well as to the “Sportsmanship Committee”, located in the Greek Olympic Committee (Article 130 of Law 2725/1999).

    Which are the competences of the first instance sports jurisdictional institutions?

    According to Article 120 of the 2725/1999 Law, the first instance jurisdictional institutions are competent: a) for the resolution of disciplinary misconducts and other violations, as well as the imposition of penalties, provided by the Games Regulations of the relevant sport, b) for the resolution of disputes regarding cases of bribery in order to alter the outcome of the games and the imposition of penalties and c) for the resolution of any other dispute and the imposition of the relevant penalties conferred to this institution.

    Are the decisions of the first instance jurisdictional institutions challenged?

    The decisions of the first instance jurisdictional institutions, apart from those concerning football, are challenged before the Supreme Council for the Resolution of Sports Disputes, following the lodging of “recourse” in the following cases: a) claims concerning the validity of the game, b) penalties concerning the staging of matches without spectators, c) penalties of deprivation of the right of entry to stadiums or disqualification from the office of the association or the club for a time period more than two months, d) penalties of exclusion of athletes (more than two match days) and coaches or other relating to the team people (more than two months), e) imposition of fine of not less than five (5.000) thousand Euros, f ) violations of the provisions for the acquisition of shares in sports clubs.

    Does football has its own jurisdiction?

    The Hellenic Football Federation (HFF) is competent for any issue related to the organization and operation of football. The regulatory framework of the Hellenic Football Federation provides for the existence of five-member judicial bodies that are competent for disciplinary matters (the HFF Disciplinary Committee) and for the resolution of employment- related disputes (the HFF First Instance Committee for the Resolution of Financial Disputes). Professional Football has a separate disciplinary jurisdiction, whereby the Disciplinary Committee of the Super league Greece (an association of the professional football clubs) has competence to hear disciplinary cases.

    Which is the second instance jurisdiction in football?

    The decisions of the aforementioned disciplinary bodies are challenged before the HFF Appeals Committee, which is constituted by five members and is appointed for a four-year term by the HFF Board of Directors. The parties involved have the right to challenge the decisions of the HFF Appeals Committee before the HFF Arbitration Court (Appeals Division) for a final ruling. Additionally, the decisions of the HFF First Instance Committee for the Resolution of Financial Disputes are also subject to appeal before the HFF Arbitration Court (Appeals Division), which, according to the newly enacted rules of the HFF, is competent to issue final decisions for the resolution of any and all disputes related to financial or other relations between the HFF, the clubs, players, coaches or agents.

    How are the financial disputes resolved?

    They are resolved by the Committees of first and second instance. These Committees are institutions of permanent arbitration and their operation is governed by the Regulations, regarding the relations between associations and athletes. In particular:

    The first instance Committees are competent for the resolution of prominently sports disputes, arising from the contracts between athletes or coaches and sports clubs or associations with Division of Paid/ Professional Athletes, such as the termination of the contract.

    The second instance Committees decide on the appeals against the decisions of the first instance Committees of the relevant athletic branch.

    Is there any deadline for the issuance of the decision?

    The decisions are issued within a period of twenty (20) days after the hearing. After the expiry of this time limit, the decisions of the first instance as well as of the second instance Committees have the force of res judicata.
     

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