Law

SPORTS LAW

Do you need to navigate the complex world of sports law and protect your club, athletes, or investments from risks? At ARROWS, we provide comprehensive legal services that ensure your legal certainty and help you effectively resolve any situation in the sports environment. With our extensive experience, from contract preparation to representation before international arbitration tribunals, we will turn your legal obligations into a strategic advantage. Find out exactly how we can help you.

(Petr Hanzel, sports law specialist, ARROWS law firm)

Welcome to the world of sports law: More than just the rules of the game

Sports law is not a separate branch of law, but a dynamic intersection of commercial, labor, civil, and international law. This complexity creates an environment full of legal uncertainties for clubs, athletes, agents, and sponsors. Navigating this environment without expert guidance poses a significant business risk.

Sports organizations are organized into a hierarchical, pyramid-like structure. At the top are international federations such as FIFA or UEFA, below them are national associations (e.g., FAČR), and at the base are individual clubs.

The rules set at the higher level are binding on all lower levels, creating a dense network of obligations, ignorance of which can lead to serious sanctions.

A key element of this system is the principle of autonomy of sports associations, which gives sports organizations considerable power to regulate their own affairs, including the creation of internal rules and disciplinary systems. However, this autonomy is not absolute. It comes up against the limits set by national and European law, creating a dual legal reality in which you have to operate.

A decision by a sports body that complies with internal rules may still be challenged and overturned by a civil court if it violates the law or fundamental rights.

The lawyers at ARROWS specialize in harmonizing these two systems and ensuring that your actions comply with both the standards of sports associations and applicable law. Our experience will help you avoid disputes and protect you from unexpected legal complications.

A solid foundation for your club: How to set things up right and avoid risks?

The stability and success of a sports club begins with a solid legal foundation. Choosing the right legal form – typically between an association (z. s.) and a commercial company (s.r.o. or a.s.) – is the first strategic decision that affects the level of liability, tax burden, and financing options. Each form has its own specifics and requires a different approach to management.

The basic document of every club is its statutes. These are not just a formal document for the registry court; the statutes are the constitution of your club. Precisely drafted statutes define the rights and obligations of members, the powers of bodies, and decision-making processes, thereby preventing internal disputes and protecting the club from legal instability. At ARROWS, we will help you prepare or revise your statutes so that they fully meet your needs and provide you with maximum legal protection.

You can contact our sports law specialists:

If the relationship between the club and the player meets the criteria for dependent work (superiority and subordination, performance of work on behalf of the club and according to its instructions), the club faces a fine of up to CZK 10 million and the obligation to pay back taxes and insurance premiums.

This model is a direct consequence of the lack of special legislation for professional athletes and economic pressure on clubs. The entire ecosystem of Czech sport thus stands on fragile legal foundations.

At ARROWS, we conduct an in-depth analysis of your contractual relationships and propose structures that minimize the risk of penalties for the Švarc system and ensure the long-term sustainability of your operations.

(Marek Hučík, sports law specialist, ARROWS law firm)

An equally complex area is player transfers and loans, which are governed by both national regulations (e.g., the FAČR Transfer Regulations) and international rules. The so-called Bosman ruling, a decision of the Court of Justice of the European Union, had a fundamental impact on the free movement of players, allowing athletes to leave their club at the end of their contract without their parent club being entitled to compensation.

Thanks to our international network ARROWS International, we ensure the smooth running of even the most complex international transfers, including the processing of International Transfer Certificates (ITCs).

Commercial success on and off the pitch: Sponsorship, media and intellectual property

Commercial activities are now a vital source of income for sports clubs. Sponsorship agreements, media rights sales, and merchandising make up a significant part of budgets. However, each of these areas carries specific legal risks that must be addressed. It is crucial to distinguish between sponsorship, which is a form of advertising and requires consideration, and a gift, which is gratuitous.

A well-drafted sponsorship agreement must specify in detail the scope of the rights granted (e.g., logo placement), exclusivity, bonuses for sporting achievements, and the conditions for termination.

At ARROWS, we will prepare and negotiate sponsorship agreements that protect your interests and maximize the commercial potential of your partnerships. We take the same care with contracts for the sale of broadcasting and media rights, which are becoming increasingly complex in the era of digital platforms.

A club's brand – its name, logo, or mascot – is one of the most valuable assets you own. However, without proper legal protection, it is vulnerable. Trademark registration is a fundamental step that gives you the exclusive right to use these symbols and an effective tool to combat counterfeit goods that damage your reputation and deprive you of revenue. The long-running dispute over the name and logo of Bohemians is a cautionary example of how costly it can be to underestimate this area.

Our team at ARROWS will take care of the entire process of registering your trademarks in the Czech Republic and abroad and will actively enforce your rights in the event of infringement. In this way, we protect not only your identity, but also your key sources of income.

Risks in commercial relationships and intellectual property in sport
Risk to Address Potential Issues and Penalties How ARROWS Helps
Unclear sponsorship agreement Disputes over performance, loss of funding, damaged sponsor relationships, legal action. We draft and review contracts that clearly define the rights and obligations of both parties and protect your investment.
Breach of contract by sponsor/partner Loss of revenue, pressure to find new partners, cash flow issues. We represent you in enforcing contract terms, including out-of-court negotiations and litigation.
Unprotected brand (logo, name) Illegal sale of merchandise, lost revenue, reputational harm due to poor-quality goods. We secure trademark registrations and enforce your rights against infringers.
Cybercrime (cybersquatting) Loss of control over domain name, extortion, damage to the club’s online image. We represent you in domain name disputes and protect the club’s digital identity.
Dispute over broadcasting rights Loss of key revenue stream, breach of contracts with the league or association. We provide legal advice in negotiating media rights agreements and represent you in related disputes.
Unauthorized use of athletes’ personality rights Lawsuits from athletes seeking compensation for non-material harm. We prepare contracts and consents that clearly regulate the commercial use of personality rights.
Violation of advertising regulations (e.g., alcohol, gambling) Fines from regulatory authorities, negative publicity. We provide legal consultations to ensure your marketing activities comply with current legislation.

When disputes arise: How to defend yourself effectively and assert your rights?

Disputes are an integral part of the sporting world. However, they are often resolved outside the ordinary courts, in specialized bodies of sports associations, such as disciplinary committees.

These bodies deal with a wide range of offenses, from unsportsmanlike conduct to corruption, and can impose significant penalties on individuals and clubs.

Doping is an extremely serious issue. The fight against doping is governed by the World Anti-Doping Code and WADA rules. Violations of these rules not only lead to long-term bans, but can also have criminal consequences. The Czech Criminal Code (Section 288) punishes the handling of doping substances with imprisonment, which poses a risk of double punishment for athletes and officials – both sporting and criminal.

At ARROWS, we provide comprehensive defense in doping cases, including representation in disciplinary proceedings and defense in criminal proceedings.

Another specific area is liability for injuries in sports. Every athlete enters the game with an awareness of certain risks. Legal liability for injury to an opponent does not therefore arise automatically with every violation of the rules. The key concept here is that of "excess," which was defined by the Czech Supreme Court.

Liability arises only if the player's conduct deviates significantly from the normal course of the game, is characterized by excessive brutality, or is intended to cause injury. Assessing whether such excess has occurred requires in-depth knowledge of case law and the specifics of the sport in question.,

You can contact our sports law specialists:

The highest authority for resolving international sports disputes is the Court of Arbitration for Sport (CAS) based in Lausanne. This "supreme sports court" rules on appeals against final decisions of national and international federations in key cases such as doping cases and international transfers.

Successful representation before CAS requires specialized lawyers with experience in international arbitration, which we at ARROWS can provide thanks to our team and the ARROWS International network.

With ARROWS, you can be sure you are playing by the rules

The world of sports is full of challenges, not only on the playing field, but also in the legal and business spheres. At ARROWS, we provide comprehensive support that allows you to focus on what matters most – your athletic performance and commercial success. Our services cover all aspects of sports law, from corporate structuring of clubs, through contract preparation and negotiation, to intellectual property protection and representation in the most complex disputes.

Whether you need internal guidelines, contracts that will stand up in any situation, or representation in courts, administrative bodies, and international arbitration, our team is ready to defend your interests. We provide legal opinions that give you certainty, help you obtain the necessary licenses, and offer expert training for your management and athletes.

Don't wait for the first problem to arise. Ensure legal certainty and turn regulatory burdens into a competitive advantage. Contact us to arrange a no-obligation consultation. The ARROWS team is ready to play for you.

Don't want to deal with this problem yourself? More than 2,000 clients trust ARROWS Law Firm, and we have been awarded Law Firm of the Year 2024. Take a look at our references HERE, and we will be honored to help you solve your problem. The inquiry is free of charge.

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