If you wish to conduct sports activities and operations, you have the option to establish a sports association or a sports company. In this text, we guide you through the steps of founding a sports association to gain insight into how to begin achieving your sports-related goals. 

As the relevant law, we use the Sports Act, and if any issue is not addressed by this law, we find solutions in regulations governing associations. 

We have previously discussed sports contracts; if you are interested in this topic, we suggest reading the article ‘In the Negotiation Ring: A Guide to Contracts in Sports Law‘. 

What is a sports association? 

As defined by our Sports Act, a sports association is a voluntary, non-profit organization based on the freedom of association of multiple natural and/or legal persons, organized according to its statute and established for a common goal in sport. 

The same article of the Act further states that in cases of spontaneous and temporary associations of multiple individuals for achieving sports goals, partnership rules apply. A partnership agreement is regulated by provisions of the Serbian Civil Code and arises when two or more individuals agree to contribute their efforts and/or assets for the purpose of mutual benefit. 

The Regulation on Sports Branches and Areas of Sports in the Republic of Serbia, as well as sports disciplines within sports branches and areas, lays down a list of sports branches and disciplines in our country. The Regulation lists sports, categorizing them into Olympic sports, Paralympic sports, non-Paralympic sports for persons with disabilities, non-Olympic sports, and other sports areas and disciplines such as recreational sports, rural sports, military sports, corporate sports, traditional sports, school sports, and others. 

Who can establish a sports association? 

Returning to the form of a sports association – it can be established by at least three founders who must be fully capable natural persons or legal entities. 

During the founding assembly, the founders adopt and sign the founding act and the statute, and appoint an authorized representative. 

What are the necessary documents? 

Let’s start with the founding act – it’s crucial that the founding act is in written form, duly authenticated, and contains all required information according to the relevant provisions of the Sports Act. 

Now we move on to the general documents – the statute, regulations, and decisions which generally regulate specific issues. As mentioned in the definition, the statute is something that a sports association must possess. Our law prescribes what must be included in the statute, such as the name and registered office of the sports association, objectives and content of specific sports branches, procedures for adopting and amending the statute and other general documents, conditions and methods of membership, membership fees, and other matters. Therefore, the Sports Act stipulates what the statute must include to be legally valid. 

This article does not constitute legal advice but represents the author’s perspective. However, we consider it essential to approach the drafting of general documents seriously. The statute and other general documents must comply with the Sports Act and sports regulations, just as individual decisions and documents adopted by the bodies of the sports association must align with the association’s general documents, sports regulations, and the law. Additionally, the law imposes restrictions on monthly membership fees for minor athletes, so attention must be paid to this provision. 

What if the general documents are not in compliance with legal regulations? 

The Sports Act provides a straightforward answer to this question – provisions of a sports association’s general documents are subject to constitutional and legal scrutiny. Every member of a sports association has the right to initiate proceedings before the competent local court to determine the nullity of a general document of the sports association that was adopted contrary to the statute or sports regulations, all in accordance with the law regulating the operation of associations. 

If a court issues a final decision annulling a general document, the sports association has 30 days to adopt a new general document or amend the existing one and submit an application for registration within the statutory deadline. If the statute or certain provisions thereof are annulled and the sports association fails to adopt a new statute and submit an application within the legal deadline, the sports association will be deleted and cease to exist. 

Furthermore, it should be noted that the founders of a sports association are jointly liable with all their property for all obligations undertaken in relation to the establishment of the sports association, unless otherwise stipulated by agreement with third parties. 

What are the rules for the name, registered office, and symbols of a sports association? 

The name must be in the Serbian language and Cyrillic script, or in the Serbian language and Cyrillic script alongside languages and scripts officially used in the territory of the registered office. If you wish to include foreign words in the name, the Act stipulates that the name can also be in a foreign language or contain certain foreign words if they form part of the name or the name of the founders, or if they are common in the Serbian language as well as if there is no corresponding word in Serbian or if they are in a dead language. Like other associations, a sports association can have a shortened name determined by its statute and registered in the Registry. 

It is important that the name of the newly established association clearly distinguishes it from already registered associations or those properly registered for inclusion in the register. The name must indicate that it is a sports organization and should not lead to confusion regarding the branch or area of sport it belongs to or the type of legal entity. The law here prescribes one exception to note – a newly established sports association may use the name or part of the name of an already established sports association if the registered office of the newly established association is not identical to that of the already registered association. 

If you want your sports association’s name to include the name of the Republic of Serbia, an autonomous province, a local government unit, or the name or part of the name of a natural person, you must obtain consent from the competent authority, natural person, or first-degree heir if the person has deceased. What is not allowed is for the name to contain the name of a foreign state or international organization. 

The registered office is the location from which the activities and operations of the association are managed and must be within the territory of the Republic of Serbia. 

Regarding symbols, a sports association may have its emblem, logo, and other symbols in accordance with the provisions of its statute. Symbols must differentiate from those of other sports organizations and must not mislead regarding the goals and identity of the sports association. 

How should membership be regulated? 

Let’s first define the term member – members include founders and individuals who subsequently join the sports association. In accordance with its statute, a sports association may have different categories of members with varying rights and obligations. A member of a sports association cannot be deprived of voting rights by the statute. 

As a sports association, you must maintain a membership register where certain data are recorded as specified by law. 

While any athlete may resign from the association at any time under conditions stipulated by the statute, there are two restrictions. Firstly, the regulations of the competent national branch sports federation may require a notice period before resignation, and secondly, an athlete cannot unilaterally resign if they have contractually committed to remain a member until a specific period, unless the contract is terminated, annulled, or declared void. 

How is the expulsion of a member from a sports association regulated? 

Again, we refer to the statute – a member of a sports association can be expelled for reasons and through procedures specified in the statute. This underscores the importance of a precisely drafted and legally valid statute. 

An excluded member must be provided with the right to appeal the expulsion decision unless the decision falls under the jurisdiction of sports arbitration. 

How are disciplinary sanctions regulated? 

A member of the association may face disciplinary sanctions in accordance with the Act, sports regulations, and general documents of the sports association. However, disciplinary penalties cannot be imposed on a member for an offense they did not commit or that was not previously designated as a disciplinary offense in the general documents. 

Certain rights must be guaranteed to a member in disciplinary proceedings, such as the right to a timely and cost-effective process, the right to an attorney at their own expense, independence, expertise, and impartiality of the body deciding on members’ responsibilities, presentation of evidence, as well as the right to a reasoned decision and the right to appeal. 

How is a sports association managed? 

The statute determines how members manage the association – the Law specifies that management can be direct or through elected representatives in the association’s bodies, while emphasizing that in recreational sports associations, all members manage directly with equal voting rights. 

Can a sports association have branches? 

Yes – a sports association can have one or more branches which are registered in the Register of associations, companies, and federations in the field of sports. A branch is defined as an organizational part of the sports association that does not have legal entity status and conducts business with third parties on behalf and for the account of the sports association. 

In conclusion… 

Establishing an association is a formal process that requires adherence to specific steps as stipulated by the Law, and the preparation and alignment of the association’s general documents must be done in a precise and professional manner. Proper preparation is always half the battle. 

 

Note: This text does not constitute legal advice, but rather reflects the author’s viewpoint.