{"id":5702,"date":"2026-10-17T14:31:43","date_gmt":"2026-10-17T13:31:43","guid":{"rendered":"https:\/\/araujoassociados.pt\/sports-law\/legal-advice-sports-clubs\/"},"modified":"2026-10-17T14:31:43","modified_gmt":"2026-10-17T13:31:43","slug":"legal-advice-sports-clubs","status":"publish","type":"post","link":"https:\/\/araujoassociados.pt\/en\/sports-law\/legal-advice-sports-clubs\/","title":{"rendered":"Legal Advice for Sports Clubs"},"content":{"rendered":"\t\t
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Clubs and sports companies face, in the course of their day-to-day activity, a wide range of legal issues – from the most suitable corporate structure to compliance with the regulatory requirements imposed by the sector’s supervisory body. The legal regime for sports companies in Portugal is currently laid down in Law No. 39\/2023 of 4 August, in force since 4 September 2023, which repealed the previous regime of Decree-Law No. 10\/2013. This article forms part of the Sports Law<\/a> area of Ara\u00fajo & Associados.<\/p>\n

Legal forms of sports companies – SAD, SDUQ and SDQ<\/h2>\n

Law No. 39\/2023 allows three legal forms for the incorporation of a sports company: the public limited sports company (sociedade an\u00f3nima desportiva<\/em>, SAD), which already existed under the previous regime; the single-member sports private limited company (sociedade desportiva unipessoal por quotas<\/em>, SDUQ, Lda.), also already provided for previously; and the sports private limited company (sociedade desportiva por quotas<\/em>, SDQ, Lda.), a novelty introduced by this law, governed on a supplementary basis by the Commercial Companies Code. The introduction of this third corporate form responds to a long-standing demand in the sector, by allowing smaller clubs, or those with less investment capacity, to set up a sports company without necessarily having to adopt the form of a public limited company.<\/p>\n

Minimum share capital<\/h2>\n

The minimum share capital required to incorporate a sports company depends on the competitive tier in which the team participates: for companies participating in the 1st Liga, the minimum capital is currently 250,000 euros, a significant reduction from the one million euros previously required of SADs; for the 2nd Liga, the minimum capital is 50,000 euros, also a reduction from the previous 200,000 euros. Sports companies that do not participate in professional competitions need only observe the minimum capital generally required for the chosen corporate form – 50,000 euros in the case of a public limited company, with no statutory minimum capital requirement in the case of an SDQ or SDUQ. The founding club’s direct holding in the share capital of the sports company must be at least 5% – also a reduction from the 10% previously required.<\/p>\n

Fitness and propriety and transparency regime<\/h2>\n

Holders of a qualifying holding in the share capital of a sports company, as well as the members of its management and supervisory bodies, are required to submit to the IPDJ, as the supervisory body, a declaration of honour that they meet the fitness and propriety criteria laid down in the law. Candidates for the acquisition of a qualifying holding are also required to demonstrate to the IPDJ their financial capacity for the investment and the origin of the funds to be used. For reasons of transparency, the sports company must identify and itemise the holding in the share capital and voting rights held by each holder, and identify the entire chain of persons and entities to whom that holding is attributable, including the company’s beneficial owner.<\/p>\n

IPDJ oversight and sanctions regime<\/h2>\n

Law No. 39\/2023 gives the Portuguese Institute of Sport and Youth (IPDJ) the role of supervisory body of sports companies, which may act through inquiries, inspections, investigations and external audits, and both the IPDJ and the sports companies themselves must set up a channel for reporting infringements. Breach of the duties and obligations laid down in the law is subject to a specific administrative offences regime, with fines ranging from 500 to 500,000 euros, in addition to any sporting sanctions applicable by the competent federations.<\/p>\n

Restrictions on holding multiple sports companies<\/h2>\n

A club may only give rise to, or hold share capital in, two or more sports companies if each has a different sport as its object or, in the case of the same sport, if the companies are differentiated by sex – a legal measure expressly designed to encourage investment in women’s teams. The law also imposes minimum gender representation on the management and supervisory bodies of sports companies, through a transitional regime: the proportion of persons of each sex may not be less than 20% from the first elective general meeting after the law came into force, rising to 33.3% from the first elective general meeting held after 1 January 2025.<\/p>\n

Mergers and the fate of the honours on dissolution<\/h2>\n

Sports companies with different founding clubs may not merge with each other, or with a distinct sports club, except where the respective founding clubs also merge. In the event of dissolution, insolvency or winding-up of a sports company, the law expressly provides that the sporting honours and trophies it has won must be recognised and attributed to the founding sports club, provided that it still holds that status at the time – a provision relevant to preserving the historical identity of the clubs involved.<\/p>\n

Advice to clubs and other related matters<\/h2>\n

The day-to-day legal management of a club or sports company is frequently associated with the hiring and termination of contracts of players and technical teams, a matter developed in the article Sports contracts in Portugal – what you need to know<\/a>, including situations of dismissal for just cause, dealt with in the article Dismissal for just cause in sport – what you need to know<\/a>. It should also be noted that anyone engaged in the activity of intermediation or representation of players and coaches is prevented from taking up the position of qualified investor, director or manager of a sports company, as described in the article Football agents in Portugal – registration and legal regime<\/a>.<\/p>\n

About Ara\u00fajo & Associados<\/h2>\n

Established in 1980, with offices in Porto and Lisbon, Ara\u00fajo & Associados provides ongoing legal advice to clubs and sports companies, in Portuguese, English, French, German and Spanish.<\/p>\n

Frequently asked questions about legal advice for sports clubs<\/h2>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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What legal forms can a sports company take in Portugal?<\/h3><\/path><\/svg><\/span><\/div>

Three: the public limited sports company (SAD), the single-member sports private limited company (SDUQ) and, since Law No. 39\/2023, the sports private limited company (SDQ) – the latter a novelty that makes it easier for clubs with less investment capacity to set up sports companies.<\/p><\/div>\n\t\t\t\t\t<\/div>

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What is the minimum share capital to incorporate a sports company participating in the 1st Liga?<\/h3><\/path><\/svg><\/span><\/div>

Currently 250,000 euros, a significantly reduced amount compared with the one million euros previously required of public limited sports companies.<\/p><\/div>\n\t\t\t\t\t<\/div>

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Must the founding club always hold a minimum percentage of the sports company's capital?<\/h3><\/path><\/svg><\/span><\/div>

Yes, at least 5% of the share capital, a threshold reduced from the 10% previously required by the repealed regime.<\/p><\/div>\n\t\t\t\t\t<\/div>

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Who supervises sports companies in Portugal?<\/h3><\/path><\/svg><\/span><\/div>

The Portuguese Institute of Sport and Youth (IPDJ), which has the power to carry out inquiries, inspections, investigations and external audits, under Law No. 39\/2023.<\/p><\/div>\n\t\t\t\t\t<\/div>

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What fines apply to a sports company that breaches its legal obligations?<\/h3><\/path><\/svg><\/span><\/div>

The fines provided for in the specific administrative offences regime of Law No. 39\/2023 range from 500 to 500,000 euros, depending on the seriousness of the infringement, without prejudice to any applicable sporting sanctions.<\/p><\/div>\n\t\t\t\t\t<\/div>

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If a sports company is wound up, what happens to its honours and trophies?<\/h3><\/path><\/svg><\/span><\/div>

As a rule, they revert to the founding sports club, provided that it still holds that status at the date of dissolution, insolvency or winding-up of the sports company.<\/p><\/div>\n\t\t\t\t\t<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Contact us<\/h2>\n

For more information on legal advice for clubs and sports companies, or to book a legal consultation, you can contact us through our Porto or Lisbon offices, by telephone, email or via the form on the website. We provide legal advice in Portuguese, English, French, German and Spanish.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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