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Team Ownership Disputes

What is Sporting Succession?

It is a FIFA principle where a new club is held liable for the debts of an old, bankrupt club if they share history, colors, stadium, and fans, to prevent debt evasion.

Can one person own two clubs in Georgia?

Generally no. To protect integrity, regulations prohibit one person or entity from having control or decisive influence over more than one club in the same competition.

How to resolve a deadlock between 50/50 owners?

A well-drafted Shareholders Agreement should have deadlock resolution clauses like "Russian Roulette" or "Texas Shootout" to allow one partner to buy out the other.

Can I lose my club if I don't build a stadium?

Yes, if the privatization agreement included an investment obligation (building infrastructure) and it wasn't met, the state can reclaim the property.

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Team Ownership Disputes are complex corporate and sports conflicts regarding the allocation of shares, management rights, or assets of a sports club. In Georgia, amid the privatization of sports clubs and the entry of private investors, this issue is becoming increasingly relevant. Disputes may arise between partners, between former and new owners, or between the club and the municipality. Such disputes often involve licensing (FIFA/UEFA), financial obligations, and intellectual property (logo, history) issues. Qualified legal assistance is essential to maintain club stability and protect investments.

What Does the Team Ownership Disputes Service Cover?

Our service ensures legal protection for club owners:

  • Shareholder Disputes: Conflicts between partners regarding share distribution, dividends, or management strategy.
  • Acquisition Disputes (M&A): Disputes arising from club purchase agreements (e.g., discovery of hidden debts after purchase).
  • Sporting Succession: Disputes over the recognition of the club's history, titles, and "Sporting Successor" status by a new legal entity.
  • Licensing Issues: Appealing license suspension by the federation due to ownership structure issues.
  • Municipal Disputes: Disputes with the state or municipality regarding the fulfillment of privatization conditions.

Real-World Situations When You Need This Service

Ownership disputes are often critical for a club's survival:

  • Debt Inheritance: An investor bought a club, but old, hidden debts surfaced. FIFA demands payment based on the "sporting succession" principle. The lawyer defends the new owner.
  • Partner Split: Two partners cannot agree on the budget. One blocks decisions. Breaking the corporate deadlock is needed.
  • Brand Reclamation: The former owner demands the club's logo and name because they were registered in their name.
  • Investment Default: The investor failed to meet privatization conditions (did not build a stadium). The state demands the return of the club.

Georgian Legal Framework

Team ownership issues are regulated by the "Law on Entrepreneurs" (LLC/JSC shares), the "Civil Code", and the "Law on Sport". FIFA/UEFA regulations on club ownership and control (e.g., prohibition of multi-club ownership) are crucial. The lawyer ensures harmonization of corporate law and sports regulations.

Process: How a Specialist Works

Dispute resolution involves:

  1. Audit: Studying the club's corporate documents and obligations.
  2. Negotiation: Agreeing on share buyout or division.
  3. Litigation: Defending interests in court or arbitration.

Why Legal.ge?

Legal.ge offers lawyers who understand the specifics of the sports business. Owning a club is not just business; it's a social responsibility. We will help you protect your asset and the club's future.

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