Zamalek set strict conditions for football company investment

Zamalek have received several proposals to invest in their football company but say no contract or agreement has been signed, with the club insisting it will retain control over its identity and key decisions.

The club said investment would involve increasing the company’s capital to support its development and competitiveness, rather than selling Zamalek or the football company.

In a statement addressed to supporters and members of the general assembly, Zamalek said several offers had been discussed while others remained under consideration. The club added that it was open to new proposals, but any agreement must protect its established principles and rights.

The board said separating sporting and social activities and developing the football company were necessary to improve stability and increase resources, given the financial burdens accumulated by the club. However, it stressed that no decision would be taken before all necessary studies and guarantees had been completed, with Zamalek’s interests remaining the sole criterion.

The club said it would prepare accurate, independent financial statements through an approved financial consultancy, address audit observations and record all assets. It will also commission a full feasibility study for long-term investment and clearly identify the rights, assets and liabilities transferred to the football company.

All contracts must be governed by Egyptian law, with disputes handled by the Egyptian courts. Zamalek said it would not accept any clause allowing international arbitration.

The club wants an investor focused on building a strong team and developing the football structure over the long term, rather than simply trading players. Any management rights granted to an investor would be tied to written performance indicators and withdrawn if those targets were not met.

Investment would be shared between more than one party, with no individual investor allowed to hold a larger stake than Zamalek. The club also welcomed the possibility of offering shares to the public through a public subscription, subject to the law.

Key decisions reserved for Zamalek

Zamalek said the football company’s capital increase could not be completed without approval from the general assembly, the Ministry of Youth and Sports and the relevant authorities, each within its area of responsibility. The process would be carried out under the direct supervision of the appropriate regulators.

The club would retain veto rights over fundamental decisions, regardless of voting majorities. These include changing or selling Zamalek’s name, badge, colours, kit or trademark; merging the club with another club; moving its headquarters; or selling or mortgaging its assets, including land and facilities.

Zamalek’s stake could not be reduced, nor could its rights be affected through changes to the company’s articles of association or capital. New shareholders and share transfers would require the club’s approval, while Zamalek would retain pre-emption rights.

The company could not be sold, dissolved, liquidated or merged, and could not issue major loans or guarantees without the club’s consent. Transactions between the company and investors or their affiliated companies would also require approval.

The club said no action could be taken that harmed its identity, supporters or history, or breached the Sports Law and Football Association regulations. It added that these protections could not be amended or bypassed through any voting mechanism.

Zamalek will have full access to the company’s books at any time and the right to terminate an agreement and recover its rights if an investor fails to meet its obligations.

A general assembly is expected to be held in December to decide whether to approve the football company proposal under these conditions.