Zamalek rule out sale of football company and set eight safeguards for investors

Zamalek have ruled out selling the club or its football company, saying any proposed increase in the company’s capital will be designed to support its development and improve its ability to compete.

The club issued a formal statement on Tuesday after growing speculation among supporters about the future of the football company, including whether it could be sold or partly transferred to new owners.

Zamalek said it had received several offers, with some already discussed and others still being assessed. The club remains open to serious proposals, but confirmed that no contracts or agreements had been signed. Any future deal, it added, would have to protect the club’s principles and rights.

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

The company must prepare sound, independent financial statements through an approved financial consultancy, address audit observations and identify and register all assets. A comprehensive feasibility study for long-term investment must also be produced, while the rights, assets and liabilities transferred to the football company must be clearly defined.

All contracts will be governed by Egyptian law, with Egyptian courts having jurisdiction over disputes. Zamalek said it would not accept any clause allowing disputes to be referred to international arbitration.

The club said it wanted 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 given to an investor must be linked to written performance indicators in the contract and would lapse if those targets were not met.

Zamalek also said investment could be divided between more than one party, provided that no individual investor held a larger share than the club. It welcomed the possibility of offering shares in the company to supporters through a public subscription, subject to the law.

The capital increase will not proceed until it has been approved by the general assembly, the Ministry of Youth and Sports and the relevant authorities, each within its area of responsibility. The club said the process would be conducted with the direct approval and supervision of the competent regulatory bodies.

Eight areas will remain exclusively protected for Zamalek, regardless of voting majorities. They include the club’s name, badge, colours, kit and trademark; any merger with another club or relocation of its headquarters; and the sale or mortgaging of club assets, including land and facilities.

The club’s shareholding, its articles of association and capital cannot be changed in a way that harms its rights. New shareholders or share transfers will require Zamalek’s approval, with the club retaining pre-emption rights.

The football company cannot be sold, dissolved, liquidated or merged, while major loans and guarantees, transactions with investors or their affiliated companies, and any action affecting Zamalek’s identity, supporters or history will also require the club’s consent. All measures must comply with the Sports Law and Football Association regulations.

Zamalek said these protected conditions could not be amended or bypassed through any voting mechanism. It will retain full access to the company’s books at any time and may terminate the agreement and recover all its rights if an investor fails to meet its obligations.

The club pledged to disclose relevant developments to supporters and members of its general assembly, while saying Zamalek’s identity, history, fans and overall interests would remain above all other considerations. It urged supporters to rely on official club sources for information.