Zamalek approve electronic vote on football company proposal

Zamalek’s board has approved electronic voting for the club’s next general assembly, which will be held on 8 December and is expected to decide whether to establish a football company under conditions set by the board.

The club announced the decision through its official application. The meeting will also consider the proposed separation of the football operation from the club’s social activities and the creation of a company intended to develop the team and increase its resources.

Zamalek said there had been several offers related to the project. Some had been discussed and others were still being assessed, while the club remained open to further proposals. No contracts or agreements had been signed, it added, and none would be concluded unless they respected the club’s principles and protected its rights.

The board said the project did not involve selling Zamalek or the football company. Instead, the aim was to increase the company’s capital and strengthen its ability to compete. It said decisions would not be rushed and that the club’s interests would remain the only determining factor after the necessary studies and guarantees had been completed.

The proposed safeguards include independently prepared financial statements, produced by an approved financial consultancy, with audit observations addressed and all assets identified and recorded. The club also intends to commission a full economic feasibility study and clearly define the rights, assets and liabilities transferred to the football company.

All contracts would be governed by Egyptian law, with disputes handled by the Egyptian judiciary. Zamalek said it would not accept any clause requiring international arbitration. It wants a long-term investor focused on building a strong team and developing the football structure, rather than simply trading players.

Any management rights given to an investor would be tied to written performance indicators and withdrawn if those targets were not met. The investment stake could be divided between several parties, but no investor would be allowed to hold a larger share than Zamalek. The club also welcomed the possibility of offering shares to the public through a public subscription, subject to the law.

The capital increase cannot proceed without approval from the general assembly, the Ministry of Youth and Sports and the relevant authorities. Zamalek said the process would be subject to direct oversight by the competent regulatory bodies.

The club would retain veto rights over fundamental matters. These include changing or selling its name, badge, colours, kit or trademark; merging with another club or moving its headquarters; selling or mortgaging assets, including land and facilities; reducing Zamalek’s stake or altering the company’s articles or capital in a way that affects its rights; and admitting new shareholders or transferring shares without the club’s approval.

Zamalek’s consent would also be required to sell, dissolve, liquidate or merge the company, issue major loans or guarantees, conduct transactions with investors or their affiliated companies, or take any action affecting the club’s identity, supporters or history, or breaching sports law and Football Association regulations. The club said these protections could not be bypassed or amended through any voting mechanism.

It will retain full access to the company’s records and the right to terminate the agreement and recover its rights if an investor fails to meet their obligations.

The board thanked Hany Barzy for covering the team’s travel costs to Rwanda and the participation and accommodation costs of the judo team at the Arab Championships. It also thanked Mohamed Annany, head of the legal sector, for his role in recovering the club’s rights.