Egypt’s sports ministry tightens rules on federation dealings with sports companies

Egypt’s Ministry of Youth and Sports has instructed the country’s sports federations not to issue documents that could allow companies or other entities to operate in sports services or sports investment without valid legal licences.

In an official circular sent to the chairmen of sports federation boards, the ministry said federations must remain within the powers assigned to them by law when dealing with licences for sports activities, sports services and investment in sport.

It confirmed that the Office for Licensing Sports Services Companies at the Ministry of Youth and Sports is the sole authority responsible for issuing licences to sports services companies and businesses operating in sports investment, in accordance with the relevant laws and regulations.

The ministry said the directive was intended to organise sports investment, standardise procedures for operating sports activities and services, and ensure that legal requirements were properly applied. It also said the measures were designed to protect the financial resources of sports organisations and reinforce governance, transparency and the rule of law.

The circular followed what the ministry described as the recent discovery that some sports federations had issued certificates or other documents relating to the licensing of entities working in sports services.

Such paperwork could be interpreted as giving those organisations the right to operate, the ministry said. It warned that issuing documents with that effect would exceed the legal responsibilities granted to sports federations.

Federations have been told to conduct regular reviews of the legal status of the companies and entities they deal with. They must confirm that each organisation holds a valid licence and have been instructed not to work with any company or entity whose licence has expired or which has never obtained the required authorisation.

The ministry has also prohibited federations from issuing licences, certificates, letters or other documents that could approve, recognise or authorise the provision of investment or sports services.

The ban also covers documents that might be understood as granting an entity legal status to carry out such activities. The ministry stressed that these powers belong exclusively to the Ministry of Youth and Sports, acting through the Office for Licensing Sports Services Companies.

Federations were ordered to comply fully with the circular from the date it was issued. They must also cancel or suspend any procedures or practices that conflict with its provisions.

The ministry said each sports federation would bear full responsibility for any breach of the circular or any overstepping of its requirements, within the limits of the duties and responsibilities established by law.

The directive sets out a clearer division of responsibilities between the ministry and the federations over licences to operate in the sports sector. It prevents federations from giving any company or entity a document that could legally be interpreted as permission to conduct sports activities without first securing approval from the authorised body.