CHILE Law and Practice Contributed by: Gonzalo Bossart and Francisco Moya, Moya & Bossart
3. Sports Events 3.1 Proprietary Rights and Event Management Property Rights in Sport
4. Corporate Structures 4.1 Legal Forms of Sporting Bodies
While freedom of association is constitutionally guar - anteed in Chile, sports have adopted the non-profit organisation model as their primary legal vehicle. This is due not only to the primarily recreational and col - lective nature of sports, but also to the state’s promo - tion of this type of association through various laws, offering both public and private economic incentives. The exception to this is professional football, which, in order to promote more skilled and responsible man - agement, as well as the influx of capital into football clubs, through the enactment of the Professional Sports Corporations Law of 2005, has mandated that these clubs must operate as public limited companies. The case of sports federations has an extra peculiarity, since, although like the vast majority of amateur sport it adopts a non-profit structure for the same reasons explained in the foregoing, the incentives established Sports law provides for sport-specific corporate governance codes. However, it should be noted that these apply generically to non-profit sports organisa - tions – ie, clubs, associations and federations – and primarily regulate conflicts of interest for directors (board members) and, more specifically, directors of the so-called National Sports Federations (represent - ing international federations in Chile). The codes regu - late everything from the minimum requirements to be a director to the degree of responsibility for which they are accountable. by the state seem more like obligations. 4.2 Corporate Governance Codes The regulation of sports corporations is subsidiarily left to the general regulations for corporations. How - ever, it is worth mentioning that this law is currently being amended, and among the main reforms is the significant regulation and strengthening of directors’ liability. This is intended to enhance oversight, limit multiple ownership (particularly of football clubs), pre - vent conflicts of interest (especially preventing play - ers’ agents from owning stocks) and improve admin - istrative transparency.
Property rights in Chile are constitutionally protected, guaranteeing their owners the use, enjoyment and disposal of tangible and intangible assets. Television rights fall into the latter category, granting the Chilean sports world the right to exploit its image through this medium. Except for the press, and even then only for restricted informational purposes, only broadcasters may dis - seminate images of sporting events. The only way a broadcaster can exploit a sporting event is through the express authorisation of the sports entity that owns the event. This authorisation is usually formalised in a contract that details the relationship and may involve the payment of rights fees to the event owner, typically in the context of professional football. In Chile, there is no law that compels sports entities to broadcast their events on free-to-air television. Organisation and Management of Sports Events The organisation, management and administration of sporting events falls mainly to sports organisations – ie, clubs, leagues, federations and private promoters – so they are the owners of the image rights associated with these events and therefore also have the right to exploit them. 3.2 Duty of Care and Liability Duty of Care and Responsibility in Sports Events In Chile, organisers of sporting events assume enhanced legal and civil liability under Laws 19.327 and 21.659, obligating them to guarantee the safety of all attendees. This legislation establishes strict and joint liability, requiring the implementation of rigorous security plans, access controls and the exercise of the right of admission. Furthermore, organisers have a strict duty to report any acts of violence or infrac - tions within the venue. The primary focus is on making security an essential operational pillar for the execu - tion of any large-scale event.
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