DENMARK Law and Practice Contributed by: Frederik Bruhn, Rasmus Theis Madsen, Robert Jønsson and Tim Krarup Nielsen, HortenDahl Law Firm
4.3 Sport Funding In Denmark, sport is funded through a combination of public funding, lottery proceeds and commercial rev - enue streams, with football standing out as the most commercially driven sport. A significant share of pub - lic funding is channelled through DIF, which distributes state funds and lottery-based proceeds to national federations and grassroots sport. Team Denmark pro - vides additional state-funded support for elite sport development, while municipalities contribute through subsidies. Over the past five years, the financial position of Dan - ish Superliga clubs has improved significantly, driven by major player transfers, increasing sponsorship rev - enue and a substantial rise in attendance. The business model for the majority of Danish football clubs is to a wide extent based on the principle of talent development and the sale of talented players before they reach the peak of their footballing ability, with the sole purpose of cashing in on the player. 5. Intellectual Property, Data and Data Protection 5.1 Trade Marks Registration and Protection of Trade Marks Under the Danish Trademark Act, a trade mark right can be established through: • registration with the Danish Patent and Trademark Office (DKPTO), the EU Trade Mark (EUTM) system or the Madrid Protocol for international registration; or • use in commerce, where a trade mark gains recog - nition through substantial use in the market – this requires the mark to have been used in Denmark to an extent that is “more than locally limited”. The granted protection is particularly relevant in the sports industry, where brand identity and commercial exploitation play a crucial role in financial success. Sports clubs, athletes and federations often register their names, logos and other branding elements to protect their commercial identity and prevent unau -
ensuring compliance with international football gov - ernance standards. One key restriction is UEFA’s mul - tiple club ownership rule (Article 5 of UEFA’s com - petition regulations), which prohibits an owner from holding controlling interests in multiple clubs partici - pating in the same European tournament. Domestic Corporate Governance Rules In Denmark, the Danish League’s “Circular No 42” (the “Circular”) regulates ownership and govern - ance in professional football clubs competing in the Superliga and lower divisions. This regulation ensures transparency in club ownership and prevents financial misconduct or conflicts of interest. Under the Circular, any transfer of a significant influ - ence (defined as one-third of voting rights) in a club requires prior approval from the Danish League before the club can obtain the contract licence (ie, the licence to enter into player contracts). Until the licence is granted, the club cannot enter into new player con - tracts. To secure approval, clubs must submit documentation to the Danish League detailing: • the corporate structure of the new owner; • the new owner’s other business interests and affili - ations; and • a statutory declaration confirming compliance with relevant collective agreements and football regula - tory frameworks. According to the Circular, the Danish League will refuse to issue the contract licence if the prospective owner or ultimate beneficial owner does not meet cer - tain reputation and commercial requirements. Restrictions on Multiple Club Ownership The Circular also prohibits clubs from being owned by the same corporate group or under common control with another club in the competition. Among other penalties, violations of these ownership restrictions may result in a revocation of the club licence, effec - tively barring the club from operating as a professional football business.
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