JAPAN Law and Practice Contributed by: Atsushi Igarashi, Yoichiro Kuriyama, Misa Takahashi and Kosuke Ojio, TMI Associates
Depending on the location and content of a sporting event, the relevant parties, including sponsors, may be subject to the Urban Park Law, the Road Traffic Law, the Outdoor Adver - tisement Law and related ordinances, the Anti- Nuisance Ordinance, the Fire Service Law, the Food Sanitation Law, and other relevant laws and regulations. Event organisers may have clauses in their contracts with participants and spectators that restrict their liability, but any provisions in the terms and conditions with spectators purporting to exempt the organiser from liability to provide compensation are always void as a breach of the Consumer Contract Act. Professional sports clubs generally operate as joint stock companies while sports organisations that are not professional sports clubs may oper - ate in a variety of forms, including as joint stock companies, incorporated associations, incorpo - rated foundations, specified non-profit organisa - tions (NPOs), or voluntary organisations. In many cases, national sports federations in Japan oper - ate as incorporated associations or foundations. There are many possible reasons for opting for corporate status or a certain entity type, includ - ing tax benefits. For example, the primary rea - son for selecting a joint stock company is that the organisation’s activities are for profit. The primary reason for choosing an incorporated association or foundation is that the organisa - tion’s activities are not for profit. Certain incorpo - rated associations and incorporated foundations are authorised by a Public Interest Corporation Certification. Having a Public Interest Corpora - 4. Corporate 4.1 Legal Sporting Structures
tion Certification offers tax advantages, such as income tax exemptions. 4.2 Corporate Governance In 2019, the Japan Sports Agency (the “JSA” ) developed two sports governance codes: one for national federations and the other for general sports organisations. In 2020, the Japan Sport Association (the “JSPO” ), the Japanese Olympic Committee (the “JOC” ) and the Japanese Para- Sports Association (the “JPSA” ) began evaluat - ing their respective compliance with the code for national federations. As of the end of 2024, second evaluations have already started, but no major problems have occurred. In September 2023, the JSA revised the gov - ernance code for national federations. While 13 rules contained in the governance code remained as they were the explanations were slightly amended to help ensure the effective - ness of the governance code. A national federa - tion that is evaluated as non-conforming in the examination may be subject to a reduction in the amount of subsidies provided by the Japan Sport Council (the “JSC” ). Furthermore, when a general sports organisation applies to the JSC for a grant, it is required to self-explain and pub - licise its compliance status with the governance code. The governance code does not specifical - ly provide for matters regarding the bankruptcy The JSC, the JOC, the JPSA and the JSPO are awarded administrative grants, subsidies, etc, by the JSA. They then provide funds to the vari - ous national federations to improve athletic per - formance and international competitiveness as well as enhance the competitive environment. This sports promotion fund is also provided to athletes and coaches of Japan’s national teams. of a sports organisation. 4.3 Funding of Sport
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