SWEDEN Law and Practice Contributed by: Karl Ole Möller, Nordia Law
Code may also be applied voluntarily by non- listed companies. However, most clubs are organised as non-profit associations. Under Swedish law, the board is responsible for the organisation and manage - ment of the organisation’s business. The board has overall responsibility for assessing the finan - cial situation of the organisation and ensuring that the accounting, management of assets and the financial situation of the organisation are monitored in a safe manner. The board represents the organisation officially and has the power to sign agreements on behalf of the organisation. A board member (or an officer) of a non-profit association or a limited liability company may be held responsible for damages caused to the organisation (or its members or shareholders) in the performance of their duties. Board members are primarily responsible for any acts and omissions within the scope of the board’s area of responsibility. However, board members may also be liable for acts committed by an officer of the organisation within the day- to-day management if the board has neglected its duty to supervise. Board members are required to keep themselves updated regarding the organisation’s current financial situation and make decisions based upon sufficient information. A board member (or an officer) may also be liable for damage that they intentionally or negligently cause a third party by violating the statutes of the association or the provisions in the Companies Act. Furthermore, a board member may be subject to a wide range of other provisions in specific leg - islation. For instance, related to book-keeping,
annual accounts, tax payments or environmental matters. Board members and officers of an organisation may also incur criminal liability under certain pro - visions of the Companies Act and other offences under the Swedish Criminal Code, such as credit fraud, breach of trust and bribery. Insurance poli - cies against liability exposure for board mem - bers and officers may be obtained and are quite common. 4.3 Funding of Sport Swedish sports are primarily funded through a combination of government support and other revenue streams, such as sponsorship agree - ments. The Sports Confederation and SISU Idrottsutbildarna are the main organisations responsible for distributing financial resourc - es. The majority of their funding comes from the Swedish government’s fiscal budget. This support is aimed at promoting public health, fostering citizen participation, and supporting organised sports. The funds are distributed to sports clubs and organisations through a struc - tured system. This ensures that financial support reaches a wide range of sports clubs and their members. The distribution is based on the needs and performance of the clubs, with a focus on promoting sports participation and excellence at all levels. Other traditional revenue streams derive from the transfer of players (mainly for the elite clubs), broadcasting rights, arenas (such as ticketing, hospitality and merchandising), online sales and lotteries. New opportunities for monetising fan engagement in the digital era are growing rap - idly, such as exploiting image rights, the use of non-fungible tokens (NFTs) and the metaverse, etc.
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