DENMARK Law and Practice Contributed by: Frederik Bruhn, Tim Krarup Nielsen, Robert Jønsson and Rasmus Theis Madsen, DAHL Law Firm
The club licence, which enables the club to enter into professional player contracts, is issued by the DBU to the mother club – ie, the association. The association often owns a part of the pro - fessional football company (but it is not a legal requirement) and the association grants the club licence to the professional company, whereby the latter can operate its business. Thus, the cor - porate structure now generally applied makes it possible for a potential investor to achieve a controlling interest in the club making it possible to carry out the necessary decisions in the club. Danish clubs in general are today structured as professional enterprises aiming to make profit. Non-Professional Sports Clubs and Grassroots Organisations Amateur and semi-professional sports clubs in Denmark are typically structured as associations, which are non-profit organisations controlled by their members. This structure ensures that profits are reinvested into the club rather than distributed to shareholders. Associations ben - efit from favourable tax treatment and access to public funding and grants, making this model suitable for grassroots sports and community engagement. 4.2 Corporate Governance Corporate governance rules in sports ensure financial transparency and prevent conflicts of interest. In Danish football, specific regulations govern ownership, compliance, and multiple club control. International Rules Danish football clubs must adhere to corporate governance regulations set out by FIFA and UEFA, ensuring compliance with international football governance standards. One key restric - tion is UEFA’s multiple club ownership rule (Arti -
cle 5 of UEFA’s competition regulations), which prohibits an owner from holding controlling inter - ests in multiple clubs participating in the same European tournament. Domestic Corporate Governance Rules In Denmark, the Danish League’s “Circular No. 42” (the “Circular” ) regulates ownership and governance in professional football clubs com - peting in the Superliga and lower divisions. This regulation ensures transparency in club owner - ship and prevents financial misconduct or con - flicts of interest. Under the Circular, any transfer of a significant influence (defined as one-third of voting rights) in a club requires prior approval from the Dan - ish League before the club can obtain the con - tract licence (ie, the licence to enter into player contracts). Until the licence is granted, the club cannot enter into new player contracts. To secure approval clubs must submit documen - tation to the Danish League detailing: • the corporate structure of the new owner; • the new owner’s other business interests and affiliations; and • a statutory declaration confirming compli - ance with relevant collective agreements and football regulatory frameworks. Suitability Criteria for Ownership Approval According to the Circular, the Danish League will refuse to issue the contract licence if the prospective owner or ultimate beneficial owner does meet certain criteria regarding reputation and commercial requirements. Restrictions on Multiple Club Ownership The Circular also prohibits clubs from being owned by the same corporate group or under
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