Fachgebiet
Lawyer for sports law & association law
For clubs, governing bodies, athletes and sponsors: advice and representation in sports law.
HÖLLWARTH offers governing bodies, associations, individual members and athletes as well as sponsors comprehensive advice and representation in sports law and association law.
The services cover the following areas of law
- Formation and dissolution of associations (Vereine)
- Rights and duties of association members
- Tasks and rights of the association’s bodies
- Liability of the association and of its members
- Drafting, review and revision of association statutes, rules of procedure and other documents internal to clubs and governing bodies
- Representation of clubs and of team and individual athletes before the sports tribunals of the governing bodies, the arbitral tribunals of sport and the Austrian courts
- Drafting and negotiation of contracts (sponsorship agreements, agent contracts, management contracts and advertising agency contracts)
- Development and implementation of suitable compliance systems within the association or governing body
- Optimisation of the liability structure of clubs and governing bodies;
- Support in licensing procedures
- Support during player transfers
- Advice on officials‘ personal liability for tax together with tax advisers
- Expert opinions
Precisely because sports law is a cross-cutting field drawing on
- association law
- tax law
- company law
- employment law
- criminal law and international law
its application is at times complicated. Not only are widely differing areas of law involved; the rights and interests of very different groups are affected as well, namely sports governing bodies, sports clubs and their bodies and officials on the one hand, and athletes and sponsors on the other.
A large number of the rules in sports law often do not even originate in Austrian law. For sports clubs and sports governing bodies, and for athletes, coaches, sponsors, sports agencies and sports businesses, the international dimension of sport has been a given for many years and calls – particularly in professional sport – for an experienced adviser.
Association law and governing body law in sport
Within the framework of the applicable association law, sports clubs and sports governing bodies are in principle free to shape their organisation, their structure and their statutes. A key point here is always the question of which rights and duties the members have. In an individual case it is not always easy to draft the relevant provisions so that they are legally sound and binding on third parties such as a association and the superior sports governing bodies. A point of discussion that should not be neglected is often, in practice, whether and how the power to discipline and sanction members of the clubs and governing bodies can be enforced against individual association or association members. Questions of association and governing body jurisdiction, as well as the review of association rules and measures by the state courts, are also of importance at both national and international level.
Sport and taxes
The great majority of sports clubs and sports governing bodies are charitable (gemeinnützig) and are therefore granted numerous tax advantages. Sports clubs and sports governing bodies are, however, also subject to strict funding rules, for example on how tournaments, coaches, athletes or other measures are to be accounted for. It usually also becomes difficult for the board members (president, treasurer, etc) where large professional divisions exist alongside the purely non-profit sporting activities in youth and amateur sport (mixed events).
Because of the international nature of sport, there are also questions concerning the
- unlimited or limited tax liability of an athlete in Austria
- taxation of foreign athletes in Austria
- application of double taxation agreements
that need to be clarified.
Cross-border player transfers and player loans also raise a wide range of tax questions. It is precisely on these questions that HÖLLWARTH offers advice and representation.
Drafting contracts in sports law
Sports clubs and sports governing bodies are faced with a large number of contracts. Alongside the tax-efficient drafting of sponsorship and usage agreements (stadiums, arenas and so on), it is above all the legally sound drafting of players‘ and athletes‘ contracts that matters in practice. In addition, agent and management contracts, and also advertising agency contracts, are relevant around the individual athlete and should not be concluded without legal support.
Liability in sport
Things do not always go as planned in sports clubs and sports governing bodies. Because of the large number of complex tasks, officials are often exposed to a wide variety of liability problems. Board members and other people acting for the organisation, such as managing directors and project leaders, can expose themselves to claims from the association itself, from its members or from third parties. The firm helps you to avoid liability risks. Where a liability case has already arisen, it stands by the people involved.
Criminal law in sport
Prohibited doping and the manipulation of competitions or of betting can have serious criminal consequences in sport. Questions of Wirtschaftsstrafrecht (white-collar crime), such as criminal breach of fiduciary duty (Untreue) and fraud, also play a large role in sport. HÖLLWARTH represents you in criminal matters!
Häufige Fragen
Can I set up an association in Austria?
Yes, and the route is straightforward. Two people are enough. They adopt statutes and notify the authority responsible for associations (Vereinsbehörde) of the formation – that is the district administrative authority, in Vienna the Landespolizeidirektion (State Police Directorate). The association comes into being as soon as the authority does not prohibit the formation within the statutory period, or expressly clears its activity beforehand.
Can an association be set up without statutes?
No. The statutes are the legal basis of the association and must contain a statutory minimum: name, seat, purpose, means of achieving the purpose, types of membership, rights and duties of the members, bodies and their power of representation, a dispute resolution body, and rules on dissolution and the use of the assets. If one point is missing, the formation is prohibited.
Can the association's statutes be amended at any time?
Yes, provided the statutes themselves and the Vereinsgesetz are complied with. As a rule it is the general meeting that decides, by the majority the statutes require. The amendment must be notified to the association authority and only takes effect if it is not prohibited. Keep the invitation, the agenda and the resolution properly documented.
Is a general meeting mandatory?
Yes. The Vereinsgesetz requires the members to come together for a general meeting at least every five years; most statutes provide for one every year. The financial statements must also be presented there and the auditors appointed. If the meeting is not convened, resolutions and appointments to the bodies can become open to challenge.
Can a resolution of the general meeting be challenged?
Yes. Procedural errors in the invitation, the agenda, the quorum or the vote make a resolution open to challenge. First, however, the dispute resolution body provided for in the statutes must be called upon – you can only go to the ordinary courts once that body has failed to decide. This order of steps is frequently overlooked and leads to the claim being rejected.
Is the chairman of an association personally liable?
Externally, it is in principle the association that is liable with its assets. Towards the association, office holders are liable for culpable breaches of duty – those acting without remuneration, however, only for intent or gross negligence. Personal liability towards third parties arises above all for taxes, social insurance contributions and a late application for insolvency.
Is the treasurer personally liable?
They can be. Whoever handles the financial affairs is responsible for paying taxes and social insurance contributions on time – there is a separate personal liability for this, which also applies to those acting without remuneration. A clear division of responsibilities, ongoing bookkeeping and review by two auditors are the most effective protection.
Can I contest my expulsion from an association?
Yes. The expulsion must be provided for in the statutes, must rest on a ground regulated there and must follow a fair procedure – in particular, you must be given a hearing. The association’s internal dispute resolution body must be called upon first; if it remains inactive, you can then take the matter to the ordinary courts.
Can an association sue for membership fees?
Yes. Joining creates a contractual obligation to pay the fees, provided the statutes regulate them or delegate the setting of them to one of the bodies. Outstanding fees can be enforced in court, usually through the Mahnverfahren (order for payment procedure). The statutes should also regulate what happens to the membership in the event of late payment.
Can an association carry on a business?
Yes, but only in a supporting role. The association must pursue a non-profit purpose and must not be directed at making a profit. Commercial activities such as a canteen, sponsorship or events are permissible as long as they remain subordinate to the non-profit purpose. If the business side takes over, the loss of charitable status and additional tax assessments are a real risk.
Is charitable status an advantage for associations?
As a rule, yes. Associations with charitable status are largely relieved of corporation tax, can run certain operations free of tax and obtain funding more easily. The condition is that both the statutes and the actual management comply with the tax requirements throughout. Both are examined – model statutes alone are not enough.
Is a sports association liable for injuries?
Not for the risk typical of the sport: anyone who takes part accepts hard play within the rules. Liability comes into question where the association failed to keep its premises and equipment safe – defective facilities or equipment –, where supervision of minors was inadequate, or where coaches and support staff were selected or deployed without due care.
Is a coach self-employed or an employee?
That is decided not by the label in the contract but by how the work is actually organised: being bound by instructions, fixed training times, integration into the club’s operations and a personal obligation to perform all point to an employment relationship. For charitable sports clubs there are also tax-free expense allowances. A wrong classification leads to back payments of social insurance and payroll tax.
Can I challenge a sanction or ban imposed by a governing body?
Yes, although only to a limited extent. The internal appeal process within the governing body must be exhausted first. The state courts then review the governing body’s decisions mainly for whether its own statutes and a fair procedure were observed and whether the sanction is not arbitrary or disproportionately harsh. With international governing bodies an arbitral tribunal often has jurisdiction.