Sports and Events Management Focus
Hussain OsmanAssociate,Innovation & Patents
Shouq Al MajaliTrainee Lawyer,Corporate Commercial
The Kingdom of Bahrain is home to one of the leading, state of the art, motorsport venues in the world – the Bahrain International Circuit. Thus, it is understandable that laws are being introduced to bring the legal field of sports since the leap taken in 2004 . Sports has been an important sector in the Kingdom, notably in 1975 when the High Council for Youth and Sports was first established. Decades later, the sports industry is evolving through the introduction of modern legislative decisions. These decisions are working to align the Kingdom with other GCC countries who notably developed a wide range of regulatory reforms and targeted initiatives, culminating in a host of global sporting events taking place in the region . The strive for sports in the GCC is ever growing, however, the Kingdom has progressed over recent years having witnessed the rise in Bahraini investment into foreign sports clubs such as His Highness Shaikh Nasser bin Hamad Al Khalifa’s acquisition of both Cordova FC and Paris FC, and the acquisition of Wigan Athletic by Abdulrahman Al Jasmi, a Bahraini businessman. This update aims to present both the development of legislation pertaining to sports in Bahrain in addition to general governmental initiatives in the sector.
The 1975 High Council for Youth and Sports, now referred to as the Supreme Council for Youth and Sports, aims to support the sector through acting as the key point of contact for all things sports and providing the required assistance to all respective stakeholders. Additionally, the Council continues to develop policies in line with recent developments. It has come a long way to receiving accolated in the form of the Gold Medal Merit for Excellence by the Arab Academy in 2012 and the Best Arab government project to empower youth as part of the Arab Government Excellence Award in 2020.
In line with the Kingdom’s vision to develop a sustainable and agile sports industry, Decree 61 of 2021 promulgated the establishment of the General Sports Authority (GSA) under the leadership of His Highness Shaikh Khalid bin Hamad Al Khalifa. This represents Bahrain’s very first accountable operational sports body representing a clear ‘north star’ and institutional mandate to work towards.
The GSA aims to achieve the following strategic objectives as part of its wider sports mandate:
Sports Investment
Sports and Digital Infrastructure Development
Revisiting Sports Laws and Legislations
Establishing Sports Courts
Promoting Sports Tourism
Laws governing the field of sports are continuously developing. The Sports Professionalism Law No.8 of 2021 permits the signing of contracts with professional athletes to practice sports, all of which shall be registered with and approved by the GSA. This is a step in the right direction as it helps support the Bahrain sports movement in bringing the Kingdom in line with international standards. As a result, the sports sector as a whole would depart from being a culmination of individuals practicing their hobbies to a vocational craft governed under a set of entitlements and obligations. Having been described as a quantum leap for the Bahrain Sports Sector, it is expected that such modern legislation is likely to result in further advancements as the sector reaches new heights by professionalising athletes under the regulation of the GSA. Having a ratified statutory right that allows all sports individuals in the Kingdom to enter the world of professionalism guaranteeing rights and obligations to the sports system. The crystallisation of the Sports Professionalism Law shall transport Bahrain sport towards wider horizons and lead the way for stronger development within the sector. The law shall grant athletes limited rights such as insurance coverage that will protect them and allow them to prosper by allowing them to dedicate the majority of their time to train as well as providing comfort and psychological stability, which in turn will be reflected positively on their technical achievements on the field. Transforming local sports clubs into businesses will help bring in more funds to invest in Bahraini athletes. Bahrainis are looking at sports ventures as a promising asset class, as evident through the increased acquisition of international sports teams. This presents the drive towards modernizing and improving the sports sector in Bahrain through legislative development.
In order to facilitate the judicious application of the new laws as discussed in this article, the enforcement of rights is essential. As such, the Bahrain Chamber for Dispute Resolution, (BCDR,) released their new sports arbitration rules which entered into force early 2022. The draft rules were posted on the BCDR website in French, Arabic and English to invite feedback from sporting bodies around the world. Interestingly, the articles in the sports rules are divided into sections devoted to the key elements in the proceedings, rather than following the general chronological pattern of arbitration rules. The BCDR aims to set out a list of rules which would be dedicated to resolving disputes arising in the sporting world, contributing to the development of sports law in Bahrain. The rules stipulate that there is no requirement for the arbitration agreement to be contractual between the involved parties, instead they may rely on statutes or regulations of sporting bodies. However, the right to appeal is subject to an express written agreement that an appeal is permitted. There is increased use of arbitration as a method of dispute resolution in the sports industry as a result of the technical nature of sports claims. The introduction of regulations specific to the sports industry is instrumental to the growth of the sector. This ties into the overarching trend of bolstering and formalizing the sports sector in Bahrain. The rules also impose the requirement to appoint arbitrators as listed on the BCDR-approved roster for sports arbitrators, this ensures that such arbitrators are educated on the technicalities of the adjudication thereby avoiding length appointment processes and improving transparency by selecting conflict-free arbitrations competent in sports. The implementation of the rules contribute greatly to the development of the sports sector in Bahrain as it further catapults the Kingdom nearer and nearer to the standing of established nations.
ESTIJABAH is a first-of-its-kind programme set up by Shaikh Nasser bin Hamad Al Khalifa which mainly aims to further boost the youth and sports sectors in the Kingdom with the aim of investing in state-owned sports facilities and create new fixed income sources for associated sports sector activities in general. The initiative aims to place the Kingdom on the map as “Bahrain, the capital of youth and sports”. The initiative worked to operationally separate the ‘Youth’ and ‘Sports’ sector to build depth in each respectively. The initiative resulted in landmark achievements in sports such as, the launch of the sports summit and a road-map to create a sports city among other decisions.
Recently, Bahrain issued an amendment to Article 43 of the Law of Associations, Social and Cultural Clubs, Special Committees Working in the Field of Youth and Sports and Private Institutions (Bahrain Law No. 21/1989). The amendment in question prohibits the political affiliation of board members in the abovementioned organizations in addition to restrictions membership of more than one club or sports association. The removal of political association further strengthens the increasingly professional nature of Bahrain's sports sector. This allows the motivations within the sports sector to remain objectively driven by competitiveness and no political factor. Further amendments to the 1989 Law saw the transformation of Sports Clubs in Bahrain permitting them to operate as commercial establishments. This amendment in conjunction with the Sports Professionalism Law demonstrates the Kingdom’s fight to transform the sports sector into a valuable economic feature demonstrating a qualitative leap in the history of Bahrain sports.
It is clear that through its initiatives and developments in sports law and procedure, the Kingdom of Bahrain is advancing greatly in its sports movement that has been in the works since 1975. In the future it is expected that features such as the privatization of sports associations and clubs become integrated into the Kingdom’s legislation as the sector is one that holds merit to become a key, lucrative and rewarding feature for the Kingdom of Bahrain.
For further information,please contact Neil Morgan.
Published in October 2022
