Can the municipality help their sports club?

Ahmet Arslan

Auditor, Certified Accountant, MBA

As is known, municipalities have their own name sports clubs, especially in football branches. The sports club in question is named after the municipality, but has no administrative status. It is arguable whether the relevant municipalities will provide in-kind or financial assistance to these non-administrative institutions. The legal restrictions on this subject are clear.

  1. Legal status of sports clubs

Sports clubs are regulated by Association Law No. 5253 and Article 14 of the law, “Youth and Sports Clubs”. When they apply from the association; those for sports activities are called sports clubs, those for leisure activities are called youth clubs, and those for both are called youth clubs and sports clubs. These clubs are registered and are registered for storage by the Directorate General of Youth Sports. Is called.

Similarly, Article 20 of the Youth and Sports Services Act No. 3289 entitled “Youth and Sports Clubs”. The Youth Sports Club is established under the Association Law and is registered with the Ministry of Youth Sports. If desired, he can seize his account, books and transactions. The provisions of the Association Law are reserved. Contains provisions.

According to the aforementioned law, it is clearly understood that amateur or professional sports clubs have the status of an association. These registrations and registrations in the register kept by the Directorate General of Youth Sports do not change the status of the association.

According to Turkish Civil Code No. 4721; an association is formed by at least seven real persons or legal entities by constantly combining knowledge and work to achieve a specific common purpose other than profit sharing. A group of people with legal personality.

According to the law mentioned above, it is clearly understood that the association has a legal personality separate from the person who forms them.

On the other hand, according to Law No. 3289, a sports club may transfer a professional team to a company established or established in accordance with the provisions of the Turkish Commercial Code, or lease a professional soccer team.

The company is regulated by Turkish Commercial Code No. 6102 and is a legal entity operated on the basis of commercial principles.

Therefore, the issue of providing assistance to sports clubs in the administration should be evaluated within the framework of the rules of the relevant law regarding the granting of assistance to associations or sports companies.

  1. Municipalities cannot support the association

According to the rules created in City Law No. 5393 and Law No. 6360 dated November 12, 2012,

-Local governments are with specialized organizations of the nature of public institutions, associations operating for the public interest, foundations granted tax exemption by the President, and specialized offices subject to the Merchant and Artisan Professional Organization Act No. 5362. You can carry out joint service projects. Realizing joint service projects with other associations and foundations requires the permission of the highest local authorities.

-The second sentence of the first paragraph of Article 29 of the Public Financial Management Act No. 5018 and Article 10 of the Association Act No. 5253. It does not apply to local governments, special local governments, their affiliates, and unions and companies audited by the courts with which they are partners.

The second sentence of Article 5018, Article 29, Paragraph 1 of the Law. “But if it is foreseen in an administrative budget within the scope of the general government, it can provide assistance to associations, foundations, unions, institutions, organizations, funds, and similar organizations in the public interest. In the form of “Masu.”, The relevant section of Article 10 of Association Law No. 5253. “Reserving the provisions of Act 5072 on the Relationship between Associations and Foundations and Public Institutions and Organizations, Associations may carry out joint projects with public institutions and organizations on matters under their jurisdiction. For these projects, public institutions and organizations can make in-kind or cash donations at up to 50% of the project cost. “

The above regulations, created in Law No. 6360, have blocked the way municipalities support associations or foundations. Local governments can only carry out joint service projects with these institutions. If the association is within the scope of Law 5072, it cannot even carry out a joint service project.

  1. Local governments can support sports clubs

Article 14 of the Local Government Act No. 5393 entitled “Obligations and Responsibilities of Local Governments”. “If necessary, provide sports materials to encourage young people to play sports, provide physical and cash assistance to amateur sports clubs, provide the necessary support, hold amateur sporting events of all kinds, and students. , Athletes, and technical managers for outstanding achievements or degrees in national and international competitions. And coaches can be awarded at the decision of the city council.

According to the provisions of the law mentioned above, municipalities cannot provide financial or physical assistance to professional sports clubs, that is, leagues, but they can provide physical or cash assistance to amateur sports clubs.

However, the situation is different if the sports club in question is associated with a city or is named after the city. Because amateur or professional sports clubs are in the status of associations, Law 5072 explicitly prohibits the administration from supporting the associations associated with them.

  1. The administration failed to support the associations associated with them

It is entitled “Purpose and Scope” in Article 1 of Law No. 5072 on the Relationship between Associations and Foundations and Public Institutions and Organizations. “This law regulates and covers associations established to support public institutions and organizations, public services, personnel and foundations established under the Turkish Civil Code, and relationships with public institutions and organizations. increase.”

Article 2 titled “Basic Principles”.

“”a) Associations and foundations cannot take the name of public institutions or organizations, operate in service buildings or annexes of these institutions or organizations, or use the tools and equipment of these institutions.

b) Associations and foundations may not receive any compensation, donations, donations, and similar names from real persons and legal entities for services provided by public institutions and organizations.

c) Tools, equipment, documents, forms, and similar materials used in public services may not be required to be obtained from associations and foundations within the scope of this law.

D) Civil servants cannot use their positions to join associations or foundations.

To) Civil servants working in associations or foundations are not eligible for salaries, membership fees, or other compensation in their place of duty.

f) Civil servants may not be hired to collect or accept donations from associations or foundations.

g) Within the scope of this law, you may not transfer budgets, aids, or resources from public institutions or organizations’ budgets to associations or foundations.

h) Public institutions and organizations may not transfer labor costs and wages to associations and foundations within the scope of this Act by making deductions at the source.

Me) Foundations and associations within or related to the institution and organization that made the bid, as well as companies that own more than half of the capital, are subject to State Bidding Act No. 2886. Bidding by these institutions and organizations.

Is called.

In particular, the sub-paragraph (g) of the law. Public institutions and organizations are expressly prohibited from providing any kind of assistance to associations and foundations within the scope of this law. In fact, the court’s precedent decision on this matter stated that “… the above legislation would allow cash from the budget of a public institution to an association established to support a public institution or organization, public service or staff. We cannot provide assistance.

… Established under the Special State Government, whose chairman is an employee of the Special State Government… Because the Special State Government Sports Club is within the scope of Law 5072, the transfer of expenditures from the Special Administrative Region Budget to the sports club. Is as follows. Violation of laws and regulations. Is called.

Conclusion

Sports clubs are an important organization from the perspective of promoting sports, but the assistance provided by the government to these organizations with union status has reached a level of abuse, and this assistance creates unfair competition with others. As a result of the fact, it is legally impossible for local governments to provide in-kind or cash support to professional sports clubs, in accordance with the rules of sports clubs, especially Law No. 1. Failure to do so will result in judicial and economic sanctions.