Transforming local sports clubs into businesses will help bring in more funds to invest in Bahraini athletes, it was stressed.
Following amendments made to the 1989 Social, Cultural, Sports and Youth Clubs, Organizations and Societies Law, Bahrain’s sports and social clubs can now operate as commercial establishments.
The Cabinet approved the amendments last month and His Majesty King Hamad ratified them earlier this week, prompting an online forum to discuss the changes and their impact on the sector.
The King issued a decree-law on Monday amending the law on social and cultural societies and clubs and private entities working in the sectors of youth and sport.
The amended law authorizes the establishments of clubs as trading companies in compliance with the law on commercial firms.
Clubs may change their legal entity to commercial companies in accordance with the rules and procedures determined by a decision of the competent minister pending Cabinet approval.
The forum was hosted by MP Ebrahim Al Nufaie, with participation from Bahraini football legend Humood Sultan, MP Dr Ali Al Nuaimi and media personality Abdulla Bunofal.
Mr Sultan discussed his strong support of the move, explaining that if managed properly sports and social clubs can help foster and invest in upcoming talent in Bahrain.
“This decision will benefit the sports sector and the clubs in Bahrain, which will allow them to develop financially and technically,” he said.
“This is a great thing, if clubs become companies then they will be able to bring in more money instead of relying on the Youth and Sports Affairs Ministry.
“This financial support will help the clubs grow, which will allow them to invest in players and develop sports on a national level.
“However, we still don’t know all the requirements and procedures, but I think the companies should have three departments: one for investment, one for the club itself, and a technical department; all these three must not interfere with each other.”
Dr Al Nuaimi, meanwhile, said the move will allow the sports sector in Bahrain to become more financially stable and encourage clubs to generate job opportunities.
“The most important impact is that clubs can become a source of income for the national economy as they will create jobs and improve all types of sports, football, basketball, any type,” he said during the forum.
“This will help clubs when it comes to the matter of wages and expenses for the athletes and coaches.
“I think the changes will be similar to those made in the UAE and Saudi Arabia in which clubs have two executive committees – one that focuses on the players and the sport and the other that focuses on investing and funding.”
Mr Bunofal added that the new move will help promote professional athletes in the country and set them apart from amateur players.
The GDN previously reported that the amendments will allow clubs set up under the current law to change their legal identity to commercial companies.
It will also pave the way for the establishment of new clubs as commercial companies.
