Some Issues Related to Bankruptcy of Football Clubs in the Republic of Croatia

• Main Author: Ratko Brnabić
• Format: Article
• Language: English
• Published: Pravni fakultet Sveučilišta u Splitu 2017-01-01
• Series: Zbornik Radova Pravnog Fakulteta u Splitu
• Subjects: bankruptcy; association; sports company with share capital; licensing clubs; bankruptcy plan
• Online Access: http://hrcak.srce.hr/file/266347

Bankruptcy of football clubs, like all sports clubs in the Republic of Croatia, has become a burning issue due to the enormous number of cases when clubs, acting under the legal form of an association or as a sports joint stock company, have become over indebted or unable to pay. This topic in particular arouses interest because, although it concerns recognisable legal forms governed by appropriate laws, they should be to a certain extent separated. This is because the Sports Act is first applicable to them and then secondly regulations which regulate material bankruptcy and regulations which regulate such associations. In this problem area, an important role is held by autonomous rules, international and national, which in several places regulate the issue of the legal position of a club in crisis. In our country, their contributor is the Croatian Football Federation (HNS), exclusively, the only national sports federation which promotes and cares for Croatian football and represents it in international relations. In this sense, together with HNS’s statute, an important role is held by HNS’s rulebook on licensing clubs, the rulebook on football competitions, rulebook on the status of football players and registration, HNS’s disciplinary rulebook and numerous other acts. At an international level, the creator of autonomous rules is the International Football Federation (FIFA) that is European Football Union (UEFA). Given this, what is going on with football clubs when they become unable to pay or over indebted should be examined. Undoubtedly, most answers can be found in the provisions of the Bankruptcy Act, but it is necessary to investigate what the coexistence of national and autonomous laws in this issue is like. The issue of bankruptcy is not only limited to sports (football) clubs, but also to sports federations as the bearers of competitions which have the legal status of an association and as such can also become the subjects of bankruptcy. This last issue is far from harmless because in the territory of country there can only be one main sports organisation. If bankruptcy is commenced over this creation, how can sports competitions be held? Mentioned also are many other issues raising doubts in practice to which it is not always possible to provide a singular answer. In this paper, analysis of autonomous sources of law is principally carried out, in particular of these provisions which prescribe particular additional legal effects in cases where bankruptcy proceedings are commenced over football clubs. This points to certain provisions of HNS’ rulebook on licensing, faithful application of which could have serious consequences for clubs in financial crisis.