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5 benefits of converting clubs into joint stock companies .. The stakes are high – sports – local


Athletes asserted that it is time for the authorities concerned with football in the country to study converting football companies in professional clubs in the Arab Gulf League into private or public joint stock companies owning shares in the stock exchange. They demanded that this matter be in several stages, according to specific principles and controls, so that The first step is the privatization of these clubs, pointing out that converting clubs into joint-stock companies will achieve several benefits, including converting football companies into profitable companies, instead of relying on government financial support 100%, but others indicated caution in implementation, because that may happen. This would lead to great risks, which could lead to bankruptcy and closure of some clubs.

A former board member of the Professional League Committee, Mohammed Al-Nuaimi, said that he supports such a step that would bring about a major transformation in Emirati football from all sides, stressing the importance of benefiting from some global experiences in this regard, especially in Italy, calling for a study of this. Idea first before starting to apply it.

“If this step is taken according to the required principles, the clubs will transform from institutions that depend entirely on government support to profitable companies that can attract businessmen and investors,” he added.

For his part, the former candidate for the vice president of the Football Association, Sultan Al-Falahi, said: “It is difficult at the present time to implement the idea of ​​transforming football companies into public joint-stock companies, as they are currently dependent on 100% financial government support, in addition to their reliance on the exploitation of lands belonging to the government. However, it is possible to implement this idea in stages, so that the first step begins with the privatization of these clubs, and then it is followed by a plan of action through a consolidated financial support process for a certain period, until the clubs start to rely on themselves, and then start to transform into joint stock companies.

He added, “It is assumed that there will be support for companies involved in establishing new clubs, so that the support is not material, but by granting them facilities and lands to build new clubs.”

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In turn, a former member of the FIFA Competitions Committee, Khaled Awad, confirmed that he supports such a step, considering that there will be 100% benefits from converting football companies in clubs into public joint-stock companies, noting that «among these benefits – In addition to that these companies will turn into profitable institutions – subjecting the boards of directors of these companies to accountability, which makes them keen on the issue of financial expenditures and minimizing them.

For his part, a former member of the Football Association Board of Directors, Dr. Salim Al Shamsi, affirmed that converting football companies in clubs into private or public joint stock companies is the best and correct option, especially after these clubs have shifted from hobby to the era of professionalism in football, considering that they are It is a great idea to put the shares of these clubs on the stock exchange, so that they have shares and names in the financial market.

He added, “I suggest that some clubs be offered as joint-stock companies, in which businessmen and shareholders participate, so that they have shares in these clubs, and if this matter occurs, it will make a major quantum leap.”

Al-Zhabi: The move could lead to bankruptcy and closure of some clubs

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Former Chairman of the Board of Directors of Ittihad Kalba Club, Issa Al-Dhabhi, said that he supports the idea of ​​turning professional football club companies into public joint-stock companies, as it will lead to a reduction in financial spending, and that these clubs will not depend on government support.

He told «Emirates Today» that this step will have its pros and cons, warning at the same time that there will be great risks for this step, which may lead to bankruptcy and closure of some clubs, in the event that these joint stock companies are not managed professionally properly, and with qualified people. Alia, according to specific terms, makes it achieve its desired goal, which is the transformation of these clubs into profitable companies that generate large financial returns, and a major qualitative leap in these clubs in general.

He explained: “The prospective public shareholding companies for clubs, if applied, must be under the control and monitoring of the concerned authorities, in order to perform their work in the required manner, in order to achieve the desired results, and this step, if implemented in the required manner, will undoubtedly lead UAE football and clubs to a great positive situation. ».

Al-Dhabhi stressed the importance of putting the right man in the right place in such administrative positions, which require people who are distinguished by administrative competence, which would make them manage these institutions successfully.

5 benefits

1- Converting clubs to profit

Rather than relying on support

Government.

2- Rationalize spending and financial spending.

3- Existence of a strict accounting system.

4- Making a qualitative leap on

Both technical and administrative levels.

5- Attracting capital

……

In the football field.

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