The Government decided to appeal the precautionary measure that suspended the Sports Limited Companies (SAD)based on the fact that the federal judge of Mercedes, Elpidio Pinto is “incompetent” to intervene in the case.
That is, from the official sector they affirm that Judge Pinto It was not his place to intervene in the matter but to the justice of the Federal Capital where the AFA is based. Furthermore, this goes against the legal strategy devised by the institution that leads Claudio Fabian “El Chiqui” Tapia.
On September 2, Pinto decided to grant the precautionary measure requested by the AFA, and ordered the National State to suspend the effects of articles 335 and 345 of Decree 70/2023, as well as the Regulations of SADs. The measure is in force until the final judgment is issued.
The Government stated that the precautionary measure is a ”legal farce”since there is no danger in the delay given that the DNU that enables the SADs comes into force within a year. They also highlighted that the regulations gives clubs the freedom to decide whether to adopt the model or continue as they are today.
In addition, in the middle of this measure, the announcement of an investment of more than US$100 million by the North American magnate occurred, Foster Gillet, to the Estudiantes Club of La Platachaired by Juan Sebastian Veron.
SAD: what does Javier Milei’s new decree say?
The decree details the changes made and specifies what the new regulatory framework is like. In its first article it defines that the “members of civil associations” will be “those who participate in the extraordinary assembly of the association that considers the decision to transform the entity into a public limited company or resolves to be a member of public limited companies.”
On the other hand, in the second article it specifies that although the statutes or internal codes of the sports associations, federations and confederations have not yet been adapted, These may not “prevent, hinder, deprive or undermine any right of a sports organizationincluding its right to join a confederation, federation, association, league or union, based on its legal form, original or derived”, which has chosen to become a SAD.
In this regard, it clarifies that all clubs and associations “will have the right to maintain their participation in any competition in which they participated under their previous legal structure and under the same conditions as they were prior to the change.”
Finally, a period of one year from today (Wednesday, August 14, 2024) is given for the AFA and the rest of the associations, federations and confederations to adapt their rules to this measure. “The period of ONE (1) year established in article 345 of the Decree of Necessity and Urgency No. 70 of December 20, 2023 will be counted from the date of entry into force of this decree.”
In July, the General Inspection of Justicein another step forward in the intention to transform clubs into private institutions, issued a resolution that establishes a series of deregulations and flexibilization of procedures, among which are those related to SADs.
“That, in accordance with the provisions of articles 346 and 347 of Decree of Necessity and Urgency No. 70/2023 (…) The participation of civil associations and foundations as shareholders in corporations should be accepted and the transformation of civil associations into public limited companies; as well as simplifying the registration of common good entities established abroad for the development of their activity in the Argentine Republic,” the regulations established.
Until Milei’s arrival to the presidency, Law No. 20,655 allowed sports clubs to be organized mainly as civil associations. However, the Decree of Necessity and Urgency No. 70/23, published in December 2023, in the first days of the libertarian administration, modified this regulation to allow them to also become sports corporationsa political objective that met with resistance from the clubs and the entity that brings them together.
Source: Ambito
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