By Jean Baptiste Guillot, Partner and Virginie Molho, Counsel

Aware of the social role of sport and of the major difficulties experienced by the sport sector due to the health crisis, November 17, 2020, the President of the Republic held a long meeting in the presence of actors from the world of sport, at the end of which new support measures have been announced.

For professional sport:

The President of the Republic confirmed the establishment of the ticketing compensation mechanism up to € 110 million for men's and women's clubs as well as the organizers of sporting events including federations. This exceptional assistance will be calculated according to the losses and the dependence on the ticket offices of the structures. The Ministry of Sports will initiate payments at the beginning of December, the distribution of which by clubs will be specified in the coming days.

The President also announced a exemption from employer social contributions excluding supplementary pension and a contribution payment aid equal to 20% of the payroll, concerning social contributions to be paid in October, November and December. This effort of 105 million will benefit clubs (with less than 250 employees) which have hardly any more revenue because of the restrictions of gauges then of the closed door.

At the same time, several measures were announced:

  • the eligibility of professional clubs for the system of State participatory loans at attractive rates to consolidate club equity;
  • the development of a relative gauge system for spectators in sports arenas, with a view to improving the health situation at the start of 2021;
  • the launch of a working group on the issue of player image rights.

The question of rents paid by sports clubs will be discussed with the local authorities concerned.

For the amateur sports world:

The President of the Republic has announced the establishment of massive licensing assistance in the form of a "Pass'Sport" from 2021. This measure evaluated at 100 million, should facilitate the return of the French to sports clubs. It will primarily target the most vulnerable.

The state will invest 15 million additional in 2021 on the emergency fund positioned at the National Sports Agency to continue to help very small associations (non-employers) that do not benefit from common law aids. As a reminder, this fund is already endowed with 19 million euros for 2020.

In addition, part of the funds from the National Sports Agency resulting from the recovery plan will be devoted to creation of a compensation fund to cushion the losses of sports federations in terms of licenses.

The President of the Republic has also announced that 5 civic service posts would be directed towards sport and that jobs would be created in the CROS to support small clubs in seizing available aid.

Finally, the Head of State hoped that the raround minors in sports associations can be effective in December according to health protocols which will be worked on with the Ministry in charge of Sports and local actors. It should be accompanied by a national communication campaign to promote sports practice for the benefit of the health of the French.

 Regarding commercial sports leisure and the events sector:

Aware that the duration of the closure of these establishments during the year 2020 will have been the longest with discotheques, the Head of State indicated that the solidarity fund will be suitable for allow better coverage of fixed charges for structures that will be closed after December 1, 2020. The President also specified that solutions will be examined to cover sports halls which have more than 50 employees and which are today excluded from the solidarity fund.

Finally, the President confirmed the integration of communication agencies and consulting companies specializing in sport in the sectors covered by the “tourism plan”.

Jean Baptiste Guillot

Jean-Baptiste Guillot

Partner

Jean-Baptiste Guillot handles mergers and acquisitions, strategic partnerships, commercial law, company law and contract law matters, with a particular focus on international transactions for Canadian, British and French companies.

Portraits GINESTIÉ MAGELLAN PALEY-VINCENT 2021

Virginie molho

Counsel

Virginie has acquired a solid expertise in sports law allowing her to support players in the sports industry in all types of legal issues in commercial law, company law, association law and social law applied to sport.