Exceptional increase in the maximum amount of public subsidies that may be granted to sports associations and corporations

To deal with the covid-19 epidemic, decree n ° 2020-1227 of October 6, 2020 published in the Official Journal on October 8, 2020 provides for an exceptional removal of the ceiling on public subsidies that can be paid to sports groups.

Derogating from the provisions of Article R. 113-2 of the French Sports Code, the Decree provides that, until December 31, 2020, the preservation of unity and solidarity between professional and amateur sports activities constitutes an additional mission of general interest that may allow the allocation of subsidies by local authorities or their groupings to sports associations or corporations.

In this respect, by derogation from the provisions of Article R. 113-1 of the French Sports Code, sports associations or corporations may receive a maximum amount of 800,000 euros in public subsidies, allocated by means of decisions taken before December 31, 2020, for the implementation of the general interest mission, in addition to the maximum amount of subsidies that such sports associations and corporations may receive pursuant to Article L. 113-2 of the same Code.

Furthermore, when these sports associations or corporations are small enterprises as defined in Annex I of the Commission Regulation (EU) of June 17, 2014, and were facing difficulties as at December 31, 2019, they may, exceptionally and in accordance with the European Commission's decision of July 31, 2020, benefit from the above-mentioned subsidies as long as they are not subject to collective insolvency proceedings and do not benefit from rescue or restructuring aid. The subsidies granted within this framework shall be governed by agreements that shall comply with the provisions of Articles R. 113-4 and R. 113-5 of the French Sports Code and shall be entered into between, on one hand, local authorities, their groupings and public inter-municipal cooperation establishments and, on the other hand, sports associations or corporations.

Finally, the Decree provides that, notwithstanding the provisions of Article D. 113-6 of the French Sports Code, for the 2020-2021 sports season, the maximum total amount that may be paid by local authorities or their groupings to a sports company under service contracts is raised to 4 million euros.”