Legal Landscapes: Denmark – Sports Law

Lars Hilliger

Attorney-at-law/Partner, Advice Law Firm


1. What is the current legal landscape for Sports Law in your jurisdiction?

Denmark does not have a single codified “Sports Act” or a specific sports code. The organisation of Danish sport is based on the freedom of association and is therefore an independent and autonomous sector.

However, most sports clubs that undertake professional sports activities typically operate in corporate form, i.e. either as a public limited company (A/S) or as a private limited company (ApS) subject to both company law and accounting regulations.

Sports clubs and other stakeholders in the world of sport are, of course, also regulated by the same rules and regulations that apply elsewhere in society, including, for example, when it comes to intellectual property rights, working conditions and taxation.

In addition to the formal rules, it is important to bear in mind that sports clubs and other stakeholders in the world of sport are also subject to a certain form of informal regulation by fans and others, for example in relation to the choice of sponsors, etc.

The National Olympic Committee and Sports Confederation of Denmark (“DIF”), like other organisations, is subject to Denmark’s general legal rules in addition to the EU’s rules and regulations, including not least the European Convention on Human Rights. The DIF has attempted to adapt its legal system in such a way that it meets the demands that society places on a legal system, i.e. a traditional state constitutional structure with clear rules of separation of powers, etc.

The DIF receives its financial support from the Ministry of Culture, but generally the Danish government seldom interferes in sports matters, and the sports sector therefore benefits extensively from being covered by the principle of freedom of association, enjoying a high degree of independence and autonomy.

 

2. What three essential pieces of advice would you give to clients involved in Sports Law matters?

  1. Be prepared and proactive!
    As in most aspects of life, many challenges and problems in the world of sports law can be mitigated or perhaps even avoided altogether if addressed at an early stage.

It is therefore recommended that legal assistance be sought as early as possible, preferably already in connection with considerations such as the formation of contracts, so as to ensure that the risk of future uncertainty and disagreement, and thereby the risk of conflicts, can be minimised.

2. Take your time being fast!
Regardless of the fact that many transactions in the world of sport are necessarily undertaken under a certain amount of time pressure, for example the conclusion of transfer agreements at the end of transfer windows, it is often worth considering whether this is really necessary in all cases, or whether some of these transactions could have been initiated or at least prepared earlier.

An attempt to organise these transactions in a more appropriate manner in terms of timing opens up the possibility of achieving more thorough and more well-thought-out transactions and better, more thoroughly drafted contracts.

3. Be transparent and fair!
No matter whether you sometimes find yourself in a situation where you have the strongest (negotiating) position, it is always a good idea to try to see the situation from the other party’s perspective as well, and not least to act in a transparent and fair manner.

3. What are the greatest threats and opportunities in Sports Law in the next 12 months?

The interaction/intersection between, for example, EU law, national law and rules and regulations of sports federations and organisations, coupled with ambitions to support the strongly intensified commercialisation of sport and stakeholders in sport, including athletes and clubs, present both threats and opportunities in relation to sport and sports law as we know it at the present moment.

Alongside this, technological developments, including the use of AI, are happening at a speed and scale that few people can fully comprehend the consequences of.

4. How do you ensure high client satisfaction levels are maintained by your practice?

In order to ensure that clients receive the best possible assistance in sports law, these four factors are particularly crucial:

  1. Specialisation at the highest level, including not least in-depth industry knowledge
  2. Availability and the ability to provide dynamic and useful advice on time
  3. A global and relevant network within the industry to be able to provide competent advice worldwide
  4. A deep understanding of the world of sport, including the interaction between sport and its stakeholders.

5. What technological advancements are reshaping Sports Law and how can clients benefit from them?

Technological developments, including not least the use of AI, have already made their way into the world of sports law to a certain extent.

However, it is important to emphasise that, although these developments could potentially make sports stakeholders more interested in/tempted to, for example, draft their own contracts with the assistance of AI, specialised competent legal assistance will continue to be necessary in a wide range of specific situations to achieve the optimal result in a given and unique situation.