The organization of sports in France.

• Author: Verheyden, Delphine

"Physical and sports activities are an important part of education, culture, integration and social life.

They especially contribute to fighting against academic failure and reducing social and cultural inequalities, in addition to their importance to health.

The promotion and development of physical and sports activities for all, especially for the disabled, are in the general interest."

This declaration of principles emphasizing the benefits of sports to society is in fact the first article of the French Sports Code, Article L. 100-1.

As French law recognizes the promotion and development of sports as being in the public interest, the State and its bodies naturally play a major role in the organization of sports in France.

Since 1936 and Leon Blum's Front Populaire government, France has had a government body specifically responsible for sports.

The current government includes a Ministry for Health and Sports, directed by Ms. Rosalyn Bachelot, which oversees a State Secretariat for Sports, under Ms. Rama Yade. This State Secretariat is responsible for implementing government policy on sports and all initiatives involving physical and sports activities, as well as their practice.

To do this, the State must count on the French sports world, a pyramid structure of sports associations with at its base licensed athletes and clubs, the clubs being grouped into sports federations which themselves are members of the CNOSF (Comite National Olympique et Sportif Francais, or French National Olympic and Sports Committee).

The institutional organization of French sports can be represented as shown in the diagram.

Article L. 100-2 of the French Sports Code sets out that the State, territorial authorities and their groups, associations, sports federations, businesses and social institutions contribute to the promotion and development of physical and sports activities.

This article takes into account the reality of how sports are organized in France; this organization is based on cooperation between public authorities and private entities to achieve goals in the public interest - including those of promoting and developing physical and sports activities.

The uniqueness of how French sports are organized is especially apparent in light of its institutional structuring (I).

This organization necessarily calls for significant interaction between the public authorities and the sports world (II).

1. Institutional Organization of French Sports

   1. The Pyramid Structuring of the French Sports World

      * Licensed Athletes

      At the base of the French sports world are the athletes themselves; approximately 16,000,000 sports professionals are licensed in France as part of a sports federation (1).

      The sports license materializes the link between the federation and the athletes practicing the discipline it organizes. Once issued, the license authorizes holders to practice his or her discipline in France and to participate in competitions organized by the federation (Article L.131-6 of the French Sports Code). License issuance also has the effect of making the licensed athletes subject to his or her federation's rules and regulations.

      * Sports Associations

      These licensed athletes are members of sports clubs, which consist principally of associations governed by the French law of July 1, 1901. In this way close to 170,000 sports associations exist in France (2).

      These associations can receive State funding, on the condition of having obtained certification prior (Article L. 121-1 of the French Sports Code). To obtain this certification, the associations must adopt by-law provisions guaranteeing:

      - that they function in a democratic manner;

      - that they are managed in a transparent manner; and

      - that both men and women have equal access to senior management.

      They may also receive grants from territorial authorities, with no condition of certification being necessary.

      * Sports Corporations

      Articles L. 122-1 et seq. of the French Sports Code set out that when sports associations reach one of the two following thresholds:

      - [euro]1.2 million in annual revenues from the organization of paying sports events; or

      - [euro]800,000 total in annual remunerations;

      they have a legal obligation to incorporate a sports corporation responsible for managing the club's professional sector.

      The company created in this way must mandatorily take one of the legal forms listed in the French Sports Code, i.e.:

      - a French sole shareholder limited liability sports company (entreprise unipersonnelle sportive a responsabilite limitee);

      - a French sports corporation (societe anonyme a object sportif, or SAOS); or

      - a French professional sports corporation (societe anonyme sportive professionnelle, or SASP), the functioning of which is very close to that under French general law; in this type of company, it is possible to remunerate the executives and distribute profits.

      It is today prohibited to incorporate "mixed-economy" sports corporations (societe anonyme d'economie mixte sportive, or SAEMS), but there are still SAEMS incorporated prior which may still be found in existence.

      Most clubs have recourse to the legal form of the SASP, it being the one offering the most freedom and making it possible to attract investors the most easily.

      The sports association and the company created in the event of reaching the aforementioned thresholds are linked by an accord determining their respective authority and legal obligations. In this way the agreement determines who is responsible for the club training center, if necessary; it also sets out who is responsible for the conditions of use of the club's distinctive marks or signs, as well as the federation membership number making it possible to register for competitions, all of which remain the property of the association.

      Since publication of the French Law of December 30, 2006, sports corporations, which comply with several conditions required by law (right in rem over sports installations used to organize tournaments), can make a public offering (Article L. 122-8 of the French Sports Code). As of today, only two clubs (Olympique Lyonnais and Istres) have recourse to this new kind of financing.

      In order to preserve equity in sports competition and in its results, Article L. 122-7 of the French Sports Code prohibits a single private individual holding control over more than one sports corporation with the corporate purpose bearing on a single sports discipline.

      * Sports Federations

      Sports federations are central to the organization of sports in France. They act as relays between the world of sports and of Olympic...