Sociedade Anónima Desportiva
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Sociedade Anónima Desportiva ("Public limited sports company") is a special type of public limited company (SA) in Portugal.[1][2][3] The new legal status was introduced in the 1990s to improve financial management and transparency in sports clubs. Many Portuguese football and basketball clubs, or teams within a multi-sport club, add the suffix SAD to the end of their official name.
Formation and characteristics
Source:[4]
The legal structure of a Sociedade Anónima Desportiva allows for the formation of a public limited company whose corporate purpose is to participate in professional sports competitions, promote and organize sporting events, and foster or develop activities related to the professional practice of a given sport.
A Sociedade Anónima Desportiva has the following characteristics:
- it can be formed through the transformation of a sports club that participates or intends to participate in professional sports competitions. It can also be established by giving legal personality to a team that participates or intends to participate in professional sports, or by being created from scratch, independent of any existing club or team;
- a sports club that has opted to form a Sociedade Anónima Desportiva or give legal personality to its professional team cannot return to participating in professional sports competitions except under this new legal status;
- the minimum share capital is €997,595.79 for sports companies participating in the 1st division, €498,797.90 for those in the 2nd division of honor, and €249,398.95 for companies formed to participate in professional basketball competitions and for those outside the scope of professional competitions (as an exception);
- the company's name and designation must necessarily include the specific sport and conclude with the abbreviation SAD. If the company is formed from the transformation of a sports club or from giving legal personality to a team, its name must also include a reference linking it to the founding club;
- these companies are governed subsidiarily by the regulations that apply to public limited companies.
See also
References
- ^ "Decreto Lei nº 10/ 2013, 25 January" (PDF). Official publisher of Assembly Republic.
- ^ "Decreto Lei 67/97, 3 of April" (PDF). Official publisher of Assembly Republic.
- ^ "Sociedades desportivas". parlamento.pt.
- ^ Sociedade anónima desportiva - constituição