News and developments

SPORTING THE LAW | The UAE PERSPECTIVE

Developing

transparent and sustainable regulatory structures that conform to global

measures: International sporting events have undergone tremendous metamorphosis

over the past few decades, and today they generate large amounts of revenue

throughout the world. Europe, Africa and Middle East account for the second

largest sports market in the world whilst sponsorship being one of the fastest growing

segments. With advocacy of the assiduous sovereign counsel and an exemplary

think tank, the UAE, in particular, has earned prominence as a hosting

destination for world sporting events.

The United Arab

Emirates (UAE) is where the world is converging today, where cultures blend and

businesses converse. With perfectly sound economic fundamentals, for a

progressive nation like the UAE, international sporting events have become an

extension of the Emirates’ popularity as a tourist destination enhancing the

repute and panache of the country.

A

GLOBAL SPORTS VENUE

With a successful

strive to diversify the autonomous economy, backed by superior administrative

acumen, the UAE has gainfully built world-class infrastructure amenities for

all industries. This has allured tourists, businesses, and world sporting

federations alike. Extensive land resources, financial viability of hosting,

open resources, and planning prowess have made the UAE a lucrative hosting

choice for various international sporting events.

The global sports

industry, with an estimated market value of more than $500 Billion has grown at a compound

annual growth rate (CAGR) of 4.3% since 2014. And in tandem with these

worldwide trends, the UAE government, in April 2018, approved a federal law

which, regardless of nationality, allows all residents to participate in

national sport competitions held in the country. In accordance to Federal

Decree-Law No. 7 of 2008, the federal authority, General Authority for Sports

is responsible for the expansion of the sports sector in the UAE.

One of the most

vibrant economies, in unification with Vision 2021, UAE’s political leadership

has ensured that all international sports have a considerable level of

participation or association with and within the country. Unswerving

endeavours, to reinvent and position UAE to be at par with international

sporting standards have been made. Taking on ambitious sports projects backed

by operational excellence like “The Land of Dubai,” they’ve created cities and

complexes that offer exemplary provisions for living, working, and enjoying

sports. The Dubai Sports City is the perfect example of one such project for it

offers sporting arenas of over three thousand square meters and three football

stadiums among other infrastructure facilities to support international

sporting events. Other commendable free zone cities and complexes include The

Zayed Sports City, Hamdan Sports Complex and Dubai Motor City.

The country has been

a preferred hosting nation for the Asian Games, FIFA Federations Cup, Abu Dhabi

Grand Prix, the Olympics & Paralympics Championship, and various events for

other sports like ice hockey, rugby, cricket, badminton, and power-lifting.

Leading international sports regulatory bodies like the International Cricket Association

have also established a home base in the UAE.

In addition to Dubai,

UAE’s capital, Abu Dhabi frequently play host to some of the sporting world’s

most prestigious events like the Dubai World Cup, the world’s richest horse

racing tournament, ATP Tennis Tournaments, Indian Premier League cricket

tournament, PGA ranked golf tournaments. In fact, the UAE Derby offers prize

money of $2.5mn., considered a preparatory race for the Kentucky Derby. Not to

forget, sailing and water sports are one of the leading and exceptionally

popular international sports in the UAE. Every year, Dubai and Abu Dhabi host

numerous sailing competitions, domestic and international, making them

extremely popular and sort after.

TRANSFORMATION

OF UAE’s SPORTS INDUSTRY

A salubriously

deliberated, crafted and actualized social policy has enabled the UAE to

mobilize the development of sports in the country. Intended to improve athlete

performance, encouraging young athletes through training and facilities, and

supporting them through employment and social assistance, has enabled the UAE

sports industry to undergo a vitalizing emboldened transformation in the past

years.

Several sporting

events have graduated to professional levels owing to the extended energies of

the UAE commissions and boards. Football is a prime example that demonstrates

the growth of interest in and popularity of sports in the UAE. Since its

inception in 1971, the UAE Football Association has put in coherent labour to

promote the game through youth initiatives and improving abilities of players,

coaches, and officials involved with regional teams. Football’s status in the

UAE as the favourite sport is largely owed to the UAE Football Association,

which adheres to the rules of international sports governing bodies. The UAE

Football Association hosts several competitions and the leagues’ value

increases every year, highlighting the importance of the sport in the UAE.

Owing to the resounding popularity, the UAE has also been honoured to host FIFA

World Cup 2022.

Other sports like

Jiu-Jitsu have also become extraordinarily popular in the UAE. The sport which

diminishes the boundaries of physical strength through technique and discipline

is today practiced in UAE public schools by boys, girls, and people of

determination. Growth of the sport in UAE has been emphatic and UAE has many

world-class Jiu-Jitsu athletes. With the UAE Jiu-Jitsu Federation now

overlooking the sport, frequent domestic and international competitions are

hosted in the UAE. The Abu Dhabi World Professional Jiu-Jitsu Championship

hosted annually draw in hundreds of high-calibre athletes from around the

globe.

THE

NEED FOR SPORTS LAW

As with any emerging

and expanding industry, a corresponding need for a niche, yet vigorous legal

practice area also emerges. The expansive potential of the region presents

enormous sports opportunities, which also bring forth the accompanying

requisite to safeguard investor confidence.

The pie is getting

bigger, sports is one of the fastest growing industries and given the

increasing sophistication and the money involved, it is paramount to abet with

safely transacting deals and protecting interests of all. To leverage this

augmented growth, several UAE based businesses and individuals have been making

substantial investments in global sports ventures including investing in

sporting infrastructure and sponsorships of key players, teams, and

tournaments.

International Sports,

as an industry has come a long way, and the structure around it ought to be

legally robust for all stakeholders involved, including health & safety of

participants, the rights’ owners, clubs & leagues, athletes, federations,

investors, broadcasters, sponsors, sports agencies and alike. Additionally,

needless to say, given the encompassing nature of the industry, the prestige

and euphoria of any sport is not restricted to only domestic, but a fervent fan

base across geographies.

The practice of a

specialized segment of sports law is important to sustain and strengthen UAE’s

status as a prime sporting venue. UAE is a diverse multi-sector autonomous

economy, and though a young jurisdiction, is dependably maturing in the field

of sports law and dispute resolution with rational and unprejudiced policies.

SPORTS

LAW PRACTICES

Tracing origins,

defining objects and purposes, and summarizing the most important provisions;

Sports law is primed for continued growth in the UAE owing to the intricacies

of hosting international sporting events and investments involved. The legal

side of the sports industry is broadly divided into transactional and

litigious.

Sports related

transactional practice include all corporate-commercial work involving

negotiating, vetting sponsorship agreements (both for athletes and clubs),

financing or credit arrangements, drafting of club tours contracts,

infrastructure construction contracts, and any corporate-commercial

transactions which involve supply of services and materials.

The litigation part

of sports predominantly deals with instituting or resolving conflicts that may

arise between different clubs, players or organizations. Additionally, it

covers filing regulatory appeals or appeals against suspensions,

de-affiliations, anti-doping and other substance use appeals; challenges

relating to the interpretation of rules and regulations of the governing bodies

of certain sports etc.

SPONSORSHIP

AND BROADCASTING RIGHTS

With an emerging

sports market, sponsorship related opportunities and the associated challenges

are inevitable. Rampant in the international scenario, sponsoring the best sportsmen,

sporting teams and sporting events, the reputation of the UAE is suitably

enhanced on the world stage.

It’s noteworthy that

the UAE laws do not distinguish between sponsorship and advertising.

Sponsorship is considered as a form of advertising, and hence, all sponsorships

must comply with Emirati advertising laws, which are regulated by the National

Media Council’s Advertising Regulations. These regulations reinforce a number

of fundamental ethical principles, mainly respect for religious, cultural, and

social values and norms in society. Some prominent principles:

Respect

for all religions and public policy: Advertising content must be respectful of

all divine religions and not offend Islamic or any other religious sentiments.

It shall not disrespect the honorable government of the UAE, its symbols or

political institutions. Further, no content broadcast or published by a media

corporation or outlet may disrespect the domestic and international policies or

the cultural heritage of the UAE.

Prohibited

products/services: Advertising smoking,

tobacco, alcoholic beverages, and all banned products or services (including

banned narcotics) is prohibited.

Prohibited

content: Content needs to be relevant, varied, safe and relevant for all users.

The publication of words and pictures that breach public morals is prohibited,

as is the spread and dissemination of information that may prejudice children,

women or any other members of society.

Consumer

Protection: Compliance with the laws governing consumer protection and

commercial activities is mandatory particularly in relation to anti-competitive

practices and illegal monopolies.

Health

regulations: Advertising content relating to medicines or pharmaceutical

products must comply with the rules set out by Cabinet Resolution No. 7 of 2007

Regarding Health Advertisements Regulation.

Furthermore,

broadcasting licenses in UAE are governed by the National Media Council and

TRA. Broadcasting is largely governed by the UAE Federal Law Number (7) of

2002, which is concerning Copyrights and Neighbouring Rights. Further,

Article19(1) grants broadcasting organizations the right to grant licenses for

the exploitation of their recordings and broadcasting programmes, and Article

19(2) empowers broadcasters with the right to prohibit unauthorized

communication of their programmes or recordings to the public. Additionally,

the UAE Penal Code governs the Digital Content Broadcasting and Regulations in

the country, while the Federal Law Number 15 of 1980 Concerning Printing and Publishing,

in its broad applicability, covers television broadcasting, and Federal Law

Number 5 of 2012 on Combating Cyber Crimes (Cyber-Crimes Law) specifically

addresses content distribution via the internet.

In a multi-screen

world, digital channels take precedence over all other channels of marketing

amplifying the monies, return on investment, brand awareness, loyalty and

stickiness that is required. Digitization accompanied by dynamic technological

advancements, has brought forward a plethora of alternatives to the amalgamated

gamut of online marketing and traditional media tools available. And thus,

sports sponsorships have caught on quickly as a marketing tool among both,

domestic and foreign business conglomerates. To evade any impede, an investor’s

ability or decision to extend sponsorship to a global sporting event, such as

FIFA or the Cricket World Cup, necessitates adhering to the Emirati laws for a

prolific and rewarding venture.

CAS:

SPORTS DISPUTE RESOLUTION

An international

quasi-judicial body, the Court of Arbitration for Sport (CAS), was established

to settle disputes related to sport via arbitration in 1984, as part of the

IOC. The body originally conceived by the 7th president of International

Olympic Committee, Juan Antonio Samaranch, under who’s leadership and tenure,

the IOC achieved a financial turn-around for the Olympic Games and.

The CAS time and

again, has proven to be particularly popular as a dispute resolution mechanism

for resolving disputes involving global sports.[iii] Headquartered in

Lausanne, Switzerland, CAS has its courts located in New York City, and Sydney

as well while temporary courts are established in current Olympic host cities.

And on the national level, a chamber for the Court of Arbitration for Sports (CAS)

has been established in Abu Dhabi. The presence of CAS in the UAE positions the

country as one with high regards for professional and legal standards in the

sporting arena.

As we discuss this,

there is also a draft law in the works that proposes the establishment of an

Emirates Sports Arbitration Centre with the aim to create a national model of

CAS for all the sports disputes in the UAE. The new CAS Centre and the

establishment of other sports dispute resolution bodies are significant because

of the prevalence of arbitration clauses in the rules and regulations of sports

governing bodies.

THE

PROBABLE ROAD AHEAD

With consolidated

efforts to grow the UAE as a preferred sports destination, the country has

embraced and implemented courses of action to ensure that dispute resolution in

the sports industry is in line with international standards.

For instance, the UAE

Football Association has established a number of sports dispute resolution

bodies. The UAE Football Association was influenced by the FIFA dispute

resolution model because it is the global governing body of international

football.

With an increasing

demand for advice on transactional, regulatory, and litigious practices

surrounding sponsorship issues, infrastructure matters, regulatory and compliance

issues, complaints filing, anti-doping appeals and other sports related

litigious matters, the sporting laws in the UAE also warrant parallel

improvement and development in line with globalised standards. The dominant

theme of UAE’s sports law is an establishment of a dynamic organization as an

important social and economic activity under governmental policy and

supervision. Given the interest, investment, and involvement of UAE in the

global sports arena, the nation has mushroomed to be in the spotlight and

magnetize more sporting events in the future and most certainly act as a

catalyst for astounding sustainable development.

To conclude, the hope

to reprise the role as a premier entrepôt and go global with its brand of

economic liberalization, the enactment of the sports’ law therefore, provides

an opportunity to gain a fresh perspective on developments in the Emirates.

Keeping in mind the structure and dynamism of sports organizations, UAE’s

legislative framework has encouraged substantial reforms, and thereby boosts a

rapidly developing sports industry in the country. Impartial rules of

eligibility and due process, a contrivance that has positioned UAE squarely

in-line with a transnational trend of bringing about greater international

prestige from the continuous success.

https://medium.com/sportyfi/how-big-is-the-sports-industry-630fba219331

https://www.thebusinessresearchcompany.com/report/sports-market

[iii] Aashima Sawhney, The Laws of Sports - A Global Overview (Part 1), 5

Ct. Uncourt 12 (2018)