Section 3: Relations between sports associations and companies

The sports association and the company it has set up define their relationship in an agreement approved by their respective statutory bodies and lasting between ten and fifteen years.

The agreement provided for in article L. 122-14 comes into force after its approval by the administrative authority. It is deemed to have been approved if the administrative authority has not made known its opposition within two months of its transmission.

The sports association retains free disposal of the distinctive signs used by the sports company or transferred to it.

The affiliation of an association to a federation gives rise to the issue of an affiliation number by the federation, of which the association is the sole holder. As part of the agreement provided for in article L. 122-14, the sports company formed by the association has the right to use the association’s affiliation number to carry out the activities entrusted to it.

A sports association that forms a sports company is the addressee of the deliberations of the company’s management bodies. It may take the actions provided for in articles L. 225-230 to L. 225-232 of the French Commercial Code.

Where a sports association is subject to the provisions of Book VI of the Commercial Code relating to business difficulties, the sports company formed by it is jointly and severally liable to implement the safeguard plan or court-ordered recovery plan.

A Conseil d’Etat decree specifies the stipulations that must be included in the agreement provided for in article L. 122-14, in particular the conditions of use by the company or transfer to it of the association’s name, trademark or other distinctive signs, as well as the financial conditions granted to the sports association by the sports company under the principle of solidarity between professional and amateur activities.