Issue link: https://maltatoday.uberflip.com/i/1544021
3 maltatoday | SUNDAY • 22 MARCH 2026 NEWS CABINET is set to approve legislation allowing sport clubs to register as limited liability companies, MaltaToday is in- formed. The new law, which will be part of the Companies Act, will allow sport clubs to voluntarily register with the Malta Business Registry, and is aimed at profes- sionalising the sector, sources close to Cabinet have said. While not limited to football clubs, sources said they believe it is they who will most likely be registering themselves under this legal structure. A limited liability compa- ny (LLC) is a type of business structure where the owners are legally separate from the company itself. This means the company is treated as its own legal person. If the business runs into debt or legal trouble, the owners' personal assets, like their house or savings, are gen- erally protected. Clubs will be registered as Sport Private Limited Liability Companies (SPLLC), and Class A and Class B shares will be opened to investors. The new law will also intro- duce increased accountability and legal safeguards for clubs in a sector which particularly vul- nerable to illicit practices like money laundering. Speaking to MaltaToday, Sport Minister Clifton Grima confirmed the new law is set to be approved. Grima said he had been chased by the Malta Football Associ- ation (MFA) for years to enact the legal reform. He also had spoken to a number of football club owners on the matter. "The law will not only be ben- eficial in providing increased legal safeguards, but also help in attracting foreign investment to the Maltese sport scene," Grima said. "I had foreign in- vestors coming to me telling me they refrained from investing in Maltese football on the basis of the lack of professionalism they saw." The model will be closer to how professional football clubs in England and Spain operate. In England, most professional football clubs operate as stand- ard private companies, typically structured as limited liability companies under general com- pany law. Clubs competing in the Pre- mier League are owned by shareholders, often private investors, consortiums, or wealthy individuals, and are run as commercial entities with boards of directors. This struc- ture allows clubs to raise capital, attract investment, and operate with significant financial flexi- bility, but it also means control is concentrated in the hands of owners rather than supporters. Spain took a more regulated approach. Following financial instabili- ty in the late 20th century, the government introduced the Sociedad Anónima Deportiva (SAD) model in 1990. Under this system, most clubs in La Liga were required to convert into public limited sports com- panies, with ownership divided into shares and governance re- sembling that of a corporation. The aim was to impose finan- cial discipline, improve trans- parency, and professionalise management. However, a small number of historically well-run clubs— such as Real Madrid CF and FC Barcelona—were allowed to retain their traditional mem- ber-owned structure, where supporters (socios) elect the club president. In Maltese football the revolv- ing doors of club owners and presidents is a long-standing issue, with many vacating their post and leaving the organisa- tion in financial ruin. In 2021, the MFA had pro- posed the introduction of regu- lation to combat this reality as part of its long-term strategy. Under new regulations, clubs playing at Premier League lev- el would be obliged to register with the Malta Business Reg- istry as a single member club. The investor taking over the club must own the majority shareholding of the club. A member's foundation can own shares within the club, but the investor must have the ma- jority shareholding. MFA Vice President Matthew Paris had said that any investor or club owner looking to leave the club, must find a suitable replacement, eliminating in- stances where presidents en- ter the scene, and leave when things turn ugly. Such a measure will also mo- tivate owners to invest in the long-term. "If you're an owner financing a club, it would make more sense to invest in the club's long-term such as the nursery and youth set up. It will also aid in com- mercialisation," he said. It will also create a more level playing among clubs, Paris said. "While clubs will have new responsibilities, it creates a sys- tem where everyone is more at par with each other," he said. KARL AZZOPARDI kazzopardi@mediatoday.com.mt New law allowing sport clubs to register as limited liability companies set to be tabled in parliament Left to right: Sports Minister Clifton Grima and MFA Vice President Matthew Paris