Regulation on the Audit of Sports Clubs, Sports Joint Stock Companies and Superior Organizations Published

The Regulation on the Audit of Sports Clubs, Sports Joint Stock Companies and Superior Organizations (“Regulation”) prepared by the Ministry of Youth and Sports (“Ministry”) has been published in the Official Gazette dated 12.10.2024, numbered 32690.

The regulations established by the Regulation are summarized as follows:

The purpose of the Regulation is to regulate the audit of sports clubs, sports joint stock companies, and superior organizations by the Ministry of Youth and Sports, as well as the procedures and principles regarding the preparation of declarations by sports clubs and sports joint stock companies.
The Regulation covers all sports clubs, sports joint stock companies, and superior organizations, excluding military sports clubs within the Ministry of National Defense's cadre and organization.
Sports clubs, sports joint stock companies, and superior organizations will be subject to the Ministry's audit to determine whether they operate in accordance with the purposes specified in relevant legislation, statutes, and articles of association, as well as whether they maintain their books and records in compliance with the legislation, including all administrative and financial transactions and activities.
The Ministry will be able to conduct audits of the financial status and profit-loss accounts of sports clubs and sports joint stock companies participating in specified leagues through an independent audit firm authorized by the Public Oversight, Accounting and Auditing Standards Authority. The expenses of this audit will be covered by the Ministry.

In terms of audit activities, sports clubs, sports joint stock companies, and superior organizations will be classified into the following groups:

a. Group One: Sports clubs and sports joint stock companies competing in the top two leagues of football and the top league of other sports.

b. Group Two: Sports clubs and sports joint stock companies not included in Group One.

Sports clubs and sports joint stock companies are required to submit a declaration of their income and expense results, as well as their profit-loss and balance sheet accounts, to the Ministry no later than three months after the end of the accounting period or the period during which the competitions in the sport with the highest expenditure take place.
Publicly traded sports joint stock companies are subject to capital market legislation. The provisions introduced for publicly traded sports joint stock companies in the Regulation will apply as long as they do not differ from the regulations established for publicly traded companies under capital market legislation. In case of conflicting provisions, the rules of capital market legislation will prevail for publicly traded sports joint stock companies
In cases not covered by the Regulation regarding the audit of sports clubs, sports joint stock companies, and superior organizations, the provisions of the Regulation of the Guidance and Audit Directorate of the Ministry of Youth and Sports will apply.

The Regulation has come into force as of the date of publication in the Legal Gazette.

You can access the full text of the Regulation here.

King regards,

Zümbül Attorneys at Law

info@zumbul.av.tr