Sports Academy Legal Requirements in the UAE: Legal Agreements Explained

The sports sector in the UAE is one of the fastest-growing industries. Supported by world-class infrastructure, progressive regulation, and government-backed initiatives, the sector is expected to continue its steady growth in the coming years. This growth has made sports institutions such as training centres, private clubs, and sports academies a rewarding and sustainable business opportunity.

However, businesses intending to establish and operate a sports academy in the UAE must ensure that they are legally compliant and contractually protected. Certain agreements are fundamental to the effective, efficient, and lawful operation of a sports academy.  

Sports Academies in the UAE

Sports Academies in the UAE are regulated by the Federal Law No. (4) of 2023; Concerning Sports, wherein it falls under the category of a Sports Institution, as defined under Article 1. A Sports Institution is “any for-profit sports entity licensed by the competent authorities, to practise activities and provide sports services such as centres, private clubs and academies.”

To establish and operate a sports academy legally, obtaining a licence from the competent authority (such as the relevant Sports Council or local Emirate level authority) is mandatory. In addition to federal legislation, sports academies are also subject to emirate-level regulations, local authority requirements, and any sport-specific federation rules applicable to the relevant activity.

Essential Agreements Every Sports Academy Needs

Coaching Contracts

Coaching contracts are fundamental to sports academies, as they formalise professional relationships between the academy and its coaches, whether individual professionals or corporate service providers. These agreements protect the interests of both parties and provide operational clarity.

A coaching contract shall clearly envisage the following elements:

• The parties to the contract and their required details.
• The detailed description of the scope of coaching services.
• The term and schedule that clearly define the duration and the frequency of the coaching sessions.
• The fees and the details regarding its payment, such as the payment schedule and methods.
• The obligations, including the confidentiality obligations of the coach and the client.
• Terms and conditions regarding the termination of the coaching relationship.

Waiver and Liability Release Contracts

Waiver and liability release agreements are typically signed by participants, or by parents or legal guardians in the case of minors, prior to participation in sporting activities. These agreements are particularly important given the inherent physical risks associated with sports.

While such agreements cannot exclude liability arising from gross negligence or wilful misconduct under UAE law, they play a vital role in risk allocation and informed consent.

The key components of such contracts are:

• The assumption of risk: Here, the participant is given a clear understanding of the inherent risks involved in the chosen sports and thereby accepts them. This part of the agreement is known as the waiver.
• The release of liability: After understanding and agreeing to the inherent risks that may cause accidents, injuries, illness, loss, or property damage, the participant or the signee to the contract agrees to discharge the sports academy and its members, including the coaches, employees, officers, etc., from any responsibilities, claims or liabilities that may arise due to such situations.
• Indemnification: These contracts may also entail provisions that require the participant or guardian to indemnify the academy for the participant’s own actions during the program that have resulted in any loss or legal claims to the academy.
• Medical Consent and Safety Compliance: Provisions addressing medical treatment authorisation, fitness declarations, and compliance with safety rules and academy policies; etc.

Player Agreements

A player agreement is a formal, legal and enforceable document that serves to establish the relationship, duties, and rights between a player and a sports organisation, such as a sports club, management agency or sports academy. Player agreements are generally entered into when an individual prepares to or participates as a professional athlete.

The agreement legally binds the player within the terms and conditions of the sports academy or the organisation. It therefore covers the terms of the individual’s engagement with the organisation as an athlete, including training and playing under the organisation’s management and supervision.

Similar to that of a general contract, a player agreement shall primarily contain the following components:

• The agreement shall identify and clearly list the names of the parties to the agreement, i.e., the name and details of the Player and the Club or the Agency. Agreements of players who are minors are generally signed and entered into by their parents or legal guardians.
• The agreement shall then clearly lay down the duration of the agreement, along with the terms and conditions regarding the termination of such agreements.
• Players’ obligations are the next major component to be included in a Player agreement. This section defines and describes the duties of the player, including factors such as mandatory practice sessions, training and matches, the obligation to stay in good physical condition and health disclosures, the player’s duty to give his best services and depict loyalty to the club and to comply with the agency’s rules.
• The agreement shall also cover the Club’s obligations and duties in detail.
• Another major component of any player agreement is the financial terms, covering the aspects of salary and benefits, the agency fees, etc.

Why are these Agreements Crucial to a Sports Academy?

Sports activities can entail certain risks. It can also involve legal claims and disputes. In such scenarios, the existence of agreements such as waiver and liability release contracts or player agreements, that clearly define the roles, duties, obligations and liabilities of each party in sports can shield you from unwarranted legal battles. Here comes the essentiality of written agreements. They ensure:

• Legally protects the academy as they are legally enforceable.
• Legal compliance and regulatory accountability within the UAE laws.
• Entails clear allocation of the roles, rights and responsibilities of each party.
• Helps in risk management and limiting liabilities.

In conclusion, well-drafted sports agreements are essential for protecting the sports academies, managing their risk, and ensuring compliance with the UAE laws. This makes undertaking professional legal assistance significant in ensuring its effective and efficient drafting and enforcement.