In review: sports governance and dispute resolution in Poland

All questions

Organisation of sports clubs and sports governing bodies

i Organisational formSports clubs

Sporting activities can be conducted in Poland through the formation of a sports club. After years of intense regulation of sports inherited from the communist times, the Act on Sports,² adopted in 2010, is based on the principle of autonomy of sports. Thus, the law specifies mandatory organisational forms for the operation of sports clubs only to a limited extent, namely professional team sports' leagues can be composed exclusively of sports clubs operating as joint-stock or limited liability companies.³ In other words, associations, foundations or cooperatives are not allowed to take part in sporting competitions for the title of champion of Poland where a Polish sports association exists and a professional league has been established. The only additional requirement provided in the Act on Sports is that sports clubs should have legal personality.⁴ The remaining issues are left to self-regulation by sports associations, international sports federations and the International Olympic Committee.

Student sports clubs are a special kind of sports club established by students, parents and teachers in accordance with the rules provided in the Act on Associations. Student sports clubs only require entry in the relevant register kept by the mayor of the locality where the club's registered office is located. A simplified administrative procedure applies for entry in the relevant register. The registration should be deemed effective by tacit agreement if within 30 days of the date of submitting an application for entry in the relevant register the mayor of the locality fails to issue either a decision on registration or a refusal of registration.

Sports associations

At least three sports clubs are required to establish a sports association in the form of an association or a union of associations. Professional leagues can only be managed by a legal entity in the form of a shareholding company.⁵

Polish sports associations

To hold and conduct competitions in a given sports discipline, a Polish sports association should be established. Sports associations, sports clubs or other legal entities whose statutes or articles of association foresee conducting activities in the given sports discipline may be members of a sports association.

Establishing a sports association requires the consent of the Minister of Sport. A relevant application should be accompanied by:

1. a draft statute of the association;
2. a detailed description of the sports discipline in which the association plans to hold competitions, information on rules of competition and an explanation of the competition system (e.g., cup, league); and
3. certification of membership in the international sports federation active in Olympic or Paralympic sports or otherwise acknowledged by the International Olympic Committee, or in another federation included on the list published by the Minister of Sport.⁶

The Minister maintains a list of sports associations, which is available on the Ministry of Sport and Tourism website. Currently there are 69 sports associations entered on the Ministry list.⁷ Sports associations are also required to register in the National Court Register.

Sports associations have the exclusive right to:

1. organise and hold competitions for the title of champion of Poland or the 'Polish Cup' in their respective sports disciplines;
2. set up and enforce sport, organisational and disciplinary rules of competitions organised and held by them with the exception of rules on doping;
3. appoint a national team for Olympic or Paralympic games, world championships or European championships; and
4. represent their sports discipline in international sports organisations.

In sports where competition is organised in the form of a league, a sports association may establish a professional league. If more than half of the sports clubs playing in the top class league competition are operating in the form of a joint-stock company, a sports association is obliged to establish a professional league. In team sports, only sports clubs operating in the form of a limited liability company or joint-stock company are allowed to play in the league. A professional league should be managed by a separate legal entity in the form of a shareholding company. The operating rules of the professional league should be agreed in an agreement between the league managing entity and the relevant sports association. The agreement is also subject to approval by the Minister of Sport.

Polish Olympic Committee

The Polish Olympic Committee (POC) is a union of associations comprising Polish sports associations and all other entities active in the national Olympic movement. It is considered a non-governmental organisation that independently sets and realises the aims of the Olympic movement. It cooperates with the Minister of Sport and opines on all bills related to the Olympic movement.

ii Corporate governance

There are no specific regulations in Poland with regard to corporate governance of sports clubs and, thus, standard rules on corporate governance apply, depending on the legal form the sports club has adopted (an association or a shareholding company). The only requirement provided in the Act on Sports is that organised sports activities in a sports association or a sports club participating in competitions held by a sports association may only be conducted by a coach or a sports instructor. The Act on Sports provides minimum criteria for being appointed a coach or a sports instructor.⁸

The term of office of the officers of a sports association cannot exceed four years.⁹ The function of a president of a sports association can be exercised by the same person for a maximum of two consecutive terms of office.

If, on the day of appointment as an officer of a sports association, the person appointed meets any of the following conditions, they are obliged to cease that activity, sell shares or stocks, terminate the contract, resign or quit the entity within 30 days of appointment or the person shall be dismissed:¹⁰

1. conducted business activity related to the statutory aims of the association;
2. held shares or stocks in a company conducting business activity related to the statutory aims of the association;
3. was a partner or held shares in a partnership conducting business activity related to the statutory aims of the association or was a close relation of a person of this kind;
4. worked for a ministry in support of the Minister of Sport;
5. was a coach of the national team or a member of training staff of the national team in the same sports discipline; or
6. was a member of the board, proxy or attorney-in-fact of the entity that provides services, supplies or construction works to the association, including financial or in-kind sponsorship.

An annual financial report of the sports association should be examined and approved by an independent auditor. The annual financial report and report of the managing board of the sports association are subject to review and approval by the general meeting of the members or delegates of the sports association. Once approved, they should be sent within 30 days to the Minister of Sport to be published in the Public Information Bulletin.

Sports associations are supervised by the Minister of Sport, who can demand copies of all the resolutions of the associations and written explanations concerning activities of the associations, as well as to conduct inspections of the associations.

The statute of a sports association and every subsequent change to it require approval by the Minister of Sport. From 10 November 2022, the approval of the statutes of the Polish sports association and its amendments shall be considered to have been accepted tacitly in a manner that fully accommodates the request of the Polish sports association, if within 30 days from the date of submitting the request the Minister of Sport does not issue a written decision on the matter.¹¹ Upon a motion of the Minister, a court may suspend the authority of a sports association and appoint a curator, or dissolve the association in the case of grave or persistent violations of law or its statutes by the association.

iii Corporate liability

There are no specific statutory corporate liability regulations in Poland applicable only to sports clubs. Thus, sports clubs, including their managers and officers, are subject to standard rules on corporate liability as set out in the Civil Code or the Commercial Companies Code and other acts, depending on the legal form the sports club has adopted (an association or a shareholding company). There may also be additional rules on corporate liability provided in the internal regulations of the relevant sports associations or international sports federations.

The Act on Safety of Mass Events¹² provides for liability of an organiser of a mass event with an entry fee for damages, including damage or destruction of property incurred by the police, military police, municipal or city guards, the State Fire Service or other fire protection units and health service in connection with their activities during the mass event.

The dispute resolution system

i Access to courts

It is a constitutional principle that no person or entity can be deprived of access to a state court. Hence, any decision of a sports governing body may always be challenged by way of an appeal to a court; however, the nature, scope or conditions for a complaint may vary.

In the case of disciplinary sanctions (including doping matters) and ineligibility decisions, Polish athletes, as well as other persons involved in professional sports (members of sports associations, referees, coaches, managers, etc., as well as, to some extent, supporters and, indirectly, clubs) may challenge decisions of the sports associations in appeals to the Court of Arbitration for Sport at the Polish Olympic Committee (CASPOC). CASPOC's structure and rules of conduct have been modelled after those of the Court of Arbitration for Sport (CAS). CASPOC rulings can only be challenged by a cassation appeal filed with the Supreme Court, and only in cases of gross violations of law by the sport authorities or where the judgment of CASPOC is obviously unjust.

Also, under certain conditions, Polish law allows appeals against the final arbitration awards (for further details, see Section II.ii).

ii Sports arbitration

Disputes between athletes and sports associations or clubs, or both (in particular those arising from contractual or coaching contracts, transfers, managerial or advertising agreements, etc.), may be brought before the state courts, but most often they are settled in arbitration (often provided for in the internal regulations of the relevant sports associations). Arbitration courts (in particular CASPOC) are also involved in disciplinary and ineligibility procedures. CASPOC also has jurisdiction in appeal proceedings against the decisions of sports associations in disciplinary matters if the internal regulations or statutes of the relevant sports association or other sports organisation do not provide otherwise. CASPOC is a permanent arbitration court composed of 24 arbitrators appointed by the managing board of CASPOC for a four-year term.

Practically all matters relating to sports may be submitted to arbitration. Rare exceptions cover criminal cases, exclusively reserved to the criminal courts. Bringing criminal, civil or administrative proceedings, however, does not exclude bringing disciplinary proceedings in relation to the same acts.

The only formal requirement for a valid arbitration agreement (or arbitration clause) is that it must be concluded in writing. However, it is also recommended that it precisely indicates the nature and the scope of the matter and the competent court, or at least the basic rules of formation thereof in the case of ad hoc arbitration (including the number of arbitrators and the appointment procedures), as well as reference to the applicable rules (both procedural and substantive). In practice, the permanent arbitration courts (and the rules they apply) are the first choice.

Arbitration courts have competence to render interim measures, such as interim injunctions, which can be granted at the request of a party. However, the enforcement of an interim measure requires approval of the state court (i.e., the enforceability clause – see Section II.iii).

The final arbitration award may be challenged and, as a consequence, revoked if there was no arbitration clause or the clause was invalid, a party was not duly notified of the appointment of the arbitrator or the arbitration proceedings, or was otherwise deprived of the ability to defend its rights, or owing to other, mainly formal, defects of the award.

iii Enforceability

Any decision of the sports governing body that does not require compulsory enforcement, is, as a rule, directly enforceable (legally effective), unless the decision is challenged before competent bodies, including state courts.

If, however, the decision requires compulsory enforcement (e.g., taking away property, seizure of objects), it requires obtaining an enforceability clause, that is, a formal confirmation granted by the state court based on certain formal prerequisites, such as the existence of a relevant ruling or award and lapse of deadlines for challenging thereof (the court does not refer to the merits of the case when dealing with the enforceability clause request). Any person or entity may also agree (in notarial deed form) to the future enforcement even in the absence of the court ruling or arbitration award, subject only to the enforceability clause.

Compulsory enforcement is only available through a bailiff (i.e., a sports governing body must not enforce its decisions itself).

Once the final and non-appealable decision or award is issued and the enforceability clause is granted, the enforcement may only be challenged in exceptional instances, including the expiry of the enforced commitment (e.g., waiver, its earlier fulfilment or statutory changes). In the case of a decision or award being issued as a result of a crime (e.g., bribery or forgery of documents), Polish law also provides certain, extraordinary measures to challenge the final decisions or awards and, therefore, also their enforceability.

Dispute resolution system

Organisation of sports events

i Relationship between organiser and spectator

By participating in a sports event, the spectator enters into an agreement with the event organiser. The mutual obligations of the parties are derived from the explicit terms of the agreement, as well as the general terms and conditions of the event and any applicable national legislation (especially the Civil Code and the Act on Safety of Mass Events). In most cases, the spectator acts as a consumer; therefore, certain consumer protection regulations, as well as the EU General Data Protection Regulation (GDPR),¹³ would also apply to the contractual relationship with the organiser.

The organisers commonly include the following terms within the terms and conditions of the event:

1. a prohibition on selling tickets to third parties, and conditions for returning tickets;
2. GDPR regulations and rules regarding the spectator's consent to use their image recorded during the event;
3. rules concerning spectators taking photographs or recording videos during the event; and
4. objects that are not allowed in the event venue.

Provisions concerning most of these matters are also present in national legislation but are often expanded in terms and conditions of events. For example, while the organiser is allowed to record the event (including the images of spectators) under the Act on Safety of Mass Events, the footage may only be used for safety purposes. Because of this, organisers tend to require a broader consent from the spectators, which allows them to also use the footage for promotional purposes.

ii Relationship between organiser and athletes or clubs

To participate in professional sports competitions, entities such as sports clubs must be members of Polish sports associations. The latter are exclusively authorised by the Act on Sports to hold competitions for the title of champion of Poland or the 'Polish Cup' in their respective sports disciplines and to establish professional leagues.¹⁴

The Act on Sports also grants sports associations the exclusive authority to lay down competition rules and appoint the national team, among other things.¹⁵ Sports clubs are subject to these rules because of their membership of a relevant sports association. Sports associations are also bound by the regulations of the international governing bodies of specific sports (e.g., for football, the Union of European Football Associations (UEFA) or the International Federation of Association Football (FIFA)). Athletes are members of these associations through their sports clubs and are, thus, obliged to follow the internal regulations of the clubs and the relevant sports associations, as well as the rules issued by the international sports federations.

Internal regulations of sports associations also include disciplinary measures to ensure their members' compliance. These regulations must comply with applicable national legislation, especially the Act on Sports.

iii Liability of the organiser

An important distinction should be made in relation to the Act on Safety of Mass Events. The organiser of the competition (such as a football league) is not considered to be the organiser of each specific event (such as a single football match). In the case of football matches, only the hosting club would be considered the organiser and be responsible for the safety of the event.

In most cases, sports events are considered mass events under the Act on Safety of Mass Events. Its provisions impose certain obligations on the organisers of the events, including the obligation to ensure spectators' safety (i.e., by providing access to medical assistance and security services).

The organiser may be liable towards spectators and athletes, as well as third parties, under the general rules of civil law. This may include either contractual liability (liability for improper performance of the agreement between the organiser and a specific person)¹⁶ or tortious liability (the duty to redress damage incurred).¹⁷ For events where an admission fee is collected, the organiser is obliged to hold civil liability insurance.

Natural persons acting on behalf of the organiser may also face criminal liability (e.g., for inflicting bodily harm – although in certain situations it is permissible for the security service to use means of physical coercion during mass events). In Polish criminal law, in general, only natural persons can be liable for the commission of a crime (legal persons can be criminally liable only in certain situations, where individuals acting on behalf of the legal persons have first been convicted definitively for committing certain crimes).¹⁸ Depending on the nature of the specific offence, criminal proceedings may be started ex officio; or may require the aggrieved party to file a motion for prosecution (which is then pursued by the public prosecutor or the police); or may require the filing of a private claim, whereby the aggrieved party acts on their own before the court, usually without the public prosecutor's involvement. The last of these procedures is used in cases of causing minor bodily harm, which may be a common cause of liability in relation to sports events.

Proceedings initiated by athletes against organisers of sports events in connection with injuries or harm suffered as a result of improper event organisation (for example, inadequate event security) are still very rare in Poland, but there are currently a few such proceedings pending, including criminal and civil proceedings brought by alpine skier Tomasz Brzeski against the organisers of the national championship event at Zakopane in April 2017 after he suffered serious head injury as a result of hitting an unmarked rock on the course. However, after six years, at the end of 2022, the proceedings in his case were discontinued and the case dropped by the prosecutor for the third time as the court experts appointed did not find any irregularities on the side of the organisers of the event that might have led to Tomasz Brzeski's injury. The decision is not yet final, but it may have impact if similar actions are brought in the future.¹⁹

iv Liability of the athletes

Inflicting harm upon another athlete or a spectator, or causing damage to property, may be the basis of an athlete's civil or criminal liability. Although there are no national legislative provisions specifically addressing athletes' liability, certain conditions may apply:

1. according to established court practice, an athlete may not be criminally liable for causing harm to another athlete if the harm was inflicted in the course of a sports competition (the 'sports risk exclusion of liability'). The limitation of liability is not absolute, however; for example, it is established that actions contrary to the rules of a sport do not qualify for limitation of liability;
2. in relation to athletes' civil liability towards each other, there are often arbitration clauses in place, so disputes are resolved before the arbitration courts of sports associations, not before regular courts;
3. in addition to civil, administrative or criminal sanctions, an athlete may also face disciplinary liability for their acts.²⁰ An agreement between a sports club and an athlete may also include stipulated damages payable to the club for certain wrongdoings of the athlete; and
4. certain legal provisions govern the liability of athletes for doping.²¹

With these exceptions, athletes are liable for their actions towards third parties (including spectators) under the general rules of civil and criminal law. In practice, this would mainly cover civil law duty to redress inflicted damage. For criminal liability, depending on the nature of a specific offence, criminal proceedings may: be started ex officio, require the aggrieved party to file a motion for prosecution (which is then conducted by the public prosecutor or the police), or require the filing of a private action, whereby the aggrieved party acts on their own before the court, usually without the public prosecutor's involvement.

v Liability of the spectators

The law provides specific means aimed to protect participants of mass events. There are certain crimes and misdemeanours that may be only committed during a mass event, such as failure to follow orders issued by a safety officer, hindering identification of a person (e.g., by covering one's face) or forcing one's way into the place where a sports competition is held. Most of them are adjudicated in expedited procedures.

In cases of conviction for a mass event-related crime or misdemeanour, the court is allowed to impose an additional penal measure of a temporary prohibition to participate in mass events (applicable to all mass events or specific ones). As a separate measure, organisers of football matches are also allowed to charge persons who violate the terms of the event venue or mass event safety rules with a 'club ban'. The club ban prohibits access to all events in which the organiser's football team participates.

In addition, spectators are also liable for their conduct under the general rules of civil and criminal law, such as a civil law duty to redress damage inflicted. For criminal liability, depending on the nature of a specific offence, criminal proceedings may: be started ex officio; require the aggrieved party to file a motion for prosecution (which is then conducted by the public prosecutor or the police); or require the filing of a private accusation, where the aggrieved party acts on their own before the court, usually without the public prosecutor's involvement.

vi Riot prevention

The provisions of the Act on Safety of Mass Events apply to most sports events intended for 1,000 spectators or more (or 300 spectators or more for events held in sports halls).²² The Act is intended to ensure the safety of spectators and it imposes several obligations on the organiser of the event to achieve that goal, including:

1. the obligation to obtain a permit to organise a mass event. A permit is issued by the mayor of the locality where the event is to be held. An application for a permit is required to provide information on safety of the event, such as emergency exit routes of the venue;
2. the right (and in some cases – the obligation) to record the event for safety purposes;
3. regulations on the processing of spectators' personal data (including a centralised system for identifying members of the audience attending matches of the top divisions of the football league);
4. the obligation of the security service of the event to deny access to the event to persons who are demonstrably under the influence of alcohol or drugs, who are aggressive or who are subject to a disqualification from participation in mass events (a penal measure that may be imposed by a court for committing certain crimes); and
5. certain additional obligations imposed on the organiser if a mass event is declared to be 'high risk', such as the obligation to employ additional security officers and a prohibition on selling alcohol on the premises of such an event.

Commercialisation of sports events

i Types of and ownership in rights

A bundle of sport-related rights may be commercialised in Poland, including the rights to sports events' broadcasts, images of the athletes, copyrights to a variety of works of authorship (films, music, photos, jingles, apps, etc.) or logos (trademarks), in particular in relation to merchandise.

The rights to broadcasts primarily belong to broadcasting organisations, although the recording of an event requires consent of the club, event organiser or a sports association and is carried out under conditions agreed therewith. Exclusive rights to broadcast competitions in such popular and profitable sports as football, volleyball or basketball are subject to tenders organised by the relevant Polish sports associations or entities managing the respective leagues.

Images primarily belong to the individual natural persons (and, as such, are inalienable and non-transferable) but may also be the subject of licence agreements between athletes and clubs, sports associations or sponsors allowing for their further exploitation. In addition, Polish law provides that an image of an athlete in the Polish national team kit, as a member of a Polish national or Olympic team, may be used by virtue of law by the relevant Polish sports association or, respectively, by the POC.

Other rights such as copyrights or trademarks may be held by the sponsors, clubs or sports associations.

Rights owners may license their rights (allowing use thereof for a specific time and, usually, with some further limitations) or transfer (assign) them to the purchasers.

ii Rights protection

Where there is a dispute over the use of rights under a contract, the basic framework for the resolution of the matter will be the contract and, in particular, dispute resolution rules (if any) stipulated therein, including the arbitration clause. In the case of other issues, in particular third parties' infringements, the law of torts and, sometimes, criminal regulations will apply to protect and enforce the rights. In the latter case, state courts and other authorities, including the police or a public prosecutor, may be involved.

Effective protection of rights may sometimes be burdensome, especially if the relevant contracts lack clarity (e.g., on the agreed scope or the limits of the permitted use, or the remuneration).

In cases of third-party infringements, typically the effectiveness of the protection may be weakened owing to the large scale of the violation; for example, in the case of internet sales of counterfeit products. Luckily, significant improvements have been made in that field in recent years, also owing to the greater detection of crimes and torts, and much better cooperation between rights holders and competent authorities (police, courts and customs authorities).

iii Contractual provisions for exploitation of rights

Contracts for exploitation of rights must, in the first place, precisely reflect the agreed scope, including time frames, of the permitted use. In addition, if it covers transfer or licensing of copyrights, it must precisely define fields of use (fields of exploitation) (i.e., permitted ways of using the works, such as copying, distributing, disseminating on the internet, broadcasting). In the absence of precisely listed fields of use (e.g., overly broad and vague clauses, such as clauses transferring 'all copyrights') the copyrights transfer or licence is legally ineffective.

Also, no rights can be assumed on the part of the licensee or buyer; that is, unless a certain right is explicitly granted, it will remain with the licensor or transferor (e.g., a television (TV) broadcasting right does not automatically allow distribution on the internet). Contracts should also precisely define any further specific rules or limitations (including time frames and geographical limits).

Professional sports and labour law

i Mandatory provisions

As Poland currently follows the autonomy of sports principle in relation to regulating the sports sector, the mandatory provisions on relations between athletes and sports clubs are minimal and there are no mandatory provisions providing that an athlete must be an employee of a sports club. In practice, the majority of athletes in Poland, at least in the more profitable sports disciplines, are independent contractors having a service contract with the sports club rather than an employment contract. However, the state Social Insurance Institution has in the past challenged the provisions of civil law contracts with athletes and found that the athletes in fact provided work under employment contracts with their clubs. This meant that outstanding social security contributions had to be paid.

The Act on Sports only provides for mandatory insurance against the consequences of accidents for athletes participating in competitions organised by Polish sports associations, and for members of national teams. In the former case, the obligation is on the sports club, whereas in the latter it lies with the relevant sports association.

In 2016, the Supreme Court issued an important judgment²³ dealing with the issue of whether a footballer acting under an exclusive 'agreement for playing professional football' with a football club should be deemed an individual entrepreneur (sole trader) or merely a service provider. The Supreme Court concluded that where the remuneration is fixed (i.e., not dependent on the player's results), and the player is obliged to follow the club's instructions as to the time, place and activities performed (i.e., where the club takes the operational risk), the footballer is just a service provider acting under a service agreement, and not a genuine businessperson or sole trader. As a consequence, it is the football club's responsibility to calculate the social contributions and pay them on behalf of the footballer.

ii Free movement of athletes

There are no specific statutory regulations in Poland that would regulate free movement of athletes. In the case of athletes holding EU or EEA citizenship, the basic principles of EU law (i.e., free movement of people and non-discrimination) would apply. In the case of athletes having an employment contract, they are treated the same way as any other category of employee. In the case of athletes not holding EU or EEA citizenship, the standard regulations on legalisation of their stay in Poland, employment of foreigners and working permits would apply.

Detailed rules on transfers of athletes and engaging foreign athletes are usually provided in the internal regulations of the relevant sports associations²⁴ and international sports federations.²⁵

Some sports associations regulate the allowed quotas of foreign athletes in a sports club.²⁶

iii Application of employment rules of sports governing bodies

Further specific rules concerning contracts with athletes in the given sports discipline may be provided in the internal regulations of the relevant sports associations²⁷ and international sports federations.²⁸

Sports and antitrust law

Antitrust laws are also applicable to the sports sector and issues such as state aid, abuse of dominant position or agreements restricting competition are also valid issues in this sector. The Office of Competition and Consumer Protection (UOKiK) is currently particularly active in relation to vertical agreements, for example, with respect to distribution of sports equipment.²⁹

In the past, UOKiK also conducted an investigation into an alleged abuse of dominant position on the Polish sports press market (2015), and issued a decision in relation to anticompetitive agreements concluded by the Polish Football Association (PZPN) and Canal+ Cyfrowy sp z o.o. for licensing media rights to broadcasts of the premier Polish football league competition, Ekstraklasa.

Since 2019, UOKiK has also been conducting an ongoing investigation into sports betting operators, in relation to the actions of PZPN and the company running the top Polish professional football league, Ekstraklasa SA. Polish betting operators are required to obtain permission from the relevant national event organisers to use the results of sports event matches as one of the requirements to offer bets on these results. There is controversy concerning the abuse of market power by PZPN/Ekstraklasa and the amount of fees collected by them for granting this permission to betting operators. In August 2022, it was announced that two betting operators have decided not to wait for UOKiK's decision and have unilaterally terminated their agreements with PZPN/Ekstraklasa concerning use of the results of the Polish league matches, one of the operators being the leading Polish betting operator STS and at the same time the name sponsor of the Polish national football team.³⁰ STS ultimately settled with PZPN/Ekstraklasa, but other operators are considering further legal steps against them.

In other proceedings related to the top basketball league in Poland, UOKiK imposed financial penalties totalling almost 1 million zlotys on 17 Polish basketball clubs for their participation in an agreement restricting competition. The agreement allowed the clubs to conduct early contract termination and evade payment of all the wages due to the players for the 'pandemic' 2018–2019 season, which was cut short.³¹

The most recent UOKiK investigation concerned the caps on the maximum salaries for athletes in the top division of motorcycle speedway in Poland. By the decision of 5 June 2023, UOKiK fined the Polish Motor Association 2.9 million zlotys and Ekstraliga speedway league 2.3 million zlotys for the establishment of maximum rates of remuneration for players, which, according to UOKiK, reduced competition between the clubs. The decision is not yet final.³²

Sports and taxation

Athletes' earnings are subject to personal income tax. The specific rules on taxation (such as tax rates) may vary depending, in particular, on whether the athlete's earnings are paid under an employment contract or a civil law contract, or whether the athlete is self-employed (acting as a sole trader). In 2021, the tax system in Poland changed significantly with regard to taxes payable on civil law contracts, employment contracts and income derived from business activities. This may also be of great importance for athletes, who were given the opportunity to take benefit of a flat-rate income tax of 15 per cent for the provision of sports-related services, where previously this option was not available to them if they were conducting business activity (i.e., sole traders).

Professional sports clubs are usually incorporated as limited liability companies or joint-stock companies. These are subject to corporate income tax.

As a general rule, tax liability applies to persons who have their usual place of residence in Poland (which is understood as the place where a person's 'centre of economic and personal interests' is located, or where the person stays for more than 183 days per year), regardless of where their income is generated (unlimited tax liability).

If a person does not have a place of residence within the territory of Poland, they are only subject to tax liability for the income (revenue) earned within this territory (limited tax liability). As a general rule, fees for services in the field of sports activity, performed by natural persons residing abroad and organised through the intermediation of natural or legal persons conducting activity in the field of sports events in Poland, are collected in the form of a lump sum of 20 per cent of revenue. These general rules only apply unless double taxation avoidance agreements to which Poland is a party provide otherwise.

In principle, entities subject to corporate income tax are taxed in Poland if their registered office or management is located there. Foreign sports clubs are subject to limited tax liability, unless an appropriate double taxation avoidance agreement provides otherwise.

Poland is a party to over 90 international agreements for the avoidance of double taxation. These may amend the general rules provided above – for example, the income earned in Poland by foreign entities may be completely exempt from income tax in Poland or a tax credit method may be applicable.

Specific sports issues

i Doping

Doping is not a criminal offence that may be committed by an athlete himself or herself. Criminal sanctions may be imposed on a person who administers a prohibited substance to an athlete (without their knowledge) or (regardless of the actual knowledge) to a minor. Making available or trading certain forbidden substances is also sanctioned. Of course, the exclusion of the criminal responsibility of the athletes themselves does not exclude disciplinary sanctions or contractual sanctions (e.g., under sponsorship contracts) that may be imposed on them.

Disciplinary rules on doping are set out by the Polish Anti-Doping Agency, which cooperates with the relevant international agencies to the extent necessary. Doping-related disciplinary proceedings are brought before the relevant bodies of sports associations, decisions of which may be appealed to CASPOC and subsequently to the Supreme Court (for further details, see Section II). Criminal cases are always brought before the state criminal courts, which may impose fines (depending on the gravity of the case and also the perpetrator's income), restriction of liberty (community service) and even imprisonment for up to three years.

ii Betting

In general, Polish gambling regulations are among the strictest in Europe.

Accepting bets on sports events is allowed but requires a betting permit to have been obtained in advance from the Minister of Finance. A permit may be issued for either land-based or online betting. There are several requirements that must be met to conduct betting operations, including the obligation to submit detailed data on planned operations, draft terms and conditions of the service, technical documentation of the betting website, documents proving the legality of funds used, and so on. Betting operators are obliged to pay gambling tax, which is 12 per cent of the total sum of all stakes paid in. Conducting sports betting also requires executing agreements with the relevant sports associations for the use of their results.

Organising betting without a valid permit is a fiscal crime, punishable by a large fine or imprisonment for up to three years, or both. In addition, it is also subject to an administrative fine, which is five times the government fee for issuing a betting permit.³³

Participating in offshore betting while located in Poland is prohibited and constitutes a fiscal crime. As an additional measure to fight against offshore gambling, regulations introduced in 2017 have established a 'blacklisting' mechanism – blocking access to websites that provide unlicensed gambling services. The blacklisting laws were tightened in 2021 to cover not only offshore operators but also websites that advertise and promote their services. Unlicensed websites are listed in a register maintained by the customs and tax authorities. Polish internet service providers are obliged to reroute customers who try to access the blacklisted websites, and payment service providers may not render their services towards these websites. As a result of these measures, a number of foreign online betting operators have effectively ceased to offer their services to the Polish audience while several others decided to challenge the new regulations in courts, although without much success. Nevertheless, interest in the Polish market is still high and the number of licensed operators in Poland is still growing year on year.

iii Manipulation

Bribery aimed at match-fixing is a crime and may even result in imprisonment for up to 10 years in the most severe cases. It is also an offence to participate in bets where the participant is aware of the manipulation. The other relevant crime is referring to connections or the ability to informally influence certain persons within the sports association or other bodies aimed at fixing the outcome of the game. However, a potentially responsible person may avoid being punished if they notify the competent authorities about the manipulation and discloses all the relevant facts before the competent authority itself learns about them.

iv Grey market sales

The sale of sports events tickets in the grey market is an offence but only if the tickets are sold or offered for prices exceeding their nominal value in the official distribution network.

Enforcing these rules may be burdensome. It usually consists of controlling a significant number of sellers, in particular on social media or online sales platforms and requires cooperation with their administrators. In practice, event organisers try counteracting this by means of various registration requirements imposed on purchasers or other means aimed at verifying the identity of the purchaser or event participant.

The year in review

The past year marked another calm period for Polish sports law. The Act on Sports has seen only one minor amendment in the past 12 months, with new legislation aimed at simplifying procedural provisions imposed on professional sports leagues. The amendment included the introduction of simplified proceedings and tacit approval in two types of cases:

1. on the approval of an agreement between a Polish sports association and a professional league management company; and
2. on the approval of the statute of the Polish sports association and its amendments.

The changes introduced should be assessed positively, as they speed up completion of the above procedures.

The year 2022 was, however, another interesting one in terms of ongoing and concluded antitrust proceedings in Poland in relation to sports. UOKiK finalised two separate antitrust proceedings over the actions of the Polish Basketball League and the Polish Motor Association regarding rules on payment of salaries to athletes in sports competitions organised by them. In both cases, the clubs and league organisations involved in the investigated practices were found liable for practices that restrict competition, and significant fines were imposed. The decisions are not yet final and have been appealed. The market is also still awaiting the conclusion of a four-year UOKiK investigation into the practices of the Polish football association PZPN in relation to terms of granting consent for using Polish football league results. The resolution of the case could have a considerable impact, as the fees represent a significant proportion of the revenue of the Polish football league, but could also result in similar proceedings being initiated against other sports federations in Poland.

Outlook and conclusions

It is uncertain whether 2023 will bring any significant changes to Polish sports law. The Ministry of Sport and Tourism is known to be working intensely on a significant amendment to the Act on Sports. The results of this project are still to be seen and the representatives of the Ministry of Sports have not revealed even the essentials of the planned amendments. With Poland's parliamentary elections coming up this autumn, it may well be that no amendments will be enacted prior to that, and it is uncertain whether the next government (if any) will be interested in carrying them out.

Sports spending is expected to increase significantly in the next few years, as evidenced by the doubling of the Polish Ministry of Sports' budget to 3.5 billion zlotys in the next two years. These funds are to be used to finance in particular new investments aimed at improving sports infrastructure. The increased financing is part of a strategy for the development of Polish sports up to 2030, with particular emphasis on women's sports, currently being discussed at the Parliamentary Committee on Physical Culture, Sports and Tourism. The Ministry also aims at introducing regulations recognising professional sports as a profession, including related tax incentives for sportspeople. The Ministry's plans also include bidding for one of the next Olympic Games or Football World Cup editions to take place in Poland.

In conclusion, there is an evident level of expenditure on sports development by state institutions, and this provides an additional incentive for private entities to invest more in sponsorship or business activities in sports.

Outlook