In the framework of ECPPS' Program "Property right", the Egyptian Center for Public Policy Studies “ECPPS” held a public meeting entitled “The economic effect of privatization of sports clubs” on Wednesday, 16th of August 2017, at ECPPS office in Bab El-Louq. The meeting is one of successive activities of the “Property right” program which the ECCPS try through them to raise the awareness of the society and the decision makers about the importance of ownership, its effect on the economy and developing legislations which pave the way to achieve this.
The speakers were Mr.Adel El-Hemaily, the researcher at the “Property right” program in ECPPS and Eng.Adly El-Qeey, the former manager for contracting and marketing at EL-Ahly club and Mr.Hany Saieed, the president of Goldi sports club.
The researcher, Adel El-Hemaily commenced the Seminar with introduction of the ECPPS and the ‘’Property rights’’ program, and he introduce the paper entitled "The Economic Effects of the Privatization of Sports Club" talked about the privatization process in Egypt since the beginning of the nineties when the state started to sell the public-sector companies to improve the quality of this companies, decrease the state expenditure to them and limit the monopolization of large companies. He described this process that it included some drawbacks such as; the brokerage interference, selling the companies for investors instead of converting them to stocks in the market, and keeping the same management who direct these companies in the public sectors. Adel said that all these faults lead to laying off employees and increase in the percentage of unemployment.
He pointed out that there is more than 1200 sports club in Egypt, 80% of them are public clubs. He also referred to the financial support of these club by the state which reach 800 million Egyptian pounds and the revenues are only 20 million Egyptian pounds.
Eng.Adly El-Qeey talked about his experience in El-Ahly sports club in the field of sports investment. He said that El-Ahly was the pioneer in the field of sports investment by establishing the marketing and sports investment sectors in the club in 2001. He described it as difficult experience as it was the first of its kind in the sports community, he continued that investments in the club should be based on the advantages that each club has from its assets, money and brands of the sports’ teams. Then, as he said, the documenting of these assets and brands is essential step which made El-Ahly successful in producing it TV Channel after the successful magazine experience.
El-Qeey continued his talking about privatizations of clubs, he described the new sports law that it opens the space for investment and limits the role of state to be only observer. He pointed out also that privatization is the solution for certain clubs, but it’s unacceptable by the football fans.
Finally, Mr.Hany Saeed talked about Goldi sports club which started at 1994 as “El-MAADEN” club for the employees of the “El-MAADEN” company before selling it more than one times, he continued that management of sports clubs by his owner is more appropriate to improve the club activities than having an elected board. He described the sports law in Egypt that they hinder the professionalism in the clubs because of the interference of government offices in any activity. He finished his talk by saying the sports became a sort of industry and that privatization is one of the means for successful sports investment.
The proposed recommendations in the meeting:
· Implementing of investments in sports field should be conditioned with transparency and professionalism
· The sports clubs should be observed by their general assemblies, both in private and public clubs
· The independency of sports sector in the clubs should be involved in the club’s systems
· The separation of the management between Youth Centers and Sports Clubs