The Ministry of Sport launches the administrative classification project of club to raise the bar of governance and improve rewards

The Ministry of Sport, represented by the General Administration of Corporate Affairs, today launched the administrative classification project of sports clubs, which will help to raise the level of governance of work and improve the bonuses granted to companies, to be implemented starting from the next 2022-2023 sports season.

Based on the mechanism used in the project, the companies will be classified in (6) categories, in based on the results they will obtain in the governance system at the end of the sporting season in course 2021-2022 AD, provided that tale mechanism continues at the end of each sporting season according to the approved terms.

The ministry revealed that the classification of club will announce its results regardless of the grade of the club at the level of the first football team, as the classification mechanism will be applied to two types of club, as follows:

I 64 club covered by the current system of governance represent: “Prince Mohammed bin Salman Professional League Clubs – First Division Club – and Second Division Club”, whose evaluation scores will be approved in the season in course 2021-2022 AD.

I 106 club not covered by the current governance system.

The ministry explained that the working mechanism is based on the annual count of the number of club for each category, to determine the value of the support and the organization of the governance expenses according to i budget approved, since the budget and the eligible category will be determined at the start of each sporting season, and the evaluation focuses on the average score of the club in the previous season from the first quarter to the fourth Note that the category of the club it will not be changed until the end of the sporting season.

The project for the ranking of sports clubs is administratively subordinated to a time plan of the governance initiative, “quarterly” according to specific quarterly items, furthermore the clubs will be required to meet the entry criteria in ranking before the start of the 2022-2023 sports season. season, as follows:

– Category (A): each club of this category will receive a financial amount of (28) million riyals as a minimum amount of governance support, if they can achieve a media of 6 out of 7 or more for each of (the five approved criteria) in the season in course 2021/2022 AD

– Category (B): each club of this category will receive a minimum of (23) million riyals when it reaches a media of 6 out of 7 or more of the total of the five criteria in full.

Category (C): each club of this category will receive a minimum of (20) million riyals when it reaches one media of 5 out of 7 or more of the total criteria.

– Category (D): each club of this category will receive a minimum amount of (2.5) million riyals when it reaches a media 4 out of 7 or more of the total criteria.

Category (E): each club in this category will receive a minimum amount of (1) million riyals when they meet all the requirements of the governance system initiative and club who got one media less than 4 out of 7 of the total criteria in the 2021 season will also enter this category in 2022 AD

Category (F): i club which were not in able to meet the conditions required to join the Governance initiative and none budget will be assigned to club in this category and the aim will be to provide workshops and training to prepare them to enter the initiative for the 2023-2024 season.

Even the 106 club not covered by the governance system will be subject to evaluation at the end of each season to ensure that they meet three main conditions:

– Sporting activity: Includes obtaining by the club of at least one championship approved in the previous season by any of the sports federations of the Kingdom.

– Administrative staff: means the existence of an administrative organizational structure that includes most of the departments, as well as the presence of a managing director and a “full-time” financial manager in compliance with the controls and regulations approved by the Ministry of Sport.

– Financial documentation: means having checked the annual financial statements by a certified external accountant (for the two previous sporting seasons).

THE club who satisfy all these conditions will be classified in category (E), while i club that do not meet all the conditions will be classified in category (F).

The project also included the possibility for the club to improve their category in each classification cycle when they meet the requirements of the highest category of the cycle, provided that the financial support specified for the club be gradually reduced by 10% if it remains for a long period (more than one season) in its category without rising to a higher category.

The launch of this project comes as an effort by the Ministry of Sport to support the club in building governance-based entities, contributing to their financial and administrative stability, as well as increasing the number of club who participate in the governance program to improve their sporting sustainability, thus contributing to the achievement of stability and enhancing the means to develop them with high professionalism.

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