When we speak about hosting major sporting tournaments, our attention often turns to participating teams, stadiums, infrastructure, and investment. Yet behind every successful tournament lies an equally important element: the legal framework governing it.
As part of the Kingdom’s efforts to develop the sports sector in line with Saudi Vision 2030, and in preparation for hosting the AFC Asian Cup 2027 and, most importantly, the FIFA World Cup 2034, the new Saudi Sports Law—issued under Royal Decree No. (M/121) dated 1 December 2025—represents a significant milestone. It constitutes a strategic step toward strengthening the legal foundations regulating sport in the Kingdom, including those relating to commercial rights and intellectual property protection within the sports sector.
The New Sports Law and Intellectual Property
The new law reinforces the importance of intellectual property, including club names, logos, competition identities, audiovisual content, and broadcasting rights. For example:
• Article 12 prohibits the use of Olympic and Paralympic names, emblems, and symbols without prior approval.
• Article 28(6) confirms that revenues may arise from the exploitation of intellectual property rights.
• Article 16(5) grants federations the authority to own and market rights connected to competitions.
• Articles 36 and 37 regulate the transfer of names, logos, and assets when clubs convert into companies, thereby reinforcing formal ownership and legal control over commercial assets.
Collectively, these provisions confirm that intellectual property, trademarks, and commercial rights related to sport are no longer secondary elements. They are now at the core of the commercial value of major tournaments—particularly in football, where investor interest is significant. These rights are recognized as protected assets capable of commercial exploitation.
The Role of Investment in the Success of Major Tournaments
From a commercial perspective, organizing bodies and host countries often require financial support from investors, sponsors, and affiliates to deliver the best and most advanced edition of a tournament. In return, sponsors and contributors obtain—under sponsorship or affiliation agreements—exclusive or non-exclusive rights, depending on the level of their involvement, to use the intellectual property assets of the tournament or sporting event.
At the same time, the owner of these rights (typically the organizing body) is required to undertake enforcement actions to prevent unauthorized companies—particularly competitors of official sponsors—from commercially exploiting those assets. This includes preventing ambush marketing and any unlawful association with the event.
Accordingly, hosting global tournaments requires not only operational readiness but also a legal infrastructure that makes enforcement of rights possible. Sponsors invest based on exclusivity, and broadcasters rely on the protection of their media rights.
Within this context, the new Saudi Sports Law represents a significant step in ensuring this balance. It enhances commercial clarity and provides structured enforcement mechanisms, thereby strengthening confidence ahead of the AFC Asian Cup 2027 and the FIFA World Cup 2034. This is clearly reflected in key provisions of the law, including:
• Article 24, which requires registration in the National Sports Register as a condition for acquiring legal personality.
• Article 16, which empowers federations to regulate and commercially market competition rights.
• Articles 56–57, which establish the Saudi Sports Arbitration Center to provide specialized dispute resolution.
Together, these provisions strengthen governance, protect commercial interests, and support a legally secure sports environment.
From Protection to Investment Opportunities and Licensing for Local Clubs
The new law does not only regulate the protection of rights; it also establishes a structured framework for commercial investment. Clubs and federations may establish companies (Articles 17 and 35), license rights, commercialize competitions, and manage their assets within a clear regulatory framework. Article 28 further clarifies legitimate revenue sources, including licensing, service fees, and investment returns, thereby reinforcing the lawful commercial exploitation of sports assets.
This represents an important shift. Intellectual property is no longer implied; it has become an integral part of the regulatory structure of the sports sector. The Kingdom is not merely preparing to host tournaments—it is building a sustainable sports economy.
As the Kingdom advances toward hosting global competitions, proactive intellectual property planning will ensure that commercial rights are not only legally recognized, but effectively protected and enforced in.
At Demark Legal Consultancy & IP Firm, we work with sports entities, sponsors, and event organizers to:
• Structure sponsorship and licensing agreements
• Protect trademarks and competition identities
• Design anti-ambush marketing strategies
• Advise on corporate transformations and asset transfers
• Enforce commercial rights before and during major events
For all inquiries, questions or for more detailed description of our services please visit our website
📧Email: info@demarkip.com
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