Sports have become an increasingly prominent element of contemporary societies, making not only the practice of various sports more common, but also their professionalization. As a result, the sports industry has begun to generate economic benefits. Today, more and more associations with a sports purpose are being established; however, the need for more effective financial management has led to the creation of a type of commercial company known as a "Sports Joint Stock Company", offering an alternative beyond acquiring the status of a Civil Association and opening up the possibility of commercial ventures. Although this type of corporation is not contemplated in Mexican law, it is interesting to analyze the purpose of its existence, as well as the closest precedents in other countries of Latin American.

The Sports Joint Stock Company (S.A.D.) is a novel entity whose primary objective is the pursuit of profit to obtain financial benefits. It also seeks to attract investors, which results in the existence of shareholders who, in turn, have the right to make decisions regarding the organization and structure of the club, even having the potential to displace the management boards.

In this regard, although the concept has been in place for over two decades in Spain and other European countries, at the beginning of this year, Argentina's president, Javier Milei, decreed a modification to the Argentine Sports Law, allowing sports clubs to be incorporated under this model, and thereby opening the possibility of commercialization. While this would provide benefits to the more than 11,870 sports entities in the country by enabling them to meet the demands associated with the professionalization of sports, this decree has sparked controversy and criticism due to fears of losing the civil nature of clubs and prioritizing financial interests over sporting culture and the historical value of many clubs, particularly football clubs. This debate is further fueled by the opposition of the Argentine Football Association, which defends the tradition of civil association status.

In the Mexican context, although our legislation does not yet recognize the S.A.D. structure, we recall a similar controversy several years ago when Club Deportivo Guadalajara decided to change its legal status from a civil association (A.C.) to a commercial entity (S.A. de C.V.). Businessman Jorge Vergara, in transforming the club into a business entity, sought to strengthen its infrastructure and improve the club's financial conditions. However, former members and fans expressed criticism, viewing this as a loss of the team's communal nature. Today, Chivas' commercialization has given the club a strong presence in the national market and contributed to its professionalization.

The transformation of sports organizations entails all kinds of challenges, particularly achieving a balance between financial sustainability and preserving the identity and values of sports. S.A.D.s remain an innovative concept in Latin America, but the pursuit of business structures has already become a reality for many sports clubs.

At VILA, the experience of our specialized team in Society Law is at your service four any kind of assistance for any doubt or comment.