The professionalization of sport is not only a technical phenomenon, but also a legal and financial process that transforms clubs into relevant economic actors. In Ecuador, the figure of the Sociedad Anónima Deportiva (SAD) has emerged as a modern instrument to strengthen the financial sustainability of clubs, attract domestic and foreign investment, and ensure transparent management in soccer and other disciplines.
What is a Sports Corporation?
SADs in Ecuador were introduced by the Third General Provision of the National Solidarity Law (RO 10/06/2025), which states:
“A sports corporation is hereby created, a legal entity of a professional nature, high performance, and commercial in nature, whose capital, divided into negotiable shares, is formed by the contributions of the shareholders, who are liable only for the amount of their shares.”
Thus, SADs allow a club to become a corporate entity, with a shareholders’ meeting and board of directors, under a commercial corporate structure.
Previously, clubs in Ecuador had to be established as non-profit civil societies under the control of the Ministry of Sport and not the Superintendency of Companies, Securities, and Insurance (SCVS). Now, SADs are subject to the control of the SCVS, allowing the club’s capital to be integrated through negotiable shares and making it possible to attract private investment with legal certainty.
Advantages of SADs in Ecuador
- They can be established with a single shareholder, eliminating the previous requirement of 50 members.
- Access to private financing, promoting sports development.
- They require annual accounting and management reports, strengthening transparency.
- They enable partnerships with international clubs and sponsors.
- They limit the liability of shareholders to the value of their shares, protecting their personal assets.
Challenges and opportunities
Although the figure is already in force, there are challenges in its implementation. The law granted 90 days for the SCVS and the Ministry of Sport to issue regulations explaining the procedure for adopting this figure, but so far this has not been done, creating uncertainty among clubs.
Another aspect to consider is that the law does not expressly establish the possibility of civil societies becoming SADs, which would mean that clubs would have to form a new company, disregarding their history and institutional trajectory, a sensitive issue for entities with tradition and a consolidated community.
Despite this, SADs represent a significant opportunity. They allow foreign investment to be attracted by replicating successful models such as those in the United Arab Emirates in clubs such as Manchester City and Paris Saint-Germain, incorporating best practices in governance, administration, and sustainability.
Conclusion
Sports Corporations are paving the way for the modernization of Ecuadorian sports, combining corporate management with sustainable sports development. With the pending issuance of regulations, SADs can become a vehicle for growth for clubs that wish to professionalize, attract capital, and consolidate governance structures that strengthen sports as an industry and as a tool for social, economic, and cultural impact in Ecuador.
