Compliance in professional football: risks for clubs and associations

Compliance in professional football has long since become more than just a voluntary governance measure. Risks of corruption, match-fixing, sports betting fraud, money laundering, criminal tax law and D&O liability present clubs, associations and their executives with growing legal challenges. At the same time, new regulatory standards, such as the EU Anti-Money Laundering Regulation (EU 2024/1624), are tightening the requirements for risk management and internal control systems. Significant compliance risks arise particularly in the context of player transfers, sponsorship, representation agreements, major events such as the 2026 and 2027 Football World Cups, and the marketing of media rights. This article highlights the risks associated with criminal law, money laundering law, tax law and association law in professional football, and explains how effective compliance management systems can help to minimise these risks.

Criminal law risks in professional football: from match-fixing to corruption

Staff* at football clubs and associations face a number of potential criminal law risks. These include, in particular, instances of "sports corruption" – in the form of sports betting fraud and match-fixing, sections 265c and 256d German Criminal Code (StGB). These were recently examined in detail in the article Fair play on the pitch, foul play behind the scenes? in our Football & Law series.

However, the criminal law risks in professional football are not limited to the specific offences of sports corruption. Behaviours that may fall under general corruption offences are also conceivable in practice in various contexts.

If public officials or business partners are to be invited to matches or other sporting events, questions may quickly arise as to whether such benefits are permissible under criminal law (you can also find an article on the tax law risks in our Football & Law series: tax risks associated with invitations). The relevance of this issue became particularly apparent in the aftermath of the 2006 FIFA World Cup, when the practice of issuing invitations by the CEO of a sponsor – who was also a public official – sparked considerable legal debate. Subsequently, the German Federal Court of Justice (BGH) clarified the legal criteria for the unlawful agreement required to constitute the offence of granting benefits as per section 333 (1) German Criminal Code (StGB) (German Federal Court of Justice, judgment dated 14 October 2008 – 1 StR 260/08). Numerous large companies responded by introducing detailed guidelines setting out the conditions under which invitations are permitted, the groups of people to whom they may be issued, and the extent to which they are permitted. Similar issues may also arise for football clubs and associations – whether because they themselves are offered valuable gifts or invitations, or because they have the ability to allocate sought-after tickets to business partners or other third parties.

Players' advisers, kickback payments and transfers: compliance risks in practice

External players' advisers act on behalf of players or clubs to arrange the transfer of players or the renewal of contracts in return for compensation. In this context, "kickback payments" in connection with player transfers – which have also been examined in detail in the past – pose a significant criminal liability risk. Furthermore, the transfer of players involves various legal pitfalls, which we have already addressed in previous articles […].

World Cup bids and major events: risks of corruption in international sport

Finally, the awarding of major sporting events is also regularly associated with allegations of corruption. In fact, the decision on which country will host events such as the Football World Cup carries not only significant integrity and reputational risks but also a considerable risk of corruption. Some sources suggest that the acceptance of bribes by officials from organisations such as the IOC, FIFA or UEFA to favour a specific bidder when awarding a major event does not, in principle, constitute "bribery in commercial practice" within the meaning of section 299 German Criminal Code (StGB). 

They argue that the decision to award a particular bid constitutes an administrative sports policy decision based on a complex voting procedure and is structurally distinct from typical decisions in commercial transactions. Even though there appears to be no relevant case law on this issue, it seems doubtful that the criminal justice system would accept such an argument. Given the considerable scope of the economic activities of organisations such as the IOC, FIFA and UEFA, it is difficult to dispute that their activities in key areas fall within the realm of commercial transactions; particularly as FIFA, for example, competes with other sports organisations for billions of dollars in sponsorship funds. 

Organising a sporting event such as the Football World Cup is a large-scale economic undertaking. This is particularly evident in the granting of media, advertising and marketing rights, which are unquestionably of a commercial nature. Against this background, it seems unlikely that the criminal justice system would exempt the awarding of major sporting events from criminal scrutiny on the grounds that it falls outside the legal interest of free and fair competition, which is protected under section 299 German Criminal Code (StGB). 

Preventing money laundering in professional football: new obligations for clubs and associations

Both the 2017 German Money Laundering Act (GwG) and the EU Anti-Money Laundering Regulation apply directly to clubs, associations and companies, meaning that the requirements derived from these laws may also give rise to a compliance risk.

The sports industry's particular vulnerability to money laundering risks stems primarily from the often substantial sums transferred across national borders and from potentially corrupt awarding procedures. The "Sommermärchen 2006" ("2006 Summer Fairy Tale", referring to the World Cup hosted by Germany in 2006) serves as a prime example of how potential irregularities in award decisions can lead to criminal investigations and, at the same time, raise issues under money laundering law. In the wake of this, the German Football Association (DFB) adopted a transparent selection process for subsequent bids, such as for EURO 2024, and had the evaluation methodology verified for mathematical accuracy by the Johannes Gutenberg University Mainz.

Player transfers also pose a significant money laundering risk. Tracing payment flows of this nature often presents considerable supervisory authorities and associations with considerable challenges. Further complexity arises from the involvement of external players' advisers or other intermediaries, which often makes payment channels and remuneration structures even more convoluted. 

Embezzlement, tax evasion and D&O liability: further liability risks in professional football

In addition, staff at football clubs and associations face general risks of criminal liability for embezzlement and tax evasion. In particular, managers may face criminal liability for embezzlement in accordance with section 266 German Criminal Code (StGB) if the assets of a club or association are misused in breach of their duties and this results in financial loss. This may be the case, for example, with the payment of bribes. Here, the question regularly arises as to whether a financial loss within the meaning of section 266 German Criminal Code (StGB) has occurred. According to the case law of the German Federal Court of Justice (BGH), an overall assessment must be made from an economic perspective. The decisive factor is then usually whether the unlawful payments are matched by adequate consideration that offsets the financial loss. Furthermore, clubs and associations may, in individual cases, be subject to classic cases of misappropriation of public funds.

In addition, there is a risk of breaches of criminal tax law. The practical relevance of this area of risk is illustrated by Frankfurt am Main Regional Court's imposition of a fine of EUR 130,000 on the DFB in 2025 as a result of tax evasion by staff as per section 370 German Tax Code (AO). Essentially, the proceedings centred on the DFB's payment of EUR 6.7 million to world governing body FIFA in April 2005, which the DFB had classified as a business expense.

There are also tax risks associated with player transfers. For instance, the German Federal Fiscal Court (BFH) has clarified that clubs are only entitled to deduct input tax on payments to players' agents if the club – and not, for example, the player concerned – is the recipient of the invoiced services (German Federal Fiscal Court, judgment of 28 August 2013 – XI R 4/11). Errors in the tax treatment of such transfer deals may therefore result not only in financial burdens but also in consequences under criminal tax law.

Corporate fines, damage to reputation and sanctions: the potential consequences of breaches

Under current German criminal law, criminal offences can, in principle, only be committed by natural persons. Unlike many other legal systems, German criminal law does not, as yet, recognise separate criminal liability for companies or associations. Criminal sanctions are therefore generally linked to the conduct of individual persons within the organisation; in specific cases – where a position of guarantor exists – this may also take the form of failure to act (for details see: The risk of match-fixing and online betting).

However, following on from this, sanctions may also be imposed on sports clubs or associations in accordance with section 30 German Administrative Offences Act (OWiG): Under this provision, a fine may be imposed on an association if a governing body or other body of the association has committed a criminal offence or an administrative offence ("reasonable offence") that is attributable to the club or association. In particular, any of the offences listed above may be considered a reasonable offence. Similarly, a fine may be based on a violation of obligatory supervision pursuant to section 130 German Administrative Offences Act (OWiG). The potential penalties are substantial and may result in fines of up to EUR 10 million (the so-called "penalty component") and lead to the unlimited confiscation of income relating to the underlying reasonable offences (the so-called "confiscation component").

This may also have significant indirect consequences for clubs and associations. These include, in particular, damage to reputation, restrictions on business relationships, exclusion from public procurement procedures, and entries in the Central Trade Register or the Competition Register. For professionally run sports organisations in particular, such consequences can sometimes weigh more heavily in the long term than the actual sanction itself.

These are compounded by the internal sanction mechanisms of sports law within the club. In particular, breaches of the DFB's regulations may be punished with disciplinary sanctions by the competent sports tribunals.

Compliance management systems in professional football: effectively reducing risks

Given the wide range of risks, the question arises as to how clubs and associations can effectively address these threats. The key to this lies in the implementation of a fully functional compliance management system. The aim is to identify high-risk processes at an early stage, establish clear standards of conduct and provide those responsible with practical guidance on how to act in accordance with the law. To this end, specific preventive measures are being developed, particularly for business areas prone to risk, for example in the form of:

• guidelines, 
• checklists, 
• approval and authorisation processes, 
• dual control principles, 
• training tailored to specific target groups, or 
• regular audits. 

In addition, effective whistleblowing systems should be put in place to enable potential breaches to be identified and investigated at an early stage. 

Compliance measures are not only designed to prevent legal breaches; they can also help to mitigate liability in the event of a serious incident. According to the case law of the German Federal Court of Justice (BGH), existing and fully functional compliance structures are taken into account as a mitigating factor when determining the level of fines imposed on associations (German Federal Court of Justice, judgment of 9 May 2017 – 1 StR 265/16). 

It can be seen here that, as a result of the Anti-Money Laundering Regulation (Regulation (EU) 2024/1624) adopted by the EU in 2024, professional football clubs will in any case be required, from 2029 onwards, to comply with the structural and organisational requirements of the Regulation, which applies directly in the Member States. In order to comply with the Regulation, clubs must, in any event, analyse their money laundering risk and establish a preventive system. The Regulation therefore requires professional clubs to have effective compliance measures in place to address the risk of money laundering. In light of this, it would seem appropriate to address the other areas of risk as well through corresponding compliance measures.

Compliance in professional football: why prevention is key to success

Fairness, integrity and compliance with the rules are now among the key expectations of the public, sponsors and members. This applies in particular to sports clubs, associations and limited liability companies in professional sport, which, due to their significance in society and media presence, are subject to particularly intense public scrutiny. 

The multitude of risks relating to criminal law, money laundering law, tax law and association law makes it clear that compliance in professional football is no longer a marginal issue. Those who put suitable structures in place at an early stage therefore not only enhance their organisation's legal certainty, but also improve their ability to successfully tackle the many challenges of modern professional football – and thus ensure fair play off the pitch as well.

Conclusion: compliance in professional football: an overview of the key risks and obligations

• Compliance is now a key component of responsible company and association management for professional football clubs and sports associations.
• Corruption, match-fixing, sports betting fraud, money laundering and tax offences are among the key areas of risk.
• The EU Anti-Money Laundering Regulation will require professional clubs to carry out comprehensive risk analyses and implement preventive measures in future.
• Breaches can affect not only individuals but also clubs and associations, resulting in fines imposed on associations, damage to reputation and regulatory consequences.
• An effective compliance management system helps to identify risks at an early stage and reduce liability risks.
• Clear guidelines, training programmes, whistleblowing systems and internal control mechanisms are becoming increasingly important in professional football.
• Compliance is no longer a sideline issue; it is now a key factor in the success of sustainable and ethical sports organisations.