Sports Law 2026

Last Updated March 26, 2026

Croatia

Law and Practice

Author



Badžim Law Practice is a boutique law firm based in Zagreb, Croatia (EU), operating as a sole practitioner model supported by a wide and carefully curated network of national and international horizontal co-operations, allowing the firm to tailor a bespoke team for each case or project. The practice is highly specialised in sports law, with extensive experience in both court and out-of-court representation, including proceedings before leading international sports tribunals such as CAS, BAT and FIFA. The firm regularly advises on sports contracts, regulatory compliance, broadcasting and media rights, M&A transactions in sport, and the protection and commercial exploitation of athletes’ image rights, as well as related areas of commercial and arbitration law. Recent and ongoing work includes advising and representing prominent institutional clients such as the Croatian Olympic Committee, the Croatian Handball Federation, the Croatian National Anti-Doping Organization (NADO), and the International Handball Federation.

Is Doping a Criminal Offence in the Republic of Croatia?

Under Croatian law, doping as such – meaning the use of prohibited substances by athletes – does not constitute a criminal offence. Instead, it is treated as a misdemeanour under the Sports Act and gives rise to disciplinary and regulatory consequences within the sporting system.

Criminal liability arises, however, at a different level of conduct. The unauthorised production, processing, distribution, sale, trafficking, or mediation of substances prohibited in sport is criminalised under the Croatian Criminal Code, specifically Article 191.a. This provision targets those who place such substances on the market or induce others to consume them, rather than the athletes who use them.

The basic form of the offence is punishable by imprisonment of up to three years. Aggravated circumstances significantly increase criminal exposure. Where the offence is committed against a minor, within a school, or at a sports facility, the prescribed penalty ranges from six months to five years’ imprisonment. Organising a network of distributors carries a sentence of one to eight years, while offences resulting in death are punishable by three to 15 years’ imprisonment.

Accordingly, Croatian law draws a clear distinction: athletes who use doping substances incur misdemeanour and disciplinary liability, whereas those who manufacture or traffic such substances may face serious criminal sanctions.

Legal Status of Substances on the WADA Prohibited List

Substances included on the prohibited list of the World Anti-Doping Agency (WADA) are explicitly recognised in Croatian law as “substances prohibited in sport”. Their legal treatment depends on the context in which they are used or handled.

From a criminal law perspective, the unauthorised production, distribution, and sale of these substances are treated in a manner comparable to offences involving narcotic drugs. This reflects the legislature’s view that trafficking in doping substances poses serious risks not only to fair competition, but also to public health.

From a sporting and disciplinary perspective, the presence, use, attempted use, or possession of such substances by athletes constitutes a violation of anti-doping rules. These violations trigger disciplinary sanctions, including suspension, bans from competition, disqualification of results, and the forfeiture of medals and prizes.

The National Anti-Doping Authority in Croatia

Croatia’s national anti-doping system is administered by the Croatian Institute of Public Health (HZJZ), acting through its specialised Anti-Doping Service. This body serves as the central authority responsible for preventing and combating doping in sport at the national level.

Its mandate is broad. The Anti-Doping Service plans and implements anti-doping measures, conducts testing and controls, adopts and enforces anti-doping rules, carries out education and prevention programmes, and co-ordinates activities with government bodies and non-governmental organisations. Crucially, it ensures the implementation of the World Anti-Doping Code and the relevant international standards within the Croatian legal and sporting framework.

Implementation of the World Anti-Doping Code in Croatia

The World Anti-Doping Code is implemented in Croatia through national Anti-Doping Rules, which function as binding implementing instruments for all provisions of the Code and the associated international standards.

The Croatian Institute of Public Health conducts doping controls, education programmes, and disciplinary proceedings in accordance with WADA rules and in co-operation with the Croatian Olympic Committee. Athletes, coaches, medical staff, and other persons involved in sport are legally obliged to comply with these rules, particularly with respect to testing obligations and whereabouts requirements.

In this way, the Croatian anti-doping framework operates as an integrated part of the global anti-doping system, while remaining anchored in domestic law.

Sanctions and Disciplinary Measures in Sports Leagues

National sports federations and individual sports leagues in Croatia are both empowered and obliged to prescribe and enforce disciplinary measures for doping violations. These measures must comply with international federation rules as well as Croatian legislation.

Sanctions typically include suspension or bans from competition, disqualification of results, forfeiture of medals and awards, and removal from the register of categorised athletes. In addition to individual sanctions, legal entities operating in sport – such as clubs or associations – may be subject to financial penalties if they fail to comply with anti-doping obligations.

Taken together, this multi-layered system reflects a deliberate allocation of responsibility: disciplinary law governs the athlete, criminal law targets the supply chain, and public authorities ensure compliance with international anti-doping standards.

Recent Anti-Doping Cases

The case concerned an elite athlete who was subject to multiple doping controls over a prolonged period, the majority of which returned negative results. In late 2023, two urine samples collected in close temporal proximity revealed the presence of trimetazidine (TMZ), a non-specified prohibited substance under the WADA Prohibited List, detected at very low concentrations.

The athlete did not dispute the analytical validity of the tests but denied intentional use of the substance. The explanation advanced was that the detected substance entered the athlete’s system through unintentional transfer, rather than ingestion. This explanation was supported by a combination of circumstantial evidence, expert opinions, and longitudinal testing data.

Following the initial adverse analytical finding, the national anti-doping organisation conducted an extended review, including further urine testing, blood analysis, and hair testing. These additional examinations failed to demonstrate repeated use, accumulation patterns, or concentration levels consistent with therapeutic or performance-enhancing dosing. Independent expert reports indicated that the detected concentrations were compatible with single or indirect exposure rather than systematic use.

A key aspect of the case was the scientific assessment of alternative exposure routes. Expert evidence considered whether intimate contact with another person using prescribed medication containing TMZ could plausibly explain the findings. While the experts acknowledged scientific uncertainty, they agreed that such transfer could not be excluded, particularly given the exceptionally low concentrations detected and the absence of corroborating indicators of use.

Importantly, the athlete had an extensive history of negative tests both before and after the relevant period, and no evidence was produced suggesting intent, performance enhancement, or concealment. The disciplinary authority ultimately concluded that the evidentiary threshold required to establish an anti-doping rule violation was not met and closed the proceedings without imposing a sanction.

The decision was subsequently challenged before the Court of Arbitration for Sport. CAS upheld the outcome, emphasising that while the principle of strict liability applies, anti-doping organisations still bear the burden of proving, to the comfortable satisfaction of the panel, that a prohibited substance entered the athlete’s body in a manner constituting an anti-doping rule violation. In cases involving trace-level detections, scientific ambiguity and the absence of corroborative evidence may prevent that burden from being discharged.

The case is significant for its treatment of low-concentration findings, the role of expert evidence in result management, and the limits of strict liability where alternative explanations remain scientifically plausible.

Preventing Unfair Conduct by Athletes in Croatia – Short Overview

Croatia addresses unfair conduct in sport through a combination of criminal law, sports legislation, and disciplinary rules of sports organisations. Together, these mechanisms target both individual misconduct by athletes and broader integrity risks such as match-fixing, corruption, and conflicts of interest.

At the criminal law level, the Criminal Code treats match-fixing, betting fraud, bribery, and related corruption in sport as serious offences. Manipulating competition results or engaging in fraudulent betting schemes can lead to prison sentences, while general corruption offences apply fully to sporting contexts. This reflects a clear policy that integrity violations in sport are not merely internal matters but crimes that harm public trust.

Sports-specific legislation adds a further layer. The Sports Act imposes duties of fair play and ethical conduct on athletes, coaches, and officials, while the Act on the Prevention of Disorder at Sports Competitions allows sanctions for conduct that threatens the integrity of events, including fines, bans from attending matches, and other protective measures. The Sports Act also strictly separates sport from gambling by prohibiting officials and governing bodies from having links to betting operators. Compliance is supervised by the Sports Inspectorate.

In parallel, sports organisations play a key role. National federations and the Croatian Olympic Committee enforce disciplinary rules that allow suspensions, bans, forfeiture of prizes, and exclusion from sport, independently of criminal proceedings. Preventive measures are also emphasised, including education on integrity and betting risks. Where criminal behaviour is suspected, sports bodies are required to co-operate with law enforcement, including specialised prosecutors such as USKOK.

This framework has been tested in practice. The 2010 “Offside” match-fixing scandal led to multiple convictions of players and officials in Croatia, while the international case of Ante Šapina highlighted the cross-border nature of sports corruption and the need for international co-operation.

Betting in Croatia is legal, but tightly controlled. It is regulated by the Gambling Act, under which only operators that have obtained government approval, authorisation from the Ministry of Finance, and a formal concession may lawfully offer betting services. The system is highly supervised: operators must meet strict financial and technical conditions, comply with approved betting rules, and are monitored by the Ministry of Finance, including through real-time oversight.

Player protection is central to the regime. Operators must verify players’ identities, exclude minors, maintain self-exclusion registers, and respect strict advertising limits. Certain forms of betting – such as on political elections – are prohibited, and ownership links between betting operators and sports clubs competing at the same level are banned to prevent conflicts of interest.

Sports law adds a further layer of restrictions. The Sports Act prohibits officials and persons managing sports organisations from having links to betting operators. National federations build on this by banning athletes, referees, coaches, and officials from betting on competitions within their own sport, especially where they could influence outcomes. Breaches are handled through disciplinary proceedings and may result in suspensions, fines, or bans, with the aim of protecting sporting integrity rather than criminalising betting itself.

While Croatia does not have a formal public system for routine information exchange between federations and betting operators, it follows international integrity standards. Betting operators must report suspicious activity to regulators and law enforcement, and sports bodies co-operate through international integrity networks. In practice, safeguarding integrity relies on shared responsibility between public authorities, betting operators, and sports organisations.

Recent integrity cases also show that betting-related offences depend not only on the conduct itself, but on whether disciplinary bodies have jurisdiction over the individual at the relevant time. Changes to integrity rules – such as limits on how long former participants remain subject to disciplinary authority – can be decisive, highlighting the importance of clear and lawful jurisdiction in betting-related sport cases.

Disciplinary Proceedings in Sport: From Initiation to Enforcement

Disciplinary proceedings in sport usually begin once a potential breach is identified, whether through a positive doping test, a formal report or complaint, supervisory checks, or indicators linked to betting irregularities or threats to sporting integrity. Once a suspicion arises, the competent sports federation or anti-doping body must act under its regulations and applicable anti-doping rules.

The athlete – and, where relevant, coaches or medical staff – is formally notified and informed of the allegations and procedure. In serious cases, especially doping matters, a provisional measure such as a temporary suspension may be imposed while the case is examined. The disciplinary body of the federation then conducts the proceedings, during which the athlete has full defence rights, including the right to be heard, to submit evidence, and to challenge the allegations.

After reviewing the evidence, the disciplinary body issues a reasoned decision. If a violation is established, sanctions may include suspensions or bans, forfeiture of results or prizes, loss of athlete status, and, in some cases, financial penalties or bans from sporting functions. Athletes have the right to appeal within the federation or, where allowed, before a competent authority, in line with statutory and regulatory time limits.

Once final, decisions are enforced by the federation. The process is subject to external oversight, as sports inspectors may review the legality of disciplinary actions and order corrective measures if rules have been breached.

Commercial Sports Rights in Croatia (Beyond Sponsorship and Broadcasting)

In Croatia, sports organisations generate commercial income through merchandising, hospitality, and ticketing, all of which are governed by general commercial, tax, and public order laws rather than sport-specific regulation.

Merchandising, such as the sale of club-branded products, is permitted if allowed by a club’s statutes and is subject to standard tax rules. Hospitality services at sports venues may be operated directly by clubs or through partners, provided general hospitality regulations are met.

Ticketing is a core commercial activity linked to event organisation and is subject to public safety rules, including restrictions on sales to individuals subject to stadium bans. Secondary ticket resale is regulated only by general consumer law, while illegal resale or sales above face value may result in fines. Enforcement relies on ticket controls, surveillance, and public safety measures.

In Croatia, sponsors use sport primarily to increase brand visibility and consumer trust by associating their products with successful athletes, teams, and sporting events. Branding appears on jerseys, equipment, venues, and digital platforms, while higher-tier sponsorships often allow the use of athletes’ names, images, and results in marketing campaigns. Fan engagement is a key objective, achieved through joint promotions, digital content, and prize campaigns that link sporting loyalty with commercial outcomes.

Sports rights-holders attract sponsors by leveraging sporting success, audience reach, and reputation. They offer structured sponsorship packages with defined commercial rights, exclusivity, and branding opportunities.

Sponsorship agreements in Croatia typically define the sponsor’s category, the scope of commercial rights, and the financial contribution. They regulate how brands may use names, images, and results, as well as where and how branding appears. The agreements also set out the obligations of the sports rights-holder, the duration of the relationship, termination conditions, exclusivity clauses, and dispute resolution mechanisms.

Where sponsors have access to personal data, contracts must include clear data protection provisions. Overall, while Croatian sports law provides the general framework, sponsorship relationships are largely shaped by contract practice and must comply with both national and EU data protection rules.

In Croatia, television broadcasters primarily profit from sports broadcasting rights through advertising and subscriptions. Advertising during live sports – commercials, sponsorships, and product placement – is a major revenue stream, but it is tightly regulated: hidden advertising is prohibited, certain products are restricted, and violations carry significant fines. Private broadcasters such as Arena Sport or MAXtv also rely heavily on pay-TV models, offering exclusive sports content within subscription packages and monetising it further through streaming and on-demand services. The public broadcaster HRT combines advertising revenue with the mandatory licence fee, while operating under stricter legal limits on commercial activity and an obligation to make unused exclusive rights available to others.

Sports rights-holders increase the value of broadcasting rights by packaging them strategically. Rights are usually sold in multi-year bundles and almost always on an exclusive basis, which gives broadcasters commercial certainty and justifies higher investment. Sales are conducted through international tenders, direct negotiations, or hybrid processes. A typical example is the sale of Croatian Football League (HNL) rights, which ultimately ended with Arena Sport as the exclusive broadcaster after several intermediary transactions.

Broadcasting contracts also implicitly grant access to stadiums and arenas, allowing the rights-holder exclusive entry for filming and live transmission. At the same time, the law guarantees other broadcasters limited access to events of major public interest for short news reports, provided they cover the actual costs.

From an intellectual property perspective, broadcasters enjoy exclusive rights over their programme signals, including broadcasting, rebroadcasting, recording, and digital distribution. These rights are territorially fragmented, meaning online and cross-border uses must be cleared separately for each jurisdiction. Special rules apply to HRT through collective licensing arrangements. Finally, Croatian media law requires that events of major social importance – such as the Olympic Games or World Cup finals – remain available on free-to-air television, ensuring public access regardless of pay-TV exclusivity.

In Croatia, sports events are not subject to ownership rights in the strict, property law sense. There is no “ownership” of a sports event comparable to ownership of land or goods under the Constitution or property law. Instead, sports events are protected indirectly, mainly through intellectual property rights – such as broadcasting rights and trade marks – and through contractual arrangements.

Event organisers (clubs, federations, associations, or companies) control how an event is accessed, recorded, and commercially exploited by combining intellectual property rights with contracts. Broadcasting and recording rights are typically licensed to media partners, while unauthorised recording or distribution may constitute a legal infringement. Access to venues is governed by the organiser’s rules, stadium regulations, federation rules, and ticket terms. Organisers decide who may enter and under what conditions (spectators, journalists, camera crews), and are legally required to deny access to persons subject to stadium bans or security measures.

Several areas of legislation apply alongside sports and IP law. Consumer protection rules govern ticket sales, advertising, and spectator services, including refunds if an event is cancelled. Contract law regulates relationships between organisers, athletes, spectators, and third parties, including liability for damage. Sports law sets the framework for competitions and the rights and duties of athletes, clubs, and federations, while public-order legislation imposes safety obligations and sanctions related to crowd control and violence.

Sports events are primarily organised by clubs and national federations, with umbrella bodies involved in major international competitions. Organisers are responsible for safety, ticketing, competition delivery, and compliance with both legal requirements and sporting regulations. Participation is limited to properly registered athletes and clubs under federation rules, while spectators’ access is subject to ticket conditions and security restrictions. Certain individuals, particularly those convicted of serious offences, may be legally excluded from participating in or working within the sports system.

In Croatia, organisers of sports events owe a clear legal duty of care to everyone involved, especially spectators, athletes, and staff. This duty stems mainly from public-order legislation on preventing violence at sports events and from general contract and tort law. Organisers must assess the risk of disorder or violence in advance and take all necessary preventive measures, in close co-operation with the police. Because sports events are considered activities involving increased risk, organisers can be held objectively liable for damage suffered by spectators if safety has not been adequately ensured.

In practical terms, this means providing an adequate number of stewards and security staff, complying with police instructions, enforcing access controls, and, if necessary, suspending or terminating an event in cases of serious crowd disorder. Failure to meet these obligations can result in administrative fines as well as civil liability for damages.

The organiser’s liability can only be limited in narrow circumstances. Responsibility may be reduced or excluded if the damage was caused exclusively by a third party or by the injured person themselves, and only if the organiser can prove that all legally required safety measures were taken. Liability cannot be excluded for failures in security organisation, nor for damage caused intentionally or through gross negligence. Disclaimers printed on tickets have very limited legal effect and do not relieve organisers of responsibility for safety failures.

Athletes may also be liable towards spectators in specific situations. If an athlete intentionally or through serious misconduct causes harm to a spectator, they may be personally liable under civil law, potentially alongside the organiser. Such conduct can also trigger disciplinary sanctions under sports regulations and, in serious cases involving violence or injury, criminal liability.

To prevent violence and disorder, Croatian law prescribes detailed safety measures: mandatory risk assessments, co-operation with police, stewarding services, ticket and access controls, bans on dangerous items and intoxicated persons, technical measures such as video surveillance, limits on ticket numbers where required, and structured co-operation with supporter groups. Breaches of these obligations can lead to substantial fines for organisers and responsible persons, while acts of violence may result in criminal sanctions, including imprisonment.

In Croatia, most sports bodies, whether clubs, federations, or umbrella organisations – are established as associations. This applies across the system, from grassroots and amateur sport to national governing bodies. The main exception concerns professional clubs, which may also operate as sports joint-stock companies.

Amateur and semi-professional clubs are almost always organised as associations. This form reflects their non-profit character: any surplus must be reinvested into sporting activities such as training, competitions, or infrastructure. Associations are also easier and cheaper to set up and manage, which suits clubs with limited resources, and they offer a level of transparency that aligns well with the use of public funding.

Professional clubs have more flexibility. They may remain associations, but they can also be established as, or transformed into, sports joint-stock companies, particularly at the highest competitive levels. The corporate form allows for greater professionalisation, easier access to investors and sponsors, and more efficient management of significant commercial revenues. In practice, top-tier football clubs are often joint-stock companies, while lower-league and amateur clubs remain associations.

Sports federations and umbrella bodies – such as national, regional, or local federations and organisations like the Croatian Olympic Committee – must be established exclusively as associations. This is a legal requirement and reflects their non-profit role, public-interest mission, and co-ordinating function within the sports system. The association model supports democratic governance, member participation, and financial transparency.

Other legal forms exist but play a marginal role. Institutions may be used for specific purposes, such as sports centres or academies, while commercial companies can be set up for ancillary business activities. However, these are not used as the primary legal form for clubs or federations.

In Croatia, there is no single, sport-specific corporate governance code laid down by law that applies across the entire sports sector. Instead, governance standards are shaped by a mix of general legislation and internal sports regulation. The Sports Act sets basic requirements on organisation, transparency, supervision, and ethical conduct, while national federations and umbrella bodies regulate governance in more detail through their statutes and internal rules. These often function as de facto governance codes, covering issues such as conflicts of interest, integrity, and accountability.

For professional clubs operating as joint-stock companies, general corporate governance codes apply in the same way as for other companies, especially if their shares are listed on a regulated market. In such cases, clubs must report on their compliance with governance standards, and failures can lead to regulatory action, liability of board members, or, in serious cases, criminal responsibility. Sports associations and federations are not formally subject to these corporate codes, but they remain bound by statutory duties of transparency and good governance, with sanctions ranging from internal disciplinary measures to loss of public funding or official recognition.

Croatian sports law also imposes particularly strict “fit and proper” rules for owners, directors, and senior officials. Individuals convicted of certain criminal offences, involved in betting activities, acting as agents, or managing multiple clubs in the same sport are barred from holding office. If such incompatibility arises, the organisation must immediately remove the person concerned. Office-holders are under a general duty to act diligently, lawfully, and in the best interests of the organisation and the integrity of sport, with disciplinary, civil, and even criminal liability for breaches.

Finally, while insolvency is not directly sanctioned by statute with sporting penalties, national federations routinely address it through competition rules. In practice – especially in football and basketball – clubs facing bankruptcy or serious financial non-compliance may be punished with points deductions, exclusion from competitions, or relegation. This reflects a broader governance approach in Croatian sport, where financial discipline is enforced primarily through sporting regulation rather than general insolvency law.

Sport in Croatia is financed through a mixed model that combines public funding with private and self-generated income. The backbone of the system remains public money, complemented by sponsorship, membership fees, and commercial revenues, especially at the professional level.

At the national level, funding for sport is provided from the state budget, primarily from general revenues and, very importantly, from earmarked proceeds of gambling activities, which the government partially redirects to sport. Additional public funding comes from EU funds and special state programmes, such as those supporting school sport, parasport, or strategic development projects. Alongside this, cities and counties play a major role by financing local clubs, sports communities, infrastructure, and grassroots programmes from their own budgets.

Private and own-source funding is also significant. Clubs and federations generate income through ticket sales, membership fees, participation fees, sponsorships, donations, merchandising, marketing activities, and, in professional sport, broadcasting and commercial rights. While these sources are crucial for elite sport, they rarely replace public funding at the amateur and youth levels.

The distribution of public funds is regulated by the Sports Act and takes place through structured programmes at state, regional, and local level. National programmes are adopted by the ministry responsible for sport and implemented partly through umbrella bodies such as the Croatian Olympic Committee, which allocate funds for elite sport, youth development, scholarships, anti-doping measures, and governance standards. Allocation criteria typically include athlete and sport categorisation, development priorities, and compliance with good governance principles.

At local and regional level, municipalities and counties adopt their own programmes for “public needs in sport,” focusing on children and youth sport, recreational activities, clubs and associations, competitions, athlete health protection, and sports facilities. Funding is often awarded through public calls, usually on a co-financing basis, with beneficiaries required to contribute part of the budget themselves.

In practice, most public money flows to grassroots sport and local clubs, while national-level funding supports federations, top athletes, and strategic programmes. Elite athletes may also receive targeted scholarships, awards, and additional financial support based on sporting results.

In Croatia, trade marks are protected through registration under the Trade Mark Act with the State Intellectual Property Office (DZIV). The process is straightforward: applicants usually begin with an availability search, file an application identifying the goods and services, and pay the required fees. DZIV examines the application, publishes it for possible objections, and, if no issues arise, registers the mark. Protection lasts ten years and can be renewed indefinitely. International protection is also available through the Madrid system.

The law excludes marks that are descriptive, generic, misleading, contrary to public order, or that conflict with earlier rights, although a sign that has gained distinctiveness through use may still be registered. Registration gives the owner exclusive rights, enables licensing and enforcement against infringers, and is especially important in sport for protecting identity, merchandising, and sponsorship value.

A trade mark does not need to be used before registration, but it must be genuinely used within five years or it risks revocation. In practice, Croatian sports federations, clubs, and event organisers routinely register names and logos to prevent unauthorised commercial use and to secure brand and sponsorship exclusivity.

Croatia has a fully statutory copyright system, based on the Copyright and Related Rights Act and aligned with EU and international law. Copyright arises automatically upon creation of an original work with an individual character; no registration or formalities are required. Protection covers the expression of a work, not ideas, methods, facts, or official legal texts, and rights belong to the natural person who created the work.

Because there is no copyright register, authorship and the date of creation are proven through evidence such as files, drafts, publications, or witness testimony. The law recognises standard limitations and exceptions, including private use, education and research, quotation, parody, and the lawful use of daily news. Distribution rights are exhausted after the first lawful sale of a copy.

Databases are protected under a dual regime. Original databases are protected by copyright as to their structure, while non-original databases may benefit from a sui generis right if substantial investment was made in compiling them. In sport, this is particularly relevant for match statistics, league tables, and player databases, while recordings of sports events are protected either by copyright (where creative choices exist) or by related rights held by producers and broadcasters.

Croatian law clearly protects image, name, and likeness – often described as “NIL rights” – as part of the broader system of personality rights. This protection is entirely statutory and rooted in codified national and EU law, not in common law doctrines.

At its core is constitutional protection of personal integrity, which extends to a person’s image, name, and likeness. This framework is developed further through several statutes. Media law generally prohibits the use of a person’s image without consent, subject to narrow exceptions such as genuine reporting in the public interest. Civil law treats image and likeness as non-pecuniary personality rights, giving individuals the right to seek injunctions, damages, and other remedies if those rights are infringed. In more serious cases, unauthorised use may also amount to a criminal offence against privacy.

Copyright law overlaps with, but does not override, these protections. Even where a photographer or broadcaster owns copyright in an image or recording, its use must still respect the personality rights of the person depicted. Ownership of the work does not automatically permit commercial exploitation of someone’s likeness.

Croatian courts consistently regard image, name, and likeness as absolute rights. They may prohibit further use, award compensation, and, in certain cases, allow close relatives to enforce protection for a limited period after death. At the same time, the law recognises clear limits: use without consent is allowed for legitimate journalistic reporting, satire, or caricature, and claims for non-pecuniary damage are subject to limitation periods.

In sport, these rules have particular significance. Athletes may appear freely in news coverage of competitions, but any commercial or promotional use of their image, name, or likeness – such as advertising, sponsorships, or merchandise – requires explicit authorisation. Unauthorised commercial exploitation can therefore give rise to civil claims and injunctions under Croatian law.

In Croatia, athletes’ image, name, and likeness (NIL rights) are protected primarily through statutory law rather than common law doctrines. Protection is rooted in personality rights, copyright-related rules, and specific provisions of sports and media legislation, making the system codified rather than judge-made.

While Croatian law does not recognise passing off as a standalone doctrine, similar protection exists through rules on misleading commercial practices and unfair competition. Businesses that falsely imply an athlete’s endorsement or exploit an athlete’s reputation for commercial gain without consent may be ordered to stop such practices and pay damages. In this way, courts effectively protect the commercial value of an athlete’s image, similar to the concept of a right of publicity.

Enforcement typically starts with a cease-and-desist letter, followed by civil proceedings before ordinary or commercial courts, with interim measures available if needed. Limits apply where images are used for genuine journalistic reporting in the public interest, and contractual transfers of image rights to clubs or sponsors may affect enforcement. Overall, the Croatian framework – closely aligned with EU law – provides robust statutory protection of athletes’ NIL rights in both personal and commercial contexts.

In Croatia, intellectual property in sport is most often exploited through licensing. Sports organisations, clubs, and athletes can grant third parties the right to use their IP – such as trade marks, media content, or designs – under licensing agreements, creating revenue streams that support sporting activities. This area is governed entirely by statute, primarily through laws on trade marks, copyright and related rights, patents, and industrial design.

In practice, the most commonly licensed rights include club and competition trade marks, broadcasting and audiovisual rights, merchandising designs, and, more rarely, patents for technical innovations. Registered rights are administered by the State Intellectual Property Office, while copyright protection arises automatically upon creation. Licensing agreements typically define scope, duration, territory, exclusivity, and fees, with rights-holders responsible for monitoring and enforcement.

There is a clear divide between professional and non-professional sport. Professional clubs, federations, and elite athletes operate in a commercial environment, regularly licensing media rights, merchandise, sponsorship uses of marks, and athletes’ name, image, and likeness. These arrangements can be financially significant but require close legal oversight. By contrast, amateur and university sports bodies usually license IP only to protect identity or support limited merchandising and local media coverage.

Athletes may also license rights independently. While professionals often actively commercialise their image, amateur and student athletes tend to focus on basic protection rather than revenue generation. Overall, Croatian law offers a flexible licensing framework, with the scale of exploitation largely driven by the level of professionalisation in the sport.

In Croatia, intellectual property rights are generally freely transferable. Copyright, trade marks, patents, and industrial designs may be assigned or licensed unless a statute or the contract provides otherwise. Rights-holders may transfer rights in full or grant limited use, subject to legal and contractual limits.

IP rights follow the principle of territoriality, meaning that rights effective in Croatia are governed by Croatian law. Contractual restrictions – such as limits on use, duration, territory, or further transfer – bind third parties only if they are properly recorded in the relevant public register (for example, trade marks or patents).

There are key distinctions between rights. Economic copyright rights may be transferred, usually in writing, but moral rights (such as the right to be identified as the author) are non-transferable. Trade marks, patents, and designs are freely assignable or licensable, though contracts often restrict sublicensing. Certain assets, such as public archives or protected cultural heritage, are subject to special statutory limits.

Foreign individuals and companies may hold and transfer IP rights in Croatia without nationality-based restrictions. Special rules apply to works created in employment and to collective rights management. In practice, most limits on transfer arise from contract, and to be effective against third parties they must be duly registered.

In Croatia, the collection and use of sports data are mainly regulated by the Sports Act and related rules, with the National Sports Information System at the centre. This system brings together registers on athletes, competitions, results, clubs, coaches, facilities, and sports funding, and serves both regulatory and development purposes.

The data covers athlete performance and status, official competition results, organisational records, and sports infrastructure, with sensitive data – such as health information – processed only in limited and legally defined cases. Data is entered and updated by federations, clubs, the Croatian Olympic Committee, and public authorities. Some information is publicly available as open data, while data sharing with other public systems is tightly regulated.

Sports data is widely used for competition management, athlete development, training and scouting, public oversight, and media and digital services. It also supports commercial activities, including licensing to media, betting, and technology companies, and underpins products such as live-score apps, analytics tools, and sponsorship measurement. All use is subject to strict GDPR compliance, with public datasets anonymised or aggregated.

In Croatia, data protection in sport is governed primarily by the GDPR, which applies directly to all sports organisations, including clubs, federations, and public bodies, and is supplemented by the national implementing act. Together, these rules form the core legal framework for processing personal data in sport.

The Sports Act adds a sector-specific layer by regulating data collection through the National Sports Information System, which covers athletes, competitions, coaches, finances, and facilities, while expressly requiring full compliance with GDPR standards. Similar safeguards apply to data processed under laws on preventing disorder at sports events, including records relating to spectators and security incidents.

In practice, the GDPR has had a clear impact on sports governance. Organisations must identify a lawful basis for processing, inform athletes and staff transparently, respect data subject rights, and apply heightened protection to sensitive data such as health information. Where required, they must appoint data protection officers and adopt appropriate safeguards. Public access to sports data is limited to anonymised or aggregated information, with oversight by the national data protection authority, making data protection a routine part of sports administration in Croatia.

As a general rule, parties must first exhaust internal dispute resolution mechanisms provided by sports federations or agreed arbitration bodies before turning to state courts. Where arbitration has been validly agreed, ordinary courts usually lack jurisdiction until that process is completed.

There are important exceptions. National courts may be seized directly in cases involving EU law, criminal matters, or public law issues, and where arbitration is not genuinely voluntary or would undermine effective legal protection. In practice, most sports disputes are handled internally first, but courts will intervene when necessary to safeguard legal rights and EU law guarantees.

In Croatia, sports disputes are usually resolved through alternative mechanisms, used for matters such as contracts, disciplinary issues, transfers, and eligibility. Arbitration is permitted under general arbitration law and is often mandatory under the statutes of sports federations or the Croatian Olympic Committee. Arbitral decisions are binding and enforceable, and the procedure is typically faster and more specialised than court proceedings.

Mediation is also available as a voluntary and confidential option, particularly for less complex disputes or where maintaining relationships is important. It is regulated by general mediation law, and courts may encourage parties to attempt mediation before litigation. Settlements reached through mediation can be made enforceable.

In addition, sports organisations usually require parties to exhaust internal disciplinary and appeals procedures before turning to arbitration or courts. Only after these internal mechanisms are used can external remedies be pursued. Where disputes are not purely sporting – for example, consumer or contractual matters – general ADR mechanisms under Croatian law may also apply.

In Croatia, sports federations are legally empowered to impose sporting and financial sanctions on their members through their statutes and regulations, as provided by the Sports Act. These powers cover competition rules, disciplinary responsibility, and the rights and duties of clubs and athletes. Sanctions may include suspensions, fines, points deductions, exclusion from competitions, and bans, and must be set out in publicly available rules. Federations are also required to discipline misconduct related to crowd disorder, independently of any criminal or misdemeanour proceedings.

Sanctions are imposed by internal disciplinary bodies and can be challenged through legal remedies. Affected parties normally have the right to appeal within the federation, and after exhausting internal remedies may turn to sports arbitration if provided for by the applicable rules. External judicial protection remains available: administrative courts review decisions involving public powers, civil courts hear contractual and financial disputes, and the sports inspectorate may intervene in cases of illegality. As a rule, internal remedies must be exhausted before court proceedings, subject to limited exceptions for urgent or fundamental rights issues.

In Croatia, the relationship between sports organisations – clubs and federations – and athletes is governed primarily by the Sports Act and the internal rules of national federations. The law clearly distinguishes between professional and amateur athletes and allows different contractual models depending on status and level of competition.

Professional athletes may be engaged either under an employment contract or through a professional playing contract if they operate as self-employed. Where an employment contract exists, certain labour law rules (such as those on fixed-term work, working time, termination, and severance) do not apply automatically and are instead governed by the individual contract with the club. These contracts are registered with the national federation for record purposes, but their validity does not depend on federation approval. Contracts are negotiated individually; standardised league-wide agreements are uncommon.

Amateur athletes are not employees. They may receive scholarships or allowances – up to EUR24,000 per year and generally until the age of 24 – but without an employment relationship. Transfers of amateur athletes are normally free of charge, except for limited training compensation when they turn professional. Athletes may also compete as independent professionals through a trade or liberal profession.

Athletes are categorised based on sporting results, which affects eligibility for state-funded contributions, scholarships, and awards. Croatian law does not impose salary caps; remuneration is contract-based, although some federations may set limits at amateur or lower levels.

Transfer rules are set by federations but remain subject to state oversight and competition law. Clauses forcing athletes to accept renewals, allowing unilateral extensions, or threatening suspension for refusal are void. Non-compete clauses are permitted only if proportionate. Most clubs are organised as associations, with limited use of corporate forms, and athlete pay is typically funded through club revenues, sponsorships, and public-interest sports programmes.

Sports federations in Croatia are organised as associations with public powers under the Sports Act. As legal entities, they are subject both to sport-specific rules and to the general law on associations. From an employment perspective, this means that labour law applies to federations in the same way as to other employers, unless the Sports Act provides otherwise.

For federation staff – such as administrative employees, coaches, and technical personnel – the Labour Act applies in full. Their employment relationships are governed by standard employment contracts, including rules on working time, termination, severance, and workplace safety, and federations are fully liable for these obligations with all their assets.

Professional athletes are treated differently. When an athlete is employed by a club, certain labour law protections – such as rules on fixed-term contracts, notice periods, severance, and working time – do not apply automatically and are instead governed by the individual agreement with the club. These contracts must be registered with the national federation, although federations are not the athletes’ employers and act mainly in a regulatory and supervisory capacity.

The law provides important safeguards. If a club becomes insolvent or if a dispute arises over a so-called self-employed athlete’s contract, the relationship may be reclassified as employment, giving the athlete access to labour law protection. Federations also regulate disciplinary matters, licensing, and eligibility through their internal rules.

In practice, disputes most often concern unpaid remuneration, unlawful contractual clauses, and termination of contracts. Clauses forcing athletes to accept renewals, allowing unilateral extensions, or threatening suspension for refusal, are expressly void. Collective bargaining is largely absent from Croatian sport, so most disputes are resolved individually through courts or arbitration – particularly outside men’s professional football, where civil law contracts remain common and often blur the line with employment relationships.

In Croatia, sports federations are generally free to regulate the participation of foreign athletes in domestic competitions. The Sports Act grants federations broad autonomy to set eligibility rules, including limits on foreign players, provided immigration and employment rules are respected. In practice, many federations – especially in football and basketball – set caps on the number of foreign players a club may register or field.

This autonomy is limited by EU law. Restrictions based on nationality cannot be applied to EU citizens in breach of the free movement of workers, as established in the Bosman case. As a result, limits on EU players are likely unlawful, while restrictions on non-EU athletes are generally permitted, subject to anti-discrimination principles.

Separately, foreign athletes must comply with residence and work rules. EU and Swiss nationals face minimal formalities, while athletes from third countries typically require residence and work permits, with some procedural flexibility in specific sporting contexts.

Croatian female athletes have long been successful in individual sports such as athletics, skiing, tennis, rowing, and combat sports, while women’s team sports – particularly handball, volleyball, and basketball – maintain stable national leagues and regular participation in European competitions.

In recent years, visibility has improved gradually. Public and commercial broadcasters now more consistently cover major international women’s events, and domestic federations, together with the Croatian Olympic Committee, have launched initiatives aimed at promoting female athletes and gender equality in sport. Hosting international women’s competitions, such as world-level indoor hockey events, has also helped boost local interest and attendance.

Commercially, women’s sport in Croatia is still developing. Media rights are usually bundled with men’s competitions rather than sold separately, and sponsorship deals tend to be modest and often linked to broader federation partnerships rather than individual leagues or clubs. However, audience engagement – especially through digital platforms and social media – has increased, and global trends in women’s sport are beginning to influence domestic strategies.

Overall, women’s sport in Croatia is moving forward in terms of participation, performance, and recognition, but its growth remains largely institution-driven rather than market-led. The main trend is gradual professionalisation and improved visibility, with unbundled rights, larger sponsorships, and higher attendances still representing the next stage of development rather than the current norm.

Women’s sport development in Croatia is largely driven by co-ordinated institutional and EU-funded initiatives rather than commercial leagues. At the centre of these efforts is the Croatian Olympic Committee, which has made gender equality a strategic priority and actively supports programmes aimed at visibility, leadership, and governance.

One of the most visible initiatives is Voice of Women in Sport, run with the national media regulator to improve how female athletes are represented in the media and to increase coverage of women’s competitions. Alongside this, EU-funded projects such as Women4Sport and SCORE focus on empowering women off the field – through leadership training, governance workshops, and support for female coaches, particularly in smaller or remote communities.

Croatia is also involved in Erasmus+ projects like ReFrame Women in Sport, which tackle gender bias in sports media and storytelling, while civil-society platforms such as the Croatian Women’s Network help connect successful women in sport with broader professional and international networks.

Taken together, these initiatives reflect a structured, policy-driven approach to women’s sport in Croatia. The emphasis is less on professional leagues and media rights, and more on long-term change: increasing participation, strengthening leadership pathways, and improving how women’s sport is perceived and valued across the system.

In Croatia, esport is still not formally recognised as a sport under the Sports Act. The law regulates traditional sports, competitions, and public funding, but it does not list esport or virtual sports as a separate category. Official recognition depends on sport categorisation criteria such as mass participation, organisational structure, and international standing, and esport has not yet been included in the system of recognised sports overseen by the Croatian Olympic Committee. As a result, esport operates outside the formal sports system and has no access to public sports funding.

Despite this, esport has developed quickly. Croatia has seen steady growth in teams, leagues, and tournaments, particularly among younger participants, with Croatian players and teams regularly competing internationally. Dedicated gaming and esport venues now exist in major cities, and media coverage of major tournaments has become more common, even though public broadcasters have no specific legal obligation to cover esport.

A central role in structuring the scene is played by the Croatian eSports Federation (HESS). Although it is not recognised as a national sports federation under the Sports Act, HESS functions as the main umbrella body for esport in Croatia. It organises national competitions, sets basic competitive standards, represents Croatian e-sport internationally, and acts as the primary institutional voice of the e-sport community. Its activities have helped professionalise the scene and provide continuity in the absence of formal state recognition.

For now, esport in Croatia relies almost entirely on private funding, sponsorships, and participation fees. Given its continued growth in participation, audiences, and economic relevance, there is increasing pressure for future legal and policy adjustments that would bring esport closer to the formal sports system.

In the past year or so, the Croatian esports scene has continued its steady upward trajectory. Local players have collectively earned over USD2.2 million in international prize money, especially in games like League of Legends.

On the commercial side, new tournament infrastructure and partnerships have developed. For example, international organiser Esport Pro Club launched a Croatian branch based around a dedicated esports arena in Zagreb and will run exclusive competitive leagues locally, signalling stronger ties between global esports operators and the Croatian market.

Institutionally, the Croatian eSports Federation (CeSF) remains an important hub for organising competitions and representing the sector domestically and abroad, while public discourse on the future of esports in Croatia has been growing, including dedicated discussions on the Games Croatia podcast that bring together industry leaders and federation officials.

Another notable development is the expansion of Croatian gaming culture into adjacent business areas: the gaming café brand Friendly Fire signed a historic franchise deal to open 100 new locations across several European countries, highlighting how gaming and esports-related retail and social spaces are becoming significant commercial exports from Croatia.

Legal Framework, Market Practice and Sport

In Croatia, NFTs are not regulated as a separate legal category. Instead, they fall within the broader concept of crypto-assets and, since 30 June 2024, are primarily governed by the EU Markets in Crypto-Assets Regulation (MiCA). Croatia applies MiCA through national legislation on supervision and enforcement, with regulatory oversight shared mainly between the Croatian Financial Services Supervisory Agency (HANFA) and the Croatian National Bank (HNB). In practice, most NFTs – where they represent unique digital rights such as artwork, collectibles, or access rights and do not qualify as e-money or asset-referenced tokens – fall under HANFA’s supervision.

Issuers and service providers dealing with NFTs must comply with transparency, consumer protection, and anti-money laundering rules. Market participants and consumers may also file complaints with the competent authority if regulatory breaches are suspected.

The Croatian NFT market is still relatively small and emerging, especially compared to global markets. Activity to date has focused mainly on digital art, collectibles, and early experiments in sport. There are no specific legal barriers to issuing, buying, or selling NFTs in Croatia, provided EU and national regulatory requirements are met.

In sport, NFTs are increasingly explored as tools for fan engagement and commercial innovation. Typical uses include digital collectibles (such as tokenised cards, highlights, or commemorative items), NFT-based ticketing to reduce fraud and control resale, and access tokens granting exclusive content, promotions, or fan participation. While Croatia has not yet seen a flagship NFT sports project, clubs in Croatia and the wider region – particularly in football – have tested or announced NFT initiatives aimed at fans and sponsors.

NFTs offer clear opportunities for Croatian sports organisations, including new revenue streams, stronger fan engagement, improved transparency through blockchain verification, and access to global audiences. At the same time, they carry legal and practical risks. Regulatory uncertainty remains, anti-money laundering and fraud risks are heightened, and intellectual property issues are critical, as NFT ownership does not automatically transfer copyright. In addition, certain institutional investors are legally restricted from investing in crypto-assets, including NFTs.

Overall, NFTs in Croatia sit at the intersection of innovation and regulation: legally permitted and increasingly explored in sport, but still requiring careful structuring and compliance as the regulatory landscape continues to evolve.

In Croatia, artificial intelligence in sport is not regulated by a specific national law but is instead governed by general sports regulation and broader EU rules on data protection, technology, and integrity. The Sports Act does not mention AI, but its obligations on data protection, database management, and sporting integrity are directly relevant to AI-driven tools such as performance analytics, video analysis, and biometric monitoring.

The key legal framework comes from the EU level. Since August 2024, the EU Artificial Intelligence Act applies in Croatia, classifying AI systems by risk rather than by sector. Many AI uses in sport – especially those involving biometric data, health, or automated decision-making – may qualify as high-risk, triggering strict requirements on transparency, human oversight, accuracy, and security, while certain practices are prohibited altogether.

In practice, AI is already being used in Croatian sport in line with wider European trends. Clubs and organisations apply AI for performance analysis, injury prevention, training optimisation, fan engagement, marketing, and, increasingly, officiating and competition management.

In Croatia, the metaverse is still at an early and largely experimental stage, particularly in the sports sector. Current activity is mostly limited to pilot projects, digital presentations, virtual events, and experimental initiatives, often developed with technology partners or through international platforms.

Where used, the metaverse serves primarily as a tool for digital engagement rather than a substitute for traditional sporting activity. Potential applications include virtual sports events and broadcasts, virtual fan zones that allow supporters to interact through avatars, and immersive marketing spaces for sponsors and brands. Sports organisations have also explored educational uses, such as virtual training environments for athletes, coaches, and referees, as well as virtual museums showcasing sporting history and achievements.

The metaverse offers clear opportunities, including new revenue streams from digital products and virtual tickets, global fan reach, and more interactive fan experiences. It can also support education and professional development through advanced simulations and digital tools.

At the same time, legal and practical risks remain. The absence of specific regulation creates uncertainty, particularly around data protection, intellectual property, and liability for digital content. Security and privacy concerns, technical barriers, and unclear rules on branding and sponsorship rights further complicate adoption.

Badžim Law Practice

Kaptol 11
10000 Zagreb
Croatia

+385 99 261 5986

l.badzim@lblaw.hr
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Trends and Developments


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Badžim Law Practice is a boutique law firm based in Zagreb, Croatia (EU), operating as a sole practitioner model supported by a wide and carefully curated network of national and international horizontal co-operations, allowing the firm to tailor a bespoke team for each case or project. The practice is highly specialised in sports law, with extensive experience in both court and out-of-court representation, including proceedings before leading international sports tribunals such as CAS, BAT and FIFA. The firm regularly advises on sports contracts, regulatory compliance, broadcasting and media rights, M&A transactions in sport, and the protection and commercial exploitation of athletes’ image rights, as well as related areas of commercial and arbitration law. Recent and ongoing work includes advising and representing prominent institutional clients such as the Croatian Olympic Committee, the Croatian Handball Federation, the Croatian National Anti-Doping Organization (NADO), and the International Handball Federation.

The Role of Croatian Insolvency Law in the Sporting Succession Debate

Any discussion of sporting succession in Croatia must take into account the structure and logic of Croatian insolvency law. Unlike football regulations, Croatian bankruptcy law is designed to provide legal certainty, finality, and equal treatment of creditors. It does not recognise sporting succession as a legal category, nor does it allow liabilities to survive insolvency without a clear statutory or doctrinal basis.

The Croatian Bankruptcy Act establishes a comprehensive framework governing the consequences of insolvency, including the treatment of claims, the extinction of obligations, and the legal fate of insolvent entities. Within this framework, the starting point is straightforward: once a legal entity has completed bankruptcy proceedings and is deleted from the court register, it ceases to exist, and its remaining obligations are extinguished, unless the law expressly provides otherwise.

This principle is central to understanding why sporting succession raises sensitive legal questions in the Croatian context. From the perspective of domestic law, insolvency is not merely a financial failure but a legally regulated endpoint. Allowing liabilities to be reallocated after that endpoint, based solely on sporting or symbolic continuity, risks undermining the integrity of the insolvency system itself.

Bankruptcy proceedings and the fate of creditors’ claims

Croatian insolvency law places strong emphasis on the collective nature of bankruptcy proceedings. Creditors are required to actively participate by filing their claims within prescribed deadlines. Claims that are not duly reported cannot be satisfied from the bankruptcy estate.

This system reflects a deliberate policy choice. Bankruptcy is intended to be a single, comprehensive forum for resolving all claims against an insolvent debtor. Once that process is concluded, legal certainty demands that the outcome be respected. The law deliberately avoids fragmented or subsequent enforcement mechanisms that would allow individual creditors to circumvent the collective process.

From this perspective, any mechanism that allows claims to be pursued outside or after bankruptcy, against a different legal entity, sits uneasily with the core logic of the system. This tension becomes particularly visible in football cases, where sporting bodies may seek to enforce unpaid claims through regulatory tools rather than through the insolvency process itself.

While sports regulation frames such enforcement as disciplinary rather than civil, the practical effect can resemble a reassignment of liability. For Croatian law, the concern is not merely formal but systemic: if bankruptcy does not conclusively resolve liabilities, its function as a stabilising legal institution is weakened.

New clubs, old identities and legal discontinuity

In practice, football clubs often reappear after insolvency in a new legal form. They may adopt the same name, colours, stadium, and historical narrative as their predecessor. To supporters and local communities, continuity may appear obvious and even desirable.

Under Croatian law, however, such continuity does not automatically translate into legal responsibility. The mere fact that a new club adopts the sporting identity of a former club does not, by itself, create an obligation to assume historic debts. Legal personality, not sporting identity, remains the decisive criterion.

Legal responsibility may arise only in specific circumstances. These include situations where there is formal legal continuity, such as a merger, universal succession, or other status transformation, or where it can be demonstrated that the new entity was created with the deliberate aim of avoiding the obligations of the old one.

Absent such circumstances, Croatian law treats the new club as a distinct legal person, even if its sporting identity suggests otherwise. This position reflects a broader commitment to formal legal certainty over contextual or symbolic assessments of continuity.

Abuse of rights as an exception, not the rule

Croatian law does provide corrective mechanisms to address abusive behaviour. One such mechanism is the prohibition of abuse of rights, which allows courts to look beyond formal legal structures where they are used to circumvent legal obligations.

In the context of football, this doctrine may be invoked where a so-called “phoenix club” is created with the clear intention of shedding debts while preserving all economic and sporting benefits. In such cases, creditors may attempt to establish liability by demonstrating co- ordinated conduct, continuity of control, and a lack of genuine economic separation.

However, Croatian courts apply this doctrine cautiously. The burden of proof is high, and the existence of sporting continuity alone is not sufficient. This reflects a broader concern that overuse of abuse-based reasoning would undermine the predictability of company and insolvency law. Abuse remains an exception, not an alternative route to re-imposing extinguished obligations.

Sporting succession versus legal succession

This cautious approach contrasts with the logic applied in international football regulation. FIFA and CAS distinguish between legal succession, which follows national law, and sporting succession, which is assessed according to regulatory criteria focused on identity, continuity, and public perception.

Recent CAS jurisprudence illustrates this divergence particularly clearly. In CAS 2024/A/10308 (AO Xanthi), the panel upheld FIFA’s finding of sporting succession based primarily on identity markers such as name, colours, logos, historical narrative, and fan perception. Crucially, the panel emphasised that sporting succession operates independently of national corporate law and serves regulatory, not civil, objectives.

At the same time, the award acknowledged an important limitation: the treatment of insolvency depends on the nature of the procedure involved. The panel drew a distinction between formal bankruptcy proceedings governed by national insolvency law and other forms of liquidation or regulatory dissolution. Where a club has undergone a genuine bankruptcy process, CAS jurisprudence has been more reluctant to impose sporting succession, particularly if creditors failed to assert their claims in that process.

Under Croatian law, this distinction is critical. Formal bankruptcy proceedings are accompanied by procedural safeguards, creditor participation, and judicial oversight. Treating such proceedings as legally equivalent to regulatory or administrative liquidations risks blurring a line that is foundational in domestic law.

The importance of creditor conduct

An additional point of convergence between Croatian insolvency law and CAS jurisprudence lies in the expected conduct of creditors. Both systems emphasise that creditors must act diligently and proactively.

If a player or coach fails to assert their claim in bankruptcy proceedings, Croatian law treats this as a forfeiture of the opportunity to recover from the insolvency estate. Similarly, CAS panels have increasingly considered whether a creditor acted promptly and responsibly when assessing claims against alleged successor clubs.

In the AO Xanthi case, particular weight was placed on the fact that the player had actively pursued his claim and could not reasonably have participated in a bankruptcy procedure, as no such procedure existed in the strict sense. This reasoning implicitly confirms that where a formal bankruptcy does exist, creditor inaction may be decisive.

This shared emphasis on creditor diligence strengthens the argument that sporting mechanisms should not be used to compensate for inaction within the insolvency process.

Lessons from international sports arbitration

Recent CAS case law demonstrates a growing awareness of the limits imposed by national legal systems. Panels have increasingly distinguished cases involving formal bankruptcy proceedings from those involving mere sporting continuity without insolvency.

This distinction is particularly relevant for Croatia. Where a club has undergone a formal bankruptcy under Croatian law, with clear procedural safeguards and creditor participation, attempts to impose liability on a successor club may face stronger resistance on public policy grounds.

In this respect, Croatian law and CAS jurisprudence are not fundamentally incompatible. Both recognise that insolvency proceedings carry legal consequences that cannot be ignored without compelling justification. The real tension arises when sporting bodies seek to apply succession concepts developed for non-bankruptcy scenarios to cases involving full judicial insolvency.

Public policy and the limits of sporting autonomy

The concept of public policy serves as the ultimate boundary between private regulation and mandatory law. In Croatia, public policy encompasses constitutional principles, statutory imperatives, and the foundational values of the legal system, including legal certainty and equality of creditors.

If sporting succession were applied in a manner that effectively nullifies the outcome of bankruptcy proceedings, it could be perceived as undermining these values. This is particularly true if liabilities are reassigned without a clear legal basis or in disregard of creditor hierarchy.

To date, Croatian courts have not been required to rule directly on this issue. Most disputes remain confined to football arbitration, where enforcement relies on sporting sanctions rather than judicial mechanisms. Nonetheless, as financial distress among football clubs increases, the likelihood of a direct confrontation between sporting decisions and national public policy grows.

Systemic risk and regulatory spillover effects

Beyond doctrinal consistency, the interaction between sporting succession and Croatian insolvency law raises broader systemic concerns. If sporting bodies routinely impose successor liability following formal bankruptcy, this may distort the incentives of both debtors and creditors. Clubs may be discouraged from using lawful insolvency mechanisms if financial liabilities are perceived as inescapable, while creditors may strategically bypass insolvency proceedings in the expectation that claims can later be enforced through sporting channels.

From a regulatory perspective, this creates a form of spillover effect whereby private sporting rules indirectly reshape the practical consequences of mandatory national law. While such effects may be tolerated within the closed system of sport, they become problematic when they undermine the predictability of insolvency outcomes relied upon by courts, investors, and public authorities. As sports arbitration bodies increasingly refine the contours of sporting succession, the pressure on domestic legal systems to accommodate these regulatory outcomes is likely to grow.

For Croatia, preserving a clear boundary between insolvency finality and sporting regulation is therefore not only a matter of doctrinal coherence, but also of institutional balance between private autonomy and mandatory law.

An open question for the Croatian market

For now, sporting succession continues to operate within Croatian football largely unchallenged. Arbitration bodies apply FIFA and CAS standards, and clubs comply in order to avoid regulatory sanctions.

Whether this model can withstand scrutiny outside the sporting system remains uncertain. Should a case reach state courts through enforcement or annulment proceedings, Croatian insolvency principles would inevitably come to the forefront.

Until such guidance emerges, stakeholders must navigate a dual system in which sporting identity can carry regulatory consequences that do not always align neatly with national insolvency law. For clubs and investors, this makes sporting succession not merely a legal curiosity, but a material commercial risk.

Badžim Law Practice

Kaptol 11
10000 Zagreb
Croatia

+385 99 261 5986

l.badzim@lblaw.hr
Author Business Card

Law and Practice

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Badžim Law Practice is a boutique law firm based in Zagreb, Croatia (EU), operating as a sole practitioner model supported by a wide and carefully curated network of national and international horizontal co-operations, allowing the firm to tailor a bespoke team for each case or project. The practice is highly specialised in sports law, with extensive experience in both court and out-of-court representation, including proceedings before leading international sports tribunals such as CAS, BAT and FIFA. The firm regularly advises on sports contracts, regulatory compliance, broadcasting and media rights, M&A transactions in sport, and the protection and commercial exploitation of athletes’ image rights, as well as related areas of commercial and arbitration law. Recent and ongoing work includes advising and representing prominent institutional clients such as the Croatian Olympic Committee, the Croatian Handball Federation, the Croatian National Anti-Doping Organization (NADO), and the International Handball Federation.

Trends and Developments

Author



Badžim Law Practice is a boutique law firm based in Zagreb, Croatia (EU), operating as a sole practitioner model supported by a wide and carefully curated network of national and international horizontal co-operations, allowing the firm to tailor a bespoke team for each case or project. The practice is highly specialised in sports law, with extensive experience in both court and out-of-court representation, including proceedings before leading international sports tribunals such as CAS, BAT and FIFA. The firm regularly advises on sports contracts, regulatory compliance, broadcasting and media rights, M&A transactions in sport, and the protection and commercial exploitation of athletes’ image rights, as well as related areas of commercial and arbitration law. Recent and ongoing work includes advising and representing prominent institutional clients such as the Croatian Olympic Committee, the Croatian Handball Federation, the Croatian National Anti-Doping Organization (NADO), and the International Handball Federation.

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