Sports Ministry Reviews Zamalek Company File, Has Not Approved Changes to Partnership Shares

Mohamed El Shazly, spokesperson for the Ministry of Youth and Sports, said the ministry is reviewing the file of Zamalek Football Company and has not yet approved any measures to change the partnership shares. He said the minister requested the file and held a meeting with legal specialists to examine the measures and their compliance with the law.

According to El Shazly, the legal text does not settle whether the relevant general assembly must be ordinary or extraordinary, leading to differing interpretations of the appropriate procedure. He added that determining the correct steps requires legal review, and that the ministry’s review could conclude that the procedures are sound or identify issues requiring correction.

He noted that the debate encompasses the valuation of the existing company and its capital, the club’s share and the mechanism for changing shareholders’ stakes. He stressed that the football company manages and markets football activities, and that bringing in investors does not mean it is no longer subject to oversight or that they are granted the right to dispose of the club’s assets. He also said Zamalek’s board of directors remains responsible for managing the club’s rights in accordance with its agreement with the investor, while the ministry monitors financial, administrative and regulatory aspects.

El Shazly cited the Petrojet experience, explaining that the partnership there was divided between the club, with 51%, and the investor, with 49%, without granting the partner the right to acquire the club’s assets or independently manage the football department; the relationship is governed by a partnership agreement and a memorandum of understanding.

Zamalek’s general assembly is scheduled to convene on 8 December, when the details of the deal are expected to be presented to members, including the financial valuation of the football company, the size of the investor’s contribution and the partnership shares. El Shazly added that the valuation must be issued by accredited bodies, with government entities and accredited banks playing a role.