Zamalek SC announces 7 red lines in football company investment file

Zamalek SC's board has clarified the future of the investment file in the football company, stating that the project does not involve selling the club or the football company. Instead, it aims to increase the company's capital and enhance its financial resources, ensuring the development of the sports system, continued competition, and long-term stability.

The council stated in an official statement that it has received a number of investment offers and has begun to study some of them, while other offers are still under evaluation. It emphasized that no contracts or agreements have been signed yet, and that any future steps will remain conditional on preserving the rights and principles of the club.

Zamalek SC indicated that the club's interests will remain the primary criterion in all decisions related to this matter, emphasizing the need to separate the club's sports and social activities from the plans to develop the football company, and not to rush into making any decision before completing the studies and obtaining the necessary guarantees.

Zamalek SC provides guarantees before finalizing the investment.

The board of directors revealed a set of measures it aims to implement to ensure the project's safety, primarily including the preparation of independent financial statements through an accredited consulting office, inventorying assets and liabilities, conducting a feasibility study for long-term investment, and clearly defining the rights and assets that will be transferred to the football company.

The statement confirmed that all contracts will be subject to Egyptian law, and that the Egyptian judiciary will be the competent authority to resolve any disputes, rejecting the inclusion of a clause allowing recourse to international arbitration.

The club emphasized that the goal of the investment partnership is to attract an investor capable of contributing to building a strong team and developing the football system, rather than turning the activity into mere trading of players.

In this context, Zamalek SC has expressed its openness to distributing the investment share among more than one investor, on the condition that no single investor exceeds the club's share. The club also welcomed the possibility of offering company shares for public subscription to fans, in accordance with the applicable laws and regulations.

Seven red lines have been established to protect Zamalek SC's identity and rights.

The board of directors has established a set of guarantees that it describes as red lines that cannot be compromised, to ensure that the club retains its exclusive rights in crucial decisions, which are as follows:

There will be no change or sale of the club's name, logo, colors, or trademark.

The club will not merge with any other club or relocate its headquarters.

The sale or mortgage of the club's assets, lands, and facilities is prohibited.

There will be no reduction in Zamalek SC's share or infringement of its rights as stipulated in the bylaws and capital.

No new shareholders can enter or shares be transferred without the club's approval.

The sale, dissolution, liquidation, or merger of the football company cannot occur without the approval of Zamalek SC.

The club retains the right to monitor the company's records, with the possibility of terminating the contract and recovering its rights if the investor breaches their obligations.

The statement confirmed that these guarantees cannot be amended or circumvented through voting, ensuring that decisions related to the identity of the club, its assets, and its rights remain under its control.

The board concluded its statement by confirming that the completion of the capital increase procedures will not take place before obtaining the approval of the General Assembly, the Ministry of Youth and Sports, and the relevant authorities, while committing to keep the fans and club members informed about the developments of the file and responding to their inquiries transparently.