Caselaw

Derivative Claim (Tel Aviv) 43264-02-17 Appeal Financial Case – Supreme Court Moran Meiri v. Israel Football Association - part 33

October 27, 2020
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Another central public aspect of the Association's activity stems from the necessity of the management of the football industry – one of the most popular sports in Israel – for the public (Harel – The Sports Law, at p. 440). The Association's "purpose" in the management and development of the football industry is therefore a public purpose, and its realization fulfills a public function. Thus, the District Court (Justice A. Baron) ruled in the Giladi case (at paragraphs 8 and 10) that:

"The association [...] Responsible for the day-to-day management of the soccer industry in the State of Israel. Although it is a private entity in terms of its incorporation, the 'business' it manages is of a public nature. Football is one of the most popular sports and is a source of attraction for the masses of the [...]  The Association, whose goals are all aimed at activity that is public in nature – the development, centralization and management of the football industry in Israel, and by virtue of which it fulfills clear public functions, is a 'dual-essential' body as aforesaid, by its very essence, functions, purpose and the public's interest in it."

See also Miscellaneous Applications Civil (Tel Aviv District) 4031/03 Maccabi Ramat Gan Power Football Club v. Balfour Engineering and Damage Rehabilitation Company in a Tax Appeal [published in Nevo] (May 20, 2003) (hereinafter: "the Maccabi Ramat Gan case"); Opening Motion (Tel Aviv District) 436/04 JCS Sport in Tax Appeal v. Israel Football  Association [published in Nevo] (September 8, 2004).

  1. Another public characteristic lies in the Association's exclusive control over the management of the football industry. Monopoly, by definition, undermines the basic assumptions of consent and free market, which underlie private law (Harel - Sports Law, at p. 442, and see his reference there to bankruptcy (Tel Aviv District) 2624/99 Registrar of Non-Profit Organizations v. International Police Organization (Israel Branch) (NPO), [Published in Nevo] In paragraph 39 of the judgment of Justice V. Alsheikh (July 15, 2001) (hereinafter: "The Matter of the Police Organization")).

Moreover, in this case, the Association's exclusive position in the management of the football industry in Israel stems from an explicit provision in the law. This aspect of the Association's activity establishes its connection to the government not only on the functional level, but also on the institutional level (see in this context Harel – The Sports Law, at p. 444). By virtue of this status, the Association (in cooperation with the Leagues Administration) is a hostel for all the activity of the football industry in Israel, and therefore any sports association interested in taking part in a professional league is obligated Join the ranks of the Association. The Association's activity is therefore likely to affect the realization of the potential of all teams (and athletes, even if they are not members of the Association) who wish to participate in that activity.

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