Another judicial brake on Milei’s SADs | Preliminary measure at the request of the AFA

by times news cr

2024-09-02 15:28:55

The Federal Court of Mercedes ruled in favor of the Argentine Football Association (AFA) a precautionary measure that ratifies its previous rulings and puts a brake on the crusade of President Javier Milei; the Minister of Deregulation, Federico Sturzenegger; and the ally Mauricio Macri to impose the Sports Corporations (SAD) in the country. The decision suspends the effects of the Regulation of SADs that the Government published on August 14, ignoring the ruling of that court that had annulled articles 335 and 345 of DNU 70/2023.

In the resolution, the Federal Court of Mercedes maintains that it grants the precautionary measure requested by the AFA and ratifies the order of “suspension of the effects, in the terms and scope of art. 13 of law 26,854, of articles 335° and 345° of Decree of Necessity and Urgency No. 70/2023” and “consequently, of Arts. 2° and 5° of Regulatory Decree 730/2024”.

The court had ruled for the first time on January 30, when it ordered the suspension of the two articles of DNU 70/2023 which opened the way for the SAD; this measure was confirmed by the Federal Court of San Martín and ratified by the Federal Court of Mercedes on August 13. In open defiance of the Judiciary, the Government published the regulatory decree a day later to enable clubs to stop being civil associations and become public limited companies or to form associations with public limited companies.

The crusade of Milei, Macri and Sturzenegger

Besides, Decree 70/2024 indicated that the AFA could not sanction –as anticipated– clubs that chose to transform their legal form. “Now the members can freely choose how to organize their club, without impositions,” challenged the presidential spokesman, Manuel Adorni, when confirming the news on August 14. Quickly, Macri came out to support the decision and push the AFA“Now it is the turn of the AFA, which has one year to adapt its regulations. There is no point in resisting, what are they afraid of?”

Macri’s pressure was confirmed by the president Javier Milei, who assured that if the AFA did not adapt within a year, the State would move against the association. The arguments that Milei and Macri put forward in favour of the opening marked by DNU 70/2023 are given by the Minister of Deregulation Sturzenegger, who insists that “society will have more freedom to choose the corporate form at the complete discretion and will of the members and clubs that want to do so”.

The AFA’s position

Clearing the statements of innocent looks, AFA President Claudio “Chiqui” Tapia once again spoke out against the Government’s regulatory decree in mid-August. “It is not what we want and what we represent,” he said, stressing that Argentine football already has a solid model based on non-profit civil associations and that the second category is the best representation of this model.

“No matter how much they try to change us with decrees, seeking to weaken Argentine football, we will continue to defend what we have been defending for years,” The head of the AFA indicated that he was in charge of highlighting the clubs not only as sporting venues, but also as social support venues; and he pointed out that the SAD model seeks to “be the owners of the clubs and the players.”

At that time, the AFA issued a statement recalling the judicial process and the order of the Judiciary to suspend the articles of DNU 70/2023; but given the Executive Branch’s ignorance of the separation of powers; The association again requested ratification through a precautionary measure. The Mercedes Federal Court then confirmed for the third time the order to suspend the advance of the SADs.

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