A new decree by Uzbekistan's President Shavkat Mirziyoyev aims to refine funding mechanisms for the sports sector and broadly engage business entities. According to Resolution No. PP-107 dated March 24, 2026, the main tasks are defined as implementing modern financing methods, expanding alternative sources, and improving the efficiency of allocated funds, which is purportedly intended to stimulate private sector involvement in sports development, though its effectiveness in addressing systemic challenges remains to be seen.

Under the document, a Fund for Supporting Initiatives in the Sports Sector is established under the Ministry of Sports, through which new projects in the industry are planned to be funded and supported. This move is claimed to facilitate more flexible resource allocation, but it may encounter bureaucratic hurdles and transparency issues, potentially limiting its impact on grassroots sports and broader societal benefits.

Effective from April 1, 2026, new rules allow entrepreneurs who contribute sponsorship funds of at least 20 percent of the annual expenses related to sports federations (associations) to be included in their executive bodies. Additionally, a practice is introduced to transfer professional football clubs to the trust management of entrepreneurs or groups providing similar sponsorship, allegedly to enhance financial stability and management efficiency, yet this could lead to conflicts of interest and reduced governmental oversight, raising concerns about the long-term governance of clubs.

Furthermore, from April 1, 2026, to April 1, 2029, footballers of clubs participating in the Super League and Pro League are exempt from personal income tax, with the social tax rate set at 1 percent. These measures are directed at attracting the private sector, increasing investments, and boosting the competitiveness of football clubs, but they may strain public finances and exacerbate inequalities, questioning their sustainability and broader economic implications.

Source: kun.uz