Gov’t introduces tax breaks and advertising discounts for sports sponsors

Starting from April 1, 2026, any entrepreneur who covers at least 20% of the annual expenses of a sports federation as a sponsor will be eligible for election as the chairman of that federation. A similar mechanism applies to the football industry, where a sponsor providing at least 20% of a club's annual budget may take over the club under a trust management agreement. For specific clubs identified by the Uzbekistan Football Association, trust managers will be selected through a competitive tender process, with priority given to those who have historically provided sponsorship to the club.

The decree also facilitates the full privatization of football clubs. Entrepreneurs who manage a club under a trust agreement and wish to purchase it can access specialized loans at a 14% interest rate. These loans feature a five-year term and a one-year grace period, provided the investor presents a viable business plan and liquid collateral. Notably, assets already on the club’s balance sheet cannot be used as collateral for these loans.

Financial incentives extend to the national tax framework as well. Business entities sponsoring Olympic and Paralympic sports federations, as well as football clubs, will receive benefits regarding corporate income tax. Specifically, sponsorship amounts can be deducted from taxable profits, provided the deduction does not exceed 10% of the total taxable income. Additionally, these sponsors and managers will be entitled to a 50% discount when placing advertisements during sports broadcasts on the channels of the National Television and Radio Company of Uzbekistan.

To ensure a smooth transition toward private ownership, the State Assets Management Agency has been tasked with conducting market valuations of football clubs by the end of 2026. This process will involve professional audit and consulting organizations to determine the market price of clubs and prepare the state’s shares for privatization.