Sport is not a production sector, meaning it does not produce tangible goods and cannot fully self-finance. The main model globally is that sport is financed either by the state or through sponsors. In most countries, the primary burden falls on sponsors, and this issue is regulated by legislation.
Modern.az reports that this was stated by Chingiz Huseynzade, Vice-President of the National Olympic Committee, during a meeting of the Youth and Sports Committee with the Ministry of Youth and Sports, the National Olympic Committee, and sports federations.
He noted that today, allocating funds to sports is not attractive for sponsors.
“Because tax mechanisms do not incentivize them. In many countries, companies and individuals sponsoring sports are protected by legislation, and certain tax concessions are applied to them. Unless these concessions are provided, the sponsorship mechanism remains weak”.
C. Huseynzade stated that currently, federations primarily try to operate with sponsor support.
"The state or the ministry can provide maximum support for travel expenses to international competitions, certain equipment, or during special events (for example, athletes' attire and other organizational matters within the framework of the Olympic Games). However, daily preparation processes, training camps, and long-term development programs fall to the federations themselves. This is not sufficient for systematic and sustainable development. This issue should be brought to public discussion. Because world experience exists, and different models are applied in various countries. Azerbaijan can also benefit from this experience by improving its legislative framework” – he concluded.
