HOW TO SET UP A FOOTBALL COMPANY IN LAGOS STATE

1. Introduction

Football is the most popular sport in Nigeria, boasting a massive fan base that spans all demographics. As one of the most profitable sports in the world, football allows professional players to earn substantial incomes. The Nigerian football market is expanding, with increasing interest in both local leagues and international football leagues.

Football generally in Lagos State, Nigeria, offers numerous opportunities for sponsorship and advertising, attracting both local and international brands. Football companies are not excluded from these lucrative revenue streams.

Establishing a football club in Lagos not only contributes to the development of local talent but also creates opportunities for young players to realize their dreams of playing at professional levels. Private football clubs play a crucial role in this process, filling gaps left by government-funded programs and providing structured environments where players can train, develop, and showcase their skills.

Setting up a football company and running a football club or academy in Lagos State, Nigeria, involves obtaining certain approvals and registrations. This article provides a guide to setting up a football company in Lagos, covering frequently asked questions on the requirements and associated costs for setting up a football club in Lagos Nigeria, as well as strategies for talent development and taking players abroad for tryouts .

2.   How can I register Football Club in Lagos State?

The recognised body for registering a football club in Lagos State is the Lagos State Football Association (LSFA). According to LSFA, a football club can only be registered as a corporate entity. Therefore, to set up a football club in Lagos State the club must first be registered with the Corporate Affairs Commission (CAC) as a Company Limited by Shares (Ltd).

3. Is there any minimum share capital requirement for setting up a Football Company in Nigeria?

Generally, there are no share capital requirements. However, it is advisable to register the Football Company with a minimum of N1,000,000 (One Million Naira) share capital.

4. What are the requirements for incorporating a Football Company with CAC?

The incorporation of a football company generally follows the same manner of incorporating any other regular Company. The major difference lies in the objects clause of the company, which must specify that the football company is engaged solely in football-related activities.  

Below are the requirements for incorporating a football company with CAC:

• Two proposed names for the company: these names will be submitted to the CAC for name search, screening and approval. Upon approval, the promoters may proceed to register the company with the approved name.

• Proposed registered address, email address and phone number of the company.

• Details of the Shareholders, Director(s) and Company Secretary to include their names, Contract/Home address, Email address, Phone number, Date of birth, Occupation, National Identification Number (NIN), and electronic signature respectively. Please note that for foreigners, an international passport will be sufficient as a means of identification.

• Object of company: The company must be registered as a company engaged in the business of football and related business activities.

Please note that the object clause of a football company must specify that it engages strictly in football-related activities and not in general sports. The term “sports” encompasses all other sports and not just football.

It is also advisable to avoid registering the name of a football company with the word “sports” as such a name is not acceptable for registration with the LSFA. It is expected that the name of the company is football-related.

5. What are the post-incorporation registration and approvals required for a company engaged in hotel business in Lagos State?

Upon registration with CAC, the following are the post-incorporation registrations and approvals required for setting up a football company in Lagos state:

(a) Registration as an Affiliate with the Lagos State Football Association (LSFA)

The registration process with the LSFA is called Affiliation. Affiliation of a football company with the LSFA is processed annually for each football season, which runs from August to July. The requirements for Affiliation with the LSFA include:

• Application letter on the company’s letterhead paper;
• The company’s incorporation documents;
• Evidence of payment of Affiliation fee (the fee varies according to the football league the football company is playing);
• Proof of registration with any of the football divisions in Lagos (i.e. Ikeja, Badagry, Ikorodu, Lagos, and Epe)
• Mandate letter which contains the information of 2 contact person of the football Company with their full names, positions held in the company, phone numbers and passport photographs of the 2 contact persons.

Please note that the Affiliation fee assessed by the LSFA depends on the Football League in which the football club/company is participating

(b) Registration as an Affiliate with any of the football divisions under the LSFA

Upon registering with the LSFA, the football company is required to register with one of the five divisions in Lagos: Ikeja, Badagry, Ikorodu, Lagos, or Epe. Affiliation with a division is necessary as part of the LSFA’s requirements. The club owner must pay the division fees for the football club every football season, alongside the LSFA affiliation fees. Both league and non-league clubs are mandated to belong to a division and pay the mandatory division fee of N20,000.00 (Twenty Thousand Naira only) every football season.

(c) Registration with Special Control Unit Against Money Laundering (“SCUML”)

The Special Control Unit Against Money Laundering (SCUML) is a unit of the Economic and Financial Crimes Commission (EFCC) responsible for supervising, monitoring, and regulating Designated Non-Financial Institutions (DNFI) for compliance with Nigeria’s Anti Money Laundering laws.

It is required for a football company to register with SCUML before commencing operations and to report suspicious and other high-volume transactions to SCUML in accordance with the law.

The following documents are required for registration:

• Incorporation documents
• Tax Identification Number
• BVN, Bank Name and Account Number

6. What are the operational Leagues recognised by the LSFA?

All football leagues in Nigeria are recognized by the LSFA, and the assessment for affiliation fees is calculated based on the league in which the football company is participating. The tiers of football clubs in Nigeria and their respective fees are as follows:

1. Nigeria Professional Football League (NPFL) ——–           N600,000
2. Nigeria National League (NNL)             ——–                         N400,000
3. Nigeria Women Premier League (NWPL)       ——-               N200,000
4. Nigeria Nationwide League One (NLO1)        ——–             N150,000
5. Nigeria Nationwide League Two (NLO2)        ——–             N100,000
6. Non- League                                            ——–                         N50,000

7. Can a non-league football Company transition into a league football Company?

A well-organised non-league club in Lagos can grow into a league club by:

1. Registering with the LSFA
2. Meeting League entry requirements, such as securing a proper pitch, and up-to-date training equipment.
3. Ensuring adequate funding for quality footballers and maintaining a competitive squad.
4. Participating in and winning regional competitions like the Lagos FA Cup to gain promotion to the NLO or higher.

8. What is the applicable cost for setting up a football company in Lagos?

The estimated costs for setting up a football club in Lagos are as follows:

Please note that the above does not include professional fees for processing and getting the football club licensed.

9. What are the timelines for processing incorporation and post – incorporation registrations for football company in Lagos?

 The average timeline for completion of are as follows:

10. What is the procedure for transferring or taking football players abroad?

League or non-league football clubs or academies have the opportunity to export talented football players outside Nigeria. For a football club in Lagos to export its football players abroad, it must fulfil and provide the following requirements:

1. The club must have been Affiliate with LSFA for two consecutive seasons
2. A valid ID card of the player’s parents/guardians, along with an affidavit sworn by the parents/guardians authorizing the club to take the player abroad (this is only required for players under 18 years old and must include parental or guardian consent).
3. A letter of introduction for the player(s) from the football club abroad.
4. A letter of invitation for a try-out from the club abroad. 
5. The data page of the football player’s international passport.

After confirming the authenticity of the invitation and reviewing all attached documents, the LSFA will issue a letter to the NFF along with the documents. Once approved, the NFF will issue a letter to the club to present at the embassy.

The approved issued letter from the NFF, would be presented at the embassy of the country Club; the embassy will also reach out to the NFF to confirm the authenticity.

Setting up a football club in Lagos is a rewarding venture that goes beyond the love of the game. It is an opportunity to contribute to the development of grassroots football, empower young talents, and even place Nigeria on the global football map. Whether as a club owner aiming to establish a league or non-league club, adherence to legal frameworks and having a clear vision for the club’s goals are essential.

By following the guidelines outlined in this article, aspiring football entrepreneurs can confidently navigate the process of establishing a club, fostering talent, and creating opportunities for players to excel. With determination, innovation, and community support, a football club can become a pillar of the Lagos football community and beyond.