Expert advisory for a sector where talent commands a price and taxation, complexity

Spain’s sports, leisure and entertainment sector is one of the largest and most dynamic segments of the national economy. With more than 111,525 active companies, close to 424,000 Social Security-registered workers and aggregate revenues exceeding €54.3 billion, the sector’s volume surpasses many industrial segments traditionally considered strategic. The average gross margin of 24.1% reflects both the high capitalisation of major audiovisual rights holders and sports venue operators, and the intense pressure on profitability faced by event promoters and semi-professional clubs. The tax and employment framework governing this sector differs substantially from the rest of the economy, making genuinely specialist advisory essential.

Football, basketball and other professional sports clubs are governed by the Sports Act (Law 39/2022), which strengthened financial transparency and good governance requirements for Sporting Limited Companies (SADs). Event promoters, music festivals and cultural institutions operate in an environment where the management of intellectual property rights, withholding taxes on international artists and the structuring of tours and sponsorship contracts largely determine business profitability. The management of audiovisual rights — whose importance in Spain’s sports revenue model has grown continuously — adds a further layer of fiscal and contractual complexity that few generalist advisory firms can handle with the required depth.

At BMC we advise sports clubs, SADs, representation agencies, event promoters and performing artists on all tax, employment and legal aspects of their operations. Our expertise in image rights taxation — including the application of Article 92 of the LIRPF, the structuring of image exploitation companies and international activity planning — enables us to deliver solutions that optimise the tax burden within the strict regulatory framework. We also manage withholding taxes on non-resident artists and athletes, apply Double Taxation Conventions and ensure full compliance with Spanish Tax Agency reporting obligations.

The special employment regime for professional athletes (RD 1006/1985) and public entertainment regulations generate a contracting complexity that demands specialist legal advice. We handle employment contracts with athletes and artists, release clauses and transfers, intellectual property over performances and broadcasts, and sponsorship and advertising agreements. Our team supports clubs and promoters in financial planning, audiovisual rights management and the structuring of sports asset transactions, offering the same technical depth as a large firm but with the agility a sector demands when negotiations rarely wait.