Sports Reform 2023: Analysis of the Fundamental Innovations

July 31, 2023

The so-called Italian Sports Reform 2023 came into force on July 1, aiming to provide greater protection, assistance, and guarantees for workers in this field.

Among the most anticipated changes are the abolition of costs and obligations for collaborators paid up to 5,000 euros, as well as the introduction of parameters to distinguish between large and small sports entities.

The reform has several goals, including offering greater guarantees, protections, and assistance to workers in the sector, and it also aims to reduce and simplify obligations for the world of sports as much as possible.

What Will Change in the Future of Sports

The reform, therefore, will recognize the rightful economic-financial dignity of those working in the sports sector.

By reducing and simplifying the above obligations, there will be a simultaneous reduction in costs for associations and amateur sports clubs.

This process will be made possible thanks to the modernization, expansion, and strengthening of the functions of the National Register of Amateur Sports Activities managed by the Department for Sports.

The Heroes of Sports, the Workers Involved in the Reform

The Sports Reform 2023 is aimed at various sports workers, including athletes, coaches, instructors, technical directors, sports directors, athletic trainers, custodians, receptionists, cleaning staff, and gardeners.

In practice, the new regulation involves all job roles necessary for the conduct of sports activities.

Types of Collaboration: Innovations Introduced by the Reform

The reform provides for two types of collaboration: sports work and pure volunteer work.

The sports worker can be a subordinate, self-employed (occasional or with VAT number), or co.co.co.

Based on the contractual nature, they will have their respective social security protections.

In the amateur field, the performance is “presumed to be the subject of a contract of autonomous work in the form of co.co.co.” if the employment relationship involves no more than 18 hours per week, excluding participation in sports events.

The volunteer, on the other hand, will perform their work in the sports sector without receiving any compensation, but will still be insured for civil liability towards third parties.

For this role, there are also provisions for possible reimbursements of expenses for food, accommodation, travel, and transport, as long as the costs have been incurred outside the municipality of residence.

The reform includes, among other things, the obligation to communicate, to the employment centers, the establishment of subordinate and autonomous work relationships, both in a coordinated and continuous form.

An Overview of the New Figures in the Sports World

The sports context includes a variety of professional figures.

According to the reform, any affiliated individual who plays a necessary role in the execution of sports activities, with the exception of those of an administrative and managerial nature, is considered a sports worker who can operate in any sector, be it professional or amateur, without gender distinctions.

Following specific federal decisions, the inclusion of new roles that are essential and instrumental for sports activities is expected, for example, custodians, receptionists, cleaning staff, gardeners, and so on.

However, the differentiation between volunteers and sports workers has raised some doubts in the sector.

But here’s how these different figures position themselves in the context:

• Athletes are registered, as athletes or players, with the affiliating body, for consideration.
• Coaches are registered and qualified to train athletes.
• Instructors are qualified to train athletes.
• Technical directors are tasked with coordinating coaches and teams and must be affiliated with the organization.
• Sports directors are in charge of sports organization.

INPS Contribution at 25%

With the implementation of the sports reform, those who exceed 5,000 euros per year will have to contribute to INPS with a rate of 25% for:

• amateurs with coordinated and continuous collaboration contracts;
• amateurs who carry out autonomous activities.

In both cases, the application of additional rates for members of the Separate INPS Management is planned, aimed at covering expenses for illness, maternity, unemployment, and so on.

The decree establishes that social security contributions will only be applied to the portion of the compensation that exceeds 5,000 euros, and a reduction of 50% of the social security taxable base until December 31, 2027.

This means a reduction in the taxable base and, consequently, pension benefits, which will only be recognized on the amounts actually paid.

But perhaps the most important aspect of the reform is the full application of health and safety at work laws (D.Lgs. 81/2008 and s.m.i.) to the world of sports, including volunteers.

Sports Tax Exemption

As for the tax system, in the amateur area, the tax imposition will be applied to the part exceeding 15,000 euros per year, i.e., 5,000 euros more than before.

This exemption will also apply to professionalism, specifically for under 23 team sport athletes and for sports clubs that record a turnover, in the previous sports season, of less than 5 million euros.

Amounts disbursed as prizes linked to the achievement of results will not constitute income, but a withholding tax of 20% is planned.

New Horizons for Italian Sports

The Sports Reform 2023 represents a significant change in the Italian sports landscape, offering greater guarantees and protections for sports workers and simplifying administrative obligations for associations and amateur sports clubs.

Despite there still being some doubts and uncertainties about the practical application of some provisions, the general intention of the reform is clear: to modernize the Italian sports sector and make it more fair and sustainable.

The challenge for the government and the sports sector will be to effectively implement these reforms, ensuring that they are truly capable of bringing about the desired changes, in addition to monitoring the impact of the same over time and, if necessary, making changes or adjustments.

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