Sports Facility Operating Contracts

1. Introduction

Sports facilities are now operated not only by clubs but also by municipalities and private companies. Swimming pools, fitness centers, stadiums, and multipurpose sports halls are operated through public-private partnerships or leasing models.

The most important legal issues in these contracts are the operator's duty of care , the remedy of defects in the facilities , and liability for damages . Articles 112–124 (provisions on non-performance and liability), Articles 316 and 357 (lease and work relationship) of the Turkish Code of Obligations, and Supreme Court precedents determine the principles of this area.

2. Legal Nature of the Sports Facility Operating Agreement

2.1. Mixed Structure

Sports facility operating contracts are generally hybrid contracts :

Rental element: The right to use the facility in exchange for a fixed fee.
Element of the work: Maintenance, repair, renovation and service provision,
Service element: Providing services to users or athletes.

Supreme Court 15th Civil Chamber, Case No. 2018/1143, Decision No. 2019/1534:

“Sports complex operating contracts are complex in nature; lease, service, and works provisions should be applied together.”

3. The Operator's Duty of Care (Turkish Code of Obligations, Articles 112–113)

3.1. Content of the Duty of Care

Turkish Code of Obligations, Article 112: "The debtor is liable for failing to properly perform his/her obligation."

Those operating sports facilities must exercise professional diligence regarding facility safety and user health . This diligence encompasses not only facility maintenance but also preventive measures during use.

Regular inspection of the floor and equipment,
Maintenance of heating and ventilation systems,
Having first aid and emergency equipment readily available,
Training of staff.

Supreme Court 11th Civil Chamber, Case No. 2020/1453, Decision No. 2021/2345:

"The operator is responsible for any negligence that fails to ensure the safe use of the facility."

4. The Concept of Defect and Liability for Defects

4.1. Turkish Code of Obligations Article 219 and the Principle of Contract for Work

"The seller or contractor is responsible for ensuring that the goods or work are free from defects."

In sports facility operating contracts, a defect refers to a situation where the facility or equipment is not suitable for the purpose of the contract.
Examples:

The filtration system in the swimming pool is not working
Technical malfunctions in sports equipment,
Grandstand or ground irregularities.

Supreme Court 15th Civil Chamber, Case No. 2021/1564, Decision No. 2022/1873:

"Damage is not only considered a visible defect, but also deficiencies that prevent use."

4.2. Hidden Defects and Liability Period

The statute of limitations is longer for hidden defects (Turkish Code of Obligations, Article 478).
In operating contracts awarded through tenders for public facilities, periodic administrative audits come into play.

5. Liability and Compensation for Damages Towards Users

5.1. Scope of Damages

If injuries, property damage, or death occur at a sports facility, the operator shall be liable for both contractual obligations (Turkish Code of Obligations, Article 112) and torts (Turkish Code of Obligations, Article 49)

Supreme Court 11th Civil Chamber, Case No. 2019/2143, Decision No. 2020/2873:

“Compensation was awarded in favor of the user who was injured due to slipping at the sports facility; no preventative maintenance was carried out on the floor.”

5.2. Interpretation of Strict Liability

Sports facilities may fall under the category of "hazardous operation". In this case, the operator is strictly liable according to Article 71 of the Turkish Code of Obligations

"The operator is strictly liable for any damage arising from the operation of something that creates a hazard."

6. Contractual Arrangements and Limitation of Liability

6.1. Records that Exclude Liability

General clauses such as "Use of the facility is the user's responsibility" are invalid under Article 115 of the Turkish Code of Obligations

Supreme Court 13th Civil Chamber, Case No. 2018/2543, Decision No. 2019/2634:

"Waivers of liability previously accepted by the consumer do not absolve the service provider of fault."

6.2. Insurance Obligation

The operator is required to obtain liability insurance for the facility.
This obligation is mandatory for facilities operated by the Turkish Football Federation (TFF), municipalities, and the Ministry of Youth and Sports.

7. Liability for Indemnification in Facility Operation Agreements

7.1. Monetary Compensation

It is determined according to the nature of the damage:

In case of injury, medical treatment and loss of earnings,
Cost of repair or replacement in case of property damage,
Loss of revenue due to service disruption.

7.2. Non-pecuniary damages

In cases of bodily harm to athletes and users, a right to moral damages arises in accordance with Article 56 of the Turkish Code of Obligations

Supreme Court of Appeals, 4th Civil Chamber, Case No. 2019/3253, Decision No. 2020/2146:

"A customer who was injured when a piece of equipment broke in the gym has been awarded compensation for emotional distress."

8. Ancillary Obligations in Business Services

Performing maintenance and repairs,
Keeping a record and audit log,
Staff training and certification,
To maintain hygiene and cleanliness standards,
To protect athlete and user data in accordance with the Personal Data Protection Law (KVKK).

Violation of these obligations constitutes a defect in service and 112–124 of the Turkish Code of Obligations .

9. Public Facilities and Tender Aspects

The operation of public facilities generally falls under the scope of the State Procurement Law No. 2886 and the Public Procurement Law No. 4734. Since one of the parties to these contracts is the administration, administrative courts have jurisdiction.

However, the Court of Cassation has ruled that the judicial system has jurisdiction "if the facilities belonging to the municipality are operated according to private law principles.".

Supreme Court of Appeals, General Assembly of Civil Law, Case No. 2017/1529 E., Decision No. 2019/1343 K.:

"The operation of a municipal facility by a private company constitutes a private law relationship; the judicial system has jurisdiction."

10. CAS and International Practices

CAS 2018/A/6013 – Athlete v. Club:

"The sports facility operator is liable for compensation to athletes injured due to deficiencies in the facility's infrastructure."

CAS 2020/A/7392 – Event Operator v. Organizer:

“The organizer is responsible for taking facility security and risk prevention measures; insurance coverage does not relieve them of this responsibility.”

These decisions demonstrate that the operator's "duty and safety responsibility" is considered absolute on an international scale.

11. Sample Contractual Clause

Article X – Maintenance and Safety of the Facility
The operator is responsible for ensuring that the facility and equipment are continuously operational and safe. In the
event of damages arising from the use of the facility, the operator shall be liable for full compensation if they are at fault.
The parties agree that the facility's liability insurance shall be renewed annually.

12. Conclusion and Evaluation

Sports facility operating contracts are complex legal relationships that are not only commercial but also have public health and safety dimensions.
The three most important principles in these contracts are as follows:

Professional duty of care: The operator is obligated to protect facility safety and user health.
Liability for defects: The operator is at fault if the facility does not conform to the purpose of the contract.
Compensation and insurance: When damage occurs, the operator is liable to pay both material and non-material compensation.

These principles ensure that the establishment of sports law transforms it from an "economic activity" into a "safe public space.".

"CAS decision", compensation

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