Forming a partnership in a sports club
Question
My friend has started a grassroots football club with 3 of his other friends. They all put different amount of shares in to start the club. Some 50 pound some 100. At the end of the year they will be splitting the profits with fixed shares for each person depending on the time and effort they put in the club. He's asking, is this profit allowed or is it classed as riba?
Answer
This is not a valid form of a partnership since the basis is sport. And the fuqaha have ruled that sports and futilities cannot be used as a means of earning money.
And Allah Ta'ala (الله تعالى) knows best.
- Answered by
- Mufti Ebrahim Salejee (Isipingo Beach)
Fatawa SA is an independent, read-only index of fatawa already published by Mufti Online — Madrasah Ta'leemuddeen. It is not a fatwa service. For your own situation, ask the issuing Darul Ifta directly.