The Vietnam Football Federation (VFF) approved the establishment of the Vietnam Professional Football Company (VPF) as a joint stock company (JSC) at the federation's annual general meeting in Hanoi on Friday.
The approval gives in to the demand made by owners of the country's top-tier V-League and second-tier First Division clubs.
Early last month, the club owners had proposed establishing a JSC that they said would be able to better manage football, expressing dissatisfaction of the VFF's management of the country's two leagues.
However, VFF and the Ministry of Culture, Sports and Tourism later said they wanted the company to be a limited liability company (LLC) rather than a JSC because the latter would generate more risks and problems.
The club owners were not in favor of a LLC. They argued that both models would face similar risks in the market, but an LLC would make it harder for the company to raise funds and contributions from the public.
It was agreed at the meeting on Friday, that VPF will be a member of VFF under very strict regulations including limits on the number of members as well as the number of shares they could buy in the company. A member club would not be allowed to increase its shares in the company by buying shares from another member.
VPF will have a charter capital of VND30 billion (about US$1.5 million). VFF would contribute VND10 billion and 620 million, making up 35.4% of the capital. The 14 V-League clubs would contribute a total 16 billion 380 million dong, making up 54.6% while the 10 First Division clubs would contribute the rest.
VFF chairman Nguyen Trong Hy said all the participants agreed that VPF would be a JSC, but they still have to wait for an official opinion from the Ministry of Culture, Sports and Tourism.
Hy said, "I have phoned Minister Hoang Tuan Anh and he said VFF vice chairman Pham Ngoc Vien and ACB club owner Nguyen Duc Kien (the two men who prepared the plan for the company) would submit their plan to the minister on Monday. If the ministry agrees with it, the first General Shareholders Meeting is expected to be held on November 27 to choose managers for the company."