AFI's Sponsorship Approval Mandate: Constitutional and Governance Implications for Athletes' Rights

Indian Express - Explained · 16 Apr 2026 · 2 min read
Prelims · Polity Mains · GS2 Polity and constitution High relevance

The Athletics Federation of India (AFI) issued a circular requiring athletes to obtain prior approval for sponsorship deals, raising legal and constitutional concerns over restraint of trade and athletes' commercial autonomy.

Key points

AFI Circular mandates athletes and coaches to obtain prior approval from the federation before entering into any sponsorship agreements, with sponsors required to notify AFI of such approvals.

Legal Basis: The circular lacks statutory backing as AFI is not a statutory regulator but a private body affiliated with World Athletics, raising questions about its authority to regulate private contracts.

Section 27 of Indian Contract Act, 1872 voids agreements that restrain lawful trade, potentially making the AFI circular legally untenable as it interferes with athletes' and sponsors' negotiation freedom.

Article 19(1)(g) of the Constitution guarantees the right to practice any profession, trade, or business, with restrictions under Article 19(2) requiring reasonableness and proportionality, which the AFI circular may fail to meet.

Historical Context: Previously, athletes had commercial autonomy, with restrictions limited to event-specific conflicts (e.g., Olympic blackout periods), not overarching federation control over personal sponsorships.

[GS2-Governance] The circular highlights governance issues in sports federations, where unilateral decisions without stakeholder consultation can lead to arbitrary restrictions on athletes' livelihoods.

Judicial Precedent: Courts have treated sports federations as bodies exercising public functions, subjecting their decisions to constitutional scrutiny against arbitrariness and overreach.

[GS3-Economy] The policy could deter sponsors from long-term investments in athletes due to uncertainty over AFI approvals, impacting the sports economy and athlete earnings.

Way Forward: AFI should establish a transparent consultation process with athletes and sponsors, limit oversight to competition-specific conflicts, and adopt a legal framework that balances athlete protection with commercial freedom.

Key terms

Article 19(1)(g)

A fundamental right under the Indian Constitution guaranteeing citizens the freedom to practice any profession, trade, or business. Its relevance here lies in assessing whether AFI's sponsorship restrictions constitute an unreasonable limitation on athletes' commercial rights.

Section 27 of Indian Contract Act, 1872

Prohibits agreements that restrain lawful trade, profession, or business. This provision is critical in evaluating the legality of AFI's circular, as it may be deemed an unlawful restraint on athletes' commercial activities.

Restraint of Trade

A legal doctrine that invalidates contracts or policies unduly restricting a person's ability to engage in their profession or business. AFI's mandate could be challenged under this principle for infringing on athletes' economic freedoms.

Athletics Federation of India (AFI)

The national governing body for athletics in India, recognized by World Athletics. It organizes competitions and selects athletes for international events but lacks statutory regulatory authority, making its governance decisions subject to legal and constitutional scrutiny.