Luxembourg, 21 December 2023
The FIFA and UEFA rules on prior approval of interclub football competitions, such as the Super League, are contrary to EU law
They are contrary
to competition law and the freedom to provide services
The FIFA and UEFA rules making any new interclub football project subject to their prior approval, such as the Super League, and prohibiting clubs and players from playing in those competitions, are unlawful. There is no framework for the FIFA and UEFA rules ensuring that they are transparent, objective, non-discriminatory and proportionate.
Similarly, the rules giving FIFA and UEFA exclusive control over the commercial exploitation of the rights related to those competitions are such as to restrict competition, given their importance for the media, consumers and television viewers in the European Union.
The Fédération internationale de football association (FIFA) and the Union of European Football Associations (UEFA) are associations governed by private law having their headquarters in Switzerland. Their objective is to promote and set the framework for football at world and European levels. They adopted rules conferring on them the power to approve interclub football competitions in Europe and exploit the various media rights related to those competitions.
A group of 12 European
football clubs 1, acting through
the Spanish company
European
Superleague Company, wished to set up a new football competition project: the Super League.
FIFA and UEFA objected to the project, threatening to impose sanctions on clubs and players who might decide to participate.
European Superleague Company brought an action against FIFA and UEFA before the Commercial Court, Madrid (Spain), arguing that their rules on approval of competitions and the exploitation of media rights are contrary to EU law. Having some doubts on the matter in relation to, inter alia, the fact that FIFA and UEFA hold a monopoly on that market, the Spanish court referred questions to the Court of Justice.
The Court observes
that the organisation of interclub football
competitions and the exploitation of the media rights
are, quite evidently, economic activities. They must therefore comply with the
competition rules and respect the
freedoms of movement,
even though the economic pursuit of sport has certain specific characteristics, such as the existence of
associations having certain regulatory and control powers and the power to impose sanctions. The Court also
observes that, in parallel with those powers, FIFA and UEFA themselves organise football
competitions.
Next, the Court holds that, where an undertaking in a dominant
position has the
power to determine
the
conditions in which potentially competing undertakings may
access the market, that power must, given
the risk of conflict of interest to
which it gives rise, be subject to criteria which are
suitable for ensuring that they are transparent, objective, non discriminatory and proportionate. However, the powers of FIFA and UEFA are not subject
to any such criteria. FIFA and UEFA are, therefore, abusing a dominant
position.
Moreover, given their arbitrary
nature, their rules on approval,
control and sanctions
must be held to be unjustified restrictions on the freedom
to provide services.
That does not mean that a competition such as the
Super League project must
necessarily be approved. The Court, having been asked generally about the FIFA and UEFA rules, does not rule on that specific
project in its judgment.
In parallel, the Court observes that the
FIFA and UEFA rules relating to the exploitation of media rights are such as to be harmful European football
clubs, all companies operating in media markets and, ultimately, consumers and television viewers, by
preventing them from enjoying new and potentially innovative or interesting competitions. It is, however, for the Commercial Court, Madrid, to
ascertain whether those rules might nevertheless benefit different
stakeholders in football,
for example, by ensuring a solidarity-like redistribution of the profits
generated by those rights.
NOTE:
A reference for a preliminary ruling allows the courts and tribunals of the Member States, in disputes which have been brought before them, to refer questions to the Court of Justice about the interpretation of European Union law or the validity of a European Union act. The Court of Justice does not decide the dispute itself. It is for the national court or tribunal to dispose of the case in accordance with the Court’s decision, which is similarly binding on other national courts or tribunals before which a similar issue is raised.
1 They were initially the following clubs:
in Spain, Club Atlético de Madrid, Fútbol
Club Barcelona and Real Madrid
Club de Fútbol;
in Italy, Associazione Calcio Milan, Football Club Internazionale Milano and Juventus
Football Club; and, in
the United Kingdom,
Arsenal Football Club, Chelsea Football Club, Liverpool Football Club, Manchester City Football Club, Manchester United Football Club and Tottenham Hotspur Football Club.
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