Asser International Sports Law Blog

Our International Sports Law Diary
The Asser International Sports Law Centre is part of the T.M.C. Asser Instituut

Never let a good fiasco go to waste: why and how the governance of European football should be reformed after the demise of the ‘SuperLeague’ - By Stephen Weatherill

Editor’s note: Stephen Weatherill is the Jacques Delors Professor of European Law at Oxford University. He also serves as Deputy Director for European Law in the Institute of European and Comparative Law, and is a Fellow of Somerville College. This blog appeared first on eulawanalysis.blogspot.com and is reproduced here with the agreement of the author. 

 


The crumbling of the ‘SuperLeague’ is a source of joy to many football fans, but the very fact that such an idea could be advanced reveals something troublingly weak about the internal governance of football in Europe – UEFA’s most of all – and about the inadequacies of legal regulation practised by the EU and/ or by states. This note explains why a SuperLeague is difficult to stop under the current pattern of legal regulation and why accordingly reform is required in order to defend the European model of sport with more muscularity.

 

The creature that will not die

What, again?

It is over twenty years since since ‘Project Gandalf’, a plan for a European Football League prepared by Media Partners International, was notified to the Commission (OJ 1999 C70/5). Since then football in Europe has been played with a regular rhythm in the background: the threat of a breakaway ‘SuperLeague’ driven by the richest and most successful clubs. UEFA, the sport’s governing body in Europe, has responded. Alterations made periodically to the structure of its principal and most lucrative club competition, the Champions League, have favoured the interests of the richest and most successful clubs and, in a macabre dance, those changes have typically followed those clubs’ well-briefed grumbling and plotting. And Monday 19 April 2021 was glumly anticipated by football fans as the latest reel around the fountain: UEFA, media reports confidently predicted, would further compromise the structure of its competitions in order to give the richest and most successful clubs more of what they want – more games and firmer guarantees of participation.

But Monday 19 April instead brought the ‘SuperLeague’ clattering out of its murky background as threat and into the harsh light of day as execution. A group of twelve clubs from England, Spain and Italy announced the creation of an entirely new competition which would operate beyond the authority of UEFA. The self-chosen clubs are all rich, though several groan under mountainous debts. There is no plausible world in which this dozen would count as Europe’s undisputed finest in terms of sporting merit: their status is commercially driven. The plans guarantee the long-term participation of the founding clubs, and so would remove the threat of relegation from the new SuperLeague. This is entirely alien to the orthodox model of football Leagues across Europe. And the clubs plan to have their cake and eat it. They intend to play midweek games in the brand new SuperLeague while remaining members of their national associations, and so continuing to play in the Premier League, La Liga and Serie A as well as selected national Cup competitions. But they will no longer play in UEFA’s Champions League, which will therefore be robbed of most of its richest and most successful clubs, and also Arsenal and Spurs.

And then it crumbled.

Within 48 hours of the new competition’s announcement its proponents were racing each other from West London across East Manchester and beyond to see who could put most distance between themselves and a plan which had attracted almost universal derision and dismay. No longer a League from which its founder members could not be relegated, the SuperLeague had turned into a competition from which its clubs were desperate to knock themselves out. This Italian, Spanish and English Job had been intended to cause an explosion within European football, yet they couldn’t even blow the bloody doors off.

Gleeful mockery has its short-term place. This SuperLeague is dead. But the idea behind it and the people who drove it are not. A breakaway league in European football is the creature that will not die. Now is the time to think about the inadequacies of legal regulation of sport in Europe, in order to be prepared to defend the European model of sport the next time that a plan of this disruptive type is advanced, likely with greater strategic cunning. 

 

Why the law is not currently adequate

UEFA was doubly offended by the SuperLeague. The traditional regulatory model of European football was cast aside. No longer would qualification on merit be the sole criterion for participation. The infusion of fresh blood ensured by the system of promotion and relegation would be stopped. UEFA oversight would be precluded. The commercial model of recent years would be gravely imperilled too. UEFA’s Champions League is a spectacular success and provides UEFA with a valuable source of income. The ‘SuperLeague’ is a huge threat.

What could UEFA do?

The key insight is that UEFA is doubly offended because UEFA has a double function. It is a regulatory body but it is also a commercial actor. It protects the structure of the sport but it also makes money out of the sport. Most governing bodies in sport began in the days of well-meaning amateurs, carrying out the task of imposing routine and order on the rules of the game and the conduct of competitions, but in recent years, largely as a result of changes to the regulatory and technological shape of the audiovisual media sector, sport has increasingly become commercially lucrative to a dazzling degree. Governing bodies have typically added these new commercially sensitive functions to their longer-standing regulatory role by an incremental process of accumulation. UEFA, like many governing bodies in sport, sets the rules of the game but it has also become highly profitable. 

This is where and why the application of legal rules to governing bodies in sport becomes awkward. No one doubts that UEFA has a legitimate role. Sport needs a regulator, to set the rules, to impose order on the calendar, to protect the welfare of players and fans, and so on. But equally no one doubts that regulatory choices have direct commercial consequences. If UEFA decides to impose sanctions on those involved in a ‘SuperLeague’ it will be able to present such steps as a means to defend the integrity of the model of sport that has long dominated European practice. But it will stand accused of seeking to promote its own commercial interest in maintaining monopoly control over the Champions League by suppressing the emergence of a new form of competition, a SuperLeague, which might generate high levels of consumer demand and which, if the restless dozen are to be believed, had already generated lucrative financial backing. Both these perspectives contain their truths – regulatory and commercial motivations inevitably overlap in the governance of sport. 

Imagine UEFA had carried through its threats to impose sanctions, which, in their most vigorous form, would have involved banning participating clubs and players from any involvement in football other than the ‘SuperLeague’ itself. To achieve that would involve action not only by UEFA but also the relevant national football associations and, to exclude players form the World Cup too, FIFA. Would EU law oppose a response of this type, designed to protect European football’s traditional structures?

The problem in short is – it is not clear.

There is nothing explicit in EU law that addresses the matter. Sport was not even mentioned in the founding Treaties until as late as 2009, and the provision then inserted, Article 165 TFEU, is programmatic rather than precise. EU secondary legislation on sport is thin and of no relevance to the matter at hand. EU sports law largely comprises the patchwork of decisions of the Court and the Commission which have, since the very first in 1974 (Case 36/74 Walrave and Koch ECLI:EU:C:1974:140), addressed the compatibility of practices in sport with the demands of EU internal market law. This concerned initially the law of free movement, applied in the famous Bosman case (Case C-415/93 ECLI:EU:C:1995:463), and latterly competition law. And it is EU competition law which provides the most obvious objection to UEFA’s desire to take action against the promoters of and participants in a ‘SuperLeague’.

It is necessary to try to sift the existing practice of the Commission and Court to try to piece together an understanding of how EU competition law would apply in these circumstances. Nothing is predetermined. This, then, is already a problem – it is impossible to predict with confidence exactly how far UEFA’s autonomy of action is constrained by EU competition law.

Let us try. The most recent decision in which EU competition law has been applied to sport is also the one that is factually closest to the case of a governing body taking action to protecting its model against third party organisers wanting to offer competing events. It is the International Skating Union decision. 

 

The International Skating Union decision (ISU).

In December 2017 the Commission decided that the eligibility rules of the International Skating Union (ISU) were incompatible with EU competition law, specifically Article 101 TFEU on anti-competitive bilateral and multilateral practices (AT.40208). The Commission’s Decision was upheld on appeal to the General Court, which in December 2020 approved all the key findings made by the Commission (Case T-93/18 International Skating Union v Commission EU:T:2020:610).

The core of the objections in ISU were targeted at the governing body’s treatment of skaters who chose to take part in events that were not approved by the ISU. The ISU had power conferred on it as the sole governing body in the sport recognized by the International Olympic Committee (IOC) to ban such skaters from the Olympic Games and the World Championship. The ISU was able to act, and did act, in a way that protected and promoted the events which it organized at the expense of competing suppliers. The Commission’s Decision reached the conclusion that it reserved to itself powers in a way that exceeded what was necessary for the organization of the sport and for the maintenance of its integrity. It had pursued activities in the global market for the organisation and exploitation of international speed skating events in circumstances where its regulatory function overlapped with commercial motivations. The ISU had – according to both the Commission and the General Court - a conflict of interest. By stretching its activities beyond the regulatory domain into areas which prioritised its own commercial interests at the expense of third parties in the market, the governing body had acted in an anti-competitive manner contrary to Article 101 TFEU. 

The responsible EU Commissioner Margrethe Vestager, commenting at the time on the Commission ISU decision, was eager to treat the ruling as an expression of general principle, not simply one confined to its own particular facts. She explained that where a single federation organises competitions from local to international level according to the global pyramid structure which characterises the governance of most sports, ‘the penalties these federations impose should be necessary and proportionate to achieve’ goals associated with the proper conduct of the sport, but they ‘certainly shouldn't be used to unfairly favour the federation's own commercial interests, at the expense of athletes and other organisers’. 

The ISU Decision shows that EU competition law restrains the autonomy of governing bodies in sport, but the assymetry of power between the ISU and skaters has little in common with the more balanced relationship between UEFA and the biggest football clubs. So, in the search to understand how EU competition law restrains UEFA, ISU is a clue, but not definitive.

 

ISU and past practice

ISU is not a one-off: this is not the only material on which we can draw to understand how EU law affects and restricts UEFA’s options in responding to the SuperLeague. A wonderful book published in 2015 bursts with relevant ideas (K. Pijetlovic, EU Sports Law and Breakaway Leagues in Football). And the structure of the ISU ruling fits comfortably into the EU’s track record in applying EU law to sport. The need for a regulator in sport is acknowledged. A game needs common rules, predictably applied and apt to secure the integrity of competition. But such activities shall not spill over beyond what is necessary for the proper organisation of the sport, and there is special suspicion of systems of governance which are structured or applied in a way that prioritises the commercial interests of the governing body in question. 

In Meca Medina and Majcen v Commission (Case C-519/04P EU:C:2006:492) the Court explained that the compatibility of rules with EU competition law cannot be assessed in the abstract. The legal assessment of practices that have the effect of restricting competition also includes examination of their objectives. The Court decided that the imposition of sanctions for violation of anti-doping rules did not necessarily constitute a forbidden restriction of competition within the meaning of (what is now) Article 101 TFEU, since they were justified by the legitimate objective of preserving healthy sport, though it added that attention would need to be paid in detail to fair procedure and proportionate sanctions. Bosman (Case C-415/93 ECLI:EU:C:1995:463 ), a free movement rather than a competition law case, similarly permits the interpretation of EU law to be informed by the sporting context in which it is applied. So, famously, the Court declared that ‘In view of the considerable social importance of sporting activities and in particular football in the Community, the aims of maintaining a balance between clubs by preserving a certain degree of equality and uncertainty as to results and of encouraging the recruitment and training of young players must be accepted as legitimate’. The Court ruled against the particular transfer system of which Bosman had fallen foul because it went too far to apply collectively enforced restraints to the contractual freedom even of players whose contracts had expired. But the Court was plainly receptive to an adjusted regime which addressed the legitimate concerns it had mapped in the ruling. The transfer system was duly amended to apply only to players whose contract has not expired, and it lives on today in that slimmed down form.

There followed Motosykletistiki Omospondia Ellados NPID v Elliniko Dimosio – commonly abbreviated to MOTOE and known as the ‘Greek motorcycling’ case (Case C-49/07 EU:C:2008:376). It was held that ELPA, a body granted legal authority under Greek law to decide whether or not to permit the staging of motorcycling competitions, had violated Article 102 TFEU by running a system in which ELPA itself was engaged in the organisation and commercial exploitation of motorcycling events. The problem was that in the circumstances ELPA had ‘an obvious advantage over its competitors’; its gatekeeping right allowed it to ‘distort competition by favouring events which it organises or those in whose organisation it participates’. 

Article 165(1) TFEU, introduced into the Treaty with effect from 2009, directs that the EU ‘shall contribute to the promotion of European sporting issues, while taking account of the specific nature of sport, its structures based on voluntary activity and its social and educational function’. But both the Court and the Commission have long been assiduous in interpreting and applying EU internal market law in a way that recognises the legitimate concerns that arise in sport. Article 165 merely codifies that contextual sensitivity. EU law has been shaped according to a model whereby sport enjoys ‘conditional autonomy’ under EU law (see S. Weatherill, Principles and Practice in EU Sports Law, 2017). Governing bodies are able to operate consistently with EU law on condition that they demonstrate why their practices are necessary for the organisation of their sport – to defend its ‘integrity’, as is asserted in ISU. It is when governing bodies reach beyond the sphere of legitimate and necessary regulation that they tend to come into conflict with EU law – for example by applying the transfer rules even to out-of-contract players or by leveraging regulatory power to enhance a position in the market at the expense of commercial rivals. 

 

The legitimate reach of a governing body’s regulatory power

In ISU the objection was not to the role of a governing body acting as gatekeeper, in order to impose order on a sport’s calendar: the objection was to leveraging that regulatory power to achieve commercial advantage. The problem was a conflict of interest between regulatory concerns and profit-making, and it is an endemic problem in sports governance given the rising commercial value of sport alongside a reluctance among governing bodies to establish systems which sharply separate the regulatory from the commercial sphere. 

ISU insists on review of a governing body’s regulatory choices for fear that they may generate anti-competitive consequences. But it does not assume that the supply of competitive sporting events shall become a wholly unregulated market. Neither the Commission nor the General Court in ISU objects to the notion that sports governing bodies shall be able in principle to arrange the calendar, to decide how many events should be permitted, to ensure safety standards are met, and to perform a broader gate-keeping function. The Commission went out of its way in ISU to state that protecting the integrity and good functioning of the sport is a legitimate objective pursued by a governing body and this is confirmed in the ruling of the General Court. So too Commissioner Vestager, reflecting on the Decision, insisted that ‘we're certainly not questioning the right of …federations to do their job of organising the sport’. 

The question: where to draw the line between legitimate supervision and anti-competitive conduct?

 

SuperLeague

Would EU law have precluded UEFA from taking steps to oppose the SuperLeague? 

It is plain that UEFA would gain commercial advantage by killing off the SuperLeague. But the exercise of regulatory power commonly has some commercial consequence – that unavoidable overlap does not take the governing body’s activities over the line. The real issue is whether the exercise of regulatory power is necessary to secure the organisation of the sport.

ISU was an extreme case. The power imbalance between ISU and the skaters was very great; and the penalties envisaged by ISU went beyond any conceivable band of proportionate response. Given the aggressive suppression of third party organisers that was involved, disclosing a clear strategy of furthering the ISU’s own commercial aspirations in staging skating competitions, there was no need for the notion of protecting the ‘integrity’ of sport to be explored in any depth. The Commission and the General Court did not trouble to do so. Meca-Medina too, though the leading case, does not help to tease out the precise boundaries of the zone of legitimate action to police the integrity of sport, because anti-doping procedures plainly fall within it.

UEFA’s position in the face of rebellion by the major football clubs would have obvious distinctions from the situations found in MOTOE and ISU, most of all that its concern to defend the integrity of its existing structures would seem to carry much more weight given that the leading football clubs possess a destructive power which the third parties in MOTOEand ISU did not. The SuperLeague was clearly designed to reduce the Champions League to a sideshow, if not to destroy it altogether. 

Two questions structure the legal inquiry. What legitimate objectives may UEFA defend? And, assuming legitimate objectives have been identified, what are the permissible limits of action designed to defend them?

Once again the problem is that these are not matters set out cleanly in any existing legal texts. But let us try.

Can UEFA adopt measures to secure the integrity of its competitions' ability to produce the one true champion: that is, can UEFA take steps to stop European football looking like boxing? I think this is plausible, and it would justify action designed to ensure that UEFA’s Champions League has a higher profile and greater appeal than any breakaway competition.

Can UEFA adopt measures to suppress a competition where access is not based on merit and/or where promotion and relegation are curtailed: that is, can UEFA take steps to stop European football looking like sports leagues in North America? I think this is also plausible, and it would justify action designed to curtail the viability of any breakaway competition.

UEFA has other plausible legitimate objectives on which it may rely in responding to the threat of a SuperLeague. Protecting the calendar to prevent player overload would belong on this list; so too would protecting the pyramid structure of governance in order to ensure that all competitions are subject to the same rules globally rather than fragmented according to which organiser is in charge; and the re-distribution of income raised at élite level throughout the structure of the sport, in order to achieve some degree of vertical solidarity, is a further relevant concern. 

If (some or all of) those are legitimate aims, then one would need also to check whether UEFA's measures are proportionate and apt to achieve the end in view. The length of any ban would  be legally relevant, so too the breadth of its scope. The harsher the penalty, the less likely it is to survive proportionality-based review - yet of course the harsher the penalty, the more effective it is likely to be. Here too a detailed context-specific analysis would be required, but one may think that sanctions imposed on clubs would be more readily shown to be necessary and therefore justified than sanctions imposed on individual players. 

The implications under competition law would not be limited to measures taken directly by UEFA. The collective sale of broadcasting and other media rights to the UEFA Champions League falls within the scope of Article 101 because it restricts supply (by individual clubs as sellers), but it is permitted on the basis that it generates sufficient economic benefits.  It remains to be seen whether the sale of rights to a SuperLeague would be treated with similar indulgence: its closed nature and the extent to which it shares the proceeds of collective selling with the game more widely might induce sceptical assessment.

A prediction? It seems to me highly plausible in principle that EU law would permit some forms of action taken by UEFA against participants in a SuperLeague which are designed to protect the legitimate interests of a governing body with overall responsibility for its sport, subject to meeting the demands of the principle of proportionality. But one needs to be fully aware that competition law, like high level sport, rarely yields a wholly confident prediction. A SuperLeague will be using it too, to argue that it is injecting fresh competition into the market for sports events and that accordingly it should be protected from sanctions. These are difficult legal arguments, for which both legislative texts and precise case law precedents are wanting.

 

What next?

The contempt directed at the owners of the twelve clubs involved in the breakaway has been torrential. Disdain for VAR unites football fans, but that unwelcome intrusion of technology into the frantic pace of a proper football match is a pimple alongside the wrecking ball arrogance of the SuperLeague. The protests appear to have brought the plan unveiled on Monday 19 April 2021 to its knees. The twelve clubs, it seems, will remain within the existing arrangements and play in the existing competitions. But the biggest clubs have not lost their appetite for inducing UEFA to alter the design of the Champions League to suit their interests better. And although this SuperLeague appears to be dead, the threat of the breakaway league in European football remains the creature that will not die.

The legal and regulatory framework is not adequate to meet such challenges. Consider the frantic response to the SuperLeague. UEFA needed to decide what type of sanctions it would impose, doubtless after – urgent – consultations with national associations and FIFA, and perhaps with national governments minded to legislate too. UEFA needed to seek – urgent – advice from the Commission on its view of the impact of EU competition law on proposed sanctions, even if ultimately the authoritative voice on the meaning of EU law belongs to the Court of Justice. And UEFA was already faced by – urgent – applications to national courts on behalf of the SuperLeague 12 seeking to secure orders restraining the imposition of any penalties.

On all these points the law is not clear. EU competition law does not provide a checklist of sanctions which UEFA may lawfully impose and those which go too far. EU law more generally does not regulate directly the structure of governance in European sport. Nor do national laws provide clear controls. Governing bodies in sport have been largely successful in sheltering their autonomy from legal regulation. The SuperLeague fiasco should prompt a re-think. What is UEFA’s autonomy’s worth, when it is revealed to be so vulnerable to the concerted strategies of the biggest clubs? This breakaway failed, but the creature is not dead, and the next version, more skilfully prepared, might succeed.

 

Re-thinking sporting autonomy

In the past UEFA, jealous of its sporting autonomy, frequently called into question the legitimacy of EU intervention. The judgment in Bosman records that UEFA had requested the Court to order a measure of inquiry under its Rules of Procedure in order to obtain fuller information on the role played by transfer fees in the financing of the game, but the Court, noting that UEFA had haplessly failed to submit this request before the close of the oral procedure, refused. Things have changed. UEFA has come to understand the strategic advantage of keeping the EU, most immediately the Commission, onside.

In 2012 a ‘Joint Statement’ by the EU Commissioner then responsible for competition law, Joaquín Almunia, and Michel Platini, then President of UEFA, declared that the ‘break even’ rule at the heart of UEFA’s system of ‘Financial Fair Play’ is based on sound economic principle and that its objectives are consistent with EU state aid policy (IP/12/264). This ‘Joint Statement’ is not legally binding and its analysis lacks depth, but its very existence demonstrates that UEFA, here also reflecting the interests of Europe’s leading football clubs, has succeeded in getting close to the Commission and securing its informal approval. This strategy of co-operation rather than confrontation also marked the reform of the transfer system after Bosman. In March 2001 the Commission declared it had formalized the matter in an exchange of letters between Mario Monti, at the time the Commissioner for Competition, and Sepp Blatter, President of FIFA (IP/01/314). Pending litigation was settled and brought to an end, and the Commission announced closure of its own investigation in June 2002 (IP/02/824). This has no formal status, and, as with FFP, one cannot exclude that a court would take a different view, but for the time being a co-operative solution prevails. Moreover the involvement of FIFA reminds that the effect of EU law is frequently not confined to EU territory alone. The economic centrality of Europe to many, if not all, sports means that in practice the need to adjust practices to comply with EU law sometimes entails that adjustment operates more widely. EU’s norms become global norms. Note too that since 2014 the Commission and UEFA have had a formal arrangement for co-operation.

For present purposes the principal point of interest is that here the governing body, UEFA, has a real and direct interest not in securing autonomy from EU law but rather in using it to defend its existing model of governance and, most of all, its premier club competition, the Champions League. Pursuit of a more intimate relationship with the EU may involve a diminution of autonomy from regulation but it may the best way for UEFA to protect its autonomy from the avaricious might of the biggest clubs. The EU is an imperfect regulator of sport – it lacks expertise, its competence is not comprehensive, and the geographical boundaries of the EU mean nothing to football. But it will be intriguing to observe whether April 2021’s eruption prompts demands for a more assertive EU, able and willing to move beyond the ad hoc application of competition law and to adopt instead a more proactive role, seeking to establish minimum standards of good governance while ruling out sporting competitions which depart from merit-based criteria for admission. It would – and should – be a chance too for the EU to insist on a more serious commitment to re-distribution of wealth within European football. The biggest clubs have induced the transformation of the Champions League into a competition in which only a small pool of clubs may aspire to reach the later stages, let alone win it, and the disproportionate benefits which attach to mere participation in it have wreaked havoc with competitive balance in smaller national leagues across Europe. UEFA needs EU backing to stop these trends, and to reverse them. This would transform the ‘European Model of Sport’ from windy rhetoric and window-dressing to something more concrete and normative.

Consider too national political processes. In the short term had there been a need to stop the SuperLeague by immediate intervention, then it is national political processes which have the power to act with the necessary speed. Legislation could forbid closed Leagues. A higher level of state intervention in sport would be another threat to UEFA’s autonomy, and would likely be accompanied by pressure to reform its governance, yet it would also provide UEFA with a further means to defend its model from the destructive power unleashed by a SuperLeague. So ‘will politics show its teeth and confer a real-sanctioned monopoly to the football pyramid … [as] a transnational public service?’ (Antoine Duval, April 19 2021). After all, tongue in cheek, ‘political interference with sports is only bad if it goes against governing bodies’ objectives’ (Borja García, April 19 2021).

  

Conclusion

Radical change is often generated by moments of crisis, and it could be that the prime movers behind the ‘SuperLeague’ will come to be seen as having provoked a strengthening, not a weakening, of UEFA’s regulatory and commercial profile. This, however, does depend on UEFA, the EU and national politicians seizing the moment, and acting now to reform governance. They should not assume that because the current crisis is over, business as usual will resume. The unsystematic character of EU competition law should serve to focus attention on the need for broader intervention by the EU in order to protect and improve established systems of governance. Faced by the biggest clubs’ plain disdain for matters of fundamental sporting significance in Europe such as merit-based qualification for competitions and open Leagues with promotion and relegation, UEFA may find the EU a helpful ally: so too it may find a higher level of readiness to intervene in sport at state level serves its purposes. A durable accommodation between sporting tradition and commercially-driven innovation is desperately needed, or else fans can gloomily anticipate the emergence of many more malformed creatures. The creature is not dead.

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Asser International Sports Law Blog | Dahmane v KRC Genk: Bosman 2.0 or Storm in a Teacup?

Asser International Sports Law Blog

Our International Sports Law Diary
The Asser International Sports Law Centre is part of the T.M.C. Asser Instituut

Dahmane v KRC Genk: Bosman 2.0 or Storm in a Teacup?

Mohamed Dahmane is a professional football player of French-Algerian origin, who has played for a variety of European clubs, including French club US Mauberge, Belgian club RAEC Mons and Turkish club Bucaspor. However, he will mostly be remembered as the player whose legal dispute with his former club (Belgian club KRC Genk) revived the debate on football players’ labour rights.  

Journalists wasted no time in comparing it to the Bosman case.[1] Fair enough, Dahmane and Bosman do show some striking similarities: the two cases concerned players employed by mediocre Belgian football clubs claiming their right to be treated as normal workers. Furthermore, in both cases the respective Courts met (to a large extend) the players’ demands. The Bosman case not only changed labour conditions for all footballers, it shook the whole transfer system. In Dahmane, the case is essentially about whether it is justifiable to have a special law that obliges professional football players who unilaterally break their players’ contract to compensate their club for up to 36 months of salary. After all, “normal” workers are only obliged to pay a 12 months of salary compensation in an identical situation. Whether the Dahmane case will have the same weight as Bosman depends on the effects of the judgment on footballers in Belgium, but also on the European football sector in general. Therefore, a close look at the ruling is needed to understand its potential consequences.

Dahmane signed a four-year contract with KRC Genk on 1 July 2007, he then unilaterally terminated the contract in January 2008 following a row with his coach. Due to the contract termination, KRC Genk demanded a compensation amounting to EUR 878.888,88. The demand was based on Articles 4 § 4 and 5 § 2 of the Law for Professional Athletes and the Royal Decree of 13 July 2004. Indeed, according to the Royal Decree, the compensation had to be equal to 36 months of salary. Dahmane disagreed with KRC Genk’s demands and argued that the compensation should be calculated in accordance with Article 40 § 1 of the general Labour Agreements Law. Pursuant to this Article the severance pay can only amount to a maximum of 12 months of salary.

In a judgment of 25 May 2009, the Labour Court (Court of first instance) concurred with the demands of KRC Genk and ordered Dahmane to compensate KRC Genk for EUR 878.888,88.

Dahmane placed an appeal with The Court of Labour arguing that Article 4 § 4 of the Law for Professional Athletes and the Royal Decree breached Articles 10 and 11 of the Belgian Constitution on equal treatment and non-discrimination.[2] KRC Genk, for its part, argued that the difference between labour agreements of professional footballers on the one hand and “normal” labour agreements on the other is based on the ‘specific character of labour agreements of professional footballers and the specific character of sport in general’. Thus, the ‘specificity of sport’ would imply a special status for sport, whereby ‘normal’ law (i.e. the general Labour Agreements Law) cannot be applied unabridged. KRC Genk highlighted that to achieve the objectives inherent to football, which include avoiding competition distortions and the preservation of the stability of participating sport clubs, certain specific measures, such as the Royal Decree of 2004, can be taken in order to safeguard the legal certainty of labour relationships in the sport sector.[3]

The Court of Labour dismissed the arguments raised by KRC Genk, and held that the Royal Decree applies to all professional sports, not only to football, thereby denying validity to RKC Genk’s claims on the specificity of football.[4]

The Court agreed with KRC Genk that sport exhibits certain characteristics that can deviate from other labour relationships between employer and employee. However, the Royal Decree in question did not mention the specificity of sport in its text, nor does it provide any objective justifications as to why separate rules regarding compensation after a unilateral termination of a labour contract is necessary for the sport sector. Furthermore, the pursuit of financial profits, and the importance of preserving a fair competition have to be taken into account. Those economic objectives are not specific to the sport sector. Therefore, the Court saw no valid reason justifying a separate Royal Decree, when sport’s economic dimension can be equally covered by existing legislation. In other words, the same laws should be used to achieve the same objectives.[5]

As regards KRC Genk’s view that some rules preventing richer clubs from buying all the good players from smaller clubs, thereby distorting competition, are justifiable, the Court found that to be incorrect. Even though it is true that football’s transfer system is different from “normal” movement of workers, a distinction needs to be made between buying and selling of players on the one hand, and the unilateral termination of a player’s contract on the other hand. Here again the Court found the breach of the Constitutional Articles on equal treatment and non-discrimination based on the specificity of the football transfer system was not objectively justified in the Royal Decree.

The Court reminded the parties that the transfer system, which only allows two periods a year for clubs to buy and sell players, would limit the possibility for professional footballers to change clubs. Moreover, it highlighted that compensation equal to 12 months of salary comprises two transfer periods, and should therefore not be seen as unreasonable. Lastly, the Court took into account that the average career of a professional sportsman is relatively short (12 years according to KRC Genk and six to eight years according to Dahmane). A compensation amounting to 36 months of salary would, for many professional players, amount to 1/3 of the player’s revenue during his career and should therefore be deemed unjustifiable.[6]

Hence, the Court considered that a Royal Decree imposing a compensation of 36 months of salary on a player breaching his contract is disproportionate. Furthermore, the Court found the Royal Decree unjustifiable under the Constitutional principle of equal treatment and non-discrimination.

Dahmane revives a debate that has occupied academics in the fields of sports law, labour law and other fields of law for many decades. Is sport special and do its specificities oblige the European and national legislators to make laws that answer the specificities of sport? Should professional athletes be treated different from normal workers because sport is “special”? After Bosman, no transfer fees needed to be paid for players whose contract had ended and no limitations on the number of EU nationals were allowed to be imposed by the football clubs. In other words, the European Court of Justice (ECJ) found professional footballers to be very much like normal workers. Similarly, the Dahmane case lead the Belgian Court of Labour to deny any difference between professional athletes and normal workers regarding compensation after a unilateral termination of the labour contract. Even though Dahmane, as appellant, had asked the Court to raise a preliminary question to the ECJ on the compatibility of the law with the free movement of workers[7], the Court decided the case under Belgian law only.[8] It is therefore highly unlikely that Dahmane will have the same transnational effect as Bosman and mass unilateral contract terminations by professional athletes across the EU are not to be expected. 

Dahmane could set a precedent and encourage professional players in Belgium to simply break their contract, move to another club and pay compensation equal to 12 months of salary. This would be the worst-case scenario for Belgian clubs, since a compensation equal to 12 months of salary will nearly always be inferior to a transfer fee. On the other hand, mass unilateral contract terminations by footballers in Belgium would vindicate the need for specific regulation for football clubs.

In many ways the Belgian Court of Labour has “passed the ball” back to the Belgian legislator. Should the Belgian legislator feel that professional athletes, or footballers for that matter, have to be treated differently compared to normal workers then it could always decide to adopt specific laws or Royal Decrees for professional athletes. However, Dahmane will serve as a warning that these separate laws or Royal Decrees will need proper objective justifications as to why professional athletes are to be treated differently.



[1] See for example: Zaak-Dahmane krijgt allure van zaak-Bosman

[2] Arrest A.R. 2009/AH/199 (6 may 2014) Sub II, §1

[3] Ibid, Sub III §6

[4] Ibid, §7

[5] Ibid, §6

[6] Ibid, §7

[7] Ibid, Sub II, §1

[8] Ibid, Sub III §12

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Asser International Sports Law Blog | De- or Re-regulating the middlemen? The DFB’s regulation of intermediaries under EU law scrutiny at the OLG Frankfurt. By Antoine Duval and Kester Mekenkamp.

Asser International Sports Law Blog

Our International Sports Law Diary
The Asser International Sports Law Centre is part of the T.M.C. Asser Instituut

De- or Re-regulating the middlemen? The DFB’s regulation of intermediaries under EU law scrutiny at the OLG Frankfurt. By Antoine Duval and Kester Mekenkamp.

Football intermediaries, or agents, are again under attack in the news. For some, corrupt behaviour has become endemic in football’s culture. It is always dangerous to scapegoat a whole profession or a group of people. Many intermediaries are trying their best to lawfully defend the interests of their clients, but some are not. The key focus should be on providing an adequate legal and administrative framework to limit the opportunities for corrupt behaviour in the profession. This is easier said than done, however. We are dealing with an intrinsically transnationalized business, often conducted by intermediaries who are not subjected to the disciplinary power of federations. Sports governing bodies are lacking the police power and human resources necessary to force the intermediaries to abide by their private standards. In this context, this blog aims to review a recent case in front of the regional court of Frankfurt in Germany, which highlights the legal challenges facing (and leeway available to) national federations when regulating the profession.

Since April 2015, the FIFA Regulations on Working with Intermediaries (“Intermediaries Regulations”) entered into force. They replaced the 2008 FIFA Players’ Agents Regulation and introduced dramatic changes to the regulation of players’ agents (for a quick introduction read our short guide here). Although seeing its first light on April Fools’ Day, the Intermediaries Regulations are not to be taken lightly. On the contrary, the new rules constitute a major turning point in the governance of player and club representation. Furthermore, the question of the compatibility of the Intermediaries Regulations with EU competition law promptly arose when the Landgericht Frankfurt am Main (LG) had to rule on a challenge to the Reglement für Spielervermittlung (DFB-regulations), the national measure implementing the FIFA Regulations issued by the German Football Federation (DFB, Deutschen Fußball Bund). In its injunction of 29 April 2015 the LG found some provisions of the DFB-regulations to be contrary to Article 101 TFEU (see our earlier blog). This decision was appealed by both parties to the Oberlandesgericht Frankfurt am Main (OLG), which rendered its ruling on 2 February 2016. This blog aims to analyse the decision of the OLG, while also putting it into its wider legal and social context.

I.              Back to the future: The Piau case revived

It is not the first time that the regulation of football agents/intermediaries by football federations and EU law are colliding. The previous Piau saga that started on 23 March 1998 with a complaint to the European Commission by a French agent, Laurent Piau, ended only very recently in front of the French Courts with a painful defeat for Mr. Piau. In the framework of that case, the then Court of First Instance of the EC (CFI) issued a ruling on the compatibility of the FIFA Agents Regulations with EU competition law, on appeal against the Commission’s decision to reject the complaint by Laurent Piau. In that decision, the CFI famously showed its surprise to see a private association engaging in regulatory activity without an express delegation of public power. In the words of the Tribunal, “the rule-making power claimed by a private organisation like FIFA, whose main statutory purpose is to promote football, is indeed open to question”.[1] Indeed, “[i]n principle, such regulation, which constitutes policing of an economic activity and touches on fundamental freedoms, falls within the competence of the public authorities”.[2] Yet, as many know, the world of football is special and in practice national states have very much relinquish regulatory control over it.

The CFI was pragmatic enough to recognize this unusual state of affairs. In fact, this peculiarity also enabled it to consider that the FIFA regulations, issued by a private organization, could not escape the scope of EU competition law.[3] Yet, in fine, the CFI endorsed the compatibility of the FIFA regulations with EU Competition law. It considered first that the European Commission (EC) was right in holding that it obtained the repeal of the most restrictive provisions contained in the original FIFA regulations.[4] Furthermore, the CFI supported the EC’s view that the compulsory nature of the FIFA licensing mechanism could be justified under the framework of then Article 81(3) EC [now 101(3)TFEU]. It stated that the “Commission did not commit a manifest error of assessment by considering that the restrictions stemming from the compulsory nature of the licence might benefit from an exemption on the basis of Article 81(3) EC”.[5] Finally, the CFI affirmed the applicability of Article 82 EC [now 102 TFEU] to the FIFA regulations, but concluded that “it follows from the above considerations regarding the amended regulations and the possible exemption under Article 81(3) EC that such an abuse [of a dominant position] has not been established”.[6]

Thus, based on the framework of analysis used in Piau, there is absolutely no doubt that EU competition law is applicable to the DFB-regulations (and analogically to all the other national regulations implementing the new FIFA Intermediaries Regulations).[7] The key question, however, is whether the restrictive effect on competition of those new rules can be justified. Such a justificatory framework of analysis is also broadly in line with the CJEU’s case law on competition law and sport, and in particular its Meca-Medina ruling.[8] The question of the legitimate objectives and proportionality of the new rules was rightly identified by the LG and OLG as the defining one to assess rule-by-rule the legality of the DFB’s regulations.

II.            The OLG Frankfurt and the Compatibility of the DFB regulations with EU Competition Law

The OLG’s ruling bears no clear winner or loser, as both parties can claim to have prevailed on parts of their claims. In its decision the Court clearly outlined a set of provisions that it deemed compatible with EU law, and another contrary to it. In any event, this case is again a good reminder that EU law is no golden bullet against the regulations of the Sports Governing Bodies (SGBs). Instead, their compatibility with EU law must be assessed on a case-by-case basis, bearing in mind their contexts and objectives. Nevertheless, EU law can be invoked to challenge the rationality of the SGBs’ regulations and to check any disproportionate encroachment on the economic freedom of the affected actors.

A.    The DFB rules incompatible with EU Law

In the present case, the DFB’s regulations for intermediaries faced a relatively detailed quasi-constitutional control by the OLG. The German court found that parts of the regulatory options adopted by the German federation are disproportionate to attain their objectives and therefore contrary to Article 101 TFEU. This is especially true of the rule forcing intermediaries to abide by the rules and jurisdictions of the DFB, UEFA and FIFA, and of the rule imposing a duty to provide an extended certificate of good conduct usually reserved for professions involving a risk to the integrity of minors.

In line with the decision in first instance, the OLG ruled against the provision requiring intermediaries to submit to the jurisdictions of FIFA, UEFA, DFB and its members in connection with all violations of their regulations and statutes (see point 1 of DFB Vermittlererklärung für natürliche Personen – Anhang 1, and a related notice later issued by the DFB).[9] In the OLG’s view, it would result in an impossible situation for intermediaries, as they would be required to have a ‘reasonable’ knowledge of, at least, 35 different association statutes and face being subjected to 30 different jurisdictions.[10] The court puts forward that it is necessary, as a prerequisite for the submission of non-members to the rules of an association and its jurisdiction, to be able, at any time to take knowledge, in a reasonable manner, of the content of the regulations, compliance mechanisms and sanctions. This possibility was not warranted in the present case. In other words, if the DFB wishes to subject intermediaries to its jurisdiction it is possible, but it would need to clearly define what such a submission would entail in terms both of the rules and procedures that would be applicable. In fact, as recognized by the European Parliament,[11] some type of disciplinary control by the national federations over the intermediaries is necessary to give some teeth to their regulations.

Furthermore, the OLG also rules that agents cannot be forced to submit an extended certificate of good conduct (erweiterten Führungszeugnisses).[12] The OLG agrees with the appellant that this duty is impossible to fulfil as under German criminal law, such certificate can be issued only for occupations suitable to establish/result in contacts with children and young people. Yet, such a contact with minors is not at the heart of an intermediary’s profession, especially that, as we will see below, intermediaries cannot derive any financial compensation for a transfer or employment contract involving a minor, it seems thus impossible for he or she to obtain the requisite certificate.[13]

The OLG has clearly drawn a line in the sand. There is a limit to the obligations the DFB can impose, they must be rationally possible to fulfil and connected to the objectives pursued and must not be unreasonably burdensome for the intermediaries.

B.    The DFB rules compatible with EU Law

The judgment is rather remarkable for what it considers proportionate regulation by the DFB.

First, it endorses, contrary to the LG, the proportionality of the ban on intermediary fees for transfers or contracts involving minors.[14] This ban was a very controversial part of the new FIFA regulations, as it was deemed extremely restrictive of the economic freedom of intermediaries and potentially counter-productive. [15] However, in the view of the OLG, article 7.7 of the DFB-regulations pursues a legitimate objective: the protection of minors (der Minderjährigenschutz).[16] It aims, more specifically, to prevent the transfer of underage players based solely on the economic interests of the intermediary and/or that underage players are taken to Germany without a stable employment perspective.[17] Moreover, the OLG deems this prohibition to be necessary as the other legal protections for minors provided by the German civil code are often inapplicable.[18] Finally, the court considers this prohibition to be proportionate. First, because intermediaries are not barred from being remunerated for advising minors when this advice is not requested in the framework of the conclusion of an employment contract or a transfer. Furthermore, the OLG notes that similar measures have been adopted in all other European countries and is supportive of a uniform approach to the regulation of the role of intermediaries in transfers of minors.[19] Overall, this is not a surprising assessment. The need to combat human trafficking and to fight abuses linked to transfers of minors have been repeatedly emphasised by the European institutions in their soft law.[20] Recently, the European Parliament underlined ‘the specific vulnerability of young players and the risk of them becoming victims of human trafficking’[21]. Only time will tell whether this type of draconian measure will rein such abuses. In any event, if reducing the economic incentives of intermediaries linked to transfers of minors will most probably restrict their economic opportunities, it is also likely to diminish the connected incentives for human trafficking in football.[22]

Furthermore, the OLG’s judgment also endorses the transparency requirements imposed by the DFB. More precisely, it deemed the obligation for clubs and players to disclose the contract details covering remuneration and payments to intermediaries’ enshrined in article 6.1 DFB-regulations compatible with EU competition law.[23] The legitimate aim pursued is the transparency and traceability of the market for intermediaries. Behind this objective, lies the idea that player transfers should be primarily based on sporting, rather than financial reasons. Consequently, it deems that an obligation to disclose payments connected to intermediation is necessarily linked to the attainment of this goal. This duty to disclose is also considered proportionate. For the OLG, it does not run counter the German data protection rules, nor does it constitute a disproportionate infringement in the commercial operations of an intermediary. When balancing the interest of the intermediary to keep the financial flows secret and the interest of the DFB in unveiling these flows, the OLG finds that transparency aimed at limiting the external influence of intermediaries on transfers should prevail.[24] In the eyes of the court, the DFB has concretely demonstrated that the negotiation of transfers is linked with important fees (erheblichen Zahlungen), which are liable to trigger a transfer of a player for economic reasons, rather than sporting ones. This, the OLG argues, runs counter to the ideal of fair sporting competitions. [25] In general, striving for greater transparency/publicity in the intermediary market is at the heart of the regulatory shift intended by the new FIFA regulations.[26] In fact, a recent report by two Harvard based scholars argues that the lack of transparency in the transfer market is one of the main causes for money laundering and corruption in football.[27] This is reinforced by the concentration of the market for intermediaries, with a group of happy few constituting an oligopoly.[28] Besides, due to the inherently transnational operation of the market, it is extremely difficult to monitor for national authorities. Intermediaries rely on complex contractual structures (many of them have been recently exposed on the footballleaks website), juggling with national laws and arbitration clauses to reduce both their taxes and regulatory oversight. Though the transparency requirements imposed by the DFB are extremely limited (a first rough synthesis for 2015 is available here) and way bolder proposals must be put on the table,[29] this is an important step in the right direction. This quest for transparency and openness around the financial flows involving intermediaries is very much “applauded” by the European parliament.[30] In fact, if supporters and citizens, who are often in fine called to financial rescue when an overspending club is ailing, are expected to exercise a public check over the over-optimistic (and sometimes corrupt) management of clubs and the correlated extravagant fees paid to intermediaries, they must be able to rely on trustful data to conduct such a critical assessment.

Finally, and this is most interesting in light of the on-going legal battle over FIFA’s third-party ownership ban, the OLG, confirming the LG’s assessment, also recognized the legitimacy of the DFB’s ban on an intermediary having an interest in future transfer compensations.[31] Its legitimate purpose is to rein the disproportionate influence, based on personal financial incentives, of intermediaries on a player’s transfers.[32] The OLG seems to follow the LG’s view that the potentiality of obtaining a share of future transfer fees constitutes a major incentive for intermediaries to actively encourage an early termination of a player’s contract.[33] In short, the German court endorses the need to limit incentives for intermediaries to trigger contractual ruptures over their personal financial interest in a future transfer of a player. A similar logic could be applied to the proportionality assessment of the TPO ban. Indeed, this ban is also aimed at avoiding that transfers be triggered for purely financial reasons. The idea being that a club should not be in a position of dependence vis-à-vis a third-party (in practice often an intermediary) that would force it to transfer a player to satisfy its own purely economic rationale. In this regard, the OLG’s judgment is very encouraging for FIFA as it supports a logic of ‘de-financiarization’ of football. The court is very much recognizing that economic incentives should not be front-and-centre in contemporary football and that the fact that there is a clear economic dimension to sport (triggering for example the application of EU law and/or labour law) should not overshadow its other dimensions (cultural, social, ethical, educational). Conciliation is necessary, players are not amateurs anymore, transfers are possible, TV rights money can trickle down, but the rampant financiarization (and collateralization) of labour contracts seems both dangerous in terms of the economic instability it might trigger (think FC Twente) and of the unethical abuses it might incite and conceal.

Conclusion: The legal consequences of FIFA’s retreat

The new FIFA Regulations for Intermediaries are first and foremost a confession of impotence from the part of FIFA. Fifteen years after introducing a worldwide regulatory mechanism applicable to football agents, FIFA basically acknowledged its incapacity to control the profession and rein its negative externalities. The old licensing system proved unable to provide a qualitative level playing field for agents, nor was FIFA capable (or willing to invest enough resources) to truly enforce its rules. In fact, at the local level, a multitude of informal agents and practices had practically hollowed out the FIFA Regulations.[34] Yet, instead of strengthening its regulatory apparatus and enforcement mechanisms, FIFA decided to retreat and basically handed over the responsibility to regulate intermediaries to the multitude of national federations. One can be excused for doubting at first that such a re-nationalization is well suited to control an inherently transnational market.[35] Yet, there is still some room left for hope.

The re-nationalization of the Regulations will undoubtedly bring about a complex regulatory landscape with different regimes applicable in each national jurisdiction.[36] Moreover, agents/intermediaries might face an enhanced amount of red tape and administrative fees if they aim at entering each and every national market. These negative consequences can be tempered, however, by a number of things. First of all, the market for intermediaries has never been truly transnational. Sociologists have shown that it operates more as a chain of national actors rather than with truly transnational players.[37] Furthermore, the big transfer money (and thus intermediary money) in football is concentrated on a small number of national markets (mainly the European big five[38]). This means that if those markets jointly engage in a strict regulation of intermediaries it will affect disproportionately (probably positively) the profession. Due to massive TV rights revenues these national federations and leagues also dispose of the necessary (financial and administrative) resources to rigorously enforce their rules. For example, if at a European level, national federations were able to coordinate their new intermediaries regulations and provide a level regulatory field for the profession, which would involve both reducing the administrative costs to exercise it and a sharper control of its negative externalities, FIFA’s regulatory retreat would be largely compensated by a potentially more effective regulatory system.

What is the role of EU law in this regard? The Piau case is a good reminder that the CJEU is sympathetic to the need to regulate the market for intermediaries. Since then, the soft law of the European institutions (and especially the European Parliament’s position) has very much comforted this sympathy.[39] However, it would be rather naïve to believe that the EU would be able and willing to take on the task of single-handedly re-regulating such a complex transnational field. It has currently other burning priorities and crucially lacks the resources and expertise to do so. The role of EU law is rather one of a careful catalyst and counter-power, aimed at encouraging private regulations at the national or transnational level and eschewing that they go too far in scapegoating the intermediaries and in restricting their economic freedoms. In this regard, the OLG Frankfurt provided, on the basis of EU law, a rather balanced review of the DFB regulations, striking down some of the more intrusive (or arguably less rational) parts of the regulations, while recognizing the legitimacy and proportionality of others. EU law can be invoked to open up a critical discussion over the regulatory trade-offs of transnational private regulations. Not more but also not less.


[1] Case T-193/02, Laurent Piau v Commission [2005] ECR II-0209, paras. 112-115; Landesgericht Frankfurt am Main: Urteil vom 29. April 2015 · Az. 2-06 O 142/15, para. 77. On the Piau ruling see D. Waelbroeck & P. Ibañez-Colomo, ‘Case C-171/05 P, Laurent Piau, Order of the Court of Justice (Third Chamber) of 23 February 2006, [2006] ECR I-37’, Common Market Law Review 43: 1743–1756, 2006.

[2] Ibid., para. 78.

[3] “On the other hand, since they are binding on national associations that are members of FIFA, which are required to draw up similar rules that are subsequently approved by FIFA, and on clubs, players and players’ agents, those regulations are the reflection of FIFA’s resolve to coordinate the conduct of its members with regard to the activity of players’ agents. They therefore constitute a decision by an association of undertakings within the meaning of Article 81(1) EC (Case 45/85 Verband der Sachversicherer v Commission [1987] ECR 405, paragraphs 29 to 32, and Wouters and Others, paragraph 71), which must comply with the Community rules on competition, where such a decision has effects in the Community.” Ibid., para. 75.

[4] Ibid., paras 83-99.

[5] Ibid., para. 104.

[6] Ibid., para. 117.

[7] This is well recognized and explicated in the OLG’s judgment. See, OLG Frankfurt am Main, Urt. v. 02.02.2016, Az.: 11 U 70/15 (Kart), para. II.1.

[8] Case C-519/04 P David Meca-Medina and Igor Majcen v Commission [2006] ECR I-6991, para. 42 ff. See further S. Weatherill, ‘Anti-doping Revisited: The Demise of the Rule of ‘Purely Sporting Interest’?’ in S. Weatherill, European Sports Law, ASSER Press, Springer, 2014, pp. 379-399 and B. Van Rompuy, The Role of EU Competition Law in Tackling Abuse of Regulatory Power by Sports Associations, available at http://ssrn.com/abstract=2767467.

[9] OLG Frankfurt am Main, Urt. v. 02.02.2016, Az.: 11 U 70/15 (Kart),, II.2.b.

[10] Ibid, II.2.b

[11] The European Parliament “Underscores the finding of the study that the regulations of agents established by sports federations are basically aimed at controlling access to the profession and regulating its exercise, but that these bodies have only limited supervisory and sanctioning powers, since they lack any means of control or direct action vis-à-vis sports agents who are not registered with them; nor are they entitled to impose civil or criminal penalties”. European Parliament, Resolution on players’ agents in sports, 17 June 2010, (2011/C 236 E/14), para.8.

[12] OLG Frankfurt am Main, Urt. v. 02.02.2016, Az.: 11 U 70/15 (Kart), II.3.a

[13] Ibid, II.3.a: Art. 3.2 and 3.3 DFB-regulations

[14] Ibid, II.2.a

[15] For a good critique see N. de Marco, ‘The new FA Football Intermediaries Regulations and the Disputes Likely to arise’, at §23-25.

[16] Art. 7.7 DFB-regulations

[17] OLG Frankfurt am Main, Urt. v. 02.02.2016, Az.: 11 U 70/15 (Kart), II.2.a

[18] “Die Regelung ist auch notwendig; insbesondere bieten entgegen den Darstellungen der Klägerin die Regelungen zur beschränkten Geschäftsfähigkeit Minderjähriger gemäß §§ 104 ff BGB im vorvertraglichen Feld der Anbahnung eines möglichen Vertragsschlusses keinen Schutz. Dies erlangt Bedeutung, sofern - wie vom Beklagten dargestellt - eine Mehrzahl an potentiellen Spielern angeworben, jedoch nur einer tatsächlich vermittelt wird.” Ibid, II.2.a.

[19] “Schließlich erlangt bei der Verhältnismäßigkeitsprüfung auch Bedeutung, dass im europäischen Ausland ausnahmslos Regelungen hinsichtlich des Verbots der kostenpflichtigen Vermittlung minderjähriger Spieler verabschiedet wurden, so dass eine einheitliche Handhabung im Sinne des Minderjährigenschutzes in besonderer Weise geboten erscheint.” Ibid, II.2.a.

[20] See amongst others: European Parliament, Resolution on the future of professional football in Europe, 29 March 2007, (2006/2130(INI)), paras 35-38; European Parliament, Resolution on players’ agents in sports, 17 June 2010, (2011/C 236 E/14), para.6-7;

[21] European Parliament, Resolution on players’ agents in sports, para.6.

[22] This is a truly worrying development. See A. C. Najarian, ‘"The Lost Boys": FIFA's Insufficient Efforts To Stop Trafficking of Youth Footballers’, 22 Sports Law. J. 151 2015. On the ‘muscle drain’ phenomena, see W. Andreff, ‘“Muscle Drain” in Sport and how to regulate it? A plea for a “Coubertobin” tax’ and J. Scherrens, ‘The muscle drain of African Football Players to Europe: Trade or Trafficking?’, Master Thesis 2007.

[23] OLG Frankfurt am Main, Urt. v. 02.02.2016, Az.: 11 U 70/15 (Kart), II.3.b; Art. 6.1 DFB-regulations

[24] Ibid, II.3.b

[25] “Dies widerspricht dem Grundsatz eines am fairen Wettbewerb orientierten sportlichen Wettkampfs [...]“. Ibid, II.3.b

[26] In FIFA’s own words: “The new system does not regulate access to the activity but provide a framework for tighter control and supervision of the transactions relating to transfer of football players in order to enhance transparency.” FIFA, Working with intermediaries – reform of FIFA’s players’ agents system, Background information, April 2015, p.2.

[27] M. Andrews and P. Harrington, Off Pitch: Football’s financial integrity weaknesses, and how to strengthen them, CID Working Paper No. 311 January 2016, p.68-103.

[28]“The analysis of shares highlights that the big five league players’ representation market is highly concentrated: half of the footballers are managed by 83 football agents or agencies. Our study reveals the existence of closed relational networks that clearly favors the concentration of players under the control of few agents.”R. Poli, G. Rossi & R. Besson, Football Agents in the biggest five European football markets. An empirical research report, CIES, February 2012, p.2.

[29] Andrew and Harrington suggest for example to create both a “Transfer Clearinghouse to house transfer process information” and a “centralized processes for registering and managing intermediaries”, op.cit. 27, p.96-99.

[30] The EP “[a]pplauds sport governing bodies’ efforts to bring about more transparency and supervision of financial flows.” European Parliament, Resolution on players’ agents in sports, 17 June 2010, (2011/C 236 E/14), para.11. See also European Parliament, Resolution on the European dimension in sport, 2 February 2012 (2011/2087(INI)), paras 76, 78 and 87.

[31] OLG Frankfurt am Main, Urt. v. 02.02.2016, Az.: 11 U 70/15 (Kart),, II.3.c; Art. 7.3 DFB-regulations

[32]“Zweck der Regelung ist es, einer an sachfremden, d.h. nicht sportlichen Interessen ausgerichteten Einflussnahme der Vermittler auf Spielerwechsel, insbesondere im Bereich der vorzeitigen Vertragsbeendigung, entgegenzuwirken. Die Regelung ist geboten, da dieser Zweck durch das Verbot insbesondere der Zahlung von Transferentschädigungen oder Beteiligungen an einem künftigen Transferwert eines Spielers den Anreiz zur sachfremden, finanziell motivierten Einflussnahme mindert.” Ibid, II.3.c.

[33] LG Frankfurt am Main: Urteil vom 29. April 2015 · Az. 2-06 O 142/15, paras. 83-84

[34] A finding shared by the CIES study and the Study on Sports Agents in the European Union commissioned by the EC in 2009.

[35] The European Parliament stated in its 2010 Resolution on Agents that « doing away with the existing FIFA licence system for player’s agents without setting up a robust alternative system would not be the appropriate way to tackle the problems surrounding player’s agents in football”. European Parliament, Resolution on players’ agents in sports, 17 June 2010, (2011/C 236 E/14), para. 10. The same scepticism is displayed by M. Andrews and P. Harrington, Off Pitch: Football’s financial integrity weaknesses, and how to strengthen them, CID Working Paper No. 311 January 2016, at p.98.

[36] For a preliminary rough mapping, see M. Colucci (ed.), The FIFA Regulations on Working with Intermediaries – Implementation at National Level, International Sports Law and Policy Bulletin, Issue 1-2015.

[37] This is highlighted in the CIES study of 2012.

[38] I.e. the English Premier League, the German Bundesliga, the Spanish La Liga, the Italian Serie A and the French Ligue 1.

[39] European Parliament, Resolution on the future of professional football in Europe, 29 March 2007, (2006/2130(INI)), para. 44; European Parliament, Resolution on the White Paper on Sport, 8 May 2008 (2007/2261(INI)), para. 100; European Parliament, Resolution on players’ agents in sports, 17 June 2010, (2011/C 236 E/14); European Parliament, Resolution on the European dimension in sport, 2 February 2012 (2011/2087(INI)), paras 75-78. This need for regulation is also embraced, though more carefully, by the European Commission in its White Paper on Sport, see European Commission, White Paper on Sport, COM(2007) 391, at para. 4.4. See also European Commission, ‘Commission blows the whistle over inflated football transfer fees and lack of level playing field’, 7 February 2013

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