Editor's note: Rhys was an intern at the T.M.C. Asser Institute. He now advises on investments and Notre acquisitions in sport (mainly football) via Lovelle Street Advisory. Following a career as a professional athlete, Rhys has spent much of his professional life as an international sports agent, predominantly operating in football. Rhys has a Bachelor of Laws (LL.B) and a Bachelor of Philosophy (B.Phil.) from the University of Dame, Sydney, Australia. He is currently completing an LL.M at the University of Zurich in International Business Law / International Sports Law.

Having looked at the different types of investors in football in part one of this two-part blog series, “A non-exhaustive Typology”, it is fitting to now consider the regulations that apply to investors who seek to build a portfolio of football clubs.

One way to measure the momentum of a particular practice and how serious it ought to be taken, might be when that practice earns its own initialism. Multi-club ownership or MCO as it is increasingly known today, is the name given to those entities that have an ownership stake in multiple clubs. Within the little research and writing that has been undertaken on the topic, some authors submit that investors with minority stakes in multiple clubs ought not to be captured by the MCO definition.  This position appears problematic given some of the regulations draw the line at influence rather than stake.

There are now approximately 50 MCO’s across the football world that own approximately 150 clubs.^[1] Given the way MCO is trending, one might consider it important that the regulations keep up with the developing MCO practice, so as to ensure the integrity of football competitions, and to regulate any other potentially questionable benefit an MCO might derive that would be contrary to football’s best interests.

In this blog, I focus on the variety of ways (and levels at which) this practice is being regulated.  I will move through the football pyramid from member associations (MA’s) to FIFA, laying the foundations to support a proposition that FIFA and only FIFA is positioned to regulate MCO.

i)               The Cases that Shaped the MCO Regulatory Landscape

The ENIC and Red Bull cases essentially shaped MCO regulations, at least for UEFA.  For a comprehensive analysis of the cases, I would encourage one look at both “Multi-Club Ownership in European Football – Part I: General Introduction and the ENIC Saga” and “Multi-Club Ownership in European Football – Part II: The Concept of Decisive Influence in the Red Bull Case” by Tomáš Grell.

ENIC CASE[2]

The ENIC case featuring proceedings before the Court of Arbitration for Sport and before the European Commission, made its way to such bodies because London Stock Exchange listed entity, ENIC (English National Investment Company), owned stakes in both AEK Athens and SK Slavia Prague, that were set to play in the same UEFA club competition. At that point in time, UEFA had adopted regulations that made entry to UEFA club competitions conditional upon a club having not (i) held or been dealing in the securities or shares; and refrained from (ii) being a member; (iii) being involved in any capacity whatsoever in the management, administration, and/or sporting performance; and (iv) having any power whatsoever in the management, administration and/or sporting performance - of any other club participating in the same UEFA club competition. Furthermore, an individual or entity was prohibited from exercising control over more than one club participating in the same UEFA club competition.

The Committee for the UEFA Club Competitions had initially ruled that only SK Slavia would take part in the 1998/99 UEFA Cup. Not satisfied with that ruling, on 15 June 1998, AEK Athens and SK Slavia Prague filed a request for arbitration with CAS and simultaneously sought interim relief which was given, allowing both clubs to compete in the 1998/99 UEFA Cup. On 20 August 1999 however, the CAS held that the Original Rule was valid and that UEFA could apply the rule moving forward. Given the blow this dealt to ENIC’s football business strategies, on 18 February 2000, ENIC lodged a complaint with the European Commission and argued anew that the UEFA rules were contrary to EU competition law. The Commission was satisfied that the Original Rule was valid in that it sought to protect the integrity of UEFA competitions, rather than to restrict competition, hence seeing no violation of the relevant EU competition laws.

RED BULL CASE[3]

The current rules encapsulated in Article 5 of the UCL Regulations are distinct from the Original Rule in that one of the standards that would render a club unable to participate in a UEFA competition is if an individual or entity is able to exercise by any means a “decisive influence” in the decision-making of more than one club in that competition.

In 2017, RB Salzburg and RB Leipzig had both secured places in the 2017/18 UCL. Not long after, the UEFA General Secretary expressed concern with the Club Financial Control Body (CFCB), and the Adjudicatory Chamber of that body agreed that the clubs had failed to satisfy the criteria set out in the rules. The substantial levels of sponsorship received by Red Bull and certain individuals linked to the decision making of both clubs inter alia, were flagged as reasons for breaching the threshold.

However, and following some quite deliberate and specific changes, the CFCB Adjudicatory Chamber accepted compliance reports that RB Salzburg had cut ties with certain individuals, reduced the amount of sponsorship money paid by Red Bull and were satisfied that a cooperation agreement between the two clubs had been terminated.  The CFCB Chief withdrew his objection and RB Salzburg and RB Leipzig were admitted to the 2017/18 UCL.

ii)              Member Associations and Motives

Whilst one could simply list the national association’s MCO regulations, the reality is that for the MA’s that have express regulations, they are largely of a similar flavour to that of their Confederation. One might find the varying motivations of MA’s in enacting MCO regulations of more interest. One key feature is that some of the MA’s regulate based on MCO within their own nations, and some concern themselves with MCO even outside of the nation in which the MA governs football. This is where an MA’s motivations are evident.

Scotland

Scotland for instance, regulates MCO via Article 13 of the Articles of Association of the Scottish Football Association and refers to the section as “Dual Interests in Clubs”.[4]  It is understood that Scotland have a high standard when it comes to MCO, so as to ensure that its competition does not become the reserve competition to the English Premier League or another larger league.  With that in mind, one can then understand why Mike Ashley’s attempt to increase an already 8.92% to 29.9% shareholding of Rangers FC was rejected. The Newcastle United owner was not given written permission as is required per Article 13, as he had signed an agreement that he would not own more than 10% of the club and would not exercise influence on the board.

"The Board, under Article 13 of the Scottish FA Articles of Association, is required to have due regard to the need to promote and safeguard the interests and public profile of association football, its players, spectators and others involved with the game. This test is set out in full in Article 13.6."

Italy

Not too long ago, one was free to own more than one club in Italy (i.e. Aurelio De Laurentiis’ ownership of S.S.C. Napoli and S.S.C. Bari), but in recent months MCO in the Italian context has been headline material, with U.S. Salernitana 1919 promoting to the Serie A, a club owned by Claudio Lotito who also owns S.S. Lazio. The newly enacted Article 16 bis of the NOIF FIGC provides that an individual or entity cannot own two or more clubs in Italy, in the same competition.  On Thursday 30 September 2021, the FIGC announced that ownership of more than one professional club would be prohibited, “for those companies that should rise to Lega Pro from the Serie D” (translated), and multi-club owners would need to sell their (other) clubs “by the beginning of the 2024/2025 season”.

The result of this is retroactive in effect and one can reasonably suspect that the legal teams for these wealthy multi-club owners will be instructed to explore all options for a favourable outcome in courtrooms and other relevant decision-making bodies. One can simultaneously hold a view that MCO ought to be regulated, and concede that, when these owners bought these clubs, they did so on the representation that it was legal and they were free to do so. A forced sale as opposed to a willing sale distorts the market and what a willing buyer and willing seller would have otherwise settled on for a purchase price.  Flowing from the above, club owners can expect well below market rate offers, as has been the case reportedly with Salernitana, given they must sell. 

iii)             The Confederations

Most of the MCO regulations of Confederations refer to the concern of jeopardisation of the integrity of a match or competition. The regulations largely capture the substance of Article 20(2) of the FIFA Statutes which will be expanded upon below. For instance, the OFC regulation found at Article 15 (3) of the OFC Statutes, states that  ‘Member Associations shall ensure that no natural or legal person (including holding companies and subsidiaries) exercise third-party control in any manner whatsoever (in particular through a majority shareholding, a majority of voting rights, a majority of seats on the board of directors or any other form of economic dependence or control etc.) over more than one club or group whenever the integrity of any match or competition could be jeopardised.’  One will find almost verbatim, the same provision at Article 12(3) of the CAF Statutes and at Article 17(3) of the CONCACAF Statutes.

There is a distinction to be made however at confederation level, between MCO regulations applying specifically to the MA’s that fall under the Confederations, or to competitions hosted by the Confederation. Given the noise both the ENIC and Red Bull cases made, the most renown MCO regulations are those that apply to UEFA competitions, but consider also how CONMEBOL prohibits multi-club ownership in its competitions. Article 7(f) of the CONMEBOL Statutes provides that natural or legal persons cannot control more than one club. Perhaps an extension, “CONMEBOL’s Club Licensing Regulations establish as a requirement that, to participate in CONMEBOL Libertadores and CONMEBOL Sudamericana tournaments, license applicant clubs must submit a legally valid declaration if one: Owns or trades titles or securities of any other club participating in the same competition; or, b) Owns the majority of the shareholder voting rights of any other club participating in the same competition; or, c) Has the right to appoint or dismiss most of board or management or department members of another participating club in the same competition; or, d) Is a shareholder and controls most of the shareholder voting rights of shareholders in any other club participating in the same competition in accordance with an agreement signed with other shareholders of the relevant club; or, e) Belongs to the leadership structure of any other club participating in the same competition; or, f) Is involved in any quality in the management, administration and/or sporting performance of any other club participating in its competition; or, g) Has any power in the management, administration and/or sporting performance of any other club participating in the same competition.” 

The AFC regulates at both confederation club competition level, and via its club licensing regulations. The Entry Manual of the AFC Club Competitions provides as a condition of entry, at section 9.12: To ensure the integrity of an AFC Club Competition: no participating club may, either directly or indirectly, hold or deal in the securities or shares of any other participating club; be a member of any other participating club; be involved in any capacity whatsoever in the management, administration and/or sporting performance.

Article 19 of the AFC’s Club Licensing Regulations provides that a Licence Applicant must submit a legally valid declaration outlining the ownership structure and control mechanism of the club. These regulations prohibit a natural or legal person involved in the management, administration and/or sporting performance of the club, either directly or indirectly: a) holds or deals in the securities or shares that allows such person to exercise Significant Influence in the activities of any other club participating in the same competition; b) holds a majority of the shareholders’ voting rights of any other club participating in the same competition; c) has the right to appoint or remove a majority of the members of the administrative, management or supervisory body of any other club participating in the same competition; d) is a shareholder and alone Controls a majority of the shareholders’ voting rights of any other club participating in the same competition pursuant to an agreement entered into with other shareholders of the club in question; e) is a member of any other club participating in the same competition; f) is involved in any capacity whatsoever in the management, administration and/or sporting performance of any other club participating in the same competition; and g) has any power whatsoever over the management, administration and/or sporting performance of any other club participating in the same club competition.

When it comes to UEFA, MCO regulation is found throughout the so-called “UEFA Regulatory Framework”.  This includes the UEFA Statutes (Edition 2020), the UEFA competitions regulations, in particular the Regulations of the UEFA Champions League 2018-21 Cycle (2020/21 season) and the Regulations of the UEFA Europa League 2018-21 Cycle (2020/21 season), and the UEFA Club Licensing and Financial Fair play Regulations (Edition 2018).

The UEFA Statutes capture both the objectives of UEFA and the obligations of its MA’s, with a strong emphasis on the frequently referred to concern with MCO - issues of integrity. Then, within The Regulations of the UEFA Champions League, sits at Article 5 - Integrity of the competition / multi-club ownership.  This covers integrity of competition again and sets a criterion in order for a team to be eligible for UEFA competition, much the same flavour of regulation seen throughout the rest of the Confederations regarding ownership and control, but with the all-important test at Art.5 – 5.01(c) (iv)  No individual or legal entity may have control or influence over more than one club participating in a UEFA club competition, such control or influence being defined in this context as: being able to exercise by any means a decisive influence in the decision-making of the club.. 

FIFA reported that as of 2018, just 33 % of MA’s had regulatory provisions for MCO’s. The percentage of MA’s within the Confederations that regulate MCO is as follows:

• Confederation of North, Central America and Caribbean Association Football (CONCACAF) – 19%
• Oceania Football Confederation (OFC) – 22%
  
• Confederation of African Football (CAF) – 22%
• Asian Football Confederation (AFC) – 33%
• South American Football Confederation (CONMEBOL) – 50%
• Union of European Football Associations (UEFA) – 50%

What these figures might uncover is a gap in how serious MCO ought to be taken, between the Confederations and the MA’s, and that the perceived threat MCO posed to the integrity of competitions at the time these MA regulations were enacted was minor. Confederations might want to take a firmer proactive rather than reactive approach with MA’s, given the speed at which the MCO phenomenon has gained momentum. That is if one concludes that MCO regulation ought to lie with the Confederations.

Whilst MCO might not give rise to an issue for many nations (yet), the MCO environment of countries like Mexico, (1/3 of the clubs in the Liga MX are part of a domestic MCO arrangement, to say nothing of those same owners stake and influence in Mexican media and broadcast) where there are regulations in place at both MA and Confederation level, flies in the face of both the Mexican FEMEXFUT regulations and CONCACAF regulations. Might this highlight that FIFA and only FIFA can regulate this practice?

iv)             FIFA & MCO Regulation

FIFA does not expressly regulate MCO, assumingly as clubs are not its direct remit. Though through some interpretative effort, FIFA imposes an obligation on its MA’s to regulate MCO. In the FIFA Statutes at Article 20 (2), “Status of clubs, leagues and other groups of clubs”, it reads:

Every member association shall ensure that its affiliated clubs can take all decisions on any matters regarding membership independently of any external body. This obligation applies regardless of an affiliated club’s corporate structure. In any case, the member association shall ensure that neither a natural nor a legal person (including holding companies and subsidiaries) exercises control in any manner whatsoever (in particular through a majority shareholding, a majority of voting rights, a majority of seats on the board of directors or any other form of economic dependence or control, etc.) over more than one club whenever the integrity of any match or competition could be jeopardised.

Another way of looking at how FIFA may regulate MCO, is an obligation it places on the confederations at Article 23 (g), “Confederations’ Statutes”, it reads: 

The confederations’ statutes must comply with the principles of good governance, and shall in particular contain, at a minimum, provisions relating to the following matters:

(g) regulation of matters relating to refereeing, the fight against doping, club licensing, the imposition of disciplinary measures, including for ethical misconduct, and measures required to protect the integrity of competitions.

As one will notice, the protection of the integrity of competitions does not quite warrant its own sub-section of Article 23, and instead is heaped in with matters such as refereeing and doping. Article 20 might have more clout, but given the influx of MCO and investment in football in modernity, one can reasonably wonder if the regulations suffice.  

Article 20(2) of the FIFA Statutes (formerly Article 18(2)) has been considered to a degree at the Court of Arbitration for Sport. Though where it has, for instance in CAS 2014/A/3523 Club de Fútbol Atlante S.A. de C.V. v. Federación Mexicana de Fútbol (FMF) & Club Atlas F.C., the findings uncover that Article 20(2) cannot be relied upon for clarity, in terms of the jeopardisation MCO poses to the integrity of football matches or competitions.

“The FIFA rule on multiple ownership is not absolute but is based on a case-by-case assessment of the jeopardy caused to the integrity of football matches or competitions. Whether or not the integrity of a match or competition is jeopardised is a very intricate assessment which necessarily must be based on profound knowledge of the match or competition in question.”[5]

Whilst the case is not exclusively about the relevant integrity of competitions article within the FIFA Statutes, the appellant was unable to successfully argue the point that two clubs in the same league belonging to the same owner poses a serious threat to the competition (via the then Article 18(2) of the FIFA Statutes and the identical Article 7(m) of the CONCACAF Statutes) as it was unable to convince the Panel that the integrity of the Liga MX was indeed actually jeopardised.

The CAS in this instance was merely making a decision per its reach, but one struggles to imagine that any football governing body would want to take the position and to regulate so as to suggest that MCO within competitions does not “necessarily” raise integrity issues. Perhaps an extreme analogy, but that would be like concluding that doping is not “necessarily” performance enhancing and a case-by-case intricate assessment is needed to determine whether an advantage was actually attained.  Some threats to integrity require the preventative approach be captured in the regulations and the above case highlights that the articles regarding MCO found in the FIFA Statutes are insufficient and have probably not kept pace with the MCO phenomenon. A further reasonable question one might ponder, is what the reaction to the above case might have been if the clubs were UEFA based?

v)               Concluding remarks and why FIFA must assume MCO Regulations

MCO is a transnational phenomenon with no clear integrated or uniform regulatory framework and rather, a fragmented landscape, as one might reasonably expect when MCO regulation is left to the many Confederations and MA’s.  MCO regulations as they stand may have sufficed in yesteryear when football was not the target of such investment for direct financial return, branding in the case of company investment, or the branding and soft power strategies of nations – evidently the prime motivations for establishing an MCO. 

FIFA regularly offsets the negative news stories it attracts, with reference to growing the game globally. If FIFA is to cash in on the growing the game globally narrative, it surely has an obligation to regulate when that global growth produces integrity issues to football, as is the case with MCO. If one accepts that MCO is a transnational phenomenon and in turn a global issue, and that it does raise concerns in regard to the integrity of football inter alia, then it is difficult to see what body other than FIFA is best positioned to deal with the MCO phenomenon.

There are other reasons of significance as to why this should lie with FIFA as well. For instance, the MCO phenomenon also affects FIFA’s training rewards systems that it has gone to considerable lengths to attempt to fine tune (i.e. the establishment of the Clearing House). With players moving between clubs within the same MCO for free, many transfers will not trigger the trickledown effect they may have otherwise had players transferred for market rates. Another concern for FIFA might be player trading within an MCO being used as accounting tactics to avoid triggering Financial Fair Play issues, rather than a transfer representing the market value of the player.

Player welfare issues also arise, as do employment law questions.  It is already the case that there are clauses in player contracts where a player cannot refuse to be transferred to another club within an MCO if so requested (or demanded), which is in effect an MCO contract, rather than a club contract. Even when clauses of this nature are not inserted within an MCO club player’s contract, there are concerns when players are groomed within an MCO ,given the clubs have considerable time with players and a unique dynamic exists within MCO given common ownership, where a club is incentivised to persuade the player to remain within the group, when the best move, career, financial or otherwise, may be elsewhere. This is an entirely different dynamic to a player weighing up his or her transfer options and seeking professional advice from an agent and/or lawyer.  There are also instances where an MCO has only allowed a move internally and refused a transfer to another club and potentially better option for the player, raising  the ever-recurring freedom of movement questions. These instances are of course rare (for now), but real implications that need attention from football’s global governing body.

The increased globalisation of the game through creations like the UEFA Conference League and FIFA also expanding the Club World Cup, significantly broadens the number of clubs that may face each other, which increasing the risks that MCO presents. The obligations FIFA imposes on its MA’s and Confederations are not observed across the board, and are consequently not sufficient to keep pace with the burgeoning MCO phenomenon. FIFA can no longer simultaneously celebrate the globalisation of football, and defer on definition and regulation downwards in the football pyramid, when it comes to a product of that globalisation; Multi Club Ownership.

[1] I have added to the approximate figure mentioned in the hyperlinked article, to account for some recent acquisitions.

[2] CAS 98/200 AEK Athens and SK Slavia Prague / UEFA & Case COMP/37 806: ENIC / UEFA [2002] Commission

[3] CFCB Adjudicatory Chamber AC-01/2017 RasenBallsport Leipzig GmbH and FC Red Bull Salzburg GmbH

[4] DUAL INTERESTS IN CLUBS 13.1 Except with the prior written consent of the Board:- (a) no club or nominee of a club; and (b) no person, whether absolutely or as a trustee, either alone or in conjunction with one or more associates or solely through an associate or associates (even where such person has no formal interest), who:- (i) is a member of a club; or (ii) is involved in any capacity whatsoever in the management or administration of a club; or (iii) has any power whatsoever to influence the management or administration of a club, may at the same time either directly or indirectly:- (a) be a member of another club; or (b) be involved in any capacity whatsoever in the management or administration of another club; or ARTICLES OF ASSOCIATION 69 (c) have any power whatsoever to influence the management or administration of another club

[5] CAS 2014/A/3523 Club de Fútbol Atlante S.A. de C.V. v. Federación Mexicana de Fútbol (FMF) & Club Atlas F.C., at 88

Editor's note: Anna Antseliovich heads the sports practice at the Moscow-based legal group Clever Consult. She also works as a senior researcher at the Federal Science Center for Physical Culture and Sport (Russia).

The Olympic Games have always been a source of genuine interest for spectators as Olympians have repeatedly demonstrated astounding capacity of the human body and mind in winning Olympic gold, or by achieving success despite all odds.

At the ancient and even the first modern Olympic Games, there was no concept of a national team; each Olympian represented only himself/herself. However, at the 1906 Intercalated Games[1] for the first time, athletes were nominated by the National Olympic Committees (‘NOCs’) and competed as members of national teams representing their respective countries. At the opening ceremony, the athletes walked under the flags of their countries. This was a major shift, which meant that not only the athletes themselves competed against each other, but so too did the nations in unofficial medal standings.  

The nomination and selection of athletes by their NOCs to compete under their national flag and represent their country is a matter of pride for the vast majority of athletes. However, to what extent does such a scheme correspond to the ideals which the Olympic Games were based on in ancient times? Is it possible to separate sport and politics in the modern world?

Olympic Principles

The ancient Olympics began as a religious celebration in honor of the ancient Greek god Zeus. All freeborn male citizens of Greece could participate. The modern Olympics no longer maintain religious significance and are based on modern ideas and principles.

The principles of Olympism are enshrined in the Olympic Charter under “Fundamental Principles of Olympism”. The first paragraph of the Charter reads: “Olympism is a philosophy of life, exalting and combining in a balanced whole the qualities of body, will and mind. Blending sport with culture and education, Olympism seeks to create a way of life based on the joy of effort, the educational value of good example, social responsibility and respect for universal fundamental ethical principles.” Thus, it should seem obvious that Olympism is centered on a human, his/her body, will, and mind. Nations are not mentioned at all in this section. On the contrary, “sports organizations within the Olympic Movement shall apply political neutrality.”

Moreover, the Olympic Charter enshrines the practice of sport as an inherent human right: “Every individual must have the possibility of practicing sport, without discrimination of any kind and in the Olympic spirit, which requires mutual understanding with a spirit of friendship, solidarity and fair play.”  Paragraph 6 continues with “The enjoyment of the rights and freedoms outlined in this Olympic Charter shall be secured without discrimination of any kind, such as race, color, sex, sexual orientation, religion, political or other opinion, national or social origin, property, birth or other status.”

Based on the above, we can conclude that anyone has the right to participate in competitions covered directly or indirectly by the Olympic Charter, and no one person or entity can be deprived of this right. The only limitation on participation is an individual athlete’s qualification and eligibility.  

Entering by NOC

The Olympic Charter Rule 40 provides that “the competitor, team official or other team personnel must be entered by his NOC” to participate in the Olympic Games.

Rule 41 and its By-law deal with cases where there are issues with the nationality of an athlete, such as a change of nationality, a change in the status of the territory on which an athlete resides, etc., but clearly states that, as a general rule, an athlete shall be a national of the NOC that is selecting him/her.

In previous years, the IOC allowed so-called independent athletes to participate in the Olympic Games (such teams had different names but the same status). In 1992 they were athletes from Macedonia and Yugoslavia, in 2000 from East Timor, in 2012 athletes from the Netherlands Antilles and South Sudan, in 2014 from India, in 2016 from Kuwait and Russia, and in 2018 from Russia. These athletes competed as independent/neutral athletes for various reasons, such as the absence of the NOC, the suspension of the NOC from the IOC, doping scandals, or international sanctions.

The increased role of the State that is expressed by the appearance of the national symbols on the athletes' uniform, the playing of national anthems, and the flying of the national flag at the award ceremony has given rise to an unofficial medal count, which now - whether the IOC wants it or not - plays an extremely important role at each Olympic Games. Spectators intensely monitor which country is leading the medal count - sometimes even more than the competition itself. More and more countries are competing against each other, drawing up medal plans in an attempt to prove that their training system is the best and the most progressive, which, in turn, shows the superiority of their political and/or financial system. This all takes the spectators’ attention away from the purity of revelling in the capabilities of the human body and spirit and admiring the achievements of athletes.

Such an approach to the formation of Olympic teams (at least in individual sports) does not comply with the principle enshrined in Rule 6 of the Olympic Charter “the Olympic Games are competitions between athletes in individual or team events and not between countries..” and it seems that it is unfair for several reasons.

First, while for most athletes the very opportunity to represent their country at the most important sporting event is a source of great pride, for other athletes, it is not. For example,  refugees who have fled their homeland, for fear of torture and/or death. For them, it is unacceptable to compete under the flag of their country. Their “national” NOC could not enter them in any event. To circumvent this problem, the IOC created a team of 10 refugee athletes who competed under the IOC flag and anthem for the first time at the Rio de Janeiro 2016 Olympic Games. In 2018, at the 133rd session of the IOC in Buenos Aires, it was confirmed that the Tokyo Olympics will also feature a refugee team. However, refugees are not the only group of athletes who have difficult relations with the authorities and/or political regimes. There are many places in the world where people are struggling for independence or with repressive regimes. For these athletes to compete under the national symbols used by such authorities is fundamentally and morally impossible because it contradicts their political views (for example, some of the Kurds may not be happy to represent Turkey, some of the Basques may be happy to see any flag but not a Spanish one, some individuals residing in Northern Ireland may feel themselves hurt and unhappy to compete under the Union Jack, the flag of the United Kingdom, Tibetans and Uighurs hardly want to glorify the flag of China that suppresses any attempts to show their national identity, etc.).

Second, despite the requirement of the Olympic Charter to observe political neutrality by NOCs, in reality, this is not always respected. A vivid example is a current situation in Belarus, where until February 2021 the NOC was headed by President Aleksandr Lukashenko, after whose election mass protests broke out in the country resulting in numerous human rights violations. Since February 2021, the NOC has been headed by his son, Viktor Lukashenko. Athletes who took part in the protests were persecuted and sometimes even imprisoned. It is obvious that such athletes have no chance to be selected by the NOC for the Tokyo Olympics and even if they were to be entered, they would unlikely be proud to perform under the symbols of a regime that they consider illegitimate.

The two examples demonstrate that performing under a national flag can sometimes have grave significance. Athlete can either be completely barred from competing in the Olympics should they not hold the correct political allegiance, or be forced to compete under a national flag that does not reflect their political views.

The author considers that a solution to the abovementioned problem consists in the registration of an athlete, if he/she meets sports criteria for participation in the Olympic Games, directly by the IOC in the personal capacity. Each athlete will then be able to independently decide to use the national symbols that correspond to his political views, or to refuse to use any symbols in general. This approach is consistent with the abovementioned principles.

Conclusion

The Olympic Games have evolved enormously from local games as part of a religious celebration to a worldwide sports festival watched by millions of people. The Olympics are the epitome of international competition between athletes and between nations. Political controversy and scandals surrounding the Olympics often overshadow athletes' successes. To remove the political underlying basis of the Olympics, the approach of entering athletes by the NOCs should be abandoned, and athletes (at least in individual sports) should be allowed to compete in a personal capacity stripping away political connotations that ought to be extraneous to sports competitions. 

[1] Intercalated Games were supposed to be a series of international competitions held in Athens halfway between Summer Olympic Games. The only such games were held in 1906.