UK Presidency Initiative on European Football – Context and Terms of Reference

Context

Football is an activity like no other. It is arguably the only truly global game and its influence cuts across economic, political, social and cultural spheres. In order to preserve the special nature of football a delicate balance between these different elements is needed to ensure sport’s traditions, such as the link with local communities, can be maintained while embracing the modern nature of the game.

With its increasing revenues, football is often seen as ‘big business’, and is, therefore, often subject to commercial governance rules which do not necessarily take into account the wider role that it plays in the community. However, it is clear across EU Member States that sport, and particularly football, is more than just a business. Football can play a significant role in helping to deliver wider public agendas, including improving social inclusion, community cohesion, increasing participation and healthy lifestyles.

The EU has currently no direct competence to develop a sports policy, but particular aspects of sport are often subject to the full application of the EU legal framework. Football has been involved in this situation on many occasions. However, the special nature of sport is recognised in the “Nice Declaration on the Specific Characteristics of Sport" (Annex IV of the Presidency Conclusions for the Nice European Council, December 2000). The European Council stated that “Even though not having any direct powers in this area, the Community must, in its action under the various Treaty provisions, take account of the social, educational and cultural functions inherent in sport and making it special, in order that the code of ethics and the solidarity essential to the preservation of its social role may be respected and nurtured".

After dialogue between EU Sports Ministers, the IOC, FIFA, UEFA and other sports bodies, a reference to sport was introduced to the Draft EU Constitutional Treaty which, in its Article III-282, recognises the specific characteristics of sport.

It is for the football authorities to run the game; however sports authorities, EU institutions and Member State Governments should work together to ensure the principles of the Nice Declaration are upheld and supported. To this end, under the UK Presidency, Richard Caborn called a meeting of the European Sport Ministers representing the “big” football nations and relevant football bodies to discuss how best to implement the Nice Declaration in football.

The meeting explored how the principles in the Nice Declaration relating to the special characteristics of sport can best be put into effect by the football authorities, the EU institutions and the member states so as to ensure that its social and cultural role is respected and nurtured. By identifying key issues in the game that either support or undermine these principles, the football authorities can ensure that football’s special characteristics are upheld and improved for the good of the game itself and, also, for the communities of each member state.

In particular, with reference to the Nice Declaration, it is generally considered that, in European football:

  • special attention has to be paid to corporate and social governance
  • grassroots football plays a crucial role in social inclusion, in the fight against discrimination, in the development of a healthy lifestyle and the delivery of other key components of public policy
  • central marketing (collective selling) of rights by the football authorities at European level is essential to ensure that solidarity nurtures the different levels of the pyramid, not least the grassroots
  • UEFA’s Club Licensing System is an important step in establishing good corporate governance, financial transparency and stability, and minimum standards in European football
  • there are a range of problems – such as doping, corruption, racism, illegal gambling, money-laundering and other activities detrimental to the sport – where only a holistic approach between football and the EU and national authorities will be truly effective
  • the central role of the football authorities is to independently govern the sport, whilst taking into account the views of the different stakeholders and working in harmony with the EU institutions and the member states

The meeting discussed and took stock of existing work on European Football. The conclusions of this debate outlined the need for a report to be made, into how the football authorities, the EU institutions and the member states can best implement the Nice Declaration and address key issues of the corporate and social governance of football affecting the European game.

The report, while focusing on European Football, will provide analysis and recommendations that will be made available to the “FIFA Task Force For the Good of the Game”, commissioned by the FIFA World Congress in Marrakech (September 2005), and acknowledge that any report findings may have an important input into this Task Force and its recommendations for the rest of the world football.

Furthermore, this report will also recognise the role of UEFA, and FIFA, in governing European football respectively world football. Recommendations will look to enhance current practices, where appropriate, and facilitate Member State Governments, EU Institutions and football’s stakeholders working in partnership with both FIFA and UEFA to build upon any current measures or strategies being undertaken.

It is the intention of this report to consider and provide tangible recommendations for possible implementation during future Presidencies. The report recommendations will also be available in a timeframe for them to be considered, by FIFA, for wider application in conjunction with recommendations of FIFA’s Task Force For the Good of the Game which are due in 2006.

Timing

The report will be compiled by the end of May 2006, and the recommendations will be presented back to the football authorities, the EU institutions and member states.

Process

The meeting of the parties on the 8 th December has agreed:

  • Independent review
  • Reference Group composed of UEFA and UK Sports Minister (for the EU Governments); observers: other sports ministers invited to Leipzig meeting, Urs Linsi (FIFA)
  • The terms of reference of the review are defined below
  • The timeframe in which the review will be completed– by end of May 2006, whilst some aspects may need further analysis

It is expected that the persons conducting the independent review will consult with all the relevant national government ministers and departments, the EU, football authorities, leagues and clubs, supporters organisations and other stakeholders in the game.


Terms of Reference of the Independent European Football Report

Overall Aim:

To produce a report, independent of the Football Authorities, but commissioned by UEFA, on how the European football authorities, EU institutions and member states can best implement the Nice Declaration on European and national level. The report will take into account relevant input from UEFA’s high level strategy Vision Europe (April 2005). These Terms of Reference have been drafted in consultation between UEFA and under the UK Presidency, some of the EU member states. Whilst led by UEFA, the EU ministers are part of the governance of the report. The “football authorities” in Europe are UEFA for European/EU matters and UEFA’s member associations for national matters.

In particular, the independent review will report on:

1) The “European sports model”: The central role of the football authorities independently to govern the sport while respecting the European and national legal frameworks and in harmony with the EU institutions and member states

Aim:

  • To make recommendations for how the EU institutions, member states and football authorities can improve and support the central role of the football authorities independently to govern all aspects of the sport, whilst taking into account the views of the different stakeholders and working with the EU institutions and the member states in respect of the underlying legal framework. Whilst the autonomy of football and its responsibility for self-regulation are recognised, it is also true that national Governments and the EU adopts legislation which can affect football. There is a need for coordination, dialogue and transparency.
  • Within such recommendations it should in particular be described (i) which rules or measures do clearly constitute “sports rules”, i.e. rules which are for the competent football authority – enjoying a reasonable amount of discretion - to decide and (ii) for which other rules or measures the specificity of sport should be increasingly considered in the interpretation/application of the relevant legislation. For this purpose it will be of interest to provide an inventory of the existing interpretations by the ECJ and by the Commission on the “specificity of sport” (with concrete examples, particularly in the areas of free movement and competition policy) and consequently to provide a definition.
  • To define the various stakeholders within the “European sports model”, as this applies to football, and to clarify their role and how they relate to one another. In particular, to demonstrate the natural and necessary role of the football authorities to care for the health and development of the sport as a whole from the grassroots to the professional elite.
  • To demonstrate that the central role of football authorities, provided that they govern democratically and transparently, can be consistent with economic and/or legal concepts of a dominant position.
  • To identify and analyse relevant examples from other sports that demonstrate the risks of undermining or dismantling the central role of a governing body, e.g. basketball, boxing.

2) The arrangements for overseeing the ownership/control and management of clubs, and to recommend changes where appropriate.

Aim:

  • For the football authorities to have effective arrangements to oversee the identity and integrity of the person(s)/entity owning/controlling/managing clubs, and to help prevent matters such as one person/entity influencing the management or sporting performance of more than one club entering the same competition.
  • For the football authorities, EU institutions and member states to develop effective arrangements to prevent money laundering, and to prevent unsuitable owners/management being involved in the game.
  • For the football authorities and member states to develop effective arrangements to protect the game from match-fixing and other forms of corruption.
  • To examine the feasibility of UEFA, the EU institutions and the member states launching a European-wide ‘supporters direct movement’ (a thriving example of which exists in England) to improve the opportunity for supporters to take part in the running of their professional club.

3) The level of expenditure in respect of players, considering the financial (in)stability and concentration of wealth amongst clubs at both an international and national level, and to recommend changes where appropriate.

Aim:

  • To examine ways to enhance the football authorities’ current efforts to encourage and support high standards of financial management, prudential operation within budgets and corporate governance amongst the clubs and to help achieve an appropriate level of competitive balance.
  • To examine ways to support and encourage the education and training of young players at clubs within the local community.
  • To update the UEFA study on salary caps undertaken at the end of the 1990s to take into account recent changes in the environment and re-examine the feasibility of salary caps.

4) The arrangements by which the football authorities oversee

(i) the activity of agents and intermediaries in respect of both the transfer of players’ registrations and player contract arrangements; and

(ii) the system of player registration and movement, and to recommend changes as appropriate.

Aim:

  • To explore ways for there to be effective and transparent arrangements to oversee the activities of agents in respect of their dealings with clubs and players, and to promote greater consistency between national regimes.
  • To develop recommendations to ensure that there is a properly-functioning system of player registration and movement at European and national levels, recognising fundamental principles such as stability of and respect for contracts, training compensation, sporting integrity of competitions, protection of minors and solidarity.
  • To propose measures to efficiently protect the minors and therefore to fight against the “trafficking of young players”

5) The distribution of revenues generated within European football, considering the financial (in)stability and concentration of wealth amongst clubs, and to recommend changes where appropriate.

Aim:

  • Acknowledging the validity of European football’s efforts to increase revenues by effective conduct of its business - to encourage central marketing (collective selling/mutualisation) and the consequent solidarity distributions of part of the revenue from such activities on both European and national levels, in so doing to help achieve an appropriate level of solidarity between all levels and areas of football.
  • To find ways for the EU institutions, member states and football authorities to consider central marketing (collective selling/ mutualisation) and the consequent solidarity distributions, and to work together to find ways to ensure solidarity is enhanced

6) The role of the EU institutions, member states and football authorities in respect of the provision of funding to generate opportunities for all people to participate in football, considering the level of support from top-level football to recreational football, and to recommend changes as appropriate.

Aim:

  • For the football authorities to undertake an effective role in ensuring social inclusion, integration and sustainable youth development as well as an appropriate level of funding to support solidarity between the top-level and recreational level of the game, and thereby encouraging participation for all and to recommend measures that can be carried at EU and member states’ level to assist the football authorities to ensure financial solidarity within the game.
  • To examine the central role of national associations and national team football as a primary source of funding for grassroots and recreational football throughout their country, and to identify existing examples of best practice, e.g. the UEFA-funded mini-pitches, which attempt to create new spaces for youngsters to play football.

7) The role of the EU institutions, member states and football authorities in respect of support and encouragement for investment in football stadia, with a focus on security and safety.

Aim:

  • For professional football matches to be played in stadia that are of sufficient quality (to an agreed standard) to help ensure the safety and enjoyment of spectators, and to examine ways in which the EU and member states, in conjunction with the football authorities, can adopt a strong and effective harmonised legal framework to deal with security threats caused by events such as hooliganism and activities such as ticket touting.

 

Independent European Sport Review