Vub calewaert lecture 5 transfers and licensing

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Vub calewaert lecture 5 transfers and licensing

  1. 1. Transfers, licensing systems and players’ agents: the EU as a gatekeeper of the integrity of sport competitions? Gianluca Monte Willy Calewaert Chair Fifth Lecture VUB, Brussels, Thursday, 17 February 2011, 6.00-7.30 pm
  2. 2. Table of contents <ul><ul><li>Integrity of sport – an ambiguous concept </li></ul></ul><ul><ul><li>Licensing systems and the Financial Fair Play </li></ul></ul><ul><ul><li>Transfers </li></ul></ul><ul><ul><li>Sports agents </li></ul></ul><ul><ul><li>Match fixing </li></ul></ul><ul><ul><li>A question of good governance? </li></ul></ul>
  3. 3. Integrity of sport?
  4. 4. Integrity – an ambiguous concept <ul><li>Integrity of values </li></ul><ul><ul><li>Team spirit </li></ul></ul><ul><ul><li>Solidarity </li></ul></ul><ul><ul><li>Tolerance </li></ul></ul><ul><ul><li>Fair play </li></ul></ul><ul><li>Integrity of competitions </li></ul><ul><ul><li>Competitive balance </li></ul></ul><ul><ul><li>Incertainty of outcome </li></ul></ul><ul><ul><li>Regular running </li></ul></ul><ul><ul><li>Specificity of sport </li></ul></ul>
  5. 5. Integrity in the Lisbon Treaty <ul><ul><li>TITLE XII </li></ul></ul><ul><ul><li>EDUCATION, VOCATIONAL TRAINING, YOUTH AND SPORT </li></ul></ul><ul><ul><li>Article 165 </li></ul></ul><ul><ul><li>(ex Article 149 TEC) </li></ul></ul><ul><ul><li>[…] The Union 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. </li></ul></ul><ul><ul><li>2. Union action shall be aimed at: […] </li></ul></ul><ul><ul><li>— developing the European dimension in sport, by promoting fairness and openness in sporting competitions and cooperation between bodies responsible for sports, and by protecting the physical and moral integrity of sportsmen and sportswomen , especially the youngest sportsmen and sportswomen. </li></ul></ul>
  6. 6. Licensing systems <ul><li>What are licensing systems for club competitions? </li></ul><ul><li>Main objective: integrity </li></ul><ul><li>Open or closed competitions? </li></ul><ul><li>Financial discipline as key element </li></ul><ul><li>Licensing systems as tool to promote investment and improve infrastructure </li></ul>
  7. 7. EU conference <ul><li>Brussels, 17-18 September 2009 </li></ul><ul><li>Action 47 in the White Paper on Sport </li></ul><ul><li>Exchange of good practices </li></ul><ul><li>150 participants – football and other team sports </li></ul><ul><li>Respect for autonomy of sport </li></ul><ul><li>Main conclusions: </li></ul><ul><ul><li>Common points and differences (countries, disciplines) </li></ul></ul><ul><ul><li>Promotion of professionalism and investment in sport </li></ul></ul><ul><ul><li>Mutual learning </li></ul></ul><ul><ul><li>Need to remain balanced and respect Internal Market and competition rules </li></ul></ul>
  8. 8. UEFA’s Financial Fair Play <ul><li>UEFA’s club licensing system (2004) </li></ul><ul><li>Main criticism: national delivery of licences – no central control </li></ul><ul><li>FFP principle announced in 2009 – implementation in 2010 and onwards </li></ul><ul><li>Main elements: </li></ul><ul><ul><li>Club financial control panel </li></ul></ul><ul><ul><li>Break even rule </li></ul></ul><ul><ul><li>Encourage clubs’ long term investment (infrastructure, youth) </li></ul></ul><ul><ul><li>Compatible with EU competition rules? </li></ul></ul>
  9. 9. Transfers <ul><li>A system to ensure stability in team sports </li></ul><ul><li>Transfer windows endorsed by the ECJ (Lehtonen ruling) </li></ul><ul><li>Transfer fees – the situation pre-Bosman </li></ul><ul><li>The Bosman ruling and its consequences: the FIFA Regulations on the Status and Transfer of Players </li></ul><ul><li>The Bernard ruling and compensation for training </li></ul><ul><li>Time for an overall review? </li></ul>
  10. 10. Transfers fees <ul><li>Transfer fee: € 93M </li></ul><ul><li>Transfer fee: € 66M </li></ul>
  11. 11. Transfer fees
  12. 12. Transfer fees
  13. 13. Sports agents <ul><li>Point 4.4 of the White Paper on Sport: reports on bad practices, differing regulations (public, private), calls on the EU to regulate the activity of players’ agents </li></ul><ul><li>External independent study carried out in 2009 </li></ul><ul><li>Results available on Commission’s website: http://ec.europa.eu/sport/what-we-do/doc55_en.htm </li></ul><ul><li>European Parliament resolution (2010) </li></ul><ul><li>Conference to be organised by the Commission </li></ul>
  14. 14. Sports agents: the study <ul><ul><li>Some figures : </li></ul></ul><ul><ul><ul><li>Agents’ activities in 32 out of 71 sport disciplines examined </li></ul></ul></ul><ul><ul><ul><li>Number of official registered agents in the EU: 3,600 (5 “big” MS: 75% of total) </li></ul></ul></ul><ul><ul><ul><li>Football: 81% of total agents </li></ul></ul></ul><ul><ul><ul><li>Official + non-official agents in the EU: between 5,700 and 6,100 (estimated) </li></ul></ul></ul><ul><ul><ul><li>Agents’ activities turnover: €200 M for the 2007/2008 season (estimated) </li></ul></ul></ul>
  15. 15. Sports agents: the study <ul><ul><li>The regulatory framework </li></ul></ul><ul><ul><li>Public authorities : </li></ul></ul><ul><ul><ul><li>Job placement regulation (18 MS) </li></ul></ul></ul><ul><ul><ul><li>Specific regulation on sports agents (5 MS: Bulgaria, France, Greece, Hungary, Portugal) </li></ul></ul></ul><ul><ul><ul><li>Contract law (all MS) </li></ul></ul></ul><ul><ul><li>Private bodies : </li></ul></ul><ul><ul><ul><li>International regulations (FIFA, FIBA, IRB, IAAF) </li></ul></ul></ul><ul><ul><ul><li>National regulations </li></ul></ul></ul><ul><ul><ul><ul><li>Football (all MS), athletics (9 MS) and basketball (8 MS) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Handball (AT, DE, PT), ice-hockey (FI), cricket (EN) </li></ul></ul></ul></ul>
  16. 16. Sports agents: the study <ul><ul><li>The issues raised by agents’ activities </li></ul></ul><ul><ul><li>Difficulties in regulating agents’ activities </li></ul></ul><ul><ul><ul><li>Proposed overhaul of FIFA Regulations </li></ul></ul></ul><ul><ul><li>Protection of professional sportspeople </li></ul></ul><ul><ul><ul><li>Provisions laid down in sporting regulations </li></ul></ul></ul><ul><ul><ul><li>Qualitative analysis – sample consultation </li></ul></ul></ul><ul><ul><ul><li>Limits of the existing rules </li></ul></ul></ul><ul><ul><li>Financial transparency and financial crime </li></ul></ul><ul><ul><ul><li>Definitions (money laundering, corruption, fiscal fraud) </li></ul></ul></ul><ul><ul><ul><li>Practices </li></ul></ul></ul><ul><ul><ul><li>Existing solutions </li></ul></ul></ul><ul><ul><li>Trafficking of sportspeople </li></ul></ul><ul><ul><ul><li>Practices </li></ul></ul></ul><ul><ul><li>Protection of minors </li></ul></ul>
  17. 17. Sports agents: the study <ul><ul><li>Synthesis and recommendations </li></ul></ul><ul><ul><li>Differing regulations </li></ul></ul><ul><ul><li>Ethical issues </li></ul></ul><ul><ul><li>Need for an intervention? </li></ul></ul><ul><ul><ul><li>Difficulty in justifying an EU intervention on the basis of Internal Market rules </li></ul></ul></ul><ul><ul><ul><li>No problem identified in practice </li></ul></ul></ul><ul><ul><li>Member States </li></ul></ul><ul><ul><ul><li>Ethical and public order issues </li></ul></ul></ul><ul><ul><ul><li>Strengthening existing rules + enforcement </li></ul></ul></ul><ul><ul><li>EU institutions </li></ul></ul><ul><ul><ul><li>Dialogue & consultation </li></ul></ul></ul><ul><ul><ul><li>Information </li></ul></ul></ul><ul><ul><ul><li>Coordinating and promoting action of sport movement </li></ul></ul></ul><ul><ul><li>Sport movement </li></ul></ul><ul><ul><ul><li>Dialogue with agents, self-regulatory licensing scheme </li></ul></ul></ul><ul><ul><ul><li>Education and training </li></ul></ul></ul><ul><ul><ul><li>Transparency </li></ul></ul></ul><ul><ul><ul><li>Ethics – code of conduct </li></ul></ul></ul><ul><ul><ul><li>Controls and sanctions </li></ul></ul></ul>
  18. 18. Match fixing <ul><ul><li>Sporting-motivated vs Betting-motivated </li></ul></ul><ul><ul><li>Match fixing: corruption/fraud </li></ul></ul><ul><ul><li>Criminal and civil vs sportive sanctions </li></ul></ul><ul><ul><li>Link with gambling – early warning systems and educational programmes </li></ul></ul><ul><ul><li>International dimension </li></ul></ul><ul><ul><li>Role of the European Commission and of the Council of Europe </li></ul></ul><ul><ul><li>New item on the European sport agenda? </li></ul></ul>
  19. 19. Good governance <ul><ul><li>Autonomy of sport </li></ul></ul><ul><ul><li>Respect for the law </li></ul></ul><ul><ul><li>Democracy </li></ul></ul><ul><ul><li>Transparency </li></ul></ul><ul><ul><li>Accountability </li></ul></ul><ul><ul><li>Representation of stakeholders </li></ul></ul>
  20. 20. THANK YOU!

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