FIFA and UEFA’s rules on the prior approval of interclub football competitions, such as the Superleague, are contrary to European Union competition law and the freedom to provide services within the single market, ruled the Court of Justice of the European Union (CJEU) in a judgment handed down on Thursday 21 December (Case C-333/21).
Under the umbrella of the Spanish European Superleague Company, twelve European professional football clubs (Real Madrid, FC Barcelona, Juventus, Inter, Arsenal, Liverpool, etc.) are challenging the rules of FIFA and UEFA, two Swiss-based private law associations, which give them the power to authorise interclub football competitions in Europe. FIFA and UEFA had threatened sanctions against clubs and players taking part in the Superleague, a proposed new football competition put forward by the twelve clubs.
In its judgment, the Court does not follow the Opinion of the Advocate General Athanasios Rantos, delivered in December 2022, who had given precedence to the specificity of the European sports model over the competition rules (see EUROPE 13086/19).
The Court found that the organisation of inter-club football competitions and the exclusive exploitation of the resulting media rights constitute economic activities. These activities must therefore comply with the rules of competition and freedom of movement, even if the economic exploitation of sport is characterised by certain specific features, such as the existence of associations with regulatory, supervisory and sanctioning powers.
The Court is of the opinion that, where an undertaking in a dominant position has the power to determine the conditions in which potentially competing undertakings may access the market, that power must, given the risk of conflict of interest to which it gives rise, be subject to criteria which are suitable for ensuring that they are transparent, objective, non-discriminatory and proportionate. As the powers of FIFA and UEFA are not governed by any criteria of this nature, the two associations are therefore abusing a dominant position, the Court underlines.
However, Superleague competition does not necessarily have to be authorised, argues the CJEU, which considers that it is not necessary to take a position on this specific project.
Furthermore, the Court notes that the FIFA and UEFA rules on the exploitation of media rights are such as to prejudice football clubs, the media and consumers by preventing them from benefiting from new competitions. However, it is up to the Spanish courts to ascertain whether those rules might nevertheless benefit different stakeholders in football, for example, by ensuring a solidarity-like redistribution of the profits generated by those rights.
On behalf of A22, the company responsible for organising the Superleague, Bernd Reichart expressed his delight, via the YouTube platform, that, with the Court’s final judgment, football is free and “the UEFA monopoly is over”. According to him, the judgment allows clubs “to determine their own futures” and to innovate in the organisation of competitions between men’s and women’s professional football teams. He promised that the planned European competition would be based on sporting merit and broadcast free of charge via a digital platform.
Taking note of the judgment, FIFA stated that it “firmly believes in the specific nature of sport, including the pyramid structure – which is underpinned by sporting merit – and the principles of competitive balance and financial solidarity”. And it added: “Football owes its long and successful history to the above-mentioned principles, which FIFA, the confederations and the member associations will continue to promote in the future, in the interest of all football fans worldwide”.
To see the Court’s judgment: https://aeur.eu/f/a7u (Original version in French by Mathieu Bion)