Brussels, 20/07/2001 (Agence Europe) - The European Commission has sent a statement of objections to the European football association, UEFA, concerning the system for sale of televised broadcasting rights on Champion League football matches. The Commission has doubts about the compatibility of this system with competition rules, from two points of view: a) the collective sale of rights to a single channel per Member State; b) the duration of the concession (three or four years).
The Commission services stressed that initiating such a procedure does not mean the Commission condemns the principle of collective selling of rights to a single channel or that it plans to ban the current system in its entirety. It does, however, consider the system may be improved in order to guarantee wider coverage for the public. A press release states that it will be carefully examining all constructive proposals "aimed at making the current system compatible with Community competition law", which clearly shows that the system itself has not been rejected. The Commission did not act on its own initiative or receive formal complaints. It is the UEFA itself that notified its regulation to the Commission, calling for a "negative certificate" (to certify that this regulation is lawful). In April 1999, the Commission published in the Official Journal a communication inviting all those interested to make their observations. It received 65 responses, including several that criticised the current system, mainly for the following reasons: - with the grouped sale system, only the major media groups are able to acquire broadcasting rights; - the current system padlocks the TV markets and reduces coverage of events for viewers; - the mechanism of solidarity (redistribution of part of the receipts) could function even if there are no current restrictions.
UEFA has three months in which to respond to the Commission's objections. It does of course have the right to make itself heard and a hearing will be organised if it so wishes. The statement of objections has no suspensive effect on the system in force. The current receipts from the sale of broadcasting rights amount to around 800 million Swiss francs, of which 75% goes to the clubs that take part in the Champions' League and the rest is paid to the UEFA which: - redistributes 122 million Swiss francs between clubs under the solidarity mechanism; - spends around 105 million for the cost of organising the Champions' League; - keeps about 47 million for itself.