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EU urges 'financial fairplay' in football

Published 21 September 2009
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The European Commission last week welcomed football governing body UEFA's adoption of new rules to control costs and ensure financial fairness in football club management, describing the development as an example of transparency and self-governance for other sports to follow. 

An EU conference on licensing systems for club competitions took place last week (17-18 September), bringing together representatives of football federations, leagues, clubs and players, as well as representatives of other team sports.

The participants mainly discussed the issue of financial discipline as a key element of licensing systems, both to ensure that no club drops out of a competition for finance-related reasons and to promote financial fairness among clubs participating in the same competition. 

The European commissioner in charge of sport, Jan Figel', used the occasion to welcome the 'Financial Fair Play' concept approved by UEFA ahead of the conference. 

Unanimously backed by the European Club Association (ECA), the European Professional Football Leagues (EPFL) and the players (FIFPro Europe), the concept introduces new rules which ban clubs from spending more than their revenue. According to UEFA, more than 50% of clubs are losing money due to the current economic crisis. 

UEFA Secretary-General David Taylor said there would be a transitional period for the new rules on cost control and financial fairness, but insisted that the system would be in place for the 2012-2013 season. After this date, "there will be sanctions for non-compliance," he said.

Commissioner Figel' described the concept as "a great example to other fields" regarding self-governance and transparency in sports.

The conference also discussed the importance of licensing systems in promoting youth training and fostering investment in sport.

Background: 

Licensing systems generally aim to ensure that all clubs respect the same basic rules on financial management and transparency, but may also include provisions regarding discrimination, violence, protection of minors and training.

The EU executive notes that while licensing systems must be compatible with EU competition and internal market provisions, they "may not go beyond what is necessary for the pursuit of a legitimate objective relating to the proper organisation and conduct of sport".

The Commission's 2007 White Paper on Sport and Action Plan underlined that robust licensing systems for professional clubs "promote good governance in sport" and that more efforts should be focused on their implementation and gradual reinforcement.

The action plan also announced that the EU executive intends to launch its work on licensing systems by tackling the issue in the football sector.

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