Skip to main content

Setback for ESL

A key legal opinion this week was widely interpreted as a blow to the ambitions of Real Madrid, Barcelona and Juventus to establish a breakaway European Super League. But the battle for the hearts and minds of football clubs isn’t over yet.

It all goes back to A22, a Spain-based company that represents the interests of the ESL clubs, and its fight against the incumbent powers that be: Uefa and Fifa.

And don’t forget, A22 isn’t Uefa’s only competitor for the hearts and minds of clubs. The governing bodies might be on the same side of this specific case but on Friday, Fifa set out plans for a 32-team club World Cup in June 2025. Clubs are Uefa territory.

A22 had asked the European Court of Justice to judge whether Uefa can continue to act as a regulator with the power to sanction clubs while also organising — and profiting from — tournaments.

However, Advocate General Athanasios Rantos, a key adviser to the ECJ, said that EU competition rules don’t prohibit Uefa and Fifa or national leagues from threatening to sanction clubs that want to break from tradition. The governing bodies also have the right to approve new competitions, he said.

His opinion, though not binding, was welcomed this week by the two Switzerland-based governing bodies, which run the Champions League and the World Cup, two of the sport’s most prestigious competitions. A formal ruling is expected in the first half of next year.

In the words of Katarina Pijetlovic, Reader in Sports Law at The Manchester Metropolitan University, it would be a “comprehensive victory” for Uefa if the ECJ follows the AG's opinion which is what usually happens..

But what is clear from AG Rantos is that “third parties are not unduly denied access to the market”.

And A22 isn’t backing down. Chief executive Bernd Reichart said he believes the ECJ’s Grand Chamber of 15 judges “will go substantially further and provide the opportunity for clubs to manage their own destiny in Europe”.

Then there’s Fifa’s ever-expanding ambition. Getting into club competition might yet weaken Uefa’s position.

One consequence is that the owners of Liverpool and Manchester United may be more eager to sell up.

Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more

Millwall punch above their weight

Millwall’s season was overshadowed by the tragic death of owner John Berylson following a car accident. The American had been an exemplary owner, beloved by the fans for his leadership, passion and generosity. Millwall’s finances had been pretty good during his tenure, which we shall explore by looking at the most recent accounts from the 2022/23 season, when the club narrowly missed out on a place in the play-offs after finishing 8th. Millwall’s pre-tax loss slightly reduced from £12.6m to £12.2m, as revenue rose £0.8m (4%) from £18.6m to a club record £19.4m and player sales improved from a £0.1m loss to £2.5m profit. However, other operating income dropped from by £1.1m from £1.3m to £0.2m, while operating expenses increased £1.7m (5%) from £31.6m to £33.3m. The main driver of the revenue increase was broadcasting, which rose £1.1m (12%) from £9.1m to £10.2m, though match day was also up £0.4m (7%) from £5.8m to £6.2m. In contrast, commercial fell £0.7m (19%) from £3.7m to £3....
Post a Comment
Read more