| Author (Person) | Carroll, Freda |
|---|---|
| Publisher | ProQuest Information and Learning |
| Series Title | In Focus |
| Series Details | 9.3.01 |
| Publication Date | 09/03/2001 |
| Content Type | News, Overview, Topic Guide | In Focus |
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The two football organisations, FIFA and UEFA, finalised negotiations with the European Commission on the 5 March 2001 on the question of the rules for the international transfer of footballers. This was formalised by an exchange of letters between European Commissioner for Competition, Mario Monti and FIFA President, Joseph Blatter. Background As a consequence of the Bosman case, the Commission has, since 1998, been investigating whether transfer systems are in breach of Community policy on competition and freedom of movement. The European Commission has a web-page devoted to the background, details and implications of the Bosman case. It includes a section of questions and answers on the implications of the transfer system. Before the 1995 judgment in the Bosman case (C-413/93), a football player could only move to another club with the agreement of both clubs. Usually this agreement was reached by the setting of a transfer fee, which applied regardless of whether the player's contract with the first club had ended. Thus, even out-of-contract players were not allowed to sign a contract with a new team unless a transfer fee had been paid, or they had been granted a free transfer. Jean-Marc Bosman claimed that this transfer system prevented him exercising his right to freedom of movement (from Liège in Belgium to Dunkerque in France) and that the system should be changed so that players who were out of contract with their club could move to another club without the payment of a transfer fee. The Court of Justice found in favour of Bosman and against RC Liège, the Belgian Football Association and UEFA (Union of European Football Associations) . It decided that:
It did not rule on national transfer systems where players were moved within a Member State, nor on transfer fees where players were still bound by contracts. In November 1998, the Commission produced a consultative document The European model of sport, in which it says the increasing economic and commercial slant of sport has produced a major change and the European Union has been observing this from an economic point of view. Questions have been asked about the organisation of championships, the role of players' agents, licensing television broadcasting of games and, in particular, the transfer system. FIFA (Fédération Internationale de Football Association) is the international regulatory body for football world-wide. The Commission warned that FIFA's regulations on international transfers (1997) may be in breach of European law by laying down a system for the sale of players under contract. In December 1998, the Commission claimed that FIFA rules unduly restrict transfers and, while not proposing the abolition of the current system, invited FIFA to present alternatives. In order to do so, FIFA had to consult with a number of other organisations and endeavour to reach a consensus. Parties involved For the Commission, the principal parties involved were the Directorate-General for Competition (Commissioner Karel van Miert, later Commissioner Mario Monti) and the Directorate-General for Education and Culture which is responsible for sport (Commissioner Viviane Reding). Also interested was the Directorate-General for Employment and Social Affairs (Commissioner Anna Diamantopoulou). For football, those concerned with the transfer system were FIFA (Fédération Internationale de Football Association) which is the regulatory body, UEFA (Union of European Football Associations) which organises championships at European level, the national football leagues, the clubs and the associations of professional players represented by FIFPro (Fédération Internationale des associations de footballeurs professionnels). Issues and problems In February 1999, Karel van Miert (the Competition Commissioner at that time) announced his preliminary conclusions on the application of competition rules to sports. Final conclusions would not be drawn up until after completing a series of discussions with the sports world. The Commission's aim is to guarantee the consistency of its various actions and policies which have an impact on sport, including the free movement of people within the EU, the defence of competition and of its cultural and audio-visual policies. The Commission recognises the dual role of sport. Sport fulfils a social, integrating and cultural role to which, in theory competition rules do not apply, but it is also an economic activity, to which competition rules do apply. On 26 February 2001, the current Competition Commissioner (Mario Monti) gave a speech Competition and sport: the rules of the game (SPEECH/01/84) to a Conference on Governance in Sport, in which he stressed that sport, as an economic activity, is subject to Community law, but that it is also recognised that sport has certain special characteristics. He listed the following areas of activity to which Community law apply:
In May 2000 the Competition Commissioner warned that all transfer fees could be abolished under EU competition law, as they gave too much power to the clubs at the expense of players. This met with strong protest from UEFA, who expressed the concern that abolishing the present transfer system could lead to instability and chaos across the professional game for both big and small clubs, with a devastating impact on player development, club finances, their ability to plan for the future and the organisation of championships. A report by Deloitte & Touche, commissioned by UEFA, warned that the abolition of the transfer fee system could cause financial ruin for smaller clubs as the loss of transfer payments would eliminate the asset base of a club and banks may be forced to recall loans. In addition player wages could rise astronomically. FIFPro, on the other hand, was in favour of complete freedom of movement for players. The Commission asked for proposals on the reform of the present system to be delivered by 31 October 2000, so that agreement could be reached by the end of the year. The compromise being sought with the Commission was not helped by the lack of agreement between FIFA and UEFA, nor by the wish expressed by the international players' association (FIFPro) that all transfer fees be abolished, so that players could move at will after a period of notice - just like any other employee. On 7 September 2000, Commissioner Viviane Reding gave a statement to the European Parliament on the Commission's investigation into FIFA's transfer rules, in which she referred to the delay in receiving any proposals from the football organisations and made some suggestions of how reform might be achieved: the possibility of the payment of compensation if a contract is broken, a fixed time during which all transfers take place to avoid disruption of championships and also some compensation reflecting costs incurred by a club in training young players. Negotiations FIFA met regularly with the Commission from 10 November 1999. In August 2000, a Transfer Task Force, consisting of representatives of UEFA, FIFA, FIFPro and of two national leagues (Germany and Spain), was formed for the negotiations with the Commission. It sought to emphasise:
On 31 October 2000 FIFA submitted to the Commission proposals (agreed with UEFA, but without the cooperation of FIFPro) which included the stability of contracts, preventing one club from luring a player from another during a championship, training compensation fees and severance fees. FIFA was asked to hold further discussions with FIFPro with a view to finding a negotiated compromise that reflects the mutual basic rights and obligations of both players and clubs. It then submitted further proposals on 10 January 2001, without consulting UEFA, which appeared to give more power to the players, particularly in terminating a contract. These proposals were subsequently withdrawn. On 5 February, UEFA published its ten principles as a basis for the final stage of negotiations with the Commission:
UEFA stated that these principles, which taken together represent a set of ethical guidelines for European Professional Football, should be enshrined in any agreement which is reached between the football world and the European Commission. Two further meeting of FIFA and UEFA enabled them to reach an agreement on a unified position for the meeting with the Commission on 14 February. Resolution Meeting on 14 February 2001 the FIFA and UEFA Presidents and three Commissioners finally agreed on a significant number of issues related to the FIFA rules on international transfer:
FIFPro, however, refused to participate in the final agreement and threatened to take legal action to challenge any decisions made. The Commission held further meetings with FIFA and UEFA on the remaining issues:
An agreement on Principles for the amendment of FIFA rules regarding international transfers was finally reached on 5 March 2001. These should be adopted by FIFA's Executive committee at its meeting in Buenos Aires on 5 July 2001. The main points of the agreement are:
These rules will apply only to international transfers. It will be up to national authorities to decide whether to adopt them. FIFPro is not likely to be happy with the new rules as they do not give them the freedom of movement enjoyed by other employees in the European Union. Further information within European Sources Online: European Sources Online: European Voice Further information can be seen in these external links: European Commission: Directorate General Education and Culture European Commission: Press and Communication Service: European Commission: UK Representation Fédération Internationale de Football Association (FIFA)(Geneva) FIFA Newsletter Union des Associations Europeennes de Football (UEFA) European Sources Online: Financial Times BBC News Further and subsequent information on the subject of this In Focus can be found by an 'Advanced Search' in European Sources Online by inserting 'Bosman', or 'football transfer system' in the keyword field. Freda Carroll The two football organisations, FIFA and UEFA, finalised negotiations with the European Commission on the 5 March 2001 on the question of the rules for the international transfer of footballers. |
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| Subject Categories | Culture, Education and Research, Internal Markets |
