The proposed new European superleague could contravene European Union competition law, enabling Uefa to block the competition, sports lawyers have warned.
Over the weekend it emerged that 16 clubs – including Arsenal, Chelsea, Liverpool, Manchester City and Manchester United – were in discussions over forming a superleague from 2021.
But the proposal that 11 ‘founding members’ – including the five English clubs – be exempt from relegation for the first 20 years of the league, from 2021, is at risk of not complying with European Commission laws.
Legal case
“This therefore leaves no opportunity for those clubs left out to reap any potential benefits of entry to the new league which may be seen as an abuse of the elite clubs’ dominance in the market,” said Laura McCallum from Lombardi Associates, suggesting that Uefa had a legal case for stopping the proposed league.
“If Uefa and the respective national associations can show that restrictions on the creation of such a new league is reasonable, validly justified and proportionate, then that restriction will likely be considered lawful under competition law and Uefa could refuse to authorise the new league,” McCallum said.
“Uefa may be able to show that a restriction is proportionate and justified by arguing that the new league would be a detriment to their member clubs as well as to event organisers – such as domestic leagues – due to a clash of fixture scheduling, which may thus reduce audience and viewership numbers in turn reducing the value of broadcasting and sponsorship rights.”
Competitive balance
“Expect both sides to weaponise the competitive balance and solidarity arguments as things evolve since both will be critical in any competition law complaint,” said Darren Bailey, a consultant for Charles Russell Speechlys’ sports group.
Although the creation of Euroleague Basketball in 2000 – a 16-team cross-national league in which 11 teams have long-term licenses and are guaranteed to participate every season – has been viewed as a parallel, Bailey said it did not ensure a similar football superleague would be permitted. “Each case and sport will be considered on its merits and the finances and heritage of European football are very different.”
It is unlikely that Brexit would have an implication on any legal case against the superleague, because 11 of the 16 members would still be from EU members.
In May, Uefa and the EU signed a new Memorandum of Understanding. The agreement stated that the Council of Europe and Uefa recognise that the European sports model “is based on sporting and financial solidarity mechanisms” citing “the principle of promotion and relegation” and “open competitions with a balance between clubs and national teams” which suggests that the EU would oppose the proposed relegation exemption.
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