eceived from <strong>the</strong> sale <strong>of</strong> broadcast<strong>in</strong>g rights is transform<strong>in</strong>g <strong>the</strong> sports world <strong>and</strong> widen<strong>in</strong>g <strong>the</strong> gulfbetween amateurs <strong>and</strong> pr<strong>of</strong>essionals <strong>and</strong> between <strong>the</strong> top <strong>and</strong> bottom <strong>of</strong> sport <strong>in</strong> Europe’ (EuropeanCommission Directorate General X, Sport Unit, 1999: 9). Even <strong>in</strong> countries where deals arenegotiated collectively by leagues, ra<strong>the</strong>r than <strong>in</strong>dividually by <strong>the</strong> clubs, a certa<strong>in</strong> proportion <strong>of</strong>revenue is <strong>of</strong>ten divided accord<strong>in</strong>g to <strong>the</strong> number <strong>of</strong> television appearances, although this is not <strong>the</strong>case <strong>in</strong> some countries, such as Germany. Needless to say, <strong>the</strong> more popular clubs <strong>in</strong> those leaguescomm<strong>and</strong> greater exposure <strong>and</strong> as such a greater proportion <strong>of</strong> <strong>the</strong> available television revenue. Forexample, <strong>in</strong> <strong>the</strong> 2003/04 season <strong>in</strong> Engl<strong>and</strong>, w<strong>in</strong>ners Arsenal earned £33.2 million. This was £10million more than sixth placed Aston Villa <strong>and</strong> more than double bottom <strong>of</strong> <strong>the</strong> tableWolverhampton W<strong>and</strong>erers (Deloitte, 2005a: 15). In leagues where collective sell<strong>in</strong>g has beenab<strong>and</strong>oned <strong>in</strong> favour <strong>of</strong> clubs sell<strong>in</strong>g <strong>the</strong> rights <strong>in</strong>dividually, <strong>the</strong> differences are even morepronounced. In <strong>the</strong> 2002-03 season <strong>in</strong> Spa<strong>in</strong>, ‘<strong>the</strong> league’s five largest clubs – Real Madrid,Barcelona, Atletico Madrid, Deportivo La Coruña <strong>and</strong> Valencia – accounted for nearly 60 per cent<strong>of</strong> <strong>the</strong> 20-team league’s <strong>in</strong>come <strong>in</strong> 2002/03 with <strong>the</strong> country’s two ‘superclubs’ – Real <strong>and</strong>Barcelona – contribut<strong>in</strong>g over 35 per cent between <strong>the</strong>m. By comparison, <strong>in</strong> Engl<strong>and</strong>, <strong>the</strong> largest 5represent 46 per cent <strong>of</strong> total Premiership turnover’ (Deloitte, 2004: 13). Accord<strong>in</strong>g to Deloitte, ‘<strong>the</strong>polarisation is more pronounced <strong>in</strong> Serie A, where <strong>the</strong> five biggest Italian clubs – Juventus, ACMilan, Inter Milan, Roma <strong>and</strong> Lazio – accounted for around 70 per cent <strong>of</strong> <strong>the</strong> leagues €1,162million <strong>of</strong> revenue <strong>in</strong> 2002/03 with <strong>the</strong> two highest earn<strong>in</strong>g clubs – Juventus <strong>and</strong> AC Milan –contribut<strong>in</strong>g over 35 per cent <strong>of</strong> <strong>in</strong>come (2004: 13).Such discrepancies <strong>in</strong> <strong>in</strong>come, already <strong>in</strong> existence, but heightened by developments <strong>in</strong> <strong>the</strong>relationship between football <strong>and</strong> television, have, it has been argued affected <strong>the</strong> ‘competitivebalance’ <strong>of</strong> national leagues. 5 S<strong>in</strong>ce 1992, <strong>of</strong> <strong>the</strong> big five leagues, competitive balance has decl<strong>in</strong>ed<strong>in</strong> Engl<strong>and</strong>, Germany <strong>and</strong> Italy (Michie <strong>and</strong> Oughton, 2004: 18-21). It is argued that a decl<strong>in</strong>e <strong>in</strong>competitive balance can lead to a decl<strong>in</strong>e <strong>in</strong> dem<strong>and</strong> <strong>and</strong> a consequent failure to maximise f<strong>in</strong>ancialreturns (Borl<strong>and</strong> <strong>and</strong> McDonald, 2003). Whilst this is debateable, one possible consequence is that adecl<strong>in</strong>e <strong>in</strong> competitive balance <strong>in</strong> <strong>the</strong> national leagues may fuel a desire to seek new, morecompetitive structures elsewhere. Indeed, K<strong>in</strong>g argues that this process is already underway. Thenational context has dim<strong>in</strong>ished <strong>in</strong> favour <strong>of</strong> a transnational milieu <strong>in</strong> which <strong>the</strong> big city clubs <strong>of</strong>Europe <strong>in</strong>creas<strong>in</strong>gly compete as equals (K<strong>in</strong>g, 2003: 112). K<strong>in</strong>g argues that we should not concernourselves unduly with <strong>the</strong> decl<strong>in</strong><strong>in</strong>g competitive balance at a national level as new competitivebalances are develop<strong>in</strong>g <strong>in</strong>terpret<strong>in</strong>g changes <strong>in</strong> competitive balance between European <strong>and</strong>domestic competition <strong>in</strong> <strong>the</strong> context <strong>of</strong> developments <strong>in</strong> broadcast<strong>in</strong>g technology articulated above<strong>and</strong> moves towards <strong>the</strong> <strong>in</strong>dividual sale <strong>of</strong> television rights (K<strong>in</strong>g, 2003: 115). He argues ‘<strong>the</strong> oldcompetitive balance <strong>of</strong> <strong>the</strong> post-war era is be<strong>in</strong>g replaced by <strong>the</strong> era <strong>of</strong> transnational, deregulatedmarkets. Yet that does not imply <strong>the</strong> end <strong>of</strong> all competitive equality. On <strong>the</strong> contrary, a new balanceis emerg<strong>in</strong>g between <strong>the</strong> clubs <strong>of</strong> Europe which is draw<strong>in</strong>g <strong>the</strong> giants <strong>of</strong> each national leaguetoge<strong>the</strong>r <strong>in</strong> an <strong>in</strong>creas<strong>in</strong>gly ferocious <strong>and</strong> evenly matched struggle for transnational supremacy …<strong>the</strong> competition is becom<strong>in</strong>g more <strong>and</strong> more uncerta<strong>in</strong> at European level’ (K<strong>in</strong>g, 2003: 115). Thedevelopment <strong>of</strong> <strong>the</strong> Champions League is testimony to <strong>the</strong> <strong>in</strong>fluence <strong>of</strong> <strong>the</strong> largest clubs, <strong>the</strong> coord<strong>in</strong>ation<strong>of</strong> that <strong>in</strong>fluence through organisations such as <strong>the</strong> G14, <strong>and</strong> <strong>the</strong> <strong>in</strong>fluence <strong>of</strong>commercially driven organisations such as Media Partners will mean susta<strong>in</strong>ed pressure on exist<strong>in</strong>gmodels <strong>of</strong> governance.iii. The chang<strong>in</strong>g political economy <strong>of</strong> Europe: The free market <strong>and</strong> <strong>the</strong> European UnionK<strong>in</strong>g places <strong>the</strong> chang<strong>in</strong>g nature <strong>of</strong> <strong>the</strong> football <strong>in</strong>dustry squarely with<strong>in</strong> <strong>the</strong> context <strong>of</strong>developments <strong>in</strong> <strong>the</strong> political economy <strong>of</strong> Europe <strong>in</strong> <strong>the</strong> last two decades <strong>of</strong> <strong>the</strong> twentieth century. Inhis critical appraisal <strong>of</strong> <strong>the</strong> transformation <strong>of</strong> English football <strong>in</strong> <strong>the</strong> 1990s, The End <strong>of</strong> <strong>the</strong> Terraces,K<strong>in</strong>g charts <strong>the</strong> decl<strong>in</strong>e <strong>of</strong> <strong>the</strong> post-war political settlement characterised by state <strong>in</strong>tervention <strong>in</strong> <strong>the</strong>5 The literature on competitive balance <strong>in</strong> sports leagues is vast <strong>and</strong> exp<strong>and</strong><strong>in</strong>g <strong>in</strong> reference to both American <strong>and</strong>European sport.24
economy as a means to generate growth, full employment <strong>and</strong> <strong>the</strong> need for state protection aga<strong>in</strong>st<strong>the</strong> vagaries <strong>of</strong> <strong>the</strong> market (K<strong>in</strong>g, 2002: 25-26). The post war consensus was buttressed by <strong>the</strong>Fordist systems <strong>of</strong> mass production generat<strong>in</strong>g an unprecedented period <strong>of</strong> affluence <strong>in</strong> <strong>the</strong> 1950s.The economic boom that susta<strong>in</strong>ed <strong>the</strong> post-war consensus came under <strong>in</strong>creas<strong>in</strong>g pressure <strong>in</strong> <strong>the</strong>1960s with fall<strong>in</strong>g pr<strong>of</strong>its, <strong>and</strong> by <strong>the</strong> 1970s, <strong>the</strong> consensus had entered a new era <strong>of</strong> contentionfollow<strong>in</strong>g <strong>the</strong> collapse <strong>of</strong> <strong>the</strong> Bretton Woods monetary system, stra<strong>in</strong>ed relations between labour<strong>and</strong> capital, <strong>in</strong>creas<strong>in</strong>g global competition <strong>and</strong> <strong>the</strong> oil crisis <strong>of</strong> 1973 (K<strong>in</strong>g, 2003: 23-24). Accord<strong>in</strong>gto K<strong>in</strong>g, ‘this post-Fordism <strong>and</strong> <strong>the</strong> Thatcherite ideas which transformed its creation constituted <strong>the</strong>framework for football <strong>in</strong> <strong>the</strong> 1990s’ (K<strong>in</strong>g, 2002: 26-27). K<strong>in</strong>g sees <strong>the</strong> transformation <strong>of</strong> Englishfootball <strong>in</strong> <strong>the</strong> context <strong>of</strong> ‘organic developments which were very substantially determ<strong>in</strong>ed byfram<strong>in</strong>g concepts established <strong>in</strong> certa<strong>in</strong> conjectural moments. The adoption <strong>of</strong> certa<strong>in</strong> free-marketpr<strong>in</strong>ciples <strong>in</strong> <strong>the</strong> organisation <strong>of</strong> labour relations <strong>in</strong> <strong>the</strong> 1960s <strong>in</strong>itiated a course <strong>of</strong> developmentwhich by <strong>the</strong> 1980s dem<strong>and</strong>ed <strong>the</strong> reform <strong>of</strong> football <strong>in</strong> l<strong>in</strong>e with <strong>the</strong> new political economicrealities which those free-market pr<strong>in</strong>ciples had brought about’ (K<strong>in</strong>g, 2002: 67-68). Thus <strong>the</strong>grow<strong>in</strong>g <strong>in</strong>fluence <strong>of</strong> <strong>the</strong> clubs <strong>in</strong> an <strong>in</strong>creas<strong>in</strong>gly commercially <strong>and</strong> f<strong>in</strong>ancially autonomousbus<strong>in</strong>ess, culm<strong>in</strong>at<strong>in</strong>g <strong>in</strong> <strong>the</strong> breakaway <strong>of</strong> <strong>the</strong> top division, can only be understood by reference to<strong>the</strong> British political economy <strong>in</strong> <strong>the</strong> 1970s <strong>and</strong> 1980s.K<strong>in</strong>g’s compell<strong>in</strong>g analysis is developed fur<strong>the</strong>r on a pan-European scale <strong>in</strong> The EuropeanRitual (K<strong>in</strong>g, 2003). K<strong>in</strong>g argues that globalisation <strong>and</strong> <strong>in</strong>creas<strong>in</strong>g economic competition reduced<strong>the</strong> unilateral control <strong>of</strong> <strong>the</strong> European governments, <strong>and</strong> that political <strong>and</strong> economic <strong>in</strong>tegration wasbecom<strong>in</strong>g <strong>in</strong>creas<strong>in</strong>gly necessary by <strong>the</strong> 1980s. K<strong>in</strong>g recognises <strong>the</strong> contrast<strong>in</strong>g political economies<strong>of</strong> European nations – France <strong>and</strong> Germany rema<strong>in</strong>ed, for example, more <strong>in</strong>terventionist than <strong>the</strong>United K<strong>in</strong>gdom – but argues that ‘as mult<strong>in</strong>ational corporations became <strong>in</strong>creas<strong>in</strong>gly importantactors on <strong>the</strong> global stage <strong>and</strong> as f<strong>in</strong>ancial markets became more <strong>in</strong>ternational <strong>and</strong> less stable,European nation states have been forced to adopt an <strong>in</strong>creas<strong>in</strong>gly laissez-faire approach to <strong>the</strong>economy’ (K<strong>in</strong>g, 2003: 14-25). The political economy <strong>of</strong> Europe <strong>in</strong>creas<strong>in</strong>gly was liberalisedthrough <strong>the</strong> accelerated development <strong>of</strong> <strong>the</strong> EU. The S<strong>in</strong>gle European Act <strong>of</strong> 1986 legislated for afree market <strong>in</strong> goods, services <strong>and</strong> capital, creat<strong>in</strong>g a s<strong>in</strong>gle market across Europe <strong>in</strong> which <strong>the</strong>authority <strong>of</strong> <strong>the</strong> nation state was superseded by a transnational regime (K<strong>in</strong>g, 2003: 25). At <strong>the</strong> sametime that Europe was becom<strong>in</strong>g <strong>in</strong>creas<strong>in</strong>gly characterised by neo-liberal economics, follow<strong>in</strong>g <strong>the</strong>breakdown <strong>of</strong> <strong>the</strong> post-war economic consensus, so too was sport, <strong>and</strong> football <strong>in</strong> particular,follow<strong>in</strong>g an <strong>in</strong>creas<strong>in</strong>gly commercial free-market orientated approach. This rapidcommercialisation <strong>of</strong> football at <strong>the</strong> end <strong>of</strong> <strong>the</strong> twentieth century generated growth <strong>in</strong> externalpolitical <strong>in</strong>terest: ‘Pr<strong>of</strong>essional sport is <strong>in</strong>creas<strong>in</strong>gly best understood as a commodity that hasdeveloped complex <strong>and</strong> symbiotic relationships with<strong>in</strong> <strong>the</strong> global media complex <strong>and</strong> sportsmarket<strong>in</strong>g <strong>in</strong>dustry’ (Caiger <strong>and</strong> Gard<strong>in</strong>er, 2000a: 1). In such a context, it is <strong>of</strong> little surprise that <strong>the</strong>EU would take an <strong>in</strong>creas<strong>in</strong>gly <strong>in</strong>terventionist approach, <strong>and</strong> <strong>in</strong>deed that those operat<strong>in</strong>g with<strong>in</strong>pr<strong>of</strong>essional sport would seek to use <strong>the</strong> <strong>in</strong>stitutions as a means to protect <strong>and</strong> extend <strong>the</strong>ir own<strong>in</strong>terests. As Boyes argues: ‘<strong>the</strong> economic activity prompted by <strong>the</strong> commodification <strong>of</strong> sport hasprovided EU law with an entrée <strong>in</strong>to sport<strong>in</strong>g regulation <strong>in</strong> relation to <strong>the</strong> competency to ensureeffective competition’ (Boyes, 2000: 73).The growth <strong>and</strong> development <strong>of</strong> <strong>the</strong> European Union have <strong>the</strong>refore had an undeniableimpact on <strong>the</strong> governance <strong>of</strong> football both <strong>in</strong> Europe, <strong>and</strong> on a global level. From <strong>the</strong> 1970s <strong>the</strong> EUstarted to take greater <strong>in</strong>terest <strong>in</strong> <strong>the</strong> regulations imposed by sport<strong>in</strong>g govern<strong>in</strong>g bodies with regardto <strong>the</strong> application <strong>of</strong> EU law. In 1974, Walrave <strong>and</strong> Koch v UCI, 6 <strong>the</strong> European Court <strong>of</strong> Justice(ECJ) established pr<strong>of</strong>essional sport as an economic activity, <strong>and</strong> as such established that <strong>the</strong>regulations <strong>of</strong> sport<strong>in</strong>g organisations normally assumed to be autonomous would be subject to <strong>the</strong>application <strong>of</strong> EU law where an economic impact existed. This was consolidated by <strong>the</strong> rul<strong>in</strong>g <strong>of</strong><strong>the</strong> ECJ <strong>in</strong> Dona v Mantero <strong>in</strong> 1976. 7 Sport<strong>in</strong>g bodies, perhaps underestimat<strong>in</strong>g <strong>the</strong> significance <strong>of</strong><strong>the</strong>se rul<strong>in</strong>gs cont<strong>in</strong>ued to rema<strong>in</strong> at arms length from <strong>the</strong> <strong>in</strong>creas<strong>in</strong>gly important political6 Walrave <strong>and</strong> Koch v UCI [1975] 1 CMLR 3207 Dona v Mantero [1976] 2 CMLR 57825
- Page 1 and 2: ISSN: 1756-8811UEFA, Governance, an
- Page 3 and 4: ContentsAcknowledgementsIntroductio
- Page 5: AcknowledgementsThis project could
- Page 8 and 9: coming to play an increasingly infl
- Page 10 and 11: Section 1:Chapter 1.Theoretical per
- Page 12 and 13: So the ‘good governance’ of spo
- Page 14 and 15: Table 1: Theories of governanceTheo
- Page 16 and 17: the focal organisation will adopt a
- Page 18 and 19: different levels of the national ga
- Page 20 and 21: I think European sports are based o
- Page 22 and 23: The clubs, as the common denominato
- Page 24 and 25: mechanisms: committees, expert pane
- Page 26 and 27: It is a far cry from the simple the
- Page 28 and 29: intention of formulating a continen
- Page 32 and 33: institutions of Europe. Much of the
- Page 34 and 35: 2001: 438). However, whilst noting
- Page 36 and 37: Beckham’s progress for Real Madri
- Page 38 and 39: which UEFA itself was one of number
- Page 40 and 41: Table 2: Champions League market po
- Page 42 and 43: opportunity provided by Media Partn
- Page 44 and 45: For Hecht, the surprise was the clu
- Page 46 and 47: competition (Hamil et al, 1999; Ham
- Page 48 and 49: So to cut off revenues from bigger
- Page 50 and 51: clubs in question, their different
- Page 52 and 53: organised. 20 Analysis has correctl
- Page 54 and 55: Radnedge, commenting on the role of
- Page 56 and 57: would resolve these problematic iss
- Page 58 and 59: for a programme which includes show
- Page 60 and 61: literature. It is the contention he
- Page 62 and 63: Section 3:The stakeholder challenge
- Page 64 and 65: coalition there are ‘maximalists
- Page 66 and 67: League, rather than being drawn ent
- Page 68 and 69: egulatory authorities will take the
- Page 70 and 71: iii. The ‘specificity’ of sport
- Page 72 and 73: worry very greatly that once it’s
- Page 74 and 75: consideration for the ‘specificit
- Page 76 and 77: and should be extended. The startin
- Page 78 and 79: The governing bodies’ failure to
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in 2000 and this is reflected in th
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up whether it’s a meaningful prop
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Europe, other scenarios can be envi
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possibility of breakaway competitio
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With regard to the governance of UE
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Will’s contention that policy has
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management. The strength of this re
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exclusively consultative rather tha
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iv. The elite clubs and the G14When
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structure of the International Foot
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A lot of people think G14 is a supe
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at the same time, the truism that c
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to build on it. In the three years,
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the homegrown players … you hear
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It is very important for profession
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Thus it may be that co-operation wi
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domestic football to influence the
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with a four year maximum term (Darb
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articulated elsewhere (Sugden and T
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UEFA’s day-to-day involvement in
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good, I think it will be a hugely s
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diverging from those of a different
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It is likely that these bodies will
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The corporatisation of UEFA structu
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Chapter 7.UEFA and the structure of
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pressure. According to Moorhouse:
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Either way, the primacy of the nati
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extend beyond unpredictability. It
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iii. A two-tier Europe? Standards v
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problem with the present system was
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would be delighted by the demotion.
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football, and their role in the ove
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in European football. Does European
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the necessary connection of the sta
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Super Cup should have a role in dec
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ii. A two-pillared UEFA? The nation
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an association level so you don’t
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football they do not adequately rep
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therefore have a greater say in cal
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merits, there are also implicit dan
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protect the rights of less affluent
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elative input of the executive comm
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levels - thus ensuring solidarity a
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ii. Regulating the clubs: UEFA Club
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‘European financial control commi
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maximise the impact of this regulat
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The growth of UEFA has posed new pr
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Using this control of competition a
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Appendix 2:UEFA Champions League re
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Appendix 4:Club Competitions Commit
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6. The UEFA secretariat shall be re
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• to gather and exchange informat
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BibliographyAgnew, P. (2005), ‘Dr
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The Combined Code on Corporate Gove
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Galaskiewicz, J. and Wasserman, S.
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Kurth, T. (2004), ‘Message from T
- Page 192 and 193:
Pierre, J. and Peters, B. G. (2000)
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UEFA (2003c) Creating a Better Futu
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Reding, V. (2002) ‘Sport and Tele