which <strong>UEFA</strong> itself was one <strong>of</strong> number <strong>of</strong> commercial beneficiaries, not least <strong>of</strong> course TEAMitself.The commercial development <strong>of</strong> <strong>the</strong> tournament by TEAM <strong>and</strong> <strong>UEFA</strong>’s has revolutionised<strong>the</strong> nature <strong>and</strong> articulation <strong>of</strong> European competition. The change <strong>in</strong> structure attracted muchcriticism, with football commentators recognis<strong>in</strong>g <strong>the</strong> commercial impetus beh<strong>in</strong>d <strong>the</strong>transformation <strong>of</strong> <strong>the</strong> revered European Cup. <strong>UEFA</strong> <strong>and</strong> TEAM made <strong>the</strong> conscious decision tobr<strong>and</strong> <strong>the</strong> competition <strong>in</strong> a way that emphasised <strong>the</strong> l<strong>in</strong>k to <strong>the</strong> past, to <strong>the</strong> old European Cup, thuslegitimis<strong>in</strong>g changes <strong>in</strong> <strong>the</strong> competition by relat<strong>in</strong>g <strong>the</strong>m to great teams <strong>and</strong> great players <strong>of</strong>previous eras (K<strong>in</strong>g, 2004): ‘Tradition is extremely important for <strong>the</strong> viability <strong>of</strong> <strong>the</strong> ChampionsLeague. Sports matches have mean<strong>in</strong>g when <strong>the</strong>re is a historical context that fans <strong>and</strong> playersrecognise (K<strong>in</strong>g, 2004: 331). As a consequence, he suggests, an important task for <strong>UEFA</strong> <strong>in</strong> <strong>the</strong>1990s was to connect <strong>the</strong> Champions League to <strong>the</strong> European Cup to provide it with <strong>the</strong> necessaryhistorical context <strong>and</strong> stimulate ‘a sense <strong>of</strong> familiarity <strong>and</strong> legitimacy’ (K<strong>in</strong>g, 2004: 332). This wasachieved through <strong>the</strong> choice <strong>of</strong> prestigious colours (black, white <strong>and</strong> silver) <strong>and</strong> images (<strong>the</strong>‘starball’), <strong>and</strong> through <strong>the</strong> choice <strong>of</strong> a classical an<strong>the</strong>m (‘Zadok <strong>the</strong> Priest’, by H<strong>and</strong>el).The re-br<strong>and</strong><strong>in</strong>g <strong>and</strong> restructur<strong>in</strong>g <strong>of</strong> <strong>the</strong> Champions League allowed <strong>UEFA</strong> to market <strong>the</strong>tournament <strong>in</strong> a different way. Whilst <strong>the</strong> clubs had previously sold <strong>the</strong> commercial rights to <strong>the</strong>irhome games <strong>in</strong>dividually, <strong>UEFA</strong>’s ownership <strong>of</strong> <strong>the</strong> Champions League <strong>and</strong> <strong>the</strong> commodification<strong>of</strong> <strong>the</strong> tournament allowed <strong>the</strong> organisation to step <strong>in</strong> <strong>and</strong> centrally control <strong>the</strong> market<strong>in</strong>g <strong>of</strong> <strong>the</strong>tournament. The rebr<strong>and</strong><strong>in</strong>g <strong>of</strong> <strong>the</strong> competition, <strong>in</strong> conjunction with <strong>the</strong> spirall<strong>in</strong>g value <strong>of</strong>television rights, enabled <strong>UEFA</strong> <strong>and</strong> TEAM to ‘optimise’ <strong>the</strong> revenues from both television <strong>and</strong>commercial sponsorship through <strong>the</strong> <strong>in</strong>tegration <strong>of</strong> a platform <strong>of</strong> blue chip sponsors advertis<strong>in</strong>g<strong>the</strong>ir wares on perimeter hoard<strong>in</strong>gs <strong>and</strong> through television exposure, <strong>of</strong>ficial Champions Leagueliterature <strong>and</strong> merch<strong>and</strong>is<strong>in</strong>g, <strong>and</strong> through broadcasters. 14 The European Cup was thus transformedfrom an exclusive ‘Champions-only’ contest, to a commodified <strong>and</strong> commercially exploitedproduct, with greater emphasis placed on markets, guarantees <strong>and</strong> commercial considerations.Inevitably, <strong>the</strong> transformation <strong>of</strong> <strong>the</strong> competition has been subject to both popular <strong>and</strong>academic criticism. Most notably, <strong>the</strong> Champions League has been held to be responsible for <strong>the</strong>grow<strong>in</strong>g dom<strong>in</strong>ation <strong>of</strong> <strong>the</strong> elite clubs <strong>in</strong> <strong>the</strong>ir domestic markets, impact<strong>in</strong>g negatively oncompetitive balance. As <strong>UEFA</strong> recognised <strong>and</strong> exploited <strong>the</strong> commercial trends <strong>in</strong> sport through <strong>the</strong>Champions League, <strong>and</strong> attempted to consolidate its own authority through <strong>of</strong>fer<strong>in</strong>g <strong>the</strong> clubsgreater f<strong>in</strong>ancial opportunity, <strong>the</strong> expansion <strong>of</strong> <strong>the</strong> competition consolidated <strong>the</strong> wealth <strong>of</strong> <strong>the</strong>biggest clubs, provid<strong>in</strong>g a f<strong>in</strong>ancial premium that has marked <strong>the</strong> compet<strong>in</strong>g clubs out aga<strong>in</strong>st thosecompet<strong>in</strong>g solely <strong>in</strong> domestic competition. Appendix 2 shows <strong>the</strong> premiums paid to clubscompet<strong>in</strong>g <strong>in</strong> <strong>the</strong> Champions League s<strong>in</strong>ce <strong>the</strong> tournament started, by <strong>UEFA</strong> from <strong>the</strong>ir commercialexploitation <strong>of</strong> <strong>the</strong> competition. The figures do not, <strong>the</strong>refore, <strong>in</strong>clude <strong>the</strong> extra match day revenuesgenerated by clubs.The lead<strong>in</strong>g clubs, <strong>in</strong> <strong>the</strong> largest markets have <strong>the</strong>refore received almost CHF 300 million <strong>in</strong><strong>the</strong> last three years alone as a result <strong>of</strong> <strong>the</strong> Champions League. The revenue stream has <strong>the</strong>reforebecome an <strong>in</strong>creas<strong>in</strong>gly important revenue stream for <strong>the</strong> participat<strong>in</strong>g clubs. The more clubscompete, <strong>the</strong>y more <strong>the</strong>y generate, but simultaneously <strong>the</strong> more <strong>the</strong>y become dependent on <strong>the</strong>revenues generated from <strong>the</strong> Champions League <strong>and</strong> <strong>the</strong> consequent need to qualify, as evidencedby <strong>the</strong> spectacular collapses <strong>of</strong> Leeds United <strong>and</strong> Borussia Dortmund. In that context, it is hardlysurpris<strong>in</strong>g that <strong>the</strong> compet<strong>in</strong>g clubs are look<strong>in</strong>g <strong>in</strong>creas<strong>in</strong>gly to secure <strong>the</strong>ir position with<strong>in</strong> <strong>the</strong>competition <strong>and</strong> lobby<strong>in</strong>g for <strong>in</strong>creas<strong>in</strong>g guarantees with<strong>in</strong> <strong>the</strong> competitive environment.The desire <strong>of</strong> <strong>the</strong> elite clubs for greater guarantees with regards to competition entry has beensubject to particular criticism. Similarly, <strong>the</strong> manner <strong>in</strong> which Champions League funds aredistributed has also been attacked. Accord<strong>in</strong>g to Morrow, <strong>the</strong> Champions League is arguably‘football’s closest approximation to a hermetic competition’ <strong>and</strong> that ‘while domestic leaguechampionship success was <strong>the</strong> requirement for entry to <strong>the</strong> old European Cup, such sport<strong>in</strong>g success14 <strong>UEFA</strong>’s current commercial partners <strong>in</strong> <strong>the</strong> Champions League are He<strong>in</strong>eken, Sony Playstation, Mastercard, <strong>and</strong>Ford.32
is no longer necessary nor <strong>in</strong>deed sufficient to ga<strong>in</strong> automatic entry to <strong>the</strong> league stages <strong>of</strong> <strong>the</strong>competition’ (2003: 22). The <strong>in</strong>troduction <strong>of</strong> <strong>UEFA</strong> co-efficients, a system <strong>of</strong> grad<strong>in</strong>g clubs on <strong>the</strong>basis <strong>of</strong> <strong>the</strong>ir own performance, <strong>and</strong> <strong>the</strong> performance <strong>of</strong> clubs from <strong>the</strong> same national association, isaccused <strong>of</strong> creat<strong>in</strong>g a system that is essentially ‘self-perpetuat<strong>in</strong>g’ (Morrow, 2003: 23) whichre<strong>in</strong>forces market advantage <strong>and</strong> play<strong>in</strong>g success’ (Moorhouse, 2002: 76). It may be <strong>the</strong> casehowever, that ‘sport<strong>in</strong>g’ considerations have been too narrowly def<strong>in</strong>ed. Whilst qualification for <strong>the</strong>European Cup may have been limited solely to national champions, it is unlikely that such aprocedure produced a tournament <strong>of</strong> greater sport<strong>in</strong>g quality. It simply cannot be plausibly arguedthat <strong>the</strong> elite competition <strong>of</strong> European football would be <strong>of</strong> a higher ‘sport<strong>in</strong>g’ quality, or evenethos, with <strong>the</strong> champions <strong>of</strong> Albania <strong>in</strong> <strong>the</strong> group stages ra<strong>the</strong>r than <strong>the</strong> runners-up, third or fourthplaced team from Engl<strong>and</strong>, Italy or Spa<strong>in</strong>, which is why <strong>the</strong> <strong>UEFA</strong> Cup was <strong>of</strong> a higher st<strong>and</strong>ardbefore <strong>the</strong> transformation <strong>of</strong> <strong>the</strong> Champions League.The desire to formulate a competition <strong>of</strong> genu<strong>in</strong>e sport<strong>in</strong>g quality <strong>and</strong> equality seem to be asjustifiable selection criteria as <strong>the</strong> sole selection <strong>of</strong> national champions, especially given that some<strong>of</strong> those national champions would be produc<strong>in</strong>g a quality <strong>of</strong> football more typical <strong>of</strong> <strong>the</strong> lowerdivisions <strong>in</strong> some <strong>of</strong> <strong>the</strong> larger nations. It is true to say that <strong>the</strong> competition benefits clubs from <strong>the</strong>bigger, wealthier markets, but that also recognises that <strong>the</strong> bigger, wealthier markets have mostfrequently produced, with some clear exceptions, <strong>the</strong> highest st<strong>and</strong>ard <strong>of</strong> football. The entryrequirements are no more or less sport<strong>in</strong>g, but <strong>the</strong> means by which <strong>the</strong> selections are made havechanged. Indeed, one could argue that <strong>the</strong> system is now more meritocratic, given that <strong>the</strong>compet<strong>in</strong>g clubs are <strong>of</strong> broadly a far higher st<strong>and</strong>ard than was previously <strong>the</strong> case. Whilst it isprobably true to say that such a system <strong>of</strong> entry re<strong>in</strong>forces <strong>the</strong> participation <strong>of</strong> <strong>the</strong> elite clubs <strong>and</strong>nations, <strong>the</strong> opportunities rema<strong>in</strong> open for clubs from <strong>the</strong> smaller nations to enter. Inevitably, <strong>the</strong>tension exists between <strong>the</strong> extent to which <strong>the</strong> Champions League should embody <strong>the</strong> right <strong>of</strong> <strong>the</strong> 52national associations to compete, <strong>and</strong> <strong>the</strong> extent to which it should comprise <strong>the</strong> elite footballcompetition <strong>of</strong> Europe, with <strong>the</strong> aim <strong>of</strong> rais<strong>in</strong>g sport<strong>in</strong>g st<strong>and</strong>ards. The reality is that more <strong>of</strong> onenecessarily compromises <strong>the</strong> o<strong>the</strong>r, <strong>and</strong> it will be <strong>UEFA</strong>’s ongo<strong>in</strong>g to task to manage <strong>and</strong> balance<strong>the</strong>se two objectives <strong>in</strong> <strong>the</strong> com<strong>in</strong>g years.The manner <strong>in</strong> which Champions League revenue is distributed has also been subject to somecriticism (Morrow, 2003; Moorhouse, 2002). In 2003-04, <strong>of</strong> <strong>the</strong> CHF 885 million generated, CHF631 was paid to <strong>the</strong> clubs, with <strong>the</strong> balance split between national associations, leagues <strong>and</strong> clubs,<strong>and</strong> <strong>UEFA</strong>, to ‘foster solidarity’ <strong>and</strong> to fund runn<strong>in</strong>g costs (<strong>UEFA</strong> <strong>and</strong> TEAM, 2004: 32-33).Perhaps most <strong>in</strong>terest<strong>in</strong>g, however, is <strong>the</strong> method used to distribute <strong>the</strong> money paid to compet<strong>in</strong>gclubs. The money paid to clubs is divided approximately equally between <strong>the</strong> ‘fixed amounts’, paidon <strong>the</strong> basis <strong>of</strong> participation <strong>and</strong> progress <strong>in</strong> <strong>the</strong> tournament, <strong>and</strong> <strong>the</strong> ‘market pool’, distributed‘accord<strong>in</strong>g to <strong>the</strong> proportional value <strong>of</strong> each TV market represented by <strong>the</strong> clubs tak<strong>in</strong>g part <strong>in</strong> <strong>the</strong><strong>UEFA</strong> Champions League, <strong>and</strong> be split among <strong>the</strong> number <strong>of</strong> teams (4, 3, 2, or 1) participat<strong>in</strong>g froma given association’. 15 Of <strong>the</strong> market pool, half is distributed on <strong>the</strong> basis <strong>of</strong> league performance <strong>in</strong><strong>the</strong> prior season (see table 2), <strong>the</strong> o<strong>the</strong>r half distributed accord<strong>in</strong>g to <strong>the</strong> number <strong>of</strong> matches played<strong>in</strong> <strong>the</strong> competition. The four factors <strong>the</strong>refore comprise: how many clubs from a market compete <strong>in</strong><strong>the</strong> Champions League; <strong>the</strong> league st<strong>and</strong><strong>in</strong>g <strong>of</strong> a club <strong>in</strong> <strong>the</strong> previous season; performance <strong>in</strong> <strong>the</strong>Champions League; <strong>and</strong> <strong>the</strong> performances <strong>of</strong> o<strong>the</strong>r clubs from <strong>the</strong> same country <strong>in</strong> <strong>the</strong> ChampionsLeague. This means <strong>of</strong> redistribution has, unsurpris<strong>in</strong>gly, been subject to some criticism, given <strong>the</strong>discrepancies between sport<strong>in</strong>g achievement <strong>and</strong> f<strong>in</strong>ancial reward (Morrow, 2003: 22-27;Moorhouse, 2003: 74-77). For example, <strong>in</strong> <strong>the</strong> 2003-04 Champions League, Manchester United,reach<strong>in</strong>g only <strong>the</strong> last sixteen, earned CHF 42.496 million, compared to Champions Porto (CHF29.980 million), f<strong>in</strong>alists Monaco (CHF 40.081 million), semi-f<strong>in</strong>alists Deportivo La Coruña (CHF28.175 million) <strong>and</strong> quarter-f<strong>in</strong>alists AC Milan (27.106 million) (<strong>UEFA</strong> <strong>and</strong> TEAM, 2004: 35).15 <strong>UEFA</strong> (2004) ‘F<strong>in</strong>ancial memor<strong>and</strong>um concern<strong>in</strong>g <strong>the</strong> 2004/05 <strong>UEFA</strong> Champions League’. Letter to <strong>UEFA</strong> memberassociations, for <strong>the</strong> attention <strong>of</strong> <strong>the</strong> President <strong>and</strong> General Secretary from <strong>the</strong> <strong>UEFA</strong> CEO, 19 th August. In 2003-04,nearly 50% <strong>of</strong> <strong>the</strong> money generated allocated through <strong>the</strong> market pool (CHF 311 million out <strong>of</strong> total CHF 631 million).33
- 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 30 and 31: eceived from the sale of broadcasti
- 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 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
- Page 80 and 81: in 2000 and this is reflected in th
- Page 82 and 83: up whether it’s a meaningful prop
- Page 84 and 85: Europe, other scenarios can be envi
- Page 86 and 87: possibility of breakaway competitio
- Page 88 and 89:
With regard to the governance of UE
- Page 90 and 91:
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
- Page 100 and 101:
A lot of people think G14 is a supe
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at the same time, the truism that c
- Page 104 and 105:
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
- Page 116 and 117:
articulated elsewhere (Sugden and T
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UEFA’s day-to-day involvement in
- Page 120 and 121:
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
- Page 174 and 175:
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
- Page 186 and 187:
The Combined Code on Corporate Gove
- Page 188 and 189:
Galaskiewicz, J. and Wasserman, S.
- Page 190 and 191:
Kurth, T. (2004), ‘Message from T
- Page 192 and 193:
Pierre, J. and Peters, B. G. (2000)
- Page 194 and 195:
UEFA (2003c) Creating a Better Futu
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Reding, V. (2002) ‘Sport and Tele