So to cut <strong>of</strong>f revenues from bigger clubs, do<strong>in</strong>g that is not go<strong>in</strong>g to be easy (Rick Parry, chiefexecutive, Liverpool FC, personal <strong>in</strong>terview, 17 th February 2005).As well as <strong>the</strong> duality <strong>of</strong> structures militat<strong>in</strong>g aga<strong>in</strong>st greater redistribution, <strong>the</strong> veryexistence <strong>of</strong> an open league system with promotion <strong>and</strong> relegation is also a dis<strong>in</strong>centive toredistribute. It is argued that both pr<strong>of</strong>it <strong>and</strong> competitive balance can only be achieved throughclosed leagues, as only <strong>the</strong> security <strong>of</strong> closed leagues allows its members to behave <strong>in</strong> a fashion <strong>in</strong>which it can reta<strong>in</strong> pr<strong>of</strong>it, <strong>and</strong> redistribute effectively as <strong>the</strong> clubs perceive <strong>the</strong>ir jo<strong>in</strong>t <strong>in</strong>terests <strong>in</strong>do<strong>in</strong>g so (Hoehn <strong>and</strong> Szymanski, 1999: 216; Szymanski <strong>and</strong> Kuypers, 2000: 308-318). In contrast,redistributive solidarity is underm<strong>in</strong>ed <strong>in</strong> European sport by <strong>the</strong> fact that compet<strong>in</strong>g clubs changeannually due to <strong>the</strong> open league system. It is <strong>the</strong>refore argued that competition needs to bestructured <strong>in</strong> a way that <strong>the</strong> competitors feel happy to redistribute revenue. The only situation <strong>in</strong>which that will occur is if clubs are almost guaranteed <strong>the</strong> ability to participate year on year. Thus,closed competitions are more economically viable, <strong>and</strong> <strong>the</strong>y also promote greater equilibrium <strong>in</strong>competition. Free-market approaches have consequently promoted <strong>the</strong> <strong>in</strong>troduction <strong>of</strong> a hermeticleague system <strong>in</strong>to European football.The logic <strong>of</strong> <strong>the</strong> free-market paradigm is entic<strong>in</strong>g, yet whilst it has been argued that regulatoryapproaches fail to recognise <strong>the</strong> political <strong>and</strong> economic realities help<strong>in</strong>g to shape <strong>the</strong> <strong>in</strong>dustry, so too<strong>the</strong> free-market paradigm fails to fully expla<strong>in</strong> or meet <strong>the</strong> very specific challenges faced by thosecharged with <strong>the</strong> responsibility <strong>of</strong> govern<strong>in</strong>g <strong>the</strong> European game. In assess<strong>in</strong>g developments <strong>in</strong> <strong>the</strong>governance <strong>of</strong> football, we should be wary <strong>of</strong> <strong>the</strong> determ<strong>in</strong>ism evident <strong>in</strong> <strong>the</strong> free-market approach,<strong>and</strong> predictions <strong>of</strong> <strong>the</strong> ‘<strong>in</strong>evitability’ <strong>of</strong> a European super league, particularly one that ishermetically structured. A comprehensive underst<strong>and</strong><strong>in</strong>g <strong>of</strong> sport cannot only be based on anunderst<strong>and</strong><strong>in</strong>g <strong>of</strong> <strong>the</strong> economics <strong>of</strong> sport. Whilst pr<strong>of</strong>essional football is now, irreversibly, abus<strong>in</strong>ess, it is not just a bus<strong>in</strong>ess, <strong>and</strong> <strong>the</strong> reluctance to engage <strong>and</strong> underst<strong>and</strong> <strong>the</strong> broader social,historical <strong>and</strong> cultural aspects <strong>of</strong> football <strong>and</strong> debates regard<strong>in</strong>g <strong>the</strong> normative benefits <strong>of</strong> <strong>the</strong>European model leads to an <strong>in</strong>complete analysis. In <strong>the</strong> social <strong>and</strong> cultural environment <strong>of</strong> Europeanfootball, promotion <strong>and</strong> relegation rema<strong>in</strong>s an <strong>in</strong>tr<strong>in</strong>sic element, <strong>the</strong> global dimensions <strong>of</strong> <strong>the</strong> game,<strong>and</strong> <strong>the</strong> history <strong>of</strong> clubs negat<strong>in</strong>g <strong>the</strong> possibility <strong>of</strong> top-slic<strong>in</strong>g <strong>the</strong> elite <strong>of</strong> European football <strong>and</strong>deposit<strong>in</strong>g <strong>the</strong>m <strong>in</strong> a hermetically structured super league. For economists however, promotion <strong>and</strong>relegation ceases to be <strong>of</strong> cultural significance <strong>and</strong> becomes an economic impediment which‘reduces <strong>the</strong> clubs’ ability to extract rents’, ‘underm<strong>in</strong>es pr<strong>of</strong>itability’ <strong>and</strong> leads to ‘highly<strong>in</strong>efficient outcomes’ (Szymanski, 2004a: 32). Similarly, <strong>the</strong> opportunity for smaller clubs tocompete aga<strong>in</strong>st <strong>and</strong> defeat larger clubs has been flippantly dismissed <strong>in</strong> <strong>the</strong> follow<strong>in</strong>g terms:‘Hearten<strong>in</strong>g as such David <strong>and</strong> Goliath stories may be, <strong>the</strong>re can be little doubt that erraticoutcomes like this will significantly reduce overall welfare’ (Szymanski, 2004a: 32). Thankfully,<strong>the</strong>re is little enthusiasm for a closed shop <strong>in</strong> Europe, even amongst its elite clubs:I don’t th<strong>in</strong>k anyone <strong>in</strong> Europe wants a US league formed as a closed shop, with big clubs <strong>and</strong>so on. We are <strong>in</strong> a system. We have relegation, promotion <strong>and</strong> so on. This is part <strong>of</strong> history sowhy change it? Everybody likes it (Umberto G<strong>and</strong><strong>in</strong>i, organis<strong>in</strong>g director, AC Milan, personal<strong>in</strong>terview: 14 th February 2005).Despite <strong>the</strong> economic logic, <strong>the</strong> plethora <strong>of</strong> problems <strong>and</strong> obstacles make <strong>the</strong> <strong>in</strong>troduction <strong>of</strong> aclosed system <strong>of</strong> pan-European competition highly unlikely. Firstly, <strong>and</strong> critically, decid<strong>in</strong>g whichteams would be part <strong>of</strong> such a hermetic league would be an impossible task. Would it be a snapshot<strong>of</strong> European football at <strong>the</strong> time <strong>the</strong> league is formed or based on historical performance? Whichregions would be represented <strong>and</strong> which not? How would access be granted to emergent teams? Theplurality <strong>and</strong> diversity <strong>of</strong> pr<strong>of</strong>essional football <strong>in</strong> Europe constitutes an almost <strong>in</strong>surmountableobstacle.Any such system would be likely to place <strong>the</strong> f<strong>in</strong>ancial value <strong>of</strong> a club above sport<strong>in</strong>gqualification <strong>and</strong> thus remove <strong>the</strong> opportunity for smaller clubs to compete with <strong>the</strong> traditionally42
more successful clubs. Whilst elements have been <strong>in</strong>troduced <strong>in</strong>to <strong>the</strong> competitive system whichhave constra<strong>in</strong>ed <strong>the</strong> ability <strong>of</strong> clubs from smaller nations to qualify for competition, it rema<strong>in</strong>s <strong>the</strong>case that sport<strong>in</strong>g merit determ<strong>in</strong>es participation <strong>in</strong> European club football. <strong>the</strong> pr<strong>in</strong>ciple <strong>of</strong> sport<strong>in</strong>gmeritocracy is so <strong>in</strong>gra<strong>in</strong>ed <strong>in</strong> <strong>the</strong> cultural <strong>of</strong> European football, that any divergences from that willbe highly unlikely <strong>in</strong> <strong>the</strong> future.ii. Two leagues or super leagues? Determ<strong>in</strong><strong>in</strong>g <strong>the</strong> futureIf a closed European super league is a distant prospect, how can we expect <strong>the</strong> structures <strong>of</strong>European competition to develop <strong>in</strong> <strong>the</strong> future, <strong>and</strong> what will determ<strong>in</strong>e change? The rationale <strong>and</strong><strong>the</strong> force <strong>of</strong> <strong>the</strong> free market will clearly play a def<strong>in</strong><strong>in</strong>g role, but such a role cannot be looked at <strong>in</strong>isolation from <strong>the</strong> exist<strong>in</strong>g organisation <strong>of</strong> European sport. It is worth reflect<strong>in</strong>g <strong>in</strong>itially on <strong>the</strong>desirability <strong>of</strong> change. What do we want from European competition <strong>and</strong> what should be <strong>the</strong>determ<strong>in</strong>ants <strong>of</strong> change? It seems that voices from all ideological positions agree on at least oneth<strong>in</strong>g, <strong>and</strong> that is <strong>the</strong> desire for a greater degree <strong>of</strong> equality <strong>in</strong> competition. 19 The disagreement lies<strong>in</strong> how to achieve that. One economic approach argues that greater equality should be achievedthrough more redistribution <strong>of</strong> <strong>in</strong>come with<strong>in</strong> leagues. The alternative economic approach is toallow clubs <strong>of</strong> similar economic weight to compete more regularly with one ano<strong>the</strong>r, which would<strong>in</strong>volve restructur<strong>in</strong>g <strong>of</strong> leagues. We have already argued that greater redistribution is politicallydifficult to achieve, which means that leagues would cont<strong>in</strong>ue to be similarly unbalanced. But moreimportantly one has to ask – would greater redistribution actually achieve that? Interest<strong>in</strong>gly, whilstacademics have debated <strong>the</strong> impact <strong>and</strong> importance <strong>of</strong> decl<strong>in</strong><strong>in</strong>g competitive balance,representatives from across European football have played down <strong>the</strong> growth <strong>of</strong> that imbalance:In any league at any time, <strong>the</strong>re’s always been three or four clubs at <strong>the</strong> start <strong>of</strong> <strong>the</strong> seasonwho are probably go<strong>in</strong>g to w<strong>in</strong> it. Liverpool dom<strong>in</strong>ated <strong>in</strong> <strong>the</strong> seventies <strong>and</strong> eighties. Now Isuppose <strong>the</strong> argument is that a Forest <strong>and</strong> Derby are go<strong>in</strong>g to f<strong>in</strong>d it harder to come through<strong>and</strong> I tend to agree that it is go<strong>in</strong>g to be more difficult to see <strong>in</strong> <strong>the</strong> future (David Gill, chiefexecutive, Manchester United FC, personal <strong>in</strong>terview, 28 th January 2005).I th<strong>in</strong>k it’s a fallacy to suggest <strong>the</strong>re’s a huge change. If you look at Liverpool’s dom<strong>in</strong>ance <strong>in</strong><strong>the</strong> 70s <strong>and</strong> 80s, that was pretty all-powerful <strong>and</strong> comprehensive. So is it radically differentnow? The Champions League to an extent hasn’t helped, because <strong>in</strong> absolute terms – <strong>of</strong>course people talk about <strong>the</strong> gulf between <strong>the</strong> Premier league <strong>and</strong> <strong>the</strong> Football League – but <strong>in</strong>absolute terms <strong>the</strong> growth between those <strong>in</strong> <strong>the</strong> Champions League <strong>and</strong> those not is bigger…You’ve still got a situation <strong>in</strong> Engl<strong>and</strong> where on any given day, any team <strong>in</strong> <strong>the</strong> PremierLeague can lose (Rick Parry, chief executive, Liverpool FC, personal <strong>in</strong>terview, 17 th February2005).Such <strong>in</strong>terpretations clearly, perhaps deliberately, underplay <strong>the</strong> competitive transformations <strong>in</strong>European football. Whilst Gill <strong>and</strong> Parry acknowledge both <strong>the</strong> impact <strong>of</strong> <strong>the</strong> Champions League,<strong>and</strong> <strong>the</strong> decl<strong>in</strong><strong>in</strong>g ability <strong>of</strong> previously successful clubs to compete at such a high level, it suits <strong>the</strong>elite clubs to underplay <strong>the</strong> significance <strong>of</strong> <strong>the</strong> transformations, as that serves to legitimise <strong>the</strong>ircont<strong>in</strong>u<strong>in</strong>g dom<strong>in</strong>ance <strong>of</strong> <strong>the</strong> competitions <strong>in</strong> question, <strong>and</strong> underm<strong>in</strong>es <strong>the</strong> calls for greaterassistance to <strong>the</strong> smaller clubs. However, <strong>the</strong>ir po<strong>in</strong>t does rema<strong>in</strong> valid. One can talk aboutdecl<strong>in</strong><strong>in</strong>g competitive balance, but one also has to accept <strong>the</strong> reality that competitive balance hasnever been a def<strong>in</strong><strong>in</strong>g <strong>of</strong> objective <strong>of</strong> European football. This can be expla<strong>in</strong>ed by <strong>the</strong> nature <strong>of</strong> <strong>the</strong>19 Whilst greater equality is desirable, complete equality is probably not. Supporters as well as want<strong>in</strong>g to see a faircontest also take <strong>in</strong>to account o<strong>the</strong>r factors, like <strong>the</strong> desire to be associated with a w<strong>in</strong>n<strong>in</strong>g team, or <strong>in</strong>deed <strong>the</strong> desire tobe associated with a smaller team. Similarly, it may be <strong>the</strong> case that some competitions, such as <strong>the</strong> FA Cup, derivemuch <strong>of</strong> <strong>the</strong>ir appeal from ‘<strong>in</strong>equality’ <strong>and</strong> <strong>the</strong> prospect that a smaller team may come up aga<strong>in</strong>st <strong>and</strong> defeat a largerteam.43
- 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 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 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
- Page 92 and 93: management. The strength of this re
- Page 94 and 95: exclusively consultative rather tha
- Page 96 and 97: 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)
- Page 194 and 195:
UEFA (2003c) Creating a Better Futu
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Reding, V. (2002) ‘Sport and Tele