RIAS 05

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FOREWORD Mikael DASHIAN Source: <strong>RIAS</strong> This <strong>RIAS</strong> Newsletter issue has been in the making for a little longer time than the previous ones. It is attributed to production. We need improvements to appear more often. This is the very reason why I get the opportunity to point out a very important event in sports and finance which passed underestimated. Long-lasting investigation of the European commission finally resulted in quite significant desicions. These concern activities of a few football clubs from Spain, namely Real Madrid C.F., Athletic Club de Bilbao, Futbol Club Barcelona, Club Atlético Osasuna, Elche Club de Fútbol, Hércules de Alicante Club de Fútbol, Valencia Club de Fútbol. 2
FOREWORD As to the European Antimonopoly Body these clubs have made profits for many years without any objective grounding. The special relations with the regions, their support place fair competition in doubt. Thus the sanctions followed. Though it is not the time to go into legal details, we should see the situation as a whole. The main circumstance is that the regulators have started to treat world sport leaders such as beyond any doubt Madrid and Barcelona clubs as commercial entities. It is also important that antimonopoly investigations are conducted in various jurisdictions. For example, the inquiry is known to have been held in the Netherlands, in particular The Philips Sport Vereniging was in the spotlight. The very fact that antimonopoly regulations are applies to sports suprises many sport professionals. As the business practice, the very essence of relations between local authorities, city halls and large sport clubs, is being doubted. Taking the nature of the subject into account, more appeals, new rulings and long-lasting litigations are to be expected. This would require more careful and complex work than meeting UEFA financial fair-play requirements. Here we have an opportunity for a large-scale legal research on harmonization of UEFA Financial Fairplay Regulations and European Union Antitrust Law Complications. But there is a bright side. Sport clubs worldwide were a given a sign that they should undertake additional legal expertise and formalize relations with their sponsors and partners more carefully. Mikael DASHIAN 3
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RIAS 05

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