Transfers, licensing systems and players’ agents: the EU as a gatekeeper of the

integrity of sport competitions?

Gianluca Monte

Willy Calewaert Chair Fifth LectureVUB, Brussels, Thursday, 17 February 2011, 6.00-7.30 pm

Table of contents

1. Integrity of sport – an ambiguous concept

2. Licensing systems and the Financial Fair Play

3. Transfers

4. Sports agents

5. Match fixing

6. A question of good governance?

Integrity of sport?

Integrity – an ambiguous concept

• Integrity of values – Team spirit– Solidarity– Tolerance– Fair play

• Integrity of competitions– Competitive balance– Incertainty of outcome– Regular running– Specificity of sport

Integrity in the Lisbon Treaty

TITLE XIIEDUCATION, VOCATIONAL TRAINING, YOUTH AND SPORTArticle 165(ex Article 149 TEC)

[…] The Union shall contribute to the promotion of European sporting issues, while taking account of the specific nature of sport, its structures based on voluntary activity and its social and educational function.

2. Union action shall be aimed at: […]— developing the European dimension in sport, by promoting

fairness and openness in sporting competitions and cooperation between bodies responsible for sports, and by protecting the physical and moral integrity of sportsmen and sportswomen, especially the youngest sportsmen and sportswomen.

Licensing systems

• What are licensing systems for club competitions?

• Main objective: integrity

• Open or closed competitions?

• Financial discipline as key element

• Licensing systems as tool to promote investment and improve infrastructure

EU conference

• Brussels, 17-18 September 2009• Action 47 in the White Paper on Sport• Exchange of good practices• 150 participants – football and other team sports• Respect for autonomy of sport• Main conclusions:

– Common points and differences (countries, disciplines)– Promotion of professionalism and investment in sport– Mutual learning– Need to remain balanced and respect Internal Market and

competition rules

UEFA’s Financial Fair Play

• UEFA’s club licensing system (2004)• Main criticism: national delivery of licences – no

central control• FFP principle announced in 2009 –

implementation in 2010 and onwards• Main elements:

– Club financial control panel– Break even rule– Encourage clubs’ long term investment (infrastructure,

youth)– Compatible with EU competition rules?

Transfers

• A system to ensure stability in team sports• Transfer windows endorsed by the ECJ

(Lehtonen ruling)• Transfer fees – the situation pre-Bosman• The Bosman ruling and its consequences: the

FIFA Regulations on the Status and Transfer of Players

• The Bernard ruling and compensation for training

• Time for an overall review?

Transfers fees

• Transfer fee: € 93M • Transfer fee: € 66M

Transfer fees

Rank Player From To Transfer

Fee (£ millions)

Transfer Fee

(€ millions) Year

Inflation adjusted fee

(£ millions)

1 Cristiano

Ronaldo Manchester

United Real Madrid £80 €93.5 2009 £80

2 Zlatan

Ibrahimović Internazionale Barcelona £56.5 €66 2009 £57

3 Kaká Milan Real Madrid £55 €65 2009 £56

4 Fernando

Torres Liverpool Chelsea £50 €58 2011 £50

5 Zinedine Zidane Juventus Real Madrid £45.7 €75 2001 £55

6 Luís Figo Barcelona Real Madrid £37 €58.5 2000 £46

7 Hernán Crespo Parma Lazio £35.5 €55 2000 £45

8 Andy Carroll Newcastle

United Liverpool £35 €40 2011 £35

9 David Villa Valencia Barcelona £34.2 €40 2010 £34

10 Gianluigi Buffon Parma Juventus £32.6 €49.2 2001 £40

11 Robinho Real Madrid Manchester City £32.5 €42 2008 £32

12 Christian Vieri Lazio Internazionale £32 €48.3 1999 £41

13 Andriy

Shevchenko Milan Chelsea £30.8 €46.4 2006 £33

14 Dimitar

Berbatov Tottenham

Hotspur Manchester

United £30.75 €46.4 2008 £31

15 Pavel Nedvěd Lazio Juventus £30.7 €46.3 2001 £38

Transfer fees Player Club

Annual gross wage in million Euros (€ M)

1 Zlatan Ibrahimovic Inter Milan € 9 M

2 Ricardo Kaka AC Milan € 9 M

3 Lionel Messi FC Barcelona € 8.4 M

4 John Terry Chelsea FC € 7.6 M

5 Frank Lampard Chelsea FC € 7.6 M

6 Thierry Henry FC Barcelona € 7.5 M

7 Samuel Eto´o FC Barcelona € 7.5 M

8 Cristiano Ronaldo Manchester United € 6.8 M

9 Ronaldinho AC Milan € 6.5 M

10 A. Shevchenko AC Milan € 6.5 M

11 Michael Ballack Chelsea FC € 6.5 M

12 Steven Gerrard Liverpool FC € 6.5 M

13 Rio Ferdinand Manchester United € 6.5 M

14 Raul Gonzalez Real Madrid € 6.4 M

15 Ruud Van Nistelrooy Real Madrid € 6.4 M

Sports agents

• Point 4.4 of the White Paper on Sport: reports on bad practices, differing regulations (public, private), calls on the EU to regulate the activity of players’ agents

• External independent study carried out in 2009• Results available on Commission’s website:

http://ec.europa.eu/sport/what-we-do/doc55_en.htm

• European Parliament resolution (2010)• Conference to be organised by the Commission

Sports agents: the study

Some figures:• Agents’ activities in 32 out of 71 sport disciplines

examined• Number of official registered agents in the EU:

3,600 (5 “big” MS: 75% of total)• Football: 81% of total agents• Official + non-official agents in the EU: between

5,700 and 6,100 (estimated)• Agents’ activities turnover: €200 M for the

2007/2008 season (estimated)

Sports agents: the study

The regulatory framework– Public authorities:

• Job placement regulation (18 MS)• Specific regulation on sports agents (5 MS:

Bulgaria, France, Greece, Hungary, Portugal)• Contract law (all MS)

– Private bodies:• International regulations (FIFA, FIBA, IRB, IAAF)• National regulations

– Football (all MS), athletics (9 MS) and basketball (8 MS)– Handball (AT, DE, PT), ice-hockey (FI), cricket (EN)

Sports agents: the study

The issues raised by agents’ activities

– Difficulties in regulating agents’ activities• Proposed overhaul of FIFA Regulations

– Protection of professional sportspeople• Provisions laid down in sporting regulations• Qualitative analysis – sample consultation• Limits of the existing rules

– Financial transparency and financial crime• Definitions (money laundering, corruption, fiscal fraud)• Practices• Existing solutions

– Trafficking of sportspeople• Practices

– Protection of minors

Sports agents: the study

Synthesis and recommendations– Differing regulations– Ethical issues– Need for an intervention?

• Difficulty in justifying an EU intervention on the basis of Internal Market rules• No problem identified in practice

– Member States• Ethical and public order issues• Strengthening existing rules + enforcement

– EU institutions• Dialogue & consultation• Information• Coordinating and promoting action of sport movement

– Sport movement• Dialogue with agents, self-regulatory licensing scheme• Education and training• Transparency• Ethics – code of conduct• Controls and sanctions

Match fixing

– Sporting-motivated vs Betting-motivated– Match fixing: corruption/fraud– Criminal and civil vs sportive sanctions– Link with gambling – early warning

systems and educational programmes– International dimension– Role of the European Commission and of

the Council of Europe– New item on the European sport agenda?

Good governance

– Autonomy of sport– Respect for the law– Democracy– Transparency– Accountability– Representation of stakeholders

THANK YOU!