The break-even requirement, the cornerstone of UEFA’s Financial Fair Play Regulations, will first apply to clubs in UEFA competitions for the 2013/14 season. As a product of the football family’s consensus for change, it primarily aims to help European clubs achieve amore sustainable balance between their costs and revenues.
Recently there have been reports that the Argentinean government has implemented a tax law that effectively prohibits third party ownership (TPO) of football players. After getting in touch with the esteemed football lawyer Ariel Reck in Argentina, we decided to write a short blog about the consequences for the Argentinean football industry of this law coming into force and whether it has the teeth to actually stop TPO. Ariel comments on the recent developments in Argentina and I set out the basics and consequences for the global TPO market. For readers new to the concept of TPO, I set out below a brief summary below.
Having detailed some of the match-fixing scandals to have been prominent in 2012, and the approach taken at the London Olympic Games in part 1, we go on to examine action being taken across the globe.
2012 was predicted to be the year when match-fixing, particularly that related to sports betting, became the principal issue of sporting integrity worldwide with London hosting the Olympic Games. As it transpired there was only one such scandal at the 2012 Games and it was not related to betting. Yet the Olympics did provide the actors in the fight against match-fixing with many invaluable lessons.
It was supposed to be a low-key friendly. An opportunity for players to retain their match sharpness during the winter-break in Serie A. However AC Milan's friendly against Italian lower league club Pro Patria recently hit the headlines for all of the wrong reasons following the decision by the Milan players to walk off the pitch midway through the first half in protest against racial abuse suffered by several of their black players, most notably former Spurs midfielder Kevin-Prince Boateng, at the hands of some sections of the Pro Patria support.
I thought it would be useful with Financial Fair Play (FFP) entering into mainstream football discussion to briefly set out my top ten tips to help understand the key concepts.
1) The FFP regulations not only ensures that clubs break-even. They cover a wide range of licensing conditions which are overseen initially by national football associations. Such requirements include ensuring clubs pay their debts in a timely manner.
The dream of reviving the Soviet football league has taken a step closer to reality after a group of top officials backed the recreation of what in its day was one of the toughest leagues in the world. Nowadays top Russian and Ukrainian clubs are owned by tycoons and can easily afford stars like Hulk or Eto'o. Though the idea of a creation of a breakaway league in itself is not new, such an initiative raised a lot of debate.
In 1995 the case of Jean-Marc Bosman came before the European Court of Justice and changed the face of football in Europe. The case involved (amongst other issues) a challenge to the legality of the transfer system for football players. The ECJ found in favour of Bosman and against his club, RFC Liege, the Belgium FA and UEFA, determining that transfer fees for out of contract players were illegal where a player was moving between one EU nation and another.
Under European Union (‘EU’) law (Art. 14 of the Audiovisual Media Services Directive), Member States have the right to designate events said to be of such major importance for society that they must be broadcast on free-to-air television channels reaching a substantial proportion of the public. EU Member States have to notify the European Commission of their list of designated events and the Commission then verifies the compatibility of the Member State’s list with the relevant provisions of EU law.
Manchester City recently announced a £97m loss in their latest 2011-12 accounts. This led to the press and commentators fervently questioning City’s ability to comply with UEFA’s Financial Fair Play Rules (FFPRs). The aim of this blog is to illustrate how City will be able to use various deductibles in the FFPRs to significantly reduce their losses for FFPR calculation purposes. Such deductibles come in the form of removing infrastructure costs and subtracting player contracts entered into before June 2010 (so long as losses year on year are reducing). Such deductions will almost certainly lead to a much smaller loss which although may breach the FFPRs, is likely to incur softer sanctions than an outright ban.