How State aid rules are being applied to European football: Part 1 – examples of the Commission’s approach
Published 07 July 2014 By: Richard Craven
The Investigations into football clubs in Spain and the Netherlands
Football State aid
The 2013 investigations involve existing aid for which mandatory advance Commission notification and approval (Article 108(3) and (2) TFEU) have not taken place. The compatibility of this “unlawful” aid is nevertheless dependent on a Commission determination of compatibility with the internal market. As initial analysis has not resolved doubts over compatibility, an in-depth investigation has been commenced; although no conclusions can be drawn, such a contentious, resource intensive and public step is clearly not a good sign for the clubs involved.
Article 107(1) sets forth a broad prohibition:
… any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the internal market.
This work was written for and first published on LawInSport.com (unless otherwise stated) and the copyright is owned by LawInSport Ltd. Permission to make digital or hard copies of this work (or part, or abstracts, of it) for personal use provided copies are not made or distributed for profit or commercial advantage, and provided that all copies bear this notice and full citation on the first page (which should include the URL, company name (LawInSport), article title, author name, date of the publication and date of use) of any copies made. Copyright for components of this work owned by parties other than LawInSport must be honoured.
- Tags: European Commission | European Ombudsman | Financial Fair Play | Football | Holland | Spain | State Aid Law | Treaty on the Functioning of the European Union | UEFA Club Licensing
- How State aid rules are being applied to European football: Part 2 – the availability of exemptions
- How State aid rules are being applied to European football: Part 3 – case study of France and UEFA Euro 2016
- How financial regulation affects competition across Europe’s big five football leagues
- The financial life cycle of a professional footballer - Planning for retirement
- The financial life cycle of a professional footballer - The early years