Home » Is UEFA’s power waning? Long live competition!

Is UEFA’s power waning? Long live competition!

by admin
Is UEFA’s power waning?  Long live competition!

The European football association, Union of European Football Associations (UEFA), is considered a supply-side monopolist in the market for European football competitions. In addition to the European Championship, which takes place every four years, UEFA organizes numerous competitions at club level, for example UEFA Europa Conference League or the UEFA Europa League. However, the premium product, the proverbial “cash cow” (Horeni 2024), is the UEFA Champions League (see e.g. Follert and Daumann 2021a), the so-called “premier class”. For several years now, UEFA has been coming under increasing pressure because numerous top clubs are threatening to use the platform provided by UEFA for the cross-border championship race in favor of a privately organized super league (see Berthold 2018; Follert 2019; Drewes and Rebeggiani 2019; Follert and Emrich 2020; Daumann and Schurade 2023) can no longer be used. So far, this market entry has been prevented by – possibly unintentionally – pooling the forces of buyers and UEFA. While many fans opposed the “Super League” project out of concern for the values ​​of football, UEFA styled itself as the savior of traditional football, but was probably pursuing a rational calculation. In a liberal manner, the association could have left the decision to consumers within the framework of their sovereignty as to which product best corresponds to their preferences. The umbrella organization of European football could have tried to adequately reform its product in the interests of consumer preferences – and not just its own (short-term) income maximization (see Follert and Daumann 2021a; Horeni 2024). UEFA chose a different path, which can be criticized from an economic perspective. It issued a ban against the establishment of a corresponding league within its territory (cf. Lerche and von Stülpnagel 2023). UEFA’s sharpest sword so far has been the potential exclusion of Super League players from their national competitions (see Follert and Daumann 2021b), which denied the top players in particular a large stage and the corresponding attention. This threatening potential results precisely from its previous market position, which raises doubts about the viability of competition in the relevant market (see Follert and Daumann 2021b) and suggests that UEFA is abusing its dominant market position. Individual actors in the Super League project (European Superleague Company SL) took legal action against this behavior of the two associations UEFA and Fédération Internationale de Football Association (FIFA) (cf. https://www.lto.de/recht/nachrichten/n/eugh-uefa-verliert-super-league-streit-fifa-wettbewerbsrecht/). UEFA had to accept a defeat before the European Court of Justice (ECJ) in December 2023 (see judgment of December 21, 2023, Ref. C-333/21), which caused the previous bulwark to crumble and UEFA’s power to dwindle (for the time being). leaves. In its ruling, the ECJ emphasizes that the organization of sporting competitions as well as the associated exploitation of media rights are economic processes that must be in accordance with European law. The court further states that the current approach to the approval, control and sanctioning regulations of the umbrella association – the same applies to the world association FIFA – is characterized by arbitrariness and therefore unjustifiably restricts the free movement of services in the Union. There is a lack of transparent regulations that uphold the principles of objectivity and proportionality and do not discriminate against potential competitors.

See also  What are Unit Linked Policies? 5 UNCONFESSABLE Secrets that the Banks will never tell you

On the one hand, the ruling strengthens product competition in European football and reignites the discussion about competitive competition. On the other hand, it should be emphasized that the ECJ made its assessment based on the previous association rules and the ruling does not mean that the potential member clubs of a Super League or their players cannot otherwise be sanctioned by UEFA or FIFA. In general, the ECJ in no way ruled on the establishment of a corresponding league. Rather, it is the umbrella organization’s responsibility to adapt its criteria in accordance with the provisions of EU law. Nevertheless, it must be emphasized that professional football is in a phase of change in which, according to Horeni (2024), the motto applies: “Nothing is impossible in club football anymore.” It would even be conceivable that the world association FIFA would expand its demands and become more involved enters the market for club competitions in order to open up lucrative markets beyond the European continent (cf. Horeni 2024). Whatever the outcome of the battle for market share between the major players, competition stimulates business and should ultimately benefit consumers, although not every preference will be satisfied under the traditional sports model.

From a regulatory economics perspective, due to the dominant market position of UEFA and FIFA, it would certainly make sense for the two international associations to be forced to allow secession, such as the Super League, without the secessionists being sanctioned by the two associations. Only in this way can competition develop on a scale that ensures full consideration of consumer wishes and an erosion of the non-competitive profits of UEFA and FIFA. This does not necessarily mean that a European Super League will be established in the medium to long term. Of course, this will make the appearance of European football more similar to that of the American major leagues and lose a little more of its amateurish innocence.

See also  Sun Guofeng of the People's Bank of China: MLF and reverse repurchase winning rates are conducive to boosting market confidence, and reducing corporate loan interest rates through LPR transmission – yqqlm

Sources

Berthold, N. (2018). Super League in Europe? The fans have the final say. Economic freedom – The regulatory policy journal from November 4th, 2018,

Daumann, F. and Schurade, M. (2023). The specifics of the European football market. In Journal of Social Studies, History and Economics, 40 (86), pp. 64-71.

Drewes, M and Rebeggiani, L. (2019). The European Super League in football: Possible scenarios from a sports and competition economics perspective. Sciamus – Sport and Management 10(4), 127-142

Follert, F. (2019). European Football Super League from a sports economics perspective. Wirtschafts-dienst – Journal for Economic Policy 99, 148-150.

Follert, F. and Daumann, F. (2021a). From the rain in the eaves? The Champions League reform from a sports economics perspective. Economic freedom – The regulatory policy journal from April 29, 2021,

Follert, F. and Daumann, F. (2021b). And the Super League greets you every day… Economic Freedom – The Regulatory Journal from April 22nd, 2021,

Follert, F. and Emrich, E. (2020). What if…? – A microeconomic thought experiment on a super league in European football. List Forum for Economic and Financial Policy 45, 347-359.

Horeni, M. (2024). Battle in the Kingdom. Frankfurter Allgemeine Zeitung from February 12, 2024, p. 28.

Lerche, S. and von Stülpnagel Ch. (2023). ECJ ruling on the Super League What the decision means for the European football system. Deutschlandfunk, available at: https://www.deutschlandfunk.de/eugh-urteil-uefa-super-league-100.html.

Private University of Schloss Seeburg
Friedrich Schiller University Jena

Latest articles by Florian Follert and Frank Daumann (Show all)

Post navigation

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy