Yesterday, 18 May 2016, the licensing committee of the Dutch football
federation (KNVB) announced its decision to sanction FC Twente with relegation to
the Netherland’s second (and lowest) professional league. The press release also
included a link to a document outlining the reasons underlying the
decision. For those following the saga surrounding Dutch football club FC
Twente, an unconditional sanction by the licensing committee appeared to be
only a matter of time. Yet, it is the sanction itself, as well as its
reasoning, that will be the primary focus of this short blog.More...
benefit scheme in the Hungarian sport sector decision of 9 November 2011 marked a turning point as
regards the Commission’s decisional practice in the field of State aid and
sport. Between this date and early 2014, the Commission reached a total of ten decisions
on State aid to sport infrastructure and opened four formal investigations into
alleged State aid to professional football clubs like Real Madrid
and Valencia CF.
As a result of the experience gained from the decision making, it was decided
to include a Section on State aid to sport infrastructure in the 2014 General Block Exemption Regulation. Moreover, many people, including myself, held that
Commission scrutiny in this sector would serve to achieve better accountability
and transparency in sport governance.
Yet, a recent report by
Transparency International (TI), published in October 2015, raises questions about the efficiency of State aid enforcement in
the sport sector. The report analyzes the results and effects of the Hungarian tax benefit scheme and
financing system suffers from transparency issues and corruption risks. (…) The
lack of transparency poses a serious risk of collusion between politics and
business which leads to opaque lobbying. This might be a reason for the
disproportionateness found in the distribution of the subsidies, which is most
apparent in the case of (football) and (the football club) Felcsút.”
In other words, according to TI, selective economic
advantages from public resources are being granted to professional football
clubs, irrespective of the tax benefit scheme greenlighted by the Commission
or, in fact, because of the tax
benefit scheme. More...
Editor’s note: This report
compiles all relevant news, events and materials on International and European
Sports Law based on the daily coverage provided on our twitter feed @Sportslaw_asser. You are invited
to complete this survey via the comments section below, feel free to add links
to important cases, documents and articles we might have overlooked.
This month saw the conflict between FIBA Europe
and the Euroleague (more precisely its private club-supported organizing body,
Euroleague Commercial Assets or ‘ECA’) becoming further entrenched. This
dispute commenced with FIBA creating a rival Basketball Champions League, starting from the 2016-2017 season with the hope to reinstate their
hold over the organization of European championships. The ECA, a private body
that oversees the Euroleague and Eurocup, not only decided to maintain its
competitions but also announced it would reduce them to a closed, franchise-based league following a
joint-venture with IMG. In retaliation, FIBA Europe suspended fourteen
federations of its competition (with the support of FIBA) due to their support for the Euroleague project.More...