European Super League and matters of competition law

Article 101 of Treaty of the Functioning of EU expressly prohibits agreements among companies (which all football clubs qualify as) of which the object or effect are to prevent, to restrict or distort the competition on internal market. In turn it is a fair assumption to say that establishment of the Super League would have negative effects on competition, although it is true that there would be four places left open for other clubs to participate. This does not change the fact that this arrangement probably does not meet the required standards of competition law, meaning an alternative arrangement is called for in terms of satisfying the legal standards. 

UEFA’s reaction to the Super League was swift and decisive. UEFA issued a joint statement with the national associations, threatening the founding members with expulsion from all competitions organized by UEFA or national associations (therefore including national and cup competitions) and the players exclusion from the European Championships and the World Cup. That said, three clubs are determined to press ahead with the Super League, which begs the question whether the mooted sanctions can really be imposed. UEFA has an obvious monopoly on the relevant market and prohibits the establishment of a competing league arguing that it wants to continue to guarantee open competition and sporting values in football. Whether this kind of restriction of competition by UEFA is lawful, necessary and proportional depends on an assessment of the impact on the market and the possibility of providing the most benefits for consumers, i.e. spectators and fans of football. 

Banning players from representing their national teams seems like a breach of and to be incompatible with rules to ensure competition. Grading the decision to expel clubs from all other competitions is a bit more complex. It is clear as day that UEFA enjoys a monopoly by making it impossible to develop competition as it will not let another league co-exist or compete with Champions League. On the other hand, it is not unusual for all competitions in a given sport to be organized and regulated under the aegis of one, joint organization. Taking a wrecking ball to the Champions League would lead to two separate competitions and neither of them would include all of Europe’s top clubs. 

Should the saga continue the European Commission and EU court will have to rule on the meaning and nature of sporting contests and then adjudicate as to whether or not the rule ensuring free establishment should be adhered to where sporting contests are concerned or if UEFA and national associations are really entitled to restrict competition on the basis of ensuring the best possible competition which would certainly also be in consumer’s best interest. 

Author: Matevž Klobučar, Attorney-at-law