In a ground-breaking decision on Thursday, the Court of Justice of the European Union (CJEU) delivered a significant blow to FIFA and UEFA, two of soccer’s top governing bodies, in the ongoing European Super League (ESL) case. The CJEU ruled that the rules imposed by FIFA and UEFA, which demanded prior approval for establishing new competitions like the ESL and prohibited clubs and players from participating, were deemed “unlawful.” This ruling, stemming from a Madrid court referral, has far-reaching implications for the future of European football, reshaping the dynamics of club competitions and challenging the established authority of FIFA and UEFA.
What is ESL?
The ESL, introduced in April 2021 by 12 of Europe’s most prominent clubs, aimed to create a breakaway league, guaranteeing 15 clubs a place in the 20-team competition every season, irrespective of on-field performance. The proposal elicited widespread opposition from fans, the public, and governing bodies, with accusations of it being a power grab designed to secure privileged status and revenue for the founding members. Within 48 hours, the plans were abandoned, but the repercussions lingered, leading to financial penalties for clubs like Arsenal, AC Milan, Chelsea, Atlético Madrid, Inter Milan, Liverpool, Manchester City, Manchester United, and Tottenham Hotspur.
The CJEU’s involvement in the ESL case followed a referral by a Madrid court, seeking clarification on the legality of FIFA and UEFA’s actions in blocking the formation of the breakaway league. The recent ruling declared that FIFA and UEFA’s rules were “unlawful” in demanding prior approval for new competitions and restricting clubs and players from participation. Notably, the CJEU clarified that this decision did not mandate approval for competitions like the ESL but questioned the legality of the governing bodies’ rules.
A22 Sports Management, the entity behind the ESL, initiated an “anti-monopoly” case against UEFA, challenging its dominant position in European soccer. The CJEU ruled that FIFA and UEFA were “abusing a dominant position” in organizing football competitions, citing a lack of transparency, objectivity, and non-discrimination in their powers. This marks a pivotal moment, as the CJEU considers the “organisation of interclub football competitions and the exploitation of the media rights” as “economic activities” subject to competition rules and freedoms of movement.
CJEU’s Decision and Reactions
The CJEU’s decision is being hailed as a “landmark in football history” by A22 Sports Management CEO Bernd Reichart. The ruling is expected to free clubs from the threat of sanctions and grant them the autonomy to shape their own futures. While the decision challenges the FIFA-UEFA rules, it does not automatically approve projects like the ESL, leaving it to individual leagues and clubs to determine their paths.
Real Madrid and Barcelona, despite the initial backlash, remained committed to the ESL project. The CJEU ruling provides these clubs with newfound leverage as it questions the monopolistic control of FIFA and UEFA. The decision opens up avenues for clubs to explore alternative competition formats and media rights arrangements, potentially ushering in a new era of competition in European football.
The CJEU ruling contradicts a previous non-binding EU Opinion delivered in December 2022 by Advocate General Athanasios Rantos. Rantos suggested that FIFA-UEFA rules requiring prior approval for new competitions were compatible with EU competition law. However, the CJEU’s decision has overridden this opinion, underscoring the complex legal landscape surrounding the ESL saga.
European court of justice press release : The FIFA and UEFA rules on prior approval of interclub football competitions, such as the Super League, are contrary to EU law (europa.eu)
Furthermore, the ruling challenges the commercial and regulatory roles played by FIFA and UEFA, highlighting potential conflicts of interest. A22’s case sought to determine the legality of UEFA’s “dominant” position in European soccer, emphasizing the need for transparent, objective, and non-discriminatory criteria in the organizations’ powers.
The CJEU’s ruling against FIFA and UEFA in the ESL case marks a significant turning point in the landscape of European football. By deeming FIFA and UEFA rules “unlawful,” the CJEU challenges the established order and grants clubs greater autonomy in shaping their destinies. The decision opens the door to a reimagining of competition formats, media rights negotiations, and the overall governance of European football.