Advertisement

Financial Doping and Financial Fair Play in European Club Football Competitions

  • Mathias Schubert
  • Sean Hamil
Chapter

Abstract

This contribution provides an explanation of ‘financial doping’ as a management concept in the context of European club football as well as on UEFA’s Financial Fair Play (FFP) regime, which can well be framed as the governing body of European football’s attempt to address this issue. The chapter is structured as follows: First, the historic development of financial regulation in European football is briefly outlined. The notion of financial doping as well as in what way it undermines the integrity of the sporting competition is addressed next. Afterwards, the FFP policy is explained, followed by a critical review of its discussion in scholarly literature as well as the presentation of an outlook on potential future research.

References

  1. All Party Parliamentary Football Group. (2009). English Football and Its Governance. Retrieved from http://www.publications.parliament.uk/.
  2. Asser Institute. (2017). UEFA’s Financial Fair Play Regulations and the Rise of Football’s 1%. Retrieved from http://www.asser.nl/SportsLaw/Blog/post/uefa-s-financial-fair-play-regulations-and-the-rise-of-football-s-1.
  3. Best, J. (2013). Social problems. New York: Norton.Google Scholar
  4. Budzinski, O. (2014). The Competition Economics of Financial Fair Play. In O. Budzinski & A. Feddersen (Eds.), Political Economics. Competition and Regulation: Vol. 14. Contemporary Research in Sports Economics. Proceedings of the 5th ESEA Conference (pp. 75–96). Frankfurt am Main: Peter Lang.Google Scholar
  5. Budzinski, O., & Szymanski, S. (2015). Are Restrictions of Competition by Sports Associations Horizontal or Vertical in Nature? Journal of Competition Law and Economics, 11(2), 409–429.  https://doi.org/10.1093/joclec/nhv010.CrossRefGoogle Scholar
  6. Dejonghe, T., & van Ostal, W. (2009). The Consequences of an Open Labour Market in Separated Product Markets in European Professional Football. Review of Business and Economic Literature, 54(4), 489–511.Google Scholar
  7. Dimitropoulos, P., Leventis, S., & Dedoulis, E. (2016). Managing the European Football Industry: UEFA’s Regulatory Intervention and the Impact on Accounting Quality. European Sport Management Quarterly, 16(4), 459–486.  https://doi.org/10.1080/16184742.2016.1164213.CrossRefGoogle Scholar
  8. Drut, B., & Raballand, G. (2012). Why Does Financial Regulation Matter for European Professional Football Clubs? International Journal of Sport Management and Marketing, 11(1), 73–88.CrossRefGoogle Scholar
  9. ECA. (2015). ECA Endorses New Financial Fair Play Regulations. Retrieved from http://www.ecaeurope.com/media-area/media-releases/eca-endorses-new-financial-fair-play-regulations/.
  10. EuroLeague Basketball. (2015, June 5). Financial Fair Play Coming to Turkish Airlines Euroleague Next Season. News Release. Accessed November 16, 2016. http://www.eurocupbasketball.com/news/i/645lkc7jywq55ncf/financial-fair-play-coming-to-turkish-airlines-euroleague-next-season.
  11. European Commission. (2016). State Aid: Commission Decides Spanish Professional Football Clubs Have to Pay Back Incompatible Aid. Retrieved from http://europa.eu/rapid/press-release_IP-16-2401_en.htm.
  12. Flanagan, C. A. (2013). A Tricky European Fixture: An Assessment of UEFA’s Financial Fair Play Regulations and Their Compatibility with EU Law. The International Sports Law Journal, 13(1–2), 148–167.  https://doi.org/10.1007/s40318-013-0006-4.CrossRefGoogle Scholar
  13. Forbes. (2012). What Can We Learn from the Financial Meltdown of Glasgow Rangers FC? Retrieved from https://www.forbes.com/sites/sportsmoney/2012/10/08/what-can-we-learn-from-the-financial-meltdown-of-glasgow-rangers-fc/#526e98515a9a.
  14. Franck, E. (2010). „Zombierennen“ und „Patenonkel“—Warum deutsche Fussballklubs in der Champions League den Kürzeren ziehen. Schmalenbachs Zeitschrift für betriebswirtschaftliche Forschung (zfbf), Sonderheft, 62, 1–13.CrossRefGoogle Scholar
  15. Franck, E. (2014). Financial Fair Play in European Club Football: What Is It All About? International Journal of Sport Finance, 9(3), 193–217.Google Scholar
  16. Franck, E., & Lang, M. (2014). A Theoretical Analysis of the Influence of Money Injections on Risk Taking in Football Clubs. Scottish Journal of Political Economy, 61(4), 430–454.  https://doi.org/10.1111/sjpe.12052.CrossRefGoogle Scholar
  17. Gammelsæter, H., & Senaux, B. (2011). Understanding the Governance of Football Across Europe. In H. Gammelsæter & B. Senaux (Eds.), The Organisation and Governance of Top Football Across Europe. An Institutional Perspective (pp. 268–291). New York: Routledge.Google Scholar
  18. García, B. (2011). The Influence of the EU on the Governance of Football. In H. Gammelsæter & B. Senaux (Eds.), The Organisation and Governance of Top Football Across Europe. An Institutional Perspective (pp. 32–45). New York: Routledge.Google Scholar
  19. Geey, D. (2011). The UEFA Financial Fair Play Rules: A Difficult Balancing Act. Entertainment and Sports Law Journal, 9(1) (para. 48). Retrieved from www2.warwick.ac.uk/fac/soc/law/elj/eslj/issues/volume9/number1/geey/geey.pdf.CrossRefGoogle Scholar
  20. Guardian. (2009, August 27). Roman Abramovich Puts the Squeeze on Manchester City. The Guardian. Retrieved from http://www.theguardian.com/football/2009/aug/27/football-uefa-roman-abramovich-spending.
  21. Hamil, S. (2014). Financial Fair Play—Why Loss-Making Is a Problem: The Example of the English Football League. In O. Budzinski & A. Feddersen (Eds.), Political Economics. Competition and Regulation: Vol. 14. Contemporary Research in Sports Economics. Proceedings of the 5th ESEA Conference (pp. 35–56). Frankfurt am Main: Peter Lang.Google Scholar
  22. Hamil, S., & Walters, G. (2010). Financial Performance in English Professional Football: ‘An Inconvenient Truth’. Soccer & Society, 11(4), 354–372.CrossRefGoogle Scholar
  23. Haugen, K. K., & Solberg, H. A. (2010). The Financial Crisis in European Football—A Game Theoretic Approach. European Sport Management Quarterly, 10(5), 553–567.CrossRefGoogle Scholar
  24. Hayward, P. (2012). Paralympics 2012: London Bids a Fiery and Emotional Farewell as Curtain Falls on This British Summer of Love. The Telegraph. Retrieved from http://www.telegraph.co.uk/sport/olympics/paralympic-sport/9532453/Paralympics-2012-London-bids-a-fiery-and-emotional-farewell-as-curtain-falls-on-this-British-summer-of-love.html.
  25. Hoehn, T., & Szymanski, S. (1999). The Americanization of European Football. Economic Policy, 14, 205–440.CrossRefGoogle Scholar
  26. Holt, M. (2009). UEFA, Governance and the Control of Club Competition in European Football. Football Governance Research Centre, Birkbeck University, London.Google Scholar
  27. Houlihan, B. (2002). Dying to Win: Doping in Sport and the Development of Anti-Doping Policy (2nd ed.). Strasbourg: Council of Europe Publishing.Google Scholar
  28. Lenk, H. (2010). Sport von Kopf bis Fuß (Ball). Berlin: Lit.Google Scholar
  29. Lindholm, J. (2010). The Problem with Salary Caps Under European Union Law: The Case Against Financial Fair Play. Texas Review of Entertainment & Sports Law, 12(2), 189–213.Google Scholar
  30. Long, C. R. (2012). Promoting Competition or Preventing It? A Competition Law Analysis of UEFA’s Financial Fair Play Rules. Marquette Sports Law Review, 23(1), 74–101.Google Scholar
  31. Madden, P. (2015). Welfare Economics of “Financial Fair Play” in a Sports League with Benefactor Owners. Journal of Sport Economics, 16, 159–184.CrossRefGoogle Scholar
  32. Mavroidis, P. C., Duval, A., & Mataija, M. (2013). European Football Governance—Looking Backward, Looking Forward. Global Governance Programme, Policy Briefs, 3, 1–6.Google Scholar
  33. Maxcy, J. (2014). The American View on Financial Fair Play. In O. Budzinski & A. Feddersen (Eds.), Political Economics. Competition and Regulation: Vol. 14. Contemporary Research in Sports Economics. Proceedings of the 5th ESEA Conference (pp. 57–73). Frankfurt am Main: Peter Lang.Google Scholar
  34. Morrow, S. (2011). History, Longevity, and Change; Football in England and Scotland. In H. Gammelsæter & B. Senaux (Eds.), The Organisation and Governance of Top Football Across Europe. An Institutional Perspective (pp. 46–61). New York: Routledge.Google Scholar
  35. Morrow, S. (2014). Financial Fair Play: Implications for Football Club Financial Reporting. Edinburgh: Institute of Chartered Accountants of Scotland.Google Scholar
  36. Müller, J. C., Lammert, J., & Hovemann, G. (2012). The Financial Fair Play Regulations of UEFA: An Adequate Concept to Ensure the Long-Term Viability and Sustainability of European Club Football? International Journal of Sport Finance, 7(2), 117–140.Google Scholar
  37. Olsson, L.-C. (2011). Decisive Moments in UEFA. In H. Gammelsæter & B. Senaux (Eds.), The Organisation and Governance of Top Football Across Europe. An Institutional Perspective (pp. 17–31). New York: Routledge.Google Scholar
  38. Peeters, T., & Szymanski, S. (2014a). Financial Fair Play in European Football. Economic Policy, 29(78), 343–390.CrossRefGoogle Scholar
  39. Peeters, T., & Szymanski, S. (2014b). Financial Fair Play: Winners and Loser on and off the Pitch. In O. Budzinski & A. Feddersen (Eds.), Political Economics. Competition and Regulation: Vol. 14. Contemporary Research in Sports Economics. Proceedings of the 5th ESEA Conference (pp. 17–33). Frankfurt am Main: Peter Lang.Google Scholar
  40. Preuss, H., Haugen, K. K., & Schubert, M. (2014). UEFA Financial Fair Play: The Curse of Regulation. European Journal of Sport Studies, 2(1), 33–51.Google Scholar
  41. Rohde, M. & Breuer, C. (2016). The Financial Impact of (Foreign) Private Investors on Team Investments and Profits in Professional Football: Empirical Evidence from the Premier League. Applied Economics and Finance, 3(2), 243–255.  https://doi.org/10.11114/aef.v3i2.1366.
  42. Sass, M. (2016). Glory Hunters, Sugar Daddies, and Long-Term Competitive Balance Under UEFA Financial Fair Play. Journal of Sports Economics, 17(2), 148–158.  https://doi.org/10.1177/1527002514526412.CrossRefGoogle Scholar
  43. Schubert, M. (2014). Potential Agency Problems in European Club Football? The Case of UEFA Financial Fair Play. Sport, Business and Management: An International Journal, 4(4), 336–350.CrossRefGoogle Scholar
  44. Schubert, M., & Könecke, T. (2015). ‘Classical’ Doping, Financial Doping and Beyond: UEFA’s Financial Fair Play as a Policy of Anti-doping. International Journal of Sport Policy and Politics, 7(1), 63–86.Google Scholar
  45. Schubert, M., & Lopez Frias, F. J. (2017). Walk the Talk: Financial Fairness in European Club Football. Sport, Ethics & Philosophy.  https://doi.org/10.1080/17511321.2017.1371790.CrossRefGoogle Scholar
  46. Schubert, M., Könecke, T., & Pitthan, H. (2016). The Guardians of European Football—UEFA Financial Fair Play and the Career of Social Problems. European Journal for Sport and Society, 13(4), 296–324.  https://doi.org/10.1080/16138171.2016.1248094.CrossRefGoogle Scholar
  47. Sloane, P. (2009). The European Model of Sport. In W. Andreff & S. Szymanski (Eds.), Handbook on the Economics of Sport (pp. 299–303). Cheltenham: Elgar.Google Scholar
  48. Storm, R., & Nielsen, K. (2012). Soft Budget Constraints in Professional Football. European Sport Management Quarterly, 12(2), 183–201.CrossRefGoogle Scholar
  49. Szymanski, S. (2014). Fair Is Foul: A Critical Analysis of UEFA Financial Fair Play. International Journal of Sport Finance, 9(3), 218–229.Google Scholar
  50. UEFA. (2011). Financial Fair Play Ensures Football’s Stability. Retrieved from https://www.uefa.com/insideuefa/video/videoid=1585436.html.
  51. UEFA. (2014a). Commissioner Almunia Reaffirms Financial Fair Play Support. Retrieved from http://www.uefa.org/protecting-the-game/club-licensing-and-financial-fair-play/news/newsid=2083789.html.
  52. UEFA. (2015a). Club Licensing and FFP Regulations Approved. Retrieved from http://www.uefa.org/about-uefa/executive-committee/news/newsid=2262293.html.
  53. UEFA. (2015b). Procedural Rules Governing the UEFA Club Financial Control Body (Edition 2015). Retrieved from www.uefa.org/MultimediaFiles/Download/Tech/uefaorg/General/02/28/72/46/2287246_DOWNLOAD.pdf.
  54. UEFA. (2015c). UEFA Club Licensing and Financial Fair Play Regulations (Edition 2015). Retrieved from www.uefa.org/MultimediaFiles/Download/Tech/uefaorg/General/02/26/77/91/2267791_DOWNLOAD.pdf.
  55. UEFA. (2015d). UEFA Welcomes European Court of Justice Ruling on Financial Fair Play. Retrieved from http://www.uefa.org/protecting-the-game/club-licensing-and-financial-fair-play/news/newsid=2267061.html.
  56. UEFA. (2016a). Club Licensing. 10 Years on…Evolvement of the Club Licensing System Since Its Introduction in 2004. Retrieved from www.uefa.org/MultimediaFiles/Download/uefaorg/FinancialFairPlay/02/32/60/65/2326065_DOWNLOAD.pdf.
  57. UEFA. (2016b). UEFA Club Licensing and Financial Fair Play. 3rd Bulletin. Compliance and Investigation Activity Report 2013–15. Retrieved from www.uefa.org/MultimediaFiles/Download/uefaorg/FinancialFairPlay/02/34/59/83/2345983_DOWNLOAD.pdf.
  58. UEFA CFCB. (2014a). Manchester City—Settlement Agreement—May 2014. Retrieved from http://www.uefa.org/MultimediaFiles/Download/OfficialDocument/uefaorg/ClubFinancialControl/02/10/69/00/2106900_DOWNLOAD.pdf.
  59. UEFA CFCB. (2014b). Paris St. Germain—Settlement Agreement—May 2014. Retrieved from http://www.uefa.org/MultimediaFiles/Download/OfficialDocument/uefaorg/ClubFinancialControl/02/10/68/99/2106899_DOWNLOAD.pdf.
  60. Väth, H. (1997). Profifußball: Zur Soziologie der Bundesliga. Frankfurt (Main): Campus-Verl.Google Scholar
  61. Vöpel, H. (2011). Do We Really Need Financial Fair Play in European Club Football? An Economic Analysis. CESifo DICE Report, 9(3), 54–59.Google Scholar
  62. Vöpel, H. (2013). Is Financial Fair Play Really Justified? An Economic and Legal Assessment of UEFA’s Financial Fair Play Rules (HWWI Policy Paper No. 79). Retrieved from http://www.hwwi.org/uploads/tx_wilpubdb/HWWI_Policy_Paper_79.pdf.
  63. Vrooman, J. (2007). Theory of the Beautiful Game: The Unification of European Football. Scottish Journal of Political Economy, 54(3), 314–354.CrossRefGoogle Scholar
  64. Wilson, J. (2009). Arsene Wenger Accuses Manchester City and Real Madrid of ‘Financial Doping’. The Telegraph, 07.08.09. Retrieved from http://www.telegraph.co.uk/sport/football/teams/arsenal/5985204/Arsene-Wenger-accuses-Manchester-City-and-Real-Madrid-of-financial-doping.html.

Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.Department of Sport Economics, Sport Sociology and Sport HistoryJohannes Gutenberg University Mainz, Institute of Sport ScienceMainzGermany
  2. 2.Department of ManagementBirkbeck, University of LondonBloomsbury, LondonUK

Personalised recommendations