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The Influence of EU Law on Sports Governance

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European Sports Law

Part of the book series: ASSER International Sports Law Series ((ASSER))

Abstract

The competence of the EU to intervene in pattern of sports governance is deeply contested. This is at heart a constitutional matter. Article 5(1) EC stipulates that the EC shall act within the limits of the powers conferred upon it by the Treaty. It is equipped with no explicit powers in the field of sport. More than that: the EC Treaty does not mention sport. So one might argue – and governing bodies in sport frequently do argue – that sport is none of the EC’s business. But ab initio in Walrave and Koch the European Court rejected a line of reasoning that would have rigidly separated sports governance from EC law. That would have sheltered a huge range of practices with economic impact from the assumptions of EC law, damaging the achievement of the objectives of the Treaty. Admittedly the EC has no explicit authority under its Treaty to adopt legislation dictating how governing bodies in sport should act, but it derives a supervisory jurisdiction of sorts from the broad functional reach of the relevant rules of EC trade law (free movement and competition law, most conspicuously, buttressed by the basic prohibition against nationality-based discrimination). So sports governance becomes a matter for examination in the light of EC law because its practices may collide with the basic integrative and pro-competitive economic project mapped by the Treaty. Accordingly the Court, and more recently the Commission, have attempted to develop an approach which makes sense of the intersection between the demands of EC law and the aspirations of sport, notwithstanding the constitutional limitations under which they labour. One might argue – and governing bodies in sport frequently do argue – that the institutions of the EU have done a pretty bad job in shaping a ‘policy on sport’. This paper will not accept this verdict, but it will test the coherence of the EC’s intervention into sport, with particular reference to matters of governance. The story is necessary incremental – the shape of Treaty ensures this. It is incomplete too – litigation is the main source of hard data and the stream of litigation meanders and is occasionally dammed. But it is a story that reveals much about the EU institutions’ view of the necessary shape of sports governance.

First published in: S. Gardiner, R. Parrish and R.C.R. Siekmann (eds), EU Sport Law and Policy: Regulation, Re-regulation and Representation, TMC Asser Press, The Hague 2009, Chapter 5, pp. 79–100.

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Notes

  1. 1.

    Case 36/74 [1974] ECR 1405.

  2. 2.

    See, e.g., Parrish 2003; Weatherill 2007A; L. Barani 2005, 42; Dimitrakopoulos 2006, 561; Szyszczak 2007.

  3. 3.

    Case C-519/04 P [2006] Meca–Medina and Majcen v Commission ECR I-6991.

  4. 4.

    COMP 38.158, 1 August 2002.

  5. 5.

    Case T-313/02 [2004] ECR II-3291.

  6. 6.

    For criticism of the CFI judgment, see Weatherill 2005A, 416.

  7. 7.

    Case T-313/02 [2004] ECR II-3291.

  8. 8.

    Para. 37.

  9. 9.

    Para. 49.

  10. 10.

    Accordingly the ‘Arnaut Report’, considered below, which makes a partisan case in favour of maximising the autonomy of sports governing bodies, relies heavily on the CFI ruling, to the almost complete exclusion of the ECJ’s.

  11. 11.

    Case C-519/04, supra n. 3.

  12. 12.

    Para. 27.

  13. 13.

    Para. 28.

  14. 14.

    Weatherill 2007B, Ch. 3, 48–73.

  15. 15.

    Para. 48.

  16. 16.

    Para. 47.

  17. 17.

    Para. 45.

  18. 18.

    Para. 42. The important decisión in Wouters is there cited – Case C-309/99, J.C.J. Wouters, J.W. Savelbergh, Price Waterhouse Belastingadviseurs BV v. Algemene Raad van de Nederlandse Orde van Advocaten [2002] ECR I-1577.

  19. 19.

    There are some ambiguities in the analysis which trouble competition lawyers but it is submitted that these quirks make no practical difference in the particular case of subjection of sport to Article 81: see Weatherill 2007B, 60–62.

  20. 20.

    See Paras. 46–55 of the ECJ’s judgment. Cf Van Vaerenbergh 2005, connecting sport to the general literature on ‘global administrative law’, on which see, e.g., Krisch and Kingsbury 2006.

  21. 21.

    See, largely approving of this shift, Weatherill 2006A, 645; Szyszczak, 2007A, 95; Wathelet 2006; Wathelet 2007, 3; Rincon 2007, 224; and, criticising the Court’s choice, Infantino 2006; Zylberstein 2007, 218.

  22. 22.

    Parrish and Miettinen 2007; Van den Bogaert and Vermeersch 2006, 821.

  23. 23.

    On Overlapping Legal Orders, Weatherill 2007B, 64–67.

  24. 24.

    Case 36/74 [1974] ECR 1405.

  25. 25.

    Case C-415/93 [1995] ECR I-4921.

  26. 26.

    See also Case C-438/00 Deutscher Handballbund eV. v. Kolpak [2003] ECR I-4135.

  27. 27.

    Parrish and Miettinnen 2007.

  28. 28.

    White Paper on Sport, COM (2007) 391, 11 July 2007.

  29. 29.

    COMP 37.806 ENIC/UEFA, IP/02/942, 27 June 2002.

  30. 30.

    Case C-176/96 Case C-176/96 Lehtonen et al. v. FRSB [2000] ECR I-2681.

  31. 31.

    Independent European Sport Review.

  32. 32.

    Cf. Moorhouse 2007, 290.

  33. 33.

    E.g., Paras. 3.19, 3.26, 3.40–3.41, 3.89, 5.55, 6.28, 6.60, 6.70. The Arnaut Report is stated to have been prepared with the advice of José Luis da Cruz Vilaca. It seems implausible that such a distinguished jurist could have approved the final text of the Report.

  34. 34.

    See only a bland reference on p. 13 in n. 7.

  35. 35.

    So the ECJ, in Paras. 32–33, is merely drawing attention to the inadequacy of Para. 42 in the CFI’s judgment.

  36. 36.

    See Nazzini 2006, 497. Also on convergence, see Mortelmans 2001, 613. Cf Weatherill 2003, 51, 80–86; O’Loughlin 2003, 62.

  37. 37.

    Case C-438/05 Viking Line judgment of 11 December 2007, Para. 79; Case C-341/05 Laval judgment of 18 December 2007, Para. 105.

  38. 38.

    I argue that this is a reason for scepticism that the EU Charter effects a qualititative change in EC trade law in ‘The Internal Market’, in Peers and Ward (2004) Ch. 7. For an extended investigation see De Vries 2006.

  39. 39.

    Case C-415/93 supra n. 25, Para. 106.

  40. 40.

    Cases C-51/96 & C-191/97 Deliege v. Ligue de Judo [2000] ECR I-2549.

  41. 41.

    Case C-519/04 P supra n. 3, Para. 48.

  42. 42.

    Supra n. 41.

  43. 43.

    Case C-176/96 Lehtonen et al. v. FRSB [2000] ECR I-2681.

  44. 44.

    The reference was accepted as Case C-243/06, referred to the European Court by Tribunal de Commerce de Charleroi in May 2006. For background see Weatherill 2005B, 3.

  45. 45.

    This is reported on G-14’s website, and also attracted some media comment (e.g., ‘G14 disbands but wins wider role’, The Guardian Sport section p. 4, 4 December 2007). However, at the time of writing (March 2008) the reference in Case C-243/06 remains listed as Pending on the Court’s website [withdrawn; Eds.].

  46. 46.

    Supra n. 33.

  47. 47.

    Case C-519/04 P supra n. 3, Para. 42.

  48. 48.

    For this proposal advanced without the advantage of hindsight see Weatherill 2007B, at 67–72.

  49. 49.

    Cases C-51/96 & 191/97 supra n. 40, Paras. 41–42 of the judgment; Case C-176/96 supra n. 43, Paras 32–33 of the judgment.

  50. 50.

    This is not a sports-specific issue: cf elsewhere in EC trade law Case C-379/98 Preussen Elektra [2001] ECR I-2099.

  51. 51.

    COM (2001) 428.

  52. 52.

    OJ 2007 C306.

  53. 53.

    Football tends to dominate the debate but there are plenty of other examples of such conflict: see, e.g., Cygan 2007, Ch. 4.

  54. 54.

    Decision 2003/778 Champions League OJ 2003 L 291/25, Paras. 125–131. See Weatherill 2006, 3; Massey 2007, 87.

  55. 55.

    Para. 122 of the Decision supra n. 54.

  56. 56.

    Supra n. 28.

  57. 57.

    Supra n. 29.

  58. 58.

    Cf Weatherill 2008, 3.

  59. 59.

    The notion of supporters as stakeholders also appears at pp. 56–57 of the Staff Working Document.

  60. 60.

    On the February 2008 deal see the text attached to n. 46 supra.

  61. 61.

    Case C-519/04 P supra n. 3.

  62. 62.

    Eastham v. Newcastle United FC [1964] 1, Ch. 413.

  63. 63.

    Case C-415/93 supra n. 25.

  64. 64.

    Though, of course, debate about the legal requirements remains live: see, e.g., Drolet 2006, 66; Gardiner and Welch 2007.

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Weatherill, S. (2014). The Influence of EU Law on Sports Governance. In: European Sports Law. ASSER International Sports Law Series. T.M.C. Asser Press, The Hague. https://doi.org/10.1007/978-90-6704-939-9_17

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