European football is once again facing seismic shifts, triggered by a landmark ruling from the Court of Justice of the European Union that has the potential to reshape the future of the sport globally.
In a decisive judgment, the Court of Justice unequivocally declared that “The regulations enforced by FIFA and UEFA [Union of European Football Associations], governing the prior approval of interclub football competitions like the Super League, are in direct violation of EU law.”
The decision is grounded in the assertion that the rules set by existing European football organizations contravene both competition law and the principles of freedom to provide services.
“This ruling does not signify an endorsement or validation of the so-called ‘super league,'” the UEFA stated in a press release, adding the organization “remains resolute in its commitment to uphold the European football pyramid, ensuring that it continues to serve the broader interests of society.”
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Original Super League’s Promise And JPMorgan’s Financial Commitment
The Super League, as it was envisioned, promised significantly higher revenue streams for participating clubs when compared to UEFA-organized European competitions such as the Champions League, as well as their respective national leagues.
The commitment of U.S. investment giant JP Morgan Chase & Co. JPM to provide €3.25 billion ($3.57 billion) to launch the new league, along with the promise of an additional $200-300 million welcome bonus for each participating club, marked a substantial financial endorsement. JPMorgan’s financial backing was secured against the anticipated multibillion-dollar windfall from TV broadcasting rights.
Benzinga has contacted JPMorgan for comment on these developments.
Among the 12 clubs that initially signed onto the project were renowned names such as Club Atlético de Madrid, Fútbol Club Barcelona, and Real Madrid Club de Fútbol in Spain; Associazione Calcio Milan, Football Club Internazionale Milano, and Juventus Football Club in Italy; and Arsenal Football Club, Chelsea Football Club, Liverpool Football Club, Manchester City Football Club, Manchester United Football Club, and Tottenham Hotspur Football Club in the United Kingdom.
This ambitious project encountered swift opposition and protests from various quarters, including governing bodies within UEFA, led by President Aleksander Čeferin, and national club leagues, who threatened punitive measures against clubs and players associated with the Super League.
The Impact On European Football’s Economic Landscape
The recent ruling by the European Court of Justice effectively upends the course of events of the last two years.
“The rules that grant FIFA and UEFA exclusive control over the commercial exploitation of the rights related to those competitions are restrictive of competition, given their significance for the media, consumers, and television viewers in the European Union,” reads the judgment of the European Court of Justice.
The court emphasized that the organization of interclub football competitions and the exploitation of media rights undeniably constitute economic activities, necessitating compliance with competition rules and the protection of freedom of movement.
Additionally, the court determined that FIFA and UEFA have abused their dominant positions. Their regulations regarding approval, oversight, and penalties are now considered unjustifiable constraints on the freedom to provide services.
A22 Sports, the company at the helm of the Super League project, has tweeted: “It’s time for a change.”
According to early speculation circulating on the internet, the new format would involve 64 teams, aiming to alleviate the uncertainties that were tied to the previous elitist group.
Market Reactions
Shares of Juventus Football Club SPA JVTSF rose 5.8% on Thursday, trimming gains at the end of the session after rallying as much as 11% during early morning trading in Europe. Rome-based S.S. Lazio SSLZF rose 4.3%.
The reactions from other football-related stocks were instead more muted. Shares of Germany’s Borussia Dortmund BORUF closed 0.3% lower, while Manchester United MANU rose 0.9%.
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