UNDERSTANDING THE DECISION OF THE EUROPEAN COURT OF JUSTICE (ECJ) ON THE PROPOSED EUROPEAN SUPER LEAGUE

UNDERSTANDING THE DECISION OF THE EUROPEAN COURT OF JUSTICE (ECJ) ON THE PROPOSED EUROPEAN SUPER LEAGUE~ Emmanuel Uyi Olubor Esq.

 The ECJ ruled on the issue of whether UEFA or FIFA rules restricting teams from constituting a separate league are anticompetitive and a breach of a dominant position.

 Before I descend into the nitty-gritty of the decision of the ECJ, I would like to commence by establishing certain facts

First, the decision is not binding in Britain as a result of BREXIT, thus British teams like Arsenal, Chelsea et al. Can't use this decision reached by the ECJ as a pretext to join the European Super League.

Secondly, as against what was reported by most media outlets, the ECJ did not authorize the establishment of a European Soccer league, instead what played out was that the ECJ ruled on points of law on an issue that was sent to it by the commercial court in Spain which was hitherto instituted by the European Super League Company. The ECJ decided on whether UEFA and FIFA rules restricting and threatening to punish teams and players who participate in competitions outside of those organized and recognized by are discriminatory, anticompetitive or even disproportionate. Even though the ECJ found FIFA and UEFA on the wrong end in this respect. However, this is not an authorization of the European Super League, the decision reached by the ECJ would need to be taken back to the Commercial Court in Spain where it originated from. And it's the Spanish Court that would either consent or disapprove of the formation of the European Soccer League.

This decision came as a shock to most experts in Sports Law. Although I opined in my article that I first wrote on this subject in May 2021 ( https://oluboruyi.blogspot.com/2021/05/the-super-league-and-its-legal.html?m=1 ) where I stated that it is very possible that the Super League teams were buoyed to rebel against the football world after the decision of The European Union and General Commission (GC) in the dispute between the International Skating Union (ISU) v the Commission. Where the GC held that the ISU acted in a disproportionate and anticompetitive manner when it suspended athletes who tried to participate in a new competition outside of that organized by its union. Although, I was upbeat that the ECJ would not apply this same reasoning when reaching a final decision to determine whether FIFA and its undertakings are using their dominant position to restrict competition, as I was of the belief that the football pyramid as it stands today doesn't restrict competition as it permits thousands of teams to compete to take part in competitions and monies realized from these competitions are only held by FIFA and its undertakings as trustees for the benefit of the participants. This is entirely different from what the European Super League proposes. It proposes a closed format where high-end European Clubs get to participate in the league, not minding their performance in the preceding season and shutting other teams from jostling for slots in the league.

Whatever the case may be, the ECJ has reached that the Rules of FIFA and UEFA restricting and punishing clubs from breaking away to form their own league as anticompetitive. The Court observes that the FIFA and UEFA rules relating to the exploitation of media rights are 

such as to be harmful to European football clubs, all companies operating in media markets and, ultimately, consumers and television viewers, by preventing them from enjoying new and potentially innovative or interesting competitions. It's quite fascinating that the ECJ mostly considered the financial health of the non-sporting participants as against the consequence it would have on the sporting participants such as the clubs when a closed league like the European Soccer league comes into fruition.

As I stated earlier, even though the decision is not an authorization of the European Super League, it would, however, be critically considered by the Spanish Commercial Court in reaching its final decision.

 And as for British teams, they can't use this decision as a pretext to join the Super league arising from the finalization of BREXIT, if not, they might open themselves up for investigation by anti competition authorities in Britain.