UEFA Club Licensing and Financial Sustainability Regulations i et konkurrenceretligt perspektiv: En dybdegående analyse af UEFA Club Licensing and Financial Sustainability Regulations i lyset af EU-konkurrenceretten

Abstract

This master’s thesis seeks to investigate the extent to which the new UEFA Club Licensing and Financial Sustainability Regulations (FSR) are compatible with EU competition law, as well as the economic effects of UEFA’s financial regulations. It is presumed that FSR may impose constraints on competition on the European football market. The thesis will examine this issue through a legal analysis, an economic analysis and an integrated analysis. Through EU competition law and in view of the specific nature of sport, the legal analysis of this master thesis examines how FSR aligns with Article 101 of the Treaty of the Functioning of the European Union (TFEU). Here, it was found that FSR operates as a vertical agreement between UEFA and the football clubs. FSR constitutes a restrictive practice, particularly because of the 70% squad cost control rule limits competition. However, an exception is found in a “test” developed by the EU Commission based on the Meca-Medina case, where it is established that the purposes of FSR are considered necessary and proportionate to achieve the goals of economic sustainability and stability in European club football. The economic analysis of UEFA’s financial regulations, highlighted by HHI, found that clubs with greater financial resources tend to secure better sporting outcomes, resulting in a solidification of hierarchy in national leagues and more frequent representation of these clubs in the UEFA Champions League. Despite the potential for long-term economic sustainability, clubs consistently opt for an aggressive strategy for short-term sporting success, as revealed by game theory. Additionally, a cost-benefit analysis of FSR indicated both positive and negative effects, emphasizing the necessity of exploring ways to optimize the regulations from a competition standpoint In conclusion, the integrated analyses conducted in this master’s thesis examined whether FSR could be optimized from a competition law perspective. By use of the European Super League case, it is found that UEFA has abused its dominant position, hence UEFA is aware of the threat posed by the European Super League and other poten1al actors. Therefore, three proposals for solutions to FSR are presented and analyzed using cost-benefit analysis, each aiming to optimize the regulations to enhance overall competition within the European football market.