# CE2004084EN.01016401.xml

| 3.4.2004 | EN | Official Journal of the European Union | CE 84/164 |
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3.4.2004

EN

Official Journal of the European Union

CE 84/164

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(2004/C 84 E/0202)

WRITTEN QUESTION E-0122/04

by Toine Manders (ELDR) to the Commission

(26 January 2004)

Subject:   Debt and European professional football

Subject:

It has emerged from an investigation carried out by the German football magazine ‘Kicker’ that the European professional football industry is burdened with debts amounting to no less than EUR 7 billion.

According to their statistics, there are great differences between countries. Italian and Spanish professional football organisations, for example, are in the red to the tune of about EUR 2 billion, whereas the total debt of the highest division in the Netherlands was EUR 80 million in 2002. This shows the effectiveness of the Dutch licensing system, which has been in force for years. The introduction of a licensing system for professional football organisations in Europe under pressure from the European Commission is therefore to be welcomed.

On the other hand, the astronomical level of debt of professional football clubs can play into the hands of unauthorised State support practices, which often take place under pressure from local public opinion.

One possibility for dealing with the problems in the industry would be to set up an EU competition which only football clubs from EU Member States could enter. Firstly, this would contribute to completing the single market — professional football could always be regarded as a service. Secondly, it would offer an opportunity to apply the European legislation applicable in the football sector in a decisive and uniform way. A single legal framework for the whole European professional football industry would, after all, give greater legal certainty for all the parties concerned. The annual final of the EU competition could, for example, be played in Brussels, so that the EU competition would also enhance the image of the EU.

| 1. | Is the Commission aware of the abovementioned indebtedness of European professional football? |
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1.

Is the Commission aware of the abovementioned indebtedness of European professional football?

| 2. | Does the Commission agree that the resulting deterioration in the solvency of professional football organisations can encourage State support which violates EU law? If not, why not? |
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2.

Does the Commission agree that the resulting deterioration in the solvency of professional football organisations can encourage State support which violates EU law? If not, why not?

| 3. | Is the Commission prepared to take steps to tackle these problems in European professional football? If so, what steps? If not, why not? |
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3.

Is the Commission prepared to take steps to tackle these problems in European professional football? If so, what steps? If not, why not?

| 4. | Is the Commission prepared to look at the possibility of setting up a European competition as outlined above? If not, why not? |
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4.

Is the Commission prepared to look at the possibility of setting up a European competition as outlined above? If not, why not?

Answer given by Mr Monti on behalf of the Commission

(11 March 2004)

(11 March 2004)

The Commission is aware of the fact that some professional football clubs are facing financial difficulties, which, as stated by the Honourable Member, vary considerably from country to country.

It is possible that there may be increasing calls for public support for clubs in financial difficulty. However, professional football clubs perform an economic activity and are therefore to be considered undertakings in the meaning of Article 87(1) of the EC Treaty (although the question could be raised whether, and to what extent, subsidies to football clubs affect trade between Member States, especially if the club concerned is a local one which is unlikely to engage in competitions with clubs from other Member States). In as far as there is an effect on trade between Member States, football clubs are to be treated as any other undertaking under the State aid rules There are well-established rules on the granting of State aid, e.g. the guidelines on rescue and restructuring aid, that would apply. Member States need notify any aid to the Commission before aid is granted. Any aid which would be found incompatible with the common market would have to be reimbursed, with interest.

The Commission has actually recently opened a formal investigation procedure with regard to an intervention by the Italian Government vis-à-vis professional football clubs.

The Commission follows with interest the situation of professional football and will take action, where necessary, in areas falling under its responsibility. There are different ways to try to address the issue of financial difficulties that some football clubs are faced with. The national and international sport organisations also have a particular responsibility in taking care that football grows in a healthy environment. The Commission is aware that the Union of the European Football Associations (UEFA), for example, has plans to introduce clubs licensing system, in order to improve the accountability in this sector.

The Commission does not envisage setting up a European football competition.

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