WRITTEN QUESTION P-2949/00

by Toine Manders (ELDR) to the Commission

(11 September 2000)

Subject: Transfer fees for professional sportsmen

In the Bosman ruling, the European Court of Justice ruled that the principle of free movement of workers also applies to professional sportsmen. As a result of that ruling, transfer fees cannot be required in respect of a sportsman who wishes to change his employer after his contract has ended. We fully respect the Court's ruling.

It has come to our attention that the European Commission is now seeking to devise new rules, based on employment legislation, to cover the situation created by the Bosman ruling. According to employment legislation, employer and employee agree, when concluding a contract, on the amount of compensation to be paid, should the contact be terminated prematurely. In our opinion, that arrangement does not breach the terms of the Bosman ruling since it forms part of the contractual freedom of the two parties. Moreover, such contracts are concluded voluntarily and after consultation of legal experts. We feel that a ban on this system based on employment legislation is premature and currently unnecessary, all the more so since contracts cannot be ended unilaterally by the employer on the grounds of poor performance.

The number of sportsmen in respect of whom large transfer fees are being paid, is very limited. A ban on the system based on employment legislation will, above all, adversely affect the employment contracts and salaries of sportsmen who are less in demand in the transfer market. Their salaries depend directly on the transfer fees received in respect of top sportsmen who break their contract.

We are planning to organise a hearing with representatives of several national sports associations during the forthcoming part-session in October. We would greatly appreciate it if the Commissioner responsible would attend that hearing.

1. Is the Commission willing to postpone its decision on the admissibility/legality of transfer fees on the early termination of employment contracts until more information is available as to the consequences thereof?

2. Is the Commission willing to undertake more detailed studies into the consequences of its planned policy on transfer fees on termination of employment contracts?

Answer given by Mr Monti on behalf of the Commission

(18 October 2000)

It is not the Commission's task to devise new rules for football. While it respects the regulatory power of sports organisations, it is required to ensure that the rules they adopt comply with Community legislation.

The Commission has received several complaints concerning the transfer rules of the International Federation of Association Football (FIFA) and alleging breaches of Community legislation on free movement of workers and competition. Examination of the complaints has resulted in proceedings being brought against FIFA.

The proceedings initiated by the Commission in no way relate to transfers carried out in accordance with labour legislation.

They focus on FIFA's transfer rules in so far as these impose on players and clubs obligations not provided for either in the contracts concluded by them or in the legislation applicable to those contracts.

On 31 August FIFA acknowledged publicly that its rules on international transfers would have to be adapted and brought into line with Community legislation. It announced the setting up of a task force to study the matter and presented to the Commission the ideas that had come out of the task force's first meeting. The representatives of the task force, which is charged with drawing up concrete proposals, met the Commissioners for Competition and for Education and Culture and undertook to present concrete proposals by 31 October at the latest.

While restating its willingness to help the sports organisations find a solution compatible with Community legislation, the Commission hopes to bring the matter to a swift conclusion. Whether it takes a favourable or unfavourable view will depend on the proposals and justification put forward by FIFA. In determining whether these proposals are compatible with the Treaty, the Commission will take into account the specific characteristics of the sector, and in particular the need to reward in an objective manner the clubs that train young players while respecting the latter's rights and to ensure the degree of solidarity between large and small clubs that is essential if the competitive balance between them is to be maintained.