In an opinion article published by De Tijd, Thomas Peeters, sports economist at Erasmus School of Economics, writes that to structurally solve the problems in European soccer, one really doesn't have to look far. 'Just apply the law, as it is done in every other billion-dollar business.'
Soccer is in an unprecedented crisis, Peeters writes. 'Belgian club officials are being dragged one by one into an investigation into fraud with player transactions. Both the previous president of the world football federation FIFA and his European colleague at UEFA were removed after a criminal investigation into possible bribery. Because of their actions, we are playing a World Cup in Qatar at the end of this year that is being realized at the cost of gross human rights violations and for which every economic and sporting logic is missing.'
According to Peeters, there are two flaws in the regulation of European soccer that could explain why it has been able to come to this. 'First, FIFA, UEFA and the national federations have taken on a dual role. On the one hand, they issue regulations as if they were the legal regulator of the industry. On the other hand, they organize competitions, such as the Champions League, from which they earn millions of euros.' These two roles clash, according to Peeters. 'For example, participation of Europe's top clubs in the Champions League is crucial to UEFA's commercial success. Those top clubs realize that all too well and cleverly use their position of power to block any regulation that doesn't fit their stall.'
A second problem is the inherent tension between the international and national set-ups of the various leagues, Peeters writes. 'Our clubs compete for talented players in a global labor market. There they compete with their meager earnings from the Jupiler Pro League against foreign clubs that earn many times more. Subsequently, our top clubs are allowed to use that player material to fight a losing battle in the European competitions.' As a result, the collective income from the TV rights is primarily passed on to the top clubs.
'The demand for a structural solution to the problems in our soccer is getting louder and louder. We don't have to look far for that solution. Just apply the law, as it is done in every other billion-dollar business. And in doing so, start with the competition rules.'
- Associate professor
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The full article from De Tijd, 20 January 2022, can be found here (in Dutch).
