This week it came to light that the UK government may have the power to force football's illustrious Premier League to distribute more cash to the sport’s grassroots, albeit such a move could be in breach of world governing body Fifa’s policy of not allowing government interference in the beautiful game.
John Whittingdale, the minister for culture, sport and media, told a House of Commons committee on the 16th September that the Premier League must give more of its huge profits to lower league clubs and grassroots teams.
He said: “The Premier League is enjoying a complete bonanza now. There is a huge amount of money coming in but the proportion of that that reaches the lower divisions and the grassroots in particular is still very small. Should they be doing more? Without any question.”
When he was questioned as to whether the government could intervene, he said: “If the Premier League absolutely refuses to increase the amount of money that passes down through the system to the benefit of grassroots sport, then I think we would certainly look at what options we have available to us to ensure that is the outcome. I hope that can be avoided. It would be perfectly possible for the government to intervene to achieve that outcome, maybe through a levy.”
This seems to be a key example of transnationalism in modern day law. The idea that a seemingly independent body like FIFA could be both above and below the UK government in terms of financial rule making in football. In short the government does have the legal power to make FIFA distribute profits to grass roots teams but FIFA rules explicitly refer to the prevention of government intervention in football.
Given FIFA's tarnished reputation since the world cup bid fixing scandal earlier this year it will become immensely difficult for FIFA to hide from the fact that much of its multi-billion pound profit sheet is not being spent on developing the sport.
Back in May, the Premier League pledged to share at least £1 billion of its huge UK TV rights deal with lower levels of the game, claiming that such a contribution is “unprecedented in world sport.”
The Premier League really suprised everyone when it sold live rights to Premier League fixtures to Sky and BT Sport for a whopping £5.136 billion. Since then the Premier League has been under pressure to distribute its wealth down towards the grass roots tiers of English football. Under this new pledge over £1billion will go towards grassroots football, match day experiences and paying all staff a 'living wage'
Richard Scudamore, the executive chairman of the Premier League, said of the payment amounts to £50 million per member club: “The clubs have always stepped up to the plate when it comes to sharing their success. They appreciate that the development of the Premier League is contingent to a high degree on continued levels of passionate support and a vibrant football pyramid.
“These are unprecedented levels of redistribution in world sport, let alone football, which will deliver long-term progress for English football whether you are a fan, lower league club or involved in the grassroots.”
Details of the Premier League’s future financial contribution to the lower levels of English soccer have still to be finalised as the UK television deal is subject to an investigation by Ofcom which was prompted by a complaint by Virgin Media, about the selling of broadcasting rights. However, the Premier League can expect a further windfall from other domestic rights and international rights.
Business advisory firm Deloitte said recently that total broadcasting income in the next three-year cycle could be as high as £8.5 billion.
Overall, this is a very interesting development in the world of transnational law and the intricacies of the hierarchical relationship between European governments and FIFA are slowly being bought out of the shadows. It is hoped that stories like this will bring a new generation of legal, footballing and property right students into the big issues of the IP world and into the murky waters of transnational law.
For further information on the topics covered in this article please see the following sources:
Cotterell ‘Spectres of Transnationalism: Changing Terrains of Sociology of Law’ (2009) 36 Journal of Law and Society 481-500.
http://www.theguardian.com/media/2015/sep/18/premier-league-rights-battle-between-sky-and-bt-harming-uk-tv-industry
http://www.bbc.co.uk/sport/0/football/27732437
http://www.solicitorsjournal.com/news/commercial/company/music-and-football-industries-ramp-protection-ip-rights
http://www.mondaq.com/mexico/x/123054/Trademark/Sports+And+IP+The+Case+Of+The+Fifa+2010+World+Cup
