Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Friday, April 20, 2012

The institutional framework for doing sports business: Principles of EU competition policy in sports markets

Posted by D. Daniel Sokol

Oliver Budzinski (University of Southern Denmark) describes The institutional framework for doing sports business: Principles of EU competition policy in sports markets.

ABSTRACT: The competition rules and policy framework of the European Union represents an important institutional restriction for doing sports business. Driven by the courts, the 2007 overhaul of the approach and methodology has increased the scope of competition policy towards sports associations and clubs. Nowadays, virtually all activities of sports associations that govern and organize a sports discipline with business elements are subject to antitrust rules. This includes genuine sporting rules that are essential for a league, championship or tournament to come into existence. Of course, 'real' business or commercial activities like ticket selling, marketing of broadcasting rights, etc. also have to comply with competition rules. Regulatory activities of sports associations comply with European competition rules if they pursuit a legitimate objective, its restrictive effects are inherent to that objective and proportionate to ! it. This new approach offers important orientation for the strategy choice of sports associations, clubs and related enterprises. Since this assessment is done following a case-by-case approach, however, neither a blacklist of anticompetitive nor a whitelist of procompetitive sporting rules can be derived. Instead, conclusions can be drawn only from the existing case decisions - but, unfortunately, this leaves many aspects open. With respect to business activities, the focus of European competition policy is on centralized marketing arrangements bundling media rights. These constitute cartels and are viewed to be anticompetitive in nature. However, they may be exempted from the cartel prohibition on efficiency and consumer benefits considerations. Here, a detailed list of conditions exists that centralized marketing arrangements must comply with in order to be legal. Although this policy seems to be well-developed at first sight, a closer look at the decision practice reveals several open problems. Other areas of the buying and selling behavi or of sports associations and related enterprises are considerably less well-developed and do not provide much orientation for business.

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Businesses in sports are becoming more profitable because of the increase of interested people in every sports. Ticket selling is one of the most profitable businesses. These businesses should be reminded of their different duties and responsibilities for them to be more regulated by the government.

Posted by: Joanne Smith | Aug 17, 2012 8:47:52 PM

the government should ahave been more considereate when it comes to making new rules for the people to follow.. there are rampant business opportunities that sprouted every now and then thus the different rules should be followed and not neglected instead.

Posted by: howtobuildmusclefast for men naturally | Nov 21, 2012 11:41:20 AM

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