Iberian allies fight TPO axe

Fifa is facing a serious revolt within the ranks against its ban on third party ownership (TPO) of players which was imposed in December, writes David Shonfield.

Both the Spanish and Portuguese football leagues have come out against the ruling on TPO, which is due to come into full effect at the end of next month, and have started legal proceedings by making a complaint to the European Commission. Those leagues argue Fifa’s new rule, known as 18ter, breaks two Articles of the Treaty on the Functioning of the EU, on “anti-competitive agreements” and “abuse of dominance”. They also claim that Fifa’s ban breaks EU principles on free movement of capital: essentially that EU residents are free to invest where they wish, just as they are free to seek work where they wish.

EU rules also prohibit restrictions on payments between member states and third countries, except in exceptional circumstances. So citizens are allowed to invest their money where they want, outside the EU as well as within — always provided the activity is legal. Sport has a special status under EU regulations which allows for some leeway for bodies such as Fifa, but only to a point, as the Bosman ruling established. Their regulations have to respect rules on competition as they are considered “economic operators”.