The new Union of European Clubs (UEC) backed by Aston Villa can only hope to influence Uefa if they sign a memorandum of understanding with the governing body, Football Insider has been told.
The UEC, which was launched in April, aims to promote “equality of economic and sporting opportunities” for underrepresented clubs in Europe.
Their aims are in line with those of another influential organisation, the European Leagues, which called for Uefa to implement a fairer financial distribution system shortly after the UEC announcement.
European Leagues – which represents 40 divisions, including the Premier League – wants Uefa to increase its solidarity payments from four per cent of its annual revenues to 10 per cent.
That would hand clubs not competing in the Champions League, Europa League or Conference League an extra £300million, distributed by their national football associations.
That could potentially benefit the likes of Aston Villa, for whom Conference League qualification remains a possibility this season but who have not qualified for Europe in over a decade.
As well as having signed up to the newly-formed UEC, Aston Villa are also a member of the European Club Association, the body which it has quickly become clear is a rival of the UEC.
Stephen Taylor Heath, partner and head of sports law at JMW Solicitors, says that the UEC must ally itself with Uefa if they are to match the ECA’s level of influence.
However, the legal expert is unsure that a 10 per cent cut of Uefa’s turnover can be achieved.
“The thing about Uefa’s solidarity payments is that they say they are for assisting clubs with things like funding youth programmes,” he told Football Insider.
“It’s not intended to level the playing field in giving clubs outside European competition the resources to break into them. It’s more of a compensatory payment rather than a solidarity one.
“It’s up to the football associations how they distribute the money. You could distribute among a wider array of clubs, but Uefa themselves say they don’t want to dilute the benefits and allure of taking part in European competition.
Taylor Heath also explained why, unlike the UEC at this stage, the ECA have real power when it comes to influencing Uefa.
“Uefa are also at pains to say that things like solidarity schemes are devised in consultation with the European Club Association. The ECA are quite defensive as it currently stands, saying that, in real terms, it’s more than four per cent that goes to solidarity.
“The ECA don’t have any formal powers. They can’t veto or vote on the distribution deal. But they do have a memorandum of understanding that says they won’t make decisions that materially affect the associate members without consulting them.
“In order for the UEC to have credibility and influence decisions, they have to have some sort of memorandum of understanding with Uefa. Uefa might ask why they need another organisation like this, however.
There are, however, other ways that the new organisation could exercise power, Taylor Heath suggests.
“Uefa say they are in consultation with the EU over matters of integrity. If the UEC think Uefa aren’t listening, one option they could pursue is to lobby the EU and say Uefa’s practices are anti-competitive, but I think it would be a stretch.
“The UEC intend to be a voice for the clubs that don’t currently have a voice. It makes sense to have a seat at the table and for Uefa to engage with them. But then how far do you go? Do you speak to non-league clubs? What you hope is that your football association would instead provide a universal voice.
“Uefa will probably wait and see how many clubs join them. That might give them some credibility, but it wouldn’t give them any more power than the ECA, who have some influence and are happy with the current scheme.
Taylor Heath outlined the counterarguments to the European leagues and the UEC’s arguments and forecasted that Uefa are unlikely to make any concessions in the short term.
“At the moment, revenues are increasing, so the amount that four per cent represents is also increasing. I personally can’t see that they are going to vote to increase the percentage that will go to non-competing clubs at this moment in time.
“It’s like parachute payments, which many argue are unfair. When you qualify for European competition, clauses in players’ contracts are activated and costs are increased. When you fall out of those competitions, the benefits are no longer there but the costs might remain. So, there is an argument to say it is reasonable to retain the status quo in terms of what participating teams get.
“Uefa would also argue that the net is quite wide in terms of all those who play in Uefa competitions, including those who are in the qualifying phase. Like any sporting competition, there has to be a ladder of rewards. You can’t distribute money on communist principles. If you increase the share for clubs that aren’t competing in these competitions, that reduces it for those who are.
“With regards to the 10-year coefficient system, Uefa would say longevity ought to be rewarded. If a club has been competing at the top level for a long time, their outgoings will be higher.”
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By: Adam Williams, Finance & Governance Correspondent
Title: Exclusive: Aston Villa agreement could spark Uefa payout as £300m jackpot on the line
Sourced From: www.footballinsider247.com/aston-villa-deal-could-spark-uefa-payout-as-300m-jackpot-on-the-line/
Published Date: Fri, 19 May 2023 18:00:00 +0000
