The Super League is considering a lawsuit against UEFA, seeking damages following the actions taken by the European football governing body to counter the launch of its new tournament starting in 2021. According to information obtained by Calcio e Finanza from privileged sources, the damages claim could amount to a maximum of 3.6 billion euros.
Super League UEFA Lawsuit – What the EU Court of Justice Decided
The amount, reached through a structured analysis based on preliminary discussions with various experts, has been determined by considering a delay of three or four years in the commencement of the new competition due to restrictive rules and threats of economic sanctions that blocked the tournament’s inception in April 2021. A project that regained momentum, albeit in a different format, following the judgment of the European Union Court of Justice, which unequivocally established UEFA’s monopoly position in organizing football competitions in Europe.
Specifically, the judgment, fully binding and not subject to appeal, declared that the statutes of UEFA and FIFA used in 2021 to block the Super League project are illegal, as they violate European Union laws and the principles supporting them, such as free competition and the freedom to provide services throughout the EU. The Court stated that UEFA holds a dominant position in the market for European club football competitions and abused that position by enacting statutes that effectively prevent the formation of new competitions and their competition.
It has, therefore, been established that European football has been subjected to private rules severely and illegally restricting free competition, which is why all past initiatives promoted by football clubs or any other interested actor, including the European Super League in 2021, were destined to fail.
For these reasons, if the regulatory framework and abusive practices of FIFA and UEFA had not existed, the Super League project could have developed independently. This was not possible due to the restrictive rules of the two governing bodies and the threats of sanctions against the clubs and players involved in the project. Hence, the intention to pursue a lawsuit for a maximum value of 3.6 billion euros.
Not only that, there is also a second scenario where the billion-dollar damages claim could reach a double-digit figure. However, this scenario is linked to the hypothesis that the Super League (and consequently its three divisions announced in December of the previous year) never sees the light of day. In this case, the considered timeframe is 23 years, the legally agreed-upon period in the constitution of the Super League Company, the entity established to manage the event.
Super League UEFA Lawsuit – How the Damages Claim Arose
According to the Super League itself, damages have materialized in various areas, starting with the 4 billion euros in funding negotiated, documented, and guaranteed by the investment bank JPMorgan. The proceeds were intended to be distributed to participating clubs, but due to UEFA’s actions and the subsequent project blockage in 2021, the loan was never disbursed.
As a result, the very favorable interest rates that could have been obtained at that historical moment, almost three years ago, are no longer available on the market. This forms the basis for the damages claim by the Super League Company.
The financing in question was structured similarly to a mortgage with fixed annual payments. At the time of the Super League announcement, the loan could have been obtained with an interest rate of 3%, while the current market rate can reach 6%, according to estimates. The present value difference between these two results is approximately 1 billion euros, an amount that the Super League quantifies as damages in this regard.
The envisaged Super League in 2021 and its evolution at the end of 2023 would have involved a significantly greater number of high-quality matches between so-called major clubs, where the audience difference is enormous compared to some lower-quality matches currently offered by the UEFA Champions League (referring to matches between considered medium or small clubs, not at the Super League’s highest level). Consequently, the value of television rights in the Super League would have been (and is predicted to be) significantly higher.
The key question is: how much higher compared to what UEFA obtains by selling its competitions on the market? Conservative estimates by the Super League indicate a value higher by 30%, but a more “aggressive” analysis could lead to an estimate of 50% or even 100% more, practically double what UEFA receives.
In the first case (30%), foregone revenues are considered to be over 700 million euros, while in the second case (50%), the total amount even reaches 1.2 billion euros. Estimates have also been made for stadium revenues, considering that the number of guaranteed matches is effectively lower for clubs participating in the UEFA Champions League compared to the model studied by the Super League. Using the average revenue per home game over three years, accounting for inflation, the overall foregone earnings amount to over half a billion euros.
Finally, the Super League believes that there has also been damage in the commercial sector. According to the organizers, the competition as announced would have substantially increased the global reach of participating clubs due to higher viewership and amplified exposure. This would have led to an increase in sponsorship revenues over time. Estimates in this regard suggest a potential 10% increase in commercial revenues over the three-year period in which the Super League was not played, but this is also considered a conservative estimate.
Overall, considering all aspects (JP Morgan funding, TV rights revenues, stadium revenues, and commercial revenues), the Super League’s damages claim in the lawsuit against UEFA ranges from a minimum of 3.1 billion to a maximum of 3.6 billion euros.
Super League UEFA Lawsuit – Next Steps
Given the lack of dialogue with UEFA and considering that the European football association does not seem inclined (at least for now) to comply with the judgment of the European Union Court of Justice, the Super League will continue on its own path. From a purely legal standpoint, the Super League Company is confident of being on the right side, relying on what was established by the Court and what can be gleaned from Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU) regarding freedom of competition.
Despite the political weight of an organization like UEFA, which has been organizing continental football for decades and could potentially have the support of member states (seemingly united, along with their respective football federations), there is no room for interpretations regarding the monopoly position of the European governing body at the legal level. It remains to be seen whether UEFA will acknowledge this situation or if, as it seems, a confrontation is inevitable.