III. Research Methods and Constraints
2.4 G-14
different countries work together, they work within a national legal system that is unfamiliar to some members. EEIGs work within a neutral legal framework that is independent of individual national legal systems. This means that all members are on an equal footing in terms of their familiarity with the law.
It is not intended that an EEIG should make profits for itself. If it does make any profits, they should be apportioned among the members and taxed accordingly. An EEIG is legally separate from the businesses of its owners, although it exists to carry out tasks for them. EEIGs can operate anywhere within the European Community (EC) and can also form links with organisations in countries outside the EC. The contract for the formation of an EEIG must be filed at the registry designated by each member state. Registration in this manner confers full legal capacity on the EEIG throughout the EC.
2.4.2. THE CREATION OF THE GROUPING
The idea of the creation of G-14 dates back to 1998 and has its origins in informal and occasional meetings between eight clubs (AC Milan, Juventus, Internazionale Milano, Real Madrid, Barcelona, Ajax, Liverpool, Bayern München) who were constantly involved in the context of international competitions and shared a number of common issues and challenges.137 Later on, conscious of the benefits of those meetings the eight initial clubs invited six other clubs with comparable sporting performance (Manchester United, Olympique de Marseille, Paris Saint-Germain, PSV, Borussia Dortmund and FC Porto) to join them, forming the original Group of 14. In July 2000, the group announced the hiring of Thomas Kurth as the General Manager of their forming organisation. That was the first step in the formalization of the group. It was a very relevant step from a strategic point of view, since Kurth at that time was the head of UEFA’s Club Competition Department, a key figure in the logistical organisation and running of UEFA Champions League competition.
In November 2000 the G-14 was officially established, eventually opening their office in Brussels in March 2001.
In August 2002, the group unanimously voted to invite four additional clubs (Bayer 04 Leverkusen, Valencia CF, Arsenal FC and Olympique Lyonnais) expanding its membership structure to the current 18 clubs shown in Figure 2.10 above.
Notwithstanding the expansion, it was decided that the name G-14 would be kept in recognition of the pioneering role which the 14 historic clubs played in founding the group and to leverage on the fact that the G-14 was becoming an ever more recognised name on the international club football scene.
Figure 2.11 –G-14 – Major milestones
1998 1999 Jul ‘00 Sep ‘00 Mar ‘01 Aug ‘02
Eight clubs start meeting informally
Six clubs are invited to join
the group
Thomas Kurth hired from UEFA
G-14 acquires legal personality
Opening of the office in Brussels
Final expansion to
18 clubs
Source: G -14 Press release, G -14 Statutes, Clippings
137 Among other things, the eight initial clubs all had in common the fact that they had won at least 5 continental titles each.
2.4.3. OBJECTIVES
The purpose of the G-14 as stated in article 1.4 of their statutes is:
§ To promote the cooperation, amicable relations and unity of the member clubs
§ To promote and improve the professional football competition in all its aspects and safeguard the general interests of the Member clubs
§ To aid the exchange of information between the Member clubs
§ To promote the interests of the Member clubs and to consider the collective affairs important for said clubs
§ To negotiate the format, administration and operation of the club competitions with the FIFA, the UEFA and other sports institutions
§ To perform the economic activities necessary for the Grouping
Although not present in the statutes, the group’s official press release adds the following purpose to that list:
§ To promote co-operation with UEFA, FIFA, other clubs, Institutions, etc.
In practice, The G-14 aims to be the consensual voice of the clubs. In its press kit, the group states that given its character and the mix of identities generated by the international origin of its member clubs, the grouping has to face a significant challenge: to represent and promote and safeguard the interests of its members through a consensual approach. On the way to consensus, issues may arise, such as:
§ conflicting priorities of member clubs in terms of global strategies, timing, or even competitions
§ conflicting contexts of member clubs in terms of domestic resources, impact, development perspective and level of competition.
The text goes further stating that in the current context, football clubs are no longer solely dedicated to hiring football players and playing games to win titles and trophies. The constant challenge of the evolving level of expectations of football amateurs and fans has put the focus on the necessity for football to open the door to professionalism and expertise in everything both on and off the pitch. So, football clubs have become football “companies” whose daily activities also rely on abilities outside of sport. Given those elements, football clubs nowadays have to accept reforms, rules and laws which have been conceived without their input or opinion: it is important to take this into account.
The press kit ends stating that Football clubs have to face the future of their sport.138
2.4.4. THE STRUCTURE OF G-14
The structure of the G-14 is composed basically by three main organs as shown below.
Figure 2.12 – Structure of G-14
138 Excerpts from G-14 Press Kit – p.10
Management Committee
General Manager / Operational Structure
•Convenes at least 4 times a year – 3 ordinary and 1 statutory meeting
•Votes on global strategic, policy, and consensual decisions
•Approves the financial accounts
•Nominates the members of the Management Committee
•Admits new members, removes or suspends current members
•Responsible for the daily running of the activities designed to achieve the objectives specified by the General Assembly
•The operational structure headquartered in Brussels is composed by the General Manager, the Administration and Finance Manager, the Communications Manager and two assistants
•Meets at regular intervals during the year
•Gives strategic instructions to the General Manager in accordance with the General Assembly statements
•Acts as chief spokesperson for the group
•Present strategic, financial, commercial, operational or policy proposals to the General Assembly
•Composed by 1 chairman, 4 vice chairman, and 1 observer in manda tes of one two-year period with a two-two-year single renewal option, besides the General Manager.
General Assembly
Source: G-14 Statutes, Press Release
Organs Main responsibilities
The voting rights at the General Assembly are based on a system that takes into consideration the sporting performance of the member clubs:
§ 3 votes for each of the founding members
§ 1 vote for each of the non-founding members
§ 2 votes for each of the Champions League Cup139 won by each member
§ 1 vote for each of the UEFA Cup Winners’ Cup won by each member
Based on this system, the current power structure within the G-14 is shown on Figure 2.13.140 Figure 2.13 - Summary of G-14 votes as of Jul ’03 – Total 147
14%
13%
7% 4%
26%
20%
16%
Italy
Spain England
Germany Netherlands
France
Milan 17 Juventus 11 Inter 10 Total 38
Real Madrid 18 Barcelona 9 Valencia 2 Total 27 Liverpool 14
Man Utd 8 Arsenal 2 Total 24 Bayern 13
Dortmund 6 Leverkusen 2 Total 21 Ajax 13 PSV 6 Total 19
Ol. Marseilles 5 Paris St. Germain 4 Ol. Lyonnais 1 Total 10
Portugal Porto 6 Total 6
Source: G-14 voting system
139 Former European Club Champions’ Cup
140 A table demonstrating the voting calculation for each member club can be found in appendix d.
Although the General Assembly is the highest authority in the structure of G-14, it is the Management Committee that is the “de-facto” leading organ in the structure of the lobby group. Geneviève Berti explains:
‘The general process of G-14 is that the Management Committee proposes presentations and the General Assembly debates the possibilities and decides on a common position.
From this position, the G-14 then defends it externally.’ 141
Describing the role that the members of the Management Committee play, Berti explains that the seven gather a broad set of expertises within the European sporting context:
Pedro Lopez Jimenez – Board Member of Real Madrid: Represents the political expertise from Madrid.
He directs the group in terms of its actions as a political lobby and gives context to the issues within a wider political form. (NB. Jimenez is the replacement for when Real Madrid President, Florentino Perez is unable to attend)
Karl Heinz Rummenigge – Vice President of Bayern München: Represents the sporting legitimacy of the group. Being involved in several FIFA and UEFA committees, having been a top professional respected everywhere, he serves as the “ambassador of the G-14” because of his widely regarded expertise.
Peter Kenyon – CEO of Manchester United PLC: Comes from the business world but is not alienated from sport (previously worked at Umbro). He understands the various responsibilities and pressures faced by clubs since he runs a PLC,142 He brings the business support necessary for the association’s pursuit of the game and its spirit. He acts as a “CEO for G-14”. (NB. Not officially with Chelsea FC yet, Kenyon will be leaving MU and his role within the G-14)
Umberto Gandini – Sporting Director of AC Milan: Has the overall understanding of the technical and sporting matters in a wider frame. (NB. Gandini is the replacement for when AC Milan Vice-President, Adriano Galliani is unable to attend)
Michael Van Praag – President of Ajax: Acts as the “Financial Expert”, besides bringing knowledge in the sporting side with development, recruitment and transfer of players.
Thomas Kurth – General Manager of G-14: Brings the institutional knowledge of having worked for many years at UEFA. He understands how to address issues within a community of institutions.
The observer member representing the French clubs used to be Laurent Perpère, former chairman of Paris St-Germain, but as he stepped down from his responsibilities at the club, he is being replaced by Francis Graille also from Paris St.-Germain, but this position is not yet consolidated.
The group also counts on an operational structure that among other things is responsible for implementing and conducting the operational side of G-14 activities.
141 Interview with Geneviève BERTI
142 Public Liability Company
3.
CHAPTER THREE: THE CONFLICTS
The objective of this chapter is to identify the main conflicts impacting the current reality of European football and investigate their root causes. The analyses in this chapter rely on the main findings from the previous chapters of this paper, with special attention to the description of the actors in chapter 2, and the stakeholders’ map from section 1.1.3. We begin by analysing the main areas of convergence and divergence in the interests of the actors, followed by a description of what have been the major conflicting areas in the recent past, specifically between UEFA and the top clubs. We finalise the chapter with an exercise of designing scenarios for European football based on the possible next moves of the actors.