Regulating Competitive Balance in Sport Oscar Kashani A thesis submitted in partial fulfilment of the requirements of Nottingham Trent University for the degree of Doctor of Philosophy February 2012 Copyright Statement This work is the intellectual property of the author Oscar Kashani. You may copy up to 5% of this work for private study, or personal, non-commercial research. Any re- use of the information contained within this document should be fully referenced, quoting the author, title, university, degree level and pagination. Queries or requests for any other use, or if a more substantial copy is required, should be directed in the owner of the Intellectual Property Rights. i Abstract Sport is an integral part of popular culture, capturing the hearts and minds of millions of people from every section of society.1 Maintaining competitive balance in sport is essential in preserving its long term survival. A higher uncertainty of outcome in contests is likely to result in greater spectator demand and increased revenues; whereas an imbalanced competition will eventually lead to a decline in attendance and the overall quality of the sport. The regulation of competitive balance in individual sports is difficult to implement, as success relies largely on the athlete’s individual skill and ability.2 In contrast, team sports can be influenced by a number of regulatory measures such as player drafts, salary caps, transfer windows, and player quotas. Analysis into Europe and North America’s regulation of competitive balance reveals a variety of measures used to foster greater equality of opportunity between teams competing with one another in sport. Unfortunately European sports are restricted somewhat, as access to sport is considered to be a social advantage and importance for the integration of citizens, and therefore cannot remain outside the scope of the fundamental principles of free movement. Although the European Union accepts the ‘specificity of sport’, it grants no exception from European Union law for the industry; a principle that has recently been reaffirmed in the decisions of Bosman3 and Meca-Medina4. Sports governing bodies must therefore ensure new rules and regulatory measures comply with European Union law; reducing the number of measures available to them. 1 Lewis, A. and Taylor, J. (2003) ‘Sport: Law and Practice’, Tottel publishing, p4. 2 Success in individual sports can occasionally rely on other issues such as resources for training. It is harder to have success in winter sports (e.g. bobsleigh) if you live in Jamaica. 3 Case C-415/93 Union Royale Belge Sociétés de Football Association and others v Jean-Marc Bosman and others [1995] ECR 1-4921. 4 Case C-519/04 Meca-Medina and Majcen v Commission [2006] ECR I-6991. ii This thesis analyses the competitive balance in sport both as a more theoretical phenomenon and as something that concrete measures can practically inhibit or stimulate. It ‘drills down’ into how issues of competitive balance arise in a number of specific contexts (doping, corruption, the influence of sponsors and the broadcast media, and with respect to gender and disability) and examines how these specific issues may be resolved as well as drawing out the broader lessons they hold for competitive balance as a whole. It is envisaged that the thesis will not only be of academic interest but prove to be a practical tool for use by those who are at the frontline of governance of sport. iii Acknowledgements I would like to thank my supervisory team of Dr Austen Garwood-Gowers, Mr Simon Boyes, and Professor Mary Seneviratne for their expertise, guidance, support, and motivation throughout my project. I would also like to thank my father Hossein Kashani for funding my PhD and supporting me during the past four years; and my mother Sheila Kashani for her support and guidance. iv Table of Contents i. Table of Statutes vii ii. Table of Cases viii iii. List of Abbreviations xi iv. List of Tables xiii Chapter 1: Introduction 1. Introduction 2 Chapter 2: The Philosophy and Economics of Sport 2. Identifying a Sport 12 3. Competitive Balance and Uncertainty of Outcome 20 4. Fair Play and Gamesmanship 33 5. The Pursuit of Excellence 44 Chapter 3: Access Denial in Sport 6. Gender and Disability 55 7. European Union Law and Freedom of Movement 74 8. Doping in Sport 92 9. The Development of Mixed Martial Arts as a Sport 117 Chapter 4: The Commercialisation of Sport 10. Influence of Sponsors and the Broadcast Media 141 11. UEFA Financial Fair Play 159 12. Combating Corruption in Sport 166 13. Third Party Contracts: The Carlos Tévez Dispute 193 14. The Webster and Matuzalém Cases 206 v Chapter 5: European and North American Regulation of Competitive Balance in Team Sports 15. The Promotion and Relegation System 220 16. The Salary Cap 245 17. The Player Draft 262 Chapter 6: Conclusion 18. Conclusion 282 References v. Bibliography 298 vi. List of Websites 309 vii. Appendix 1 313 viii. Index 317 vi Table of Statutes United Kingdom Commons Registration Act [1965] 12 Sex Discrimination Act [1975] 59 Human Rights Act [1998] 88, 89 Gender Recognition Act [2004] 59 United States Sherman Antitrust Act [1890] 270, 286 Americans with Disabilities Act [1990] 69 EC/EU Treaty Art. 2 75, 90 Art. 7 76 Art. 39 78 Art. 48 77, 78, 79 Art. 59 75, 76 Art. 81 74, 78, 227, 249, 250, 271, 286, 289 Art. 82 74, 78, 227, 286 European Convention on Human Rights Art. 4 89 Art. 6 89 Treaty of Lisbon Art. 165 75 Treaty of Maastricht Art. 228 79 vii Table of Cases UK and European Domestic Law Clarke v Earl of Dunraven [1897] AC 59. 195 County Limited v Girozentrale Securities [1996] 3 All ER 834, CA. 196 Eastham v Newcastle United FC Ltd [1963] 3 All ER 139; [1964] Ch 413. 87, 251 Edwards v The British Athletic Federation [1997] (High Court of Justice, Chancery Division), United Kingdom, 23.06.97. 99 Gasser v Stinson and another [1988] unreported, 15th June QBD. 87, 99 Greig v Insole [1978] 1 WLR 302. 87 Grubba v German Table Tennis Federation [1997] Frankfurt am Main Appeal Court, Germany, 25th November 1997, Case no. 2-14 0 254/97. 77 Hadley v Baxendale [1854] 9 Ex 341. 196 Katrin Zimmerman Krabbe v Deutscher Leichtathletik Verband (DLV) and International Amateur Athletic Federation (IAAF) [1996] (Munich Court of Appeal, Germany, 28.03.96). 101 Markakis v ASBL Fédération Royale Belge des Sociétés de Basketball [1992] Brussels Court of First Instance, Belgium, 08.09.1992. 76 Modahl v British Athletics Federation Ltd [2002] WLR 1192. 102 Newport AFC Ltd v The Football Association of Wales [1995] 2 All ER 87. 88 Nordenfelt v Maxim Nordenfelt Guns & Ammunition Co Ltd [1894] AC 535. 86, 250 R v Oxfordshire County Council and Others ex p Sunningwell Parish Council [1993] 3 WLR 160. 12 Sheffield United FC Limited v West Ham United FC plc [2008] EWHC 2855 (Comm). 194 Stevenage Borough FC Ltd v Football League Ltd [1997] 9 Admin LR 109, Times August 1st, 1996. 226, 227 Vincent Guérin v Fédération Française de Football [1998] (Versailles Administrative Court, France, 02.07.98. 102 viii X v Netherlands (Application 9322/81) [1983] 32 DR 180. 89 Z v DFB (German Football Federation) [1999], DFB sports tribunal. 100 European Union Law Case 36/74 Walrave and Koch v Association Union Cycliste Internationale and Others [1974] ECR 1405. 74, 75, 90, 289 Case 13/76 Doña and Montero [1976] 2 CMLR 578; [1976] ECR 1333. 76, 78 Case C-33/89 Kowalska [1990] ECR 1-2591. 271 Case C-415/93 Union Royale Belge Sociétés de Football Association and others v Jean-Marc Bosman and others [1995] ECR 1-4921. 31, 77-85, 89, 90, 217, 251, 290 Cases C-51/96 and 191/97 Christelle Deliège v ASBL Ligue Francophone de Judo [2000] ECR I-2549. 76, 77 Case C-176/96 Lehtonen (Jyri) & Castors Canada Dry Namur-Braine v ASBL Fédération Royale Belge des Sociétés de Basketball [2000] ECR I-2681. 76, 86 Case C-309/99 Wouters and others [2002] ECR I-1577. 75 Case C-438/00 Deutscher Handballbund v Kolpak [2003] ECR I-4135. 77 Case C-519/04 Meca-Medina and Majcen v Commission [2006] ECR I-6991. 75, 90, 289 Court of Arbitration for Sport CAS 1999/A/234 and CAS 1999/A/235 David Meca-Medina v FINA and Igor Majcen v FINA, Lausanne, 29.02.00. 101 CAS 2004/O/645 United States Anti Doping Agency v Tim Montgomery. 100 CAS 2004/O/649 United States Anti Doping Agency v Chryste Gaines. 100 CAS 2006/A/1067 International Rugby Board (IRB) v Keyter. 100 CAS 2007/A/1298 Wigan Athletic FC v Heart of Midlothian, CAS 2007/A/1299 Heart of Midlothian v Webster & Wigan Athletic FC, CAS 2007/A/1300 Webster v Heart of Midlothian. 206-208, 212, 213, 215, 217 CAS 2008/A/1519 FC Shakhtar Donetsk v Matuzalém Francelino da Silva & Real Zaragoza & FIFA. 210-213, 215-217 ix Australia Adamson v NSW Rugby League Limited [1991] ATPR 41-141 9 (Full Court of Australia). 251 Canada Johnson v Athletics Canada and International Association of Athletics Federations [1997] (Ontario Court of Justice), Canada, 25.07.97. 99 United States Dr. Renee Richards v United States Tennis Association 400 NYS 2d 267 [1977]. 59 Federal Baseball Club of Baltimore, Inc v National League of Professional Baseball Clubs, 259 U.S. 200 [1922]. 270 Flood v Kuhn, 407 U.S. 258 [1972]. 31, 270 James McCoy (Yazoo) Smith v Pro-Football et al., 420 F.