Commission and Premiership Close To The Brink - 09/10/2005

EU competition commissioner Neelie Kroes has warned that she will charge the Premiership with breaking EU law over its allocation of television rights 'very shortly'. If the Commission determines that competition rules have been violated, it can impose fines up to 10 per cent of global annual turnover (although an appeal to the European courts is possible). The Premiership is insisting that it is sticking to the terms of a December 2003 agreement with the Commission, but the line taken in Brussels is that is unlikely to result in more than one broadcaster buying the live match rights. Despite all the tough talking, there is hope that a deal can be reached in private. Premiership chief executive Richard Scudamore is expected to meet the tough minded Dutch competition commissioner within a fortnight. Deals are often struck at the last minute over competition issues, but even giant multinationals have got their fingers burnt. In 2001 the Commission blocked the merger between two US companies, General Electric and Honeywell, even though it had been approved by the US regulatory authorities. It would seem that football, which is a rather inward looking world sometimes lacking in political sophistication outside the very top clubs organised in G-14, took its time to appreciate the powers of the Commission and how to deal with them in an effective way.