Select Committee on Education and Employment Minutes of Evidence


Memorandum from the Football Association (WP 15)

SECTION 1—INTRODUCTION

  1.  The FA, founded in 1863, is the governing body of the game in England. Under its Articles of Association, The FA cannot pay dividends—it is a not-for-profit organisation that distributes funds for the benefit of the game. The objects of The FA are set out in its Memorandum of Association but, in summary, the role of The FA is to promote the sport of football in every way it sees fit. Its activities are many and varied and include, amongst other things:

    —  Promoting participation in the game at every level (playing, coaching, refereeing, administering and spectating at matches and supporting through the media);

    —  Promoting the highest possible standards and opportunities in the sport both in terms of technical ability and ethics, and success on the pitch;

    —  Sanctioning, either directly or indirectly, all matches, leagues and competitions, played in England;

    —  Organising a number of senior men's, youth and women's national competitions (including most notably The FA Challenge Cup) and the participation of England national representative teams (again, senior men's, youth and women's teams) in international matches most notably the men's senior team in the FIFA World Cup and the UEFA European Championships, and friendly fixtures; and

    —  Overseeing in general the administration of the game in England, at every level, including particularly overseeing the administration of the disciplinary system which is applicable to all participants in the game (each club, player, competition, match official and any other person involved in the sport in England is bound by the Rules of The FA) and the administration of refereeing throughout the game.

  2.  The FA is, in effect, an association of clubs. It is formed by, and its powers and duties derive from, its contractual relationships with those clubs and the players and administrators associated with those clubs. Match officials (referees and assistant referees) are the other essential participants in the sport and they are also bound by the Rules of The FA. At present, there are approximately 40,000 clubs which constitute membership of The FA, and therefore the English "Football Family", and of which the overwhelming majority are amateur. Each competition in which clubs participate has to be sanctioned by either The FA, or an affiliated association of The FA. There are approximately 2,000 such competitions in England at present. The vast majority of those who actively participate as players, referees and officials are also "customers" of the game, ie paying spectators, subscribers to TV sports channels and purchasers of club merchandise. The FA also has to have regard to the interests of such people as spectators, supporters or customers of the game.

  3.  The FA is governed by its Council. This constitutes the board of directors and comprises generally in the region of 90 members who are drawn from county and other associations, five representatives from each of the FA Premier League and the Football League, and 10 "Divisional Representatives" that are drawn from the Full Member Clubs of The FA (generally the senior clubs in England and a number of clubs who have contributed to football in England in the past, of which there are currently 244). Of the Council, the majority represents the county associations, which in turn represent the amateur game. The shareholders in The FA are individuals drawn from the county and other associations and the Full Member Clubs. Again, the representatives from the county and other associations are very much in the majority. The shareholders are the body that determine the Rules of The FA

  4.  The sport is organised throughout the world in a hierarchy. At the top of the hierarchy, the world-wide regulation of football takes place under the auspices of the Fédération Internationale de Football Association (FIFA). FIFA consists of member national football associations (approximatley 203 in recent years) which agree to conform to the statutes, regulations and decisions of FIFA and each of which, in turn, is recognised by FIFA as governing the sport of football in their respective countries. FIFA is the organisation ultimately responsible for the Laws of the Game. This hierarchy creates the world-wide "Football Family".

  5.  National associations situated on the same continent may form confederations which are recognised by FIFA. In Europe, the confederation of FIFA's member national associations is the Union des Associations Européenes de Football (UEFA). In England, the national association recognised by FIFA is The FA, which is also a member of UEFA.

  6.  As a Member of UEFA, the European governing body and FIFA, the World governing body of Football, The FA is bound by the Statutes and Regulations of those Federations. UEFA and FIFA organise competitions for national representative teams as well as club sides (most notably the UEFA Champions' League and the UEFA Cup). Eligibility for national representative teams is based on a player's nationality. Players with dual nationality may select the national association they wish to represent but may represent only one association and commit themselves to that association by playing in a recognised, competitive fixture from Under 16 level upwards.

SECTION 2—HOW THE OBJECTIVES APPLY TO THIS ISSUE

  7.  The objectives of promotion of participation and promotion of greatest opportunity are most relevant to this issue. This applies to all persons, regardless of national team eligibility. However, The Football Association is responsible for the England national representative teams and inevitably, for a number of reasons, has an interest in ensuring that the opportunities exist for the development of home-grown talent which is eligible for England selection. It is axiomatic that The Football Association needs to encourage opportunities for young English players to gain first team experience, to bring top quality young players into the national teams.

  8.  Success on the pitch for the England team and English clubs promotes interest in the game. The effects of England's participation in World Cups in 1990 and 1998, and the European Championships in England in 1996 are clear evidence of that. A key element in promoting a sport is the promotion of "heroes" for children. From an English football perspective, it is seen as important to promote English football heroes and a successful England team. However, that does not mean that players who are not qualified to play for England do not have any potential benefits for the promotion of the game: leading football players participating in domestic competition have the potential to help The Football Association's objectives.

  9.  The task for The Football Association is therefore to ensure that the balance is maintained between top-level clubs recruiting overseas players, and the need to provide top-level playing opportunities for young, home-grown talent. A vital part of the promotion of the game in England is success of English clubs in European and World Club competition (there are of course no restrictions in any event on the numbers of EU/EEA players from outside England in English club teams). The introduction of the world's leading players into The Football Association Premier League and The Football League will stimulate interest in the game and provide other benefits. This is a possibly conflicting objective as English clubs, able to compete for the services of the top players of Europe and the world due to the commercial success of the game here, are under understandable pressure to employ the best players from around the world, at the best price. However, The Football Association sees it as important to invest in home grown talent for development purposes, as well as long term economic reasons.

  10.  The Football Association's initiative to promote participation, and excellence, is the Charter for Quality. One of the key objectives is to promote a long term involvement by leading clubs in their young players, to nurture and develop talent. This is particularly through the system of Academies and Centres of Excellence. The Football Association, FA Premier League and the Football League is investing considerable sums in the development of young players in England through the Charter for Quality, and the Academies being established around the country. This has been supported actively by Government, particularly through the DCMS, and Sport England in provision of Lottery funding. The Professional Footballers' Association and the FFE&VTS Ltd are also integral parts of the programme, and its funding.

  The FA is aware that the investment being made in youth development may take some time to yield a return in terms of developed players, and in the interim clubs will seek to recruit players from within England as well as from other EU/EEA nations and beyond, in order to achieve success on a season to season basis. However, one of the mid to long term objectives must be to promote the opportunities for home developed players—which could not exist if clubs employ the leading world talent on a shorter term business strategy.

  11.  Of the total number of registered players, the numbers of EU/EEA registered players excluding UK nationals are 155 (out of 866) in The FA Premier League and 180 (out of 1,896) in The Football League. The number of non-EU/EEA players registered with FA Premier League and Football League clubs has risen over the past 19 years from two in 1980-81 to 28 immediately prior to the "Bosman" ruling by the European Court in Season 1994-95, and to 36 in 1995-96 and, at the last count, 48 in 1999-2000.

SECTIONS 3—PAST CRITERIA

  12.  Work permit criteria have been operated with FA involvement since 1978. Criteria have been used to determine applications, with only minor modifications, for a number of years since that year. The overriding principle was that only players of the highest quality should be granted. The FA considers that still to be the vitally important principle. Work permits were to be issued only to players who would make "a significant contribution to the development of the British game at its highest level". The previous criteria also took account of international appearances, any transfer fee, the salary being offered under a player's contract in England and, of course, a thorough search for resident (EU/EEA) labour; these combined to give a full picture of each application.

  13.  The FA, the Professional Footballers' Association and either the FA Premier League or Football League would be asked for their comments on each permit application. Comments from the footballing bodies were collated by The FA and forwarded to the Overseas Labour Service.

  14.  Applications for permit extensions at the end of each season ensured that players, who were not making a significant contribution to the game, by failing to play in approximately 75 per cent of their club's matches, did not have permits renewed and so the quality of permit players was maintained. This system led to issues for clubs which were unable to play (or to pay) those players whose permits were not extended. The club would therefore have to sell the player concerned. Under FIFA statutes, the club would have to reach agreement with the player and pay off the remainder of his contract and attempt to recover some of that cost by selling the player's registration to an overseas club. In what was a buyer's market, the club rarely received what they could have negotiated given time to release the player.

  15.  In a few recent cases, concerns were raised over the relevance of the value of a player's contract and the apparent pressure on clubs to increase the remuneration package to help ensure a successful application. Clubs would complain that they were being penalised financially for successfully identifying a world talent, with a low transfer value and successfully negotiating a lower salary than might otherwise apply. The appeal process allowed clubs to increase the salary to a player if it was felt this was proving to be a stumbling block for an application: however, clubs considered it to be strange that they had to offer more money to the player, even though he was happy with the original salary offered. The Football Association would agree that the transfer fee/salary factors may have led to problems. The appeal process, however, allowing a prospective employer to change the terms of an offer, brought the whole process into question.

  16.  The search for resident labour was, in our view, a vital element of an application. Often a resident search was supported by poor quality evidence from the applicant.

SECTION 4—CURRENT CRITERIA AND ARRANGEMENTS

  17.  The criteria changed in June 1999 and will be known to the Committee. Comments on these criteria, if they are to continue, are as follows.

  18.  The Football Association has expressed its concern over the application of FIFA rankings for national associations when assessing the quality of an individual player. We consider that it may be more appropriate to consider FIFA rankings on border-line applications only or to consider the ranking of the country in which the applicant is currently playing, eg a player of Liberian nationality but transferring from a career in a top league in Italy or Germany would be accepted more readily than one transferring directly from Liberia.

  19.  Permits had previously been issued annually. Issuing permits for the duration of a player's contract (up to three years) puts the risk of the investment firmly in the club's domain. This allows clubs to release unsuccessful players without the pressure that accompanied an extension application, which was then refused. Permits for the period of a contract will also allow permit players to be used as squad players, as this is becoming common practice at the top of the game—even for players of the highest quality. We also agree with the change that there will be no need for a player to play 75 per cent of his club's games in order to qualify for a renewed permit at the end of each season.

  20.  The Football Association considers that allowing permits for the duration of contracts will lead to an increase in the number of permit players but believes the increase should not be material.

  21.  It is in our view logical that permits are not issued for players on trial. If a player is of the highest calibre, a club will not need to determine this through a trial period. There are arguments about allowing players time to see if they will "settle in". The Football Association would not support this view under the exiting criteria.

  22.  Since the new criteria and appeals process there have been a number of cases which give The Football Association great cause for concern. The appeals process seems to allow an applicant to present arguments that are unreleated to the criteria, or to turn the appeal process more into a negotiation which is not the intention. Numbers of permit players are on the increase.

SECTION 5—FUTURE ARRANGEMENTS

  23.  Considerable dissatisfaction has been expressed at work permit arrangements. There are inevitably conflicts of interest in relation to each case which may be difficult to resolve. An alternative system that has been proposed most often is a quota system. The Football Association can see some merit in such a system.

  24.  A quota of two non-EU/EEA players in The FA Premier League, two in The Football League Division 1 and one each in Divisions 2 and 3 has been proposed by The Football League. This would be a large increase in potential numbers of permit players. It also seems to us that promotion and relegation between divisions could create difficulties. There would then be a problem as between The Football League Division 3 and the Football Conference. However, The Football Association would not in any event support quotas at these levels as they do not seem to be consistent with the overriding objective. We cannot see how a player of high world quality could, or should, be attracted to a club below Division 1 in any event.

  25.  A concern is that a quota system will encourage all clubs to take up their quota, regardless of the quality of each individual, with the resultant increase in non-EU/EEA players in the English game.

  At present a few clubs have three or four permit players. Consideration would have to be given to reducing those clubs to the limit of any quota which may be introduced.

  26.  A quota system might allow leading clubs to recruit players of their choice such as very young players who would not qualify under the current system as it takes time to build up the 75 per cent international appearance record—previous systems have not allowed this. Such a system would put the risk of selection firmly with the clubs (although it would likely lead to an increase in permit players in England). If there was a limit, there is an argument that a club would only use up one place on a player of proven or potential world quality.

  27.  On balance, a quota of two in The FA Premier League and one in The Football League might be workable although this would be subject to further research and consultation. There would be a need to address issues arising from a club dropping out of Division 1. It appears to us that due to the increase in numbers of permit players, and the trend for more applications, that this would set a realistic and reasonable figure having regard to the potential conflicts. Regulations would be required to ensure that the system was not abused.

SECTON 6—CONCLUSION

  28.  The Football Association's overriding objective is to promote participation, and the best possible opportunities for players in England. On an evaluation of the many conflicting views, The Football Association's position is that players of the highest quality in the English game are likely to have beneficial effects. However, in an environment where EU/EEA citizens not qualified to play for England are able to move freely into the English game, it is our conclusion that efforts must be made to preserve quality wherever possible. We are not averse to a quota system, provided that quality is maintained; and we consider that if the current system continues to fail to deliver what is required—a consistent approach and high quality players only granted permits—then a quota system may be a viable alternative. The clubs themselves would ensure that only quality players were brought in.

The Football Association

October 1999


 
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