Select Committee on Culture, Media and Sport Minutes of Evidence


Memorandum submitted by The Premier League

1.  INTRODUCTION AND OVERVIEW

  1.1  The Premier League organises the top division of English football, with the twenty clubs at any one time in the League being the shareholders. Each club considers itself to be a Premier League Club, and looks to the League to act as its trade association as well as its competition organiser and regulator. The competition comprises 380 games in a season, attracts in excess of 300,000 fans each match weekend (an increase of 60% in 15 years) with an average occupancy over the season of 92%. Media audiences are also buoyant both in the UK and internationally. Although the competition will always be the Premier League's principal concern, we are also committed to football solidarity and corporate social responsibility. Given our scale, it is inevitable that the European Commission's White Paper touches on many aspects of our sporting and commercial activities. We are grateful for the Commission's inclusive process in the preparation of the White Paper, and broadly support the scope, analysis and conclusions of the White Paper, and view its focus on the societal role of sport and the economic importance of sport in Europe as correct.

  1.2  The Premier League welcomes the White Paper as a significant contribution to both the understanding and the future development of the relationship between sport in Europe and the European Union institutions and the body of EU law. Its findings and recommendations provide a good framework for the development of the new EU competence for sport envisaged in the forthcoming Treaty.

  1.3  The conclusion that there is no justification for a single, one size fits all, regulatory structure for sport across Europe is particularly welcome. Throughout Europe different sports and competitions are organised in a number of different ways, arising from each sport's and each culture's different history and traditions. In recognising this, and in confirming the importance of the national dimension as the primary level for organising and administering sport, the White Paper establishes a firm foundation for the construction of European policy in this area. The general principle of subsidiarity is easy to apply in the world of sport, given that existing arrangements for virtually all sports lie primarily at the level of national governments and national sporting organisations. This established reality works well, reflecting the different characteristics of each nation in its approach to sport. We therefore welcome the White Paper's recognition that the European Union should respect subsidiarity, with the lead responsibilities for sport remaining with national sporting bodies and national governments.

  1.4  The White Paper's conclusions on the specificity on sport are similarly well-founded. European Union jurisprudence has already established that EU law applies to the economic dimension of sport, primarily through the application of competition and free movement rules. We welcome the European Commission's view that any necessary specificity for sport can and should be achieved through the existing legal framework and that calls for exemptions for sport from the normal operation of EU law are unrealistic and should be rejected.

  1.5  The Premier League considers that these strategic conclusions—about respecting the sheer variety of sports models throughout Europe, the need to respect subsidiarity, and the proper application of the specificity of sport within the law—should remain the modus operandi for EU policy on sport after the eventual adoption of the Lisbon Treaty. We believe that this was the drafters' intention in including sport in the Treaty in the category of "complementary competences". The new Article 149 explicitly rules out EU harmonisation measures but does create the possibility of European laws or framework laws to establish "incentive measures" and "recommendations". The Premier League would ask the Select Committee, in the exercise of its scrutiny function, to keep in review the emergence of EU sport policy in the wake of Treaty adoption, particularly to examine the extent to which the core White Paper principles are upheld. The EU complementary competence in sport should support and not replace national policies and practices.

  1.6  The context in which the White Paper and its action plan are taken forward is now changing. At its October 2007 White Paper conference, the European Commission stated that the White Paper and the structured dialogue should now be viewed in large part as the preparatory work and structure for the entry into force of the Treaty Article on Sport. In moving forward, this dialogue with sport should include a wide range of voices, not just pan-European bodies, and should include those from national sports bodies, providing as they do the vast majority of sports activity in Europe.

  1.7  We believe that the EU's future focus in sport should remain on the societal role of sport and the economic importance of sport in Europe.

The Premier League and Europe

  1.8  The Premier League has an established interest in the development of European Union policies as they affect sport. The growing power of the European institutions means that all sports bodies will also have to engage with the European agenda.

  1.9  Improved playing standards and investment in facilities have seen stadium attendances increase by over 60% in fifteen years alongside increases in the live television audience and in marketing income. Buoyant incomes have been re-invested: in stadium facilities, in playing squads and training standards, in wider communities and in grassroots football. This has improved playing standards and the watching experience even further, triggering further economic and sporting success.

  1.10  As a result the Premier League has become much more than just the United Kingdom's most popular regular sporting competition. It has also become an important economic agent, with a significant impact on employment, GDP and national and local economies. A number of related industries have benefited from the Premier League's strength, including broadcasting, marketing and other communications industries, and the travel, tourism and hospitality industries. Premier League Clubs have become the social focus of many urban communities and are often the most prominent symbol of their cities in the UK and around the world.

  1.11  The economic success of the Premier League generates significant taxation revenues for national and local government, giving the Government and local authorities a direct interest in the continued economic health of our competition. It is therefore important to bear in mind that, in considering the impact of the EU on sport, the relevant policies include employment, the internal market, economic development, trade, judicial and legal services, social inclusion, and regional policy as well as sport itself.

  1.12  The Premier League would be keen to work with the UK Government, the Commission and other sports on the proposed economic impact study envisaged in the White Paper action plan in order that the full impact of sport on employment, GDP and national and local economies can be quantified.

  1.13  Sporting and economic success are essential ingredients in the ability of the Premier League to have a strong Corporate Social Responsibility policy. Three years ago this policy was assessed as being worth in excess of £80 million a year (study published by Deloitte, 2005), making the Premier League proportionately one of the largest corporate donors in the UK, almost certainly unequalled by any sporting body in Europe. This year Deloitte assessed the current contribution as being in excess of £120 million.

  1.14  As a result of the wide consultation undertaken by the Commission there is much to be welcomed in the White Paper. The following response to the White Paper explains where we think the Commission can strengthen the position of sport at a European level through the exercise of its existing competences—intellectual property protection, gambling integrity, and business transparency. We also explain why caution should be exercised on matters where European policy could foster perverse incentives through excessive regulation or new initiatives in areas as wide-ranging as locally-trained youth players or news access to sport.

2.  THE SOCIETAL ROLE OF SPORT

  2.1  The Premier League takes the view that increased sports participation can be an important factor in tackling European societal problems in relation to obesity and other health issues. Our experience shows that the power of football and sport more broadly can be used effectively to reach into communities and promote wider social and educational values. We therefore welcome the focus of the White Paper on the importance of grassroots sport, the value of participation and the social and educational role of sport.

  2.2  The Premier League has a strong record of working with statutory bodies, the voluntary sector and commercial partners to promote health, education, equalities and social inclusion. Such work has included using the power of football to promote anti-racism (such as Kick It Out), engage with learning (such as our Playing for Success partnership with the Department for Children, Families and Schools), encourage volunteering (such as our work with the volunteering charity v) and combat anti-social behaviour (such as our Kickz programme in partnership with the police). Premier League Clubs also initiate localised projects to promote healthy lifestyles, for example the Everton "Healthy Bus" visits local schools, using the power of football to promote active lifestyles and improve attitudes to diet and exercise, an initiative which the Premier League intends to extend to all clubs in partnership with the Department of Health and Local Authorities. The Premier League also recognises the importance of relationships with supporter's groups and we provide funding that is channeled to the Football Supporters Federation and Supporters Direct, the latter helping smaller clubs in lower leagues to organise themselves and secure better standards of governance and financial accountability, and longer-term to acquire a collective shareholding in their clubs on a not-for-profit basis for re-investment.

  2.3  Effective anti-doping matters are important to the integrity of sport and the Premier League fully supports FIFA's adoption of the World Anti-Doping Code.

Education and training, and locally-trained players

  2.4  Premier League investment in youth academies overall is high and rising and the educational and vocational needs of academy scholars are taken very seriously by the Premier League and clubs. A recent Ofsted report (November 2007) said that Premier League Learning (PLL) "makes outstanding use of the sporting excellence framework to meet the needs of both learners and employers" and noted that the PLL framework "provides a very good progression route into higher education and to other career opportunities in both football and the wider sports industry. Increasing numbers of scholars now achieve professional status". In addition, clubs run lifestyle management programmes to support and educate young players about lifestyle issues, financial and legal matters and responsible behaviour off the pitch.

  2.5  There are few, if any, other leagues which spend more on talent development than the Premier League, and the protection and care of young sports people is paramount in the academy system. We have the most regulated youth programme in the world, with 134 youth rules and 22 safeguarding rules. Contrary to some assertions, we believe the academy system is providing a pool of talent for the national sides, demonstrated by the recent successes of the U17 and U21 England teams in the Euro and World competitions (the majority of players being sourced from PL academies). Approaching 90% of scholarship players in PL academies are from the British Isles. Clubs like Everton FC are leading the way playing in bringing on local talent such as Anichebe, Vaughan, Byrne, Hibbert and Rodwell (youngest ever player for Everton in Europe), who are all "home-grown", local footballers.

  2.6  The Premier League recognises that there is always scope to improve how youth development is delivered and is committed to working with other football stakeholders on this important area. Following the independent 2007 Lewis Review of youth development in football, we are working closely with our fellow stakeholders in the FA and Football League to improve youth development processes and implement the 64 Review recommendations, which include new age specific youth coaching awards (which have been introduced already and form an additional mandatory UEFA licensing requirement).

  2.7  The Premier League notes the Commission's proposal to conduct a study on locally-trained players and must highlight the risk that UEFA's Home Grown player quota rule could engender perverse effects if it were extended beyond their own competitions. The Premier League believes it would lower standards, do nothing to raise the quality of English players (it could even fall if the level of competition fell), and could even incentivise clubs to bring in foreign talent at ever younger ages, to ensure they are "home-grown" by the time they become established first team players. The English FA also recognise this failing.

  2.8  Home-grown player rules could tilt the balance still further in favour of big European clubs who have the money and the high profile to be able to attract the world's best 15-16-year-olds. Those that fail would continue to be eligible to play in the country they train in as home grown, but of course would not count as such if they were to return to their country of origin. Labour mobility laws in Europe mean that any quota could not discriminate against players from EU nations, or nations with mobility agreements with the EU—so in the case of the England team the UEFA definition of home-grown includes Cesc Fabregas, but not Owen Hargreaves.

  2.9  The UEFA home-grown player rule is different from that suggested by the President of FIFA, who has proposed that a team should have six players on the pitch qualified to play for the relevant FA (i.e. for England in the case of the Premier League). This rule is clearly in breach of EU law, and European Commission spokespeople have confirmed this. As well as being illegal it would also undermine the quality of many Premier League sides. For example, Manchester United would find that players such as Giggs, Fletcher, O'Shea, Evans, van de Sar, Evra, Vidic, Ronaldo, Anderson, Saha, Park, Nani, Pique, Silvestre and Tevez would be eligible for just five places on the pitch. An unintended consequence of such a rule would be to weaken international sides which currently recruit from English football. Players such as Anichebe (Nigeria) or Giggs (Wales) who could have opted to play for England would come under heavy pressure to "beat the quota" by declaring that they were eligible for England and so be lost from the pool available to their first choice country.

  2.10  In any event there is no evidence that home-grown player rules would improve the quality of the very best English footballers, those that make up the England squad. Replacing excellent non-English players with England-qualified players of lesser ability would reduce playing standards in the Premier League without improving the talent available to the England manager. There is no evidence whatsoever that fans of English football clubs feel disconnected from the players on the pitch because some of them are foreign-born. The diversity of the League and the widespread celebration of talent, regardless of its origins, are together one of the great strengths of English football.

Football disorder and strengthening the prevention of racism

  2.11  The Premier League takes an active interest in the promotion of safe and successful football and particularly welcomes the Commission action points to: "exchange operational information and practical know-how on the prevention of violent and racist incidents"; to "strengthen regular and structured cooperation" among stakeholders; and to organise a "high level conference". The Premier League has already offered its experiences and methods for tackling disorder domestically with the Commission.

  2.12  The Racial Equality Standard was established by the Premier League and Kick It Out as a mechanism to encourage, promote and measure progress in diversity at clubs. Key areas for action covered by the standard include: ensuring the stadium and its environs are free of racism; increasing participation from ethnic minorities at every level of activity; setting up clear procedures to deal with racial discrimination and inequality, and; improving representation of people from ethnic minorities in the fields of administration and management. Eighteen clubs have achieved the preliminary level and four have reached the intermediate level and are now working towards the advanced stage.

  2.13  Alongside working towards the Racial Equality Standard a number of our clubs have implemented very positive inclusion strategies. Blackburn Rovers' Not Under Our Roof campaign, Villa in Harmony and Arsenal for Everyone are striking examples of how clubs have branded their own initiatives to stress their commitment in this area to the fans. Bolton Wanderers Football Club met with local community/faith leaders/council chiefs and formed the Unity in Diversity steering group to create cohesion within the borough through the power of football; regular meetings are held to set objectives and meet the needs of the various religious and community groups including Muslim, Hindu, Christian faiths and the Somalian community.

  2.14  Premier League Clubs have developed very high standards of stadium safety, fan behaviour at matches and policing in recent decades in response to the tragic experiences of the 70s and 80s. It is of ongoing and serious concern to the Premier League that such standards are not uniformly adopted outside the UK.

  2.15  More specifically, the Premier League notes the importance of information sharing amongst law enforcement services, for example we support the successful models such as the Anglo-Dutch policing approach. In terms of fan behaviour and racism we believe it is important to involve supporters in the solutions, target any legislation at individual perpetrators rather than groups and to learn from good practice exchanges already in place across Europe on racism. In relation to European fixtures we support the provision of clear travel and cultural information in easily accessible formats (Blackburn have produced very good materials and advice in the past); the systematic sharing of information related to previous matches between Clubs; and we cannot emphasise more that Clubs and local authorities should attend pre-planning meetings for all matches (this was introduced by the English FA on the return of English clubs to Europe and has contributed greatly to successful operations). Finally, and crucially, agreed standards must be achieved, with stadia clearly failing to reach those standards treated accordingly with sanctions including reduced capacity and even refusal of licence to stage a particular fixture.

International Sport development

  2.16  The Premier League attracts global TV audiences and it recognises the power of football to promote education, health, inter-cultural dialogue, development and peace. The Premier League recognises its responsibilities to its international fanbase and is committed to increasing enthusiasm for English top-flight football and investing in a number of sport development projects, including "Premier Skills", a partnership with the British Council and football authorities abroad, which involves sharing coaching expertise in Egypt and developing English language skills, and will shortly be expanded to other African and Asian countries. The Premier League also supports the Magic Bus project in India which uses sport development to educate and inspire children in the slums of Mumbai, and will be working with Sport Relief in Kenya over the next three years. The Premier League is in addition a significant funder of the Government's sport development programme overseas in the build up to London 2012, led by UK Sport.

  2.17  We recognise that EU policy has a role to play in ensuring good regulation in international issues such as money laundering, player transfers and child welfare.

Sustainable development

  2.18  The Premier League agrees that it is important to promote "environmentally sound management" in sport. In order to embed sustainability in the Premier League we have engaged the services of an environmental consultancy to advise our Clubs on best practice, and to produce a guide to best practice in sustainability in football. A seminar on the subject is currently being planned.

  2.19  Clubs are working hard to ensure that they have a positive impact on their local environments, and are engaging in a range of constructive environmental initiatives and projects. These include wind turbines providing energy for stadia, recycled water for pitch watering, nature reserves at training grounds, the use of FSC paper products and comprehensive sustainable supply chain policies. The Premier League is also currently in discussion with our partners and sponsors about joint working in this area.

3.  THE ECONOMIC DIMENSION OF SPORT

  3.1  The economic importance of football is not fully understood nor appreciated by policy-makers. One common economic misconception is that commercial success and sporting values are not compatible. In fact the reverse is true—only by protecting and enhancing the quality and integrity of football competition can it become an economic success. Sporting values therefore are vital to commercial value, a belief which is central to the success of the Premier League.

  3.2  Improved assessment by the EU could contribute to a better understanding of this importance, and assist football in its discussions with local authorities, national governments and European institutions, and we welcome the recommendation to undertake a study to assess the sport sector's direct and indirect contributions to the Lisbon Agenda [see Introduction and Overview].

  3.3  The Premier League particularly welcomes the acknowledgement that the "economic value of sports is linked to intellectual property rights", and that intellectual property is crucial to the business model [see Media section for more detail]. However the Premier League is disappointed that no actions have been proposed to explore the intrinsic value of "sports rights" to the organisation of sport. This exclusion was illustrated by the European Commission's surprising and disappointing omission of sport from their recent Content Online Communication (however sports rights owners will be able to contribute to the on-going process, including through the "Content Online Platform").

Public support for grassroots sport

  3.4  The Premier League recognises the importance of public support for grassroots sport and works closely with the UK Government on CSR programmes. The biggest single recipient of this good cause investment is the Football Foundation, a tripartite initiative bringing together the Premier League, the Football Association and the Government. Together with local authority, private sector and other matched funding streams, the Football Foundation has invested over £600 million since 2001 in grassroots football and in football-related social inclusion projects.

4.  THE ORGANISATION OF SPORT

  4.1  The Premier League welcomes the White Paper acknowledgment of the "autonomy of sporting organisations and representative structures (such as leagues)". This recognises that sport is organised and administered primarily at the national level [see Introduction and Overview].

  4.2  The Premier League believes that the European Union can have an impact on sport in the exercise of its other competences, such as competition law, intellectual property, and employment law. We accept that sport cannot be exempted from the general application of such laws but we would welcome an approach which seeks to ensure that sport's particular circumstances are reflected in how such laws are applied. Whilst the EU should not intervene in the administration or governance of sport, there is scope for the EU, together with policy-makers at the national level, to seek to construct a supportive environment in which sport can thrive.

  4.3  There is also scope for football to contribute to the wider social goals of local, national and European institutions, notably in education, health and social inclusion. The current European Informal Sports Ministers' framework shows how trans-frontier issues which can affect sport can be taken forward, on issues such as doping, violence and racism. We see this framework, working with appropriate Council configurations and the European Commission, as being appropriate for developing strategies to deal with emerging trans-border issues such as the trafficking of young players, money laundering through sport, the protection of sports' intellectual property rights and the very real and growing threat to sporting integrity posed by the poorly regulated betting industry.

Free movement

  4.4  The Premier League is satisfied that existing restrictions to the free movement principle are adequate. In our view identification and training of high quality players is the best way to meet demands for high quality players for national teams, and consider that this approach is likely to be more successful, and fairer, than simplistic quotas [see education and training, and locally-trained players section for more detail].

Transfers

  4.5  The Premier League respects the White Paper judgement that there is an important international dimension to the transfer of players. We note the Commission's legitimate concerns about the transparency and legality of financial flows and would welcome the opportunity to be part of any future discussions in regard to achieving an "effective solution".

Player's Agents

  4.6  The main focus for the regulation of agents should be at the level of national sports bodies, including co-operating to seek global solutions. The activities of agents are now a worldwide phenomenon and as such an EU-wide approach would not deal with the issue. National bodies, particularly those leagues and clubs with the greatest experience in dealing with agents, need to work in collaboration with FIFA to achieve an effective and sustainable outcome. Those football bodies will need, where appropriate, national, European and global institutions to ensure that football regulation and legal instruments are compatible in this area. The Premier League notes the Commission's intention to carry out an impact assessment in this area and will contribute to that work if requested.

Protection of Minors

  4.7  We have the most regulated youth programme in the world, with 134 youth rules and 22 safeguarding rules, supported by appropriate training schemes for staff and full compliance with criminal records checking requirements. The Premier League is proud to be at the forefront of UK child protection in sport policy and as such applies its rules, not just to the academy system, but to every part of each club which comes into contact with minors (from children involved in community schemes, to those attending matches, or those visiting the club shop). A three-pronged approach means that every member of club staff who deals with minors has specific training on child safeguarding, which is accredited by the Independent Safeguarding Authority, the independent statutory body set up by the then DfES in response to recommendation 19 of the Bichard Inquiry Report (as well as the standard CRB checking and reference double checking). In addition, each Premier League club has a designated safeguarding officer, which reports to the clubs children's services officer. Finally, the "Safeguarding Policy and Procedures" which each PL club is required to produce are signed off by the relevant local safeguarding children board (comprising local authorities, health bodies, the police and others).

Corruption

  4.8  The Premier League has introduced a number of measures in recent years to ensure the highest standards of governance are maintained and improved by its member clubs. These include the introduction of a Fit and Proper Person Test (recently extended to cover international offences and include owners and those with a stake in excess of 30% as well as directors and shadow directors), enhanced directors' reports and a directors' declaration of shareholding.

  4.9  The standards required of a Premier League director go above and beyond UK company law with Premier League directors coming under rigorous scrutiny. Clubs are required to notify the Premier League of all ownership over 10% and any individual or company holding 10% or more of a member club has to relinquish all shares in any other club. In addition, regulations governing the activities of, and payments to, agents stipulate that a player, when joining a club or renegotiating a contract, must assume total responsibility for the payment of his agent.

  4.10  We remain concerned at the threat to sporting integrity posed by rapid growth and change in the betting industry, and believe that the White Paper should have addressed this issue more thoroughly. The need to protect sporting integrity is quite separate from the European debate about betting companies, national monopolies and state lotteries, and so should be handled separately.

Licensing

  4.11  The Premier League agrees that robust licensing systems for clubs at a national level can promote good governance. We would welcome consistency in systems across member states and welcome the opportunity to participate in the Commission's forthcoming conference on licensing and best practice. However, a single pan-European licensing system for football clubs is neither desirable nor necessary.

Media

  4.12  EU institutions have a clear role in broadcast and intellectual property matters, and the Premier League would like to see the references to intellectual property and piracy in the White Paper on Sport built upon to ensure that the EU takes a stronger internal and external anti-online piracy/robust IP policy line.

  4.13  Internet and broadcast piracy is a genuine threat to the operation of sports organisations which rely on media rights to finance investment in their sports, and we would like to see specific actions adopted in this area. Whilst recognising the growing interest in sport news we believe that access to the intellectual property of sports events should not serve to undermine the selling of sports rights and the solidarity mechanisms which sports rights markets produce. In common with many content-driven industries the Premier League believes the existing EU and international copyright framework supports the protection of sports rights and solidarity mechanisms.

  4.14  The Premier League notes that the EU is currently undertaking or planning several legislative reviews and policy initiatives in the information society and intellectual property spheres that have or will have a significant impact on the way sports rights are sold and protected after sale. The Premier League, including through the Sports Rights Owners' Coalition (SROC), is engaged in several of these processes to ensure that sport's specific issues are fully taken into consideration. SROC has submitted a separate submission on these issues, which we commend to the Select Committee.

  4.15  We would urge the Select Committee to press the European Commission for a more systematic consideration of the sports sector as the Commission reviews existing IP legislation and future IP and content-related proposals and that the forthcoming study on the economic impact of sport in the EU takes full account of the IP dimension in its assessment.

5.  STRUCTURED AND SOCIAL DIALOGUE

  5.1  The Premier League believes that European sport federations and umbrella organisations do not adequately reflect nor represent the diverse governance and operational structures which operate across Europe. For example, some sports in some countries have strong, central roles for a single, national federation. This is not true of football in England, where the Premier League and the Football League are powerful institutions in their own right, separate from the Football Association, although often working closely together on matters of shared interest. In addition, UEFA is not the governing body for football in Europe. Rather, it is the organiser of competitions that cover the entire UEFA area—notably the Champions League, the UEFA Cup and the European Nations Cup. It has never had responsibility to run national associations or leagues, nor should it have.

  5.2  Therefore, we believe strongly that structured dialogue should not exclude prominent national voices, or expect "umbrella organisations" to speak with a unified voice on every sports issue, and as such the Premier League was pleased to attend the White Paper conference Brussels on 8 and 9 October 2007.

  5.3  In terms of social dialogue the Premier League offers its expertise as an employer in any European social dialogue committees which are established within the sports sector, and is actively supporting the association of European Professional Football Leagues (EPFL) in the formal social dialogue process with the European Commission and FIFPro.

6.  CONCLUSION

  6.1  The White Paper represents an important and positive contribution to the development of policy affecting sport. We would like to see the progress made in the White Paper consolidated, with European engagement in sport at the professional and grassroots levels improved in the areas of:

    —  co-operation on doping;

    —  player trafficking (especially in the context of the need to protect young people);

    —  money laundering;

    —  strengthening copyright protection and taking action against the misuse of intellectual property rights, including the growth in trans-border ticket touting;

    —  co-operation and taking firm action to deal with racism and hooliganism; and

    —  introducing means to protect sporting integrity from the new challenges posed by the rapid growth in sport betting.

  6.2  We recognise the value that the White Paper and its action plan will bring in preparation for the entry into force of the EU Treaty Article on sport and believe that they should form the basis of the guiding principles of the EU Treaty Article going forward. We believe a great deal of care must be taken to ensure that the future scope of EU involvement in sports policy continues to be defined by where it can add value to the actions of national sports bodies and Governments and where there is a clear need for cross-border dialogue and action.

January 2008


 
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