In December 1995 the European Court of Justice (ECJ) ruled in a case between a soccer player (Jean-Marc Bosman)
and his club RC Liege (Belgium). The court's verdict was that RC Liege had violated Mr. Bosman’s rights to move to
 another club by imposing
a large transfer fee. In addition, the transfer fee was imposed even though Mr. Bosman’s contract had expired with RC Liege.
The Bosman case is the most famous sports case in Europe. It was so controversial that the European Union (EU)
had to change the transfer rules of European soccer. It also stated that professional soccer is an economic activity and
therefore has to be regulated by the EU’s laws. For soccer the EU changed two important rules, the transfer rule and the limit
of foreign players. Without a rule on that limits the number of foreigners on a team a team from Germany could by 15 soccer
players from Africa and play in the German league. As soon as the EU had changed the rules there was massive protests from
the people of Europe and especially the soccer community. They claim that the EU’s rules on economics and labor laws can not be
applied to soccer. Representatives from the International Federation of football Associations (FIFA) said the new rules will be
the end of soccer, as we Europeans know it. The European Union of Football Associations (UEFA)
which is the governing body of European Soccer said that the small soccer clubs will not survive and it will put the rich clubs in an oligopoly status.
In December of 1995 the EU’s Court of Justice ruled in a sports case called the Bosman case. The case was over a
dispute between a soccer player and his soccer club. The player was Jean Marc Bosman and his club was RC Liege, both from Belgium.
Mr. Bosman’s contract had just ended (1991) and he was up for renegotiations. RC Liege thought that Bosman was not worth his
salary of 120,000 Belgian Francs (BFR), so they wanted him to take pay cut of 90,000 BFR. The new salary of 30,000 BFR was
equal to the Belgium league minimum. Bosman refused the offer from RC Liege. As a result, Bosman was put on the transfer list
with a price tag of 11,743,000 BFR. Bosman contacted the French division 2 club US Dunkerque. They were willing to offer Bosman
a one-year contract with a salary of 100,000 BFR a month plus a signing bonus of 900,000 BFR. The two soccer clubs agreed on
a one-year temporary contract for 1,200,000 BFR and an option to buy Bosman after the first year for 4,800,000 BFR. The contract
would been valid as soon as the French national soccer association had received the receipt from RC Liege. However, RC Liege
got second thoughts about the solvency of US Dunkerque, so RC Liege never requested the necessary papers for transfer.
According to the UEFA’s transfer rules both clubs shall conclude separate contracts, but only US Dunkerque turned over the papers
to the French soccer association. In addition, RC Liege suspended Bosman, so they would not be forced to pay his salary.
Bosman could not play soccer that season and he had no income, so he sued RC Liege for lost wages. The case was brought
up in a Belgian court where the case was heard. After a series of court proceedings the Bosman case got refereed Court of
Appeal in Liege. The court in Liege stopped the case and asked the
European Court of Justice. On December 15 the European
Court of Justice ruled in the Bosman case that Bosman had won. However the verdict had implications for the whole soccer
world and it much bigger than just the case between RC Liege and Mr. Bosman. The ruling affected virtually every soccer
player and soccer club in the world. Soccer players were free to leave their clubs after their contracts had expired and the
clubs were not allowed to ask for compensation. Clubs were also allowed to buy as many foreign players as they wished.
The ruling did initially just affect the 15 countries who are members of the EU. However, since it would be impossible
to have two sets of rules one for Europe and one for the rest of the world the
(FIFA)
which is the governing body for international soccer changed their rules. Soon after EU's ruling soccer players started to
use the new rules to their advantage leaving their clubs without compensation. People within the international soccer
community also started to make up doomsday scenarios on how the ruling would be the death of amateur soccer. The ruling has
effected the small clubs and their economy. However it is unclear to what degree the new rules will affect soccer as a whole
in the long run because the rules have not been used for more than five years. In addition, the EU is working with UEFA and
FIFA to work out a new set of rules that will guarantee some income to the small amateur clubs. The new rules are not yet
finalized and it might take some time before the EU will agree to the suggestions that UEFA and FIFA have brought forth.
Disputes between the European soccer community happens all the time and not long a go there was another soccer case. This case
could have made all player contracts worthless and turn professional athletes into regular workers that can quit their job with
two weeks notice. The EU proclaim the new rules will have positive effects for soccer and make it more competitive. In contrast,
the soccer community thinks it will dramatically change the sport and have bad effects, especially on amateur soccer.
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Free trade between nations is economically superior to domestic trade organized by national governments because
two different countries can specialize in one good they do really well. In other words the two countries are better off trading
with each other without trade barriers. This economic phenomenon is called comparative advantage and was invented by David
Ricardo.(1) The European countries knew about the free trade advantages and as a result they organized the European Coal and
Steel Community (ECSC), which today is the European Union (EU). The EU has the ambitions to regulate and deregulate aspects
of European trade in order to make the Member States more competitive versus other countries.
All sports in Europe are governed by the European Commission's Department for Education and Culture. The Commission's
approach to sports is laid out in the Helsinki report. It states that sports should be an instrument of education and inclusion
based on fair play, equal opportunity and reward for merit. However, it should play this role with in the new economic environment.
In other words sports should follow the trade laws of the EU like all other economic activities and European soccer is
definitely a lucrative business for the top clubs. The EU is aware that its laws will affect sectors differently and it is
prepared to grant some autonomy to the sports movement.
Mr. Bosman took RC Liege to court on the grounds that the Transfer system had prevented him from seeking employment
in another club. Mr. Bosman's attorneys thought that the transfer system and the nationality clauses were no compatible with the
Treaty
of Rome. The treaty established rules for competition and free movement on labor. On December 15 1995 the European Court of Justice ruled
"According to Article 48 of the European Economic Community (EEC) Treaty precludes the application of rules laid down by sporting
associations, under which a professional football player who is a citizen of one Member State may not, on the expiry of his contract with
a club, be employed by a club of another Member State unless the latter club has paid to the former a transfer, training or development fee."
In the case of the nationality clause the ECJ ruled according to Article 48 of the EEC Treaty of Rome.
"The Treaty precludes the application of rules laid down by sporting association under which, in matches in competitions which they organize, football clubs may field only a
limited number of professional players who are citizens of other Member States." "The direct effect of article 48 of the EEC Treaty can not be
relied upon in support of claims relating to a fee in respect of transfer, training or development which has already been plaid on, or is still
payable under an obligation which arose before, the date of this judgment, expect by those have brought court proceedings or raised an equivalent
claim under the applicable national law before that date. " [i]
The meaning of the EU's ruling in the Bosman case is that the transfer fee for players with expired contracts was aborted
and clubs may not ask for such a development fee of any kind. In addition, clubs may use as many foreign players as they wish as long as
they come from any of the 15 Member States. The court also ruled that no player would be allowed use these changes to file suit retroactively.
The Perugia case was similar to the Bosman case because they both deal with the soccer transfer system. Perugia FC bought a soccer player
from Grasshoppers (Switzerland), but player was not happy with his situation, so he left the club. Perugia decided to take the case to
an Italian court in order to escape the transfer fee to Grasshoppers. Theoretically if Perugia would have won the case all contracts
would have been worthless. However, the case was settled out of court and an agreement was reached between Perugia and the selling
club, Swiss Grasshoppers. The case was also removed from the European Union agenda. However, the European Commission, which
originally investigated Perugia's complaint, remains convinced that major changes need to be made to the current transfer
regulations because they contravene European Union employment law.
On October 31, 2000 the
(FIFA) and UEFA released a resolution for the EU.
The resolution suggests in six points how to change the transfer system:
- Prohibition on the international transfer on minors
In order to guard against the economic exploitation of young people, we believe it is necessary to prohibit the international
transfer of players aged under 18, except in specific defined circumstances. Essentially, the situation in which the transfer of a
minor would be permitted is when the family of the player moves to a new country. A young player under the age of 18 is in a vulnerable
position. Such players are often more than willing to give up their academic education to pursue a sporting career (even though the
chance of achieving professional success is very limited). Football bodies have a responsibility towards such youngsters, to ensure
they do not leave their home and family and education behind, only to find that the dream of becoming a professional player fails to
materialize. A more detailed proposal as regards the transfer of minors has been forwarded.
- Training compensation for young players
As noted, one of the benefits of the current transfer system is to re-distribute income to the "grass roots". This allows smaller
clubs and associations to continue with their training and development efforts. The football bodies have designed a "training and
education package", which is intended to reward clubs investing in the training of young players. This package includes a financial
"solidarity" element, which is also a characteristic of the current transfer system. The detailed content of this package has been
outlined. It is envisaged that training compensation be paid on every transfer of a player up to the completion of his training
(at the age of 23). For the sake of clarity, it should be mentioned that training compensation would also be paid when a player
under the age of 23 moves at the end of his contract. Such a possibility was envisaged by Advocate General Lenz in his Opinion in
the Bosman case. Training compensation would be paid by the new club but would also be partly financed by certain "solidarity"
mechanisms, including a levy on transfer fees and a solidarity fund financed, inter alia, by income derived from the central marketing
of television rights.
- Respect for contracts ("pacta sunt servanda")
The maintenance of contractual stability is an essential element in the player/club relationship. Such stability is crucial for
clubs in their "team building" efforts and also offers vital employment security for players. In addition, the relationship between
a player and a club also has an important "public" dimension, since supporters identify with the players in "their" team and do not
expect them to change club at the end of every season. This is, in fact, one of the specific characteristics of sport, which sets it
apart from other industries. In order to maintain such contractual stability the football bodies propose that, as a matter of sporting
regulation, any contract lasting for a period of up to 3 years must be respected (by the player and the club). The football bodies also
propose the introduction of player contracts with a maximum duration of 5 years.
- Transfer periods
Again, in order to maintain contractual stability and to protect the integrity of sporting competition, the football bodies also propose
to introduce certain periods when the transfer of players may not occur. What is proposed is two unified transfer periods and a limit of
one transfer per player per season.
- Arbitration system
In cases where there is a breach of contract (for a player of any age), the football bodies propose the introduction of a new
arbitration system. This system would be based on two key elements:
- respect for national law
- respect for the specificity of sport
As regards the first element (respect for national law), the arbitration system would apply objective criteria to calculate compensation,
taking into account relevant principles of national labor law. As regards the second element (respect for the specificity of sport)
the system would also have power to apply sports disciplinary sanctions, as a deterrent to unethical behavior (for example, to sanction
a club which had procured a breach of contract). The arbitration system would include a tribunal with an independent chairman and each
party (club, player) would select an expert from an approved list. This list would be composed of an equal number of player representatives
and club representatives. Arbitration would be voluntary. Obviously, the system would have to establish its credibility with all interested parties.
In this new scenario, it would also remain possible for the parties involved (buying club, selling club, player) to freely agree on a
transfer amount and thus avoiding recourse to the arbitration tribunal or the risk of sports disciplinary sanctions. Finally, the proposed
system would be intended to govern the international transfer of players. Having said that, the football bodies believe that the system
could serve as a model for national regimes, which national associations could adjust to suit their specific circumstances and in conformity
with their national law.
- Transitional arrangements
As the economic report makes clear, the transfer system is a vital element in the financing of football, particularly for the smaller clubs
and smaller leagues and national associations. Any major changes to the system could entail serious financial consequences for the economically
weakest members of the football family. Against this background, it is essential that any revised system serves to maintain contractual
stability and to properly reward clubs, leagues and associations which continue to invest in the training and development of players.
Unless these objectives can be achieved under the new system, it would be essential to provide for appropriate transitional measures, which,
at a minimum, protect existing contractual arrangements between clubs and players. [i]
Europe (Northern Europe) (Sweden)
- Geographic Domain
- Geographic Site
- Geographic Impact
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- Directly Related to Product
- Indirectly Related to Product
- Not Related to Product
- Related to Process
A transfer is defined as the transaction by which a player affiliated with an association obtains a change of club affiliation.
According to UEFA rules clubs must offer a player a new contract at least 65 days before the end of the contract. If the club does offer
a new contract the player will be considered an amateur and fall under a different set of transfer rules. If the player rejects the clubs offer
the player will be put on the compulsory transfer list, which becomes available in May. If the player finds a new club while being on the
compulsory transfer list in May, the new club must pay compensation fee to the old club for training and development. The fee was calculated on
the basis on age and previous earnings. If the player does not find a new club before June 1 the free transfer period begins. In the free transfer
period players and clubs can freely negotiate transfer fees. If the player or club can not find a new club for the player the old must offer a
one-season contract on the same terms as the expired contract. If the player refuses he/she will be either reclassified or suspended by the club.
Once suspended the player has two options, to reach an agreement with his/hers club or wait two years and become an amateur. In order to sell a
player to another club abroad the UEFA and FIFA requires that the national soccer association issue a transfer certificate that confirming financial
commitments. Disputes between two clubs over the amount of the transfer fee are submitted to UEFA for settlement. Often contracts were set up in a
way that the club who sold the player would get a piece of future earnings if that player was sold over again. As a result, several clubs could
claim a share of a large transfer fee and secure their finances.
The nationality clauses of UEFA restricted soccer clubs to no more than 3 foreign player on the field at the same time and maximum of
5 foreign players in the club. Anyone who was not a citizen of the country he/she was playing in was considered a foreigner
This rule was called the 3+2 rule and it existed was to preserve the national identity of the teams.
The sale of soccer players from Sweden to European clubs in 1998 had a total value of $15 million and $9.5 in 1999.
Seventy seven percent of the soccer players were sold to European clubs and twenty three percent went to domestic clubs.
About thirty percent of the Swedish soccer clubs budget came from the sale of players. The sale of players went down from
thirty percent in 1998 to nineteen percent in 1999. The total number of soccer transfer in Sweden is around 1000 / year.
The total number of professional player transfers in Europe is about 1000-2000 per year.
The three top exporters of soccer players in Sweden were
AIK Stockholm, Helsingborgs IF and
Trelleborgs FF. They alone stood for sixty
percent of the sales of soccer players. Most of the players from Sweden got sold to clubs in England, Scotland, Germany, and
Italy. The total amount the Swedish soccer clubs earned in 1999 from selling players was $9.1 million. That is 19.4% of
the total income of $47 million. With out the sale of players to other clubs the amount would have been $37.9 million
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Name
Type
Diversity
The origin of soccer is unknown, but there are stories of Chinese and Mongolians playing a game where the players were
kicking a decapitated head. China has the oldest records of rules that resemble contemporary soccer. The modern form of soccer was
originally a hybrid between rugby and soccer. It originated in Britain in the 1600. In preindustrial Britain there are records of
a violent game with out written rules where villages played against each other. The soccer like game in preindustrial Britain was
a game for the common man and the nobility looked it down on because the game did not prepare the person for war. In addition,
soccer was considered a simple game because it was not equestrian. As Britain entered the industrial face and people moved to the
cities the game changes from being played in large field to narrow streets. In the 1800s the game broke off in four different
directions, Soccer, Rugby, Australian Rules football and Gaelic football. In 1863 the Football Association FA was formed in Britain.
FA was the first soccer association to officially organize soccer under one set of rules. In the end of 1800s soccer spread like
wild fire all over Europe and South America. In the 1900s soccer established itself as the dominant sport in the world. The sport
came to Sweden in the late 1800s by Scottish guest workers. It has today more players than any other sport and it has turned into
a billion dollar industry. The world's most popular sport is a game played regularly by well over 200 million registered players;
men and women, boys and girls throughout the world.
In many countries sports are just another form of entertainment. However, in Sweden it plays a larger role
than just entertainment. Sports in Sweden and especially soccer are used for educational and social purposes. Sports are
also used to foster children how to be competitive and how to play fair. The sports movement in Sweden has over 3
million members and organized by the National Sports Association ( Riksidrottsförbundet). It is the largest of all
movements with over 3 million members. That is 35% of the 8.5 million people living in Sweden. Riksidrottsförbunded has
21 local associations that handle sport in each district. In addition there are 67 national associations, one for each
for each sport. The Riksidrottsförbundet works like a state government. It has its own representatives democratically
elected by the members and its own set of rules that sports clubs and members must follow. Riksidrottsförbunded also
receive money from the Swedish government that it distributes to its members. In 1999 the national sports association
received $50 million. Riksidrottsförbunded have four duties:
- To be the political repesentative of the sports movement.
- To promote research and development in the field of sports.
- To assist different sports associations in fields where they do not have competence.
- To distribute funds appropriated for sports.
The Swedish Soccer Association (Svenska Fotbollsförbundet SFF) was formed on December 18 1904. Its purpose is to administer and
assist soccer in Sweden. SFF also represent Sweden abroad and to the Union of European Football Associations (UEFA) and to
the Federation of International Football Associations (FIFA). SFF is the largest of all Swedish sports associations. It
has 3,300 member clubs with about one million members of which 50% are soccer players. SFF have four major goals, to be
the largest sports association in Sweden, to be among the top ten of all men's soccer nations in Europe, to be top four
in women's soccer teams and to have as many teams represented in the UEFA tournaments as possible. The SFF also have
slogan that represent Swedish soccer " One soccer club in each village".
The SFF's slogan truly describes the reality of Swedish soccer. There is virtually one soccer club in each village and
people living there are usually passionate supporters. The Swedish soccer club at the village level is more than just a
soccer club. It is a social place where people meet and talk. The village soccer club is often the only organization
arranging activities for the people living there. It is not uncommon that the local soccer club arranges activities such
as flee markets and bingo nights to entertain the local population. In the bigger clubs in the cities there are often
several soccer clubs that compete for the attention from fans. The soccer fans also have their own clubs where they discuss
soccer, attend games, and raises funds for the soccer team. However, there is also a backside to the soccer fan clubs.
Some fans take it a little bit too serious and engage in violent behavior against fans from other clubs. This phenomenon
is called hooliganism and was very common in the 1980s. It still exists today, but to a much lesser degree.
Soccer in Sweden also expresses different cultural, political and social classes.  For example, Djurgårdens FF is from a nice area in
Stockholm and its fans are mostly from a high socioeconomic class. In contrast, AIK Stockholm from the other side of the city is considered
the soccer team of the working class. Soccer clubs and fans from the northern part are in cities such as Stockholm and Gothenburg considered
peasants. This view is often expressed at soccer games against clubs from that part of Sweden. Soccer clubs from the southern part of Sweden
is not considered Swedish by fans from the north. They are often called half Danish or Danish. Soccer in Sweden is an outlet for many aspect
of life and the soccer clubs reflect the values of its fans. Swedish soccer fans are often talking trash and even engaging in violent behavior
against each other, except at one occasion. When the Swedish national team is playing against other nations. All of a sudden the Swedish
soccer fans stand united like an army ready to go to war
The European Court of Justice ruling in the Bosman case changed the nature of soccer and how the clubs run its businesses.
European soccer was already somewhat divided up in good and bad soccer countries before the Bosman ruling. However, after the
ruling this gap have increased considerably and today we have the A-clubs, such as Barcelona (Spain), Real Madrid (Spain),
Bayern Munchen (Germany), Manchter United (England) and Lazio (Italy). These clubs have even formed an elite organization
called the G-14. The G-14 is similar to G-8 which is an exclusive club of rich countries in North America, Asia and Europe.
The G-14 has even thought about forming a private soccer league similar to Major League Soccer (MLS) in the US. The members
would play each other and other clubs would not be able to compete against these super clubs. If a super league would develop
there would be no Swedish or Nordic teams participating. A super league would be sad development for the Scandinavian soccer
fans. They would see their best players bought by these teams, but not able to see them play. The G-14 clubs usually have at
least two to three teams that are better than any Swedish club. To have amazing soccer players sitting on the bench or playing
on the B-team is a waste of talent and they are robbing other clubs from having good players. That the rich clubs are buying
the best players is nothing new, but at least the Scandinavian teams can play against these clubs in the UEFA tournaments and
they make a lot of money from selling tickets when these teams are visiting.
The Bosman case also had bad affects of on the European soccer youth. Talented young soccer players are now in high demand
because they are much cheaper to buy at a young age instead of when they are older. This has created a whole new industry of
agents and scouts that sell young players to the best clubs in Europe. Many times these players are not more than fifteen years
old and they are already making more money than their parents. The soccer clubs are taking these young talented players to their
own compounds, schools and drill them to be good soccer players. Sometimes these players make it to the big league, but for the
most part they do not. The rich soccer clubs do not think about the mental health of these teenagers. They only see the financial
aspect of this trade. The trade in young players is a direct result of EU's ruling in the Bosman case and it can ruin the lives
of many European kids.
Swedish soccer clubs have always been disadvantaged against the continental clubs because Sweden is a much smaller market and
the clubs can make more money than the sponsors are willing to pay. However, Sweden had something that other clubs in Europe
did not have, semiprofessional players with strong feelings for a particular club. The Swedish soccer clubs wanted the players
to feel like they were part of a large family, not just a soccer player. As a result, the players developed emotional
attachments for their clubs. This proved to be a good weapon against the professional soccer corporations on continental
Europe. As a matter of fact, Sweden did pretty well against European clubs in the 1980s and early 1990s. IFK Gothenburg won
the UEFA cup twice and they had great success in the Champions League in the early 1990s where they beat some of the top clubs
in Europe. However, the Swedish clubs have not done well since the Bosman ruling. Some of the games played against top clubs
have been on the border of pure embarrassment. The main reasons are that the rich clubs now can buy as many foreign players as
they want and talented players from Sweden are cheap in comparison to European players. The reason is that the Swedish league
Alsvenskan is ranked much lower in comparison to other leagues in Europe.
Another reason to why Swedish soccer clubs not have done well the last 8 years is due to the high price on good and established
players. Swedish soccer clubs can not due to their weak economies afford to buy good soccer players or even keep their own
players. European soccer is a catch 22 phenomenon where clubs with good economies can buy high price talent that give them to
win big championships and money. Sponsors are also much likelier to invest in good teams with good players. The system is an
evil circle where the poor teams get weaker and the good teams get better. The phenomena can be compared to the New York Yankees
in Major League Baseball. The New York Yankees have won more championships than any other baseball team in America. The main
reason to why the Yankees is a top team year after year is because of the good economy which stems from the large pool of fans
that lives in greater New York (22 million). The New York Yankees makes much more in comparison to other professional baseball
teams. The Yankees can buy the best baseball players in the world year after year and as long as their is no change in the rules
they will keep on winning. However, in the last few years there are only a hand full of the baseball teams that make money, the
rest is losing. In order to help the other teams with smaller markets the Major League Baseball are discussing new rules. These
rules will help other teams to be competitive and make baseball a more interesting sport to watch.
The money the small soccer clubs get by selling player can have great effects on the small clubs economy.
Trollättan FK is small club in Sweden that was lucky to have a great player by name Håkan Mild. He was sold to another
Swedish club (IFK Gothenburg) for a small sum of money, but in the contract it also said that if Håkan Mild get sold to
another club Trollättans FK would get share of the money. Håkan Mild was so good that he made it to the Swedish national
team and while playing for the Swedish national team he was discovered by Servette FC in Spain. The Spanish club paid a
large sum to IFK Gothenburg and Trollättan got $50,000. For the money they bought a new club house that all people in
Trollhättan benefited from. Bo Bjökenstam Trollhättan FK's President said that " the money we got from Håkan was very
important for our club. It enabled us to build a new club house that we can use to foster new young talented players.
" Mr. Björkenstam also said the " Clubs must benefit from raising and investing in young talented players. If they do not
receive anything back the clubs will spend less money on youth activities and that will not be good for Swedish soccer. "
Other Swedish clubs who have sold players have used to money to balance their budget, build new soccer fields, and more
activities for young soccer players.
The economy of the Swedish soccer clubs has greatly been affected by EU's ruling. In an attempt to keep a decent
standard and to close the gap between the continental clubs, the Swedish clubs in the 1990s invested heavily in new players.
The clubs also tried to become fully professional by turning, players, volunteers and amateurs into full time soccer staff.
Unfortunately, the Swedish soccer clubs were not prepared to handle the new professionalism due to lack of experience.
Many of the people were lacking the basic business skill such as managing, marketing and accounting skills. The inexperience
of the Swedish soccer clubs made them to make poor decisions on how to invest in new players, to calculate their expenses
and how much income the club would get. In the 1990s many of the elite clubs ran huge budget deficits and some were even
threatened by bankruptcy.
One such bankruptcy case is Västerås SK (VSK) in Sweden. VSK is the best soccer club in the city of Västerås which has a
population of about 120,000. VSK is playing in the second division (Super Ligan). VSK is doing pretty well and the team might
even make it to the highest level (Allsvenskan). However, economically VSK is doing really badly. They are for the moment a
very poor club with a negative balance of $500,000. The Swedish IRS would have bankrupted the club unless they could come
up with the money at the end of the season (October 30, 2000). Luckily the club was bailed out by the city of Västerås and
its local businesses. A bankruptcy would have been a tragic event for the city of Västerås. Not only would the soccer fans
be without a team, but the junior, girl, and boy teams that VSK is managing would also have been without a club to play for.
VSK would have been forced to start over from the lowest level (division 6). To start over would take the club at least 5
years to get back where they are today, but most likely they would never have made it back because of loss of market shares.
VSK is just one club of many struggling with their finances. About half of all clubs in the highest division are running a
budget deficit and have been forced to reconstruct their economies drastically. As a result of the economic situation among
Sweden's elite soccer clubs SFF was forced to enforce new licenses that the clubs must make if they want to play in Allsvenskan.
In order to get the license the clubs must have their finances in good standing. The new rules will be in place for the 2002
season. However, if the rules had been enforced today only seven of the sixteen division 2 clubs and nine of fourteen clubs in
Allsvenskan would make the new license.
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