HOME-GROWN PLAYERS AND EU COMPETITION LAW
On 21 December 2023, the Court of Justice of the European Union (CJEU) delivered a decisive ruling in Royal Antwerp Football Club v Royal Belgian Football Association and UEFA (Case C-680/21) (Royal Antwerp case), addressing the legality of “home-grown players” rules under European Union (EU) law.
The concept of “home-grown players” reflects an effort to protect local talent within European football whilst maintaining a competitive balance across leagues.
UEFA regulations require football clubs to include at least eight “home-grown players” in their 25-man squad for European competitions. Four must be trained by the club itself, and the others may be trained by another club within the same national football association. The Belgian Football Association (URBSFA) adopted similar domestic rules, mandating the presence of players trained by Belgian clubs.
Whilst these rules are formally neutral as to nationality, they restrict club autonomy and can disadvantage players from other Member States, limiting mobility and competition.
The Royal Antwerp case reached the CJEU through a preliminary ruling procedure initiated by the Brussels Court of First Instance. In its judgment, the CJEU found that the “home-grown players” rules fall within the scope of both Article 101 of The Treaty on the Functioning of the European Union (TFEU), which prohibits anti-competitive agreements between associations of undertakings, and Article 45 TFEU, which guarantees the free movement of workers within the EU.
Rejecting the argument that these were purely sporting rules immune from legal scrutiny, the CJEU emphasised that such measures, however legitimate their objectives may be, must still comply with the fundamental freedoms enshrined in the EU Treaties. Promoting youth development or preserving competitive balance are valid aims, but they cannot override internal market rules without objective legal justification.
The CJEU confirmed that organisations like UEFA and the URBSFA are subject to EU competition law and that the rules they adopt may, indeed, restrict both market competition and the mobility of players across EU Member States. Ultimately, it will be for the national courts to determine whether these restrictions can be objectively justified and whether they meet the criteria of necessity and proportionality under EU law.
In addressing the compatibility of “home-grown players” rules with EU competition law, the CJEU underlined a fundamental concern: when such rules distort access to the labour market or limit a football club’s ability to recruit talent across borders, they may be considered anti-competitive. This is particularly the case where player quotas, though worded in neutral terms, end up favouring those trained nationally, to the detriment of players developed abroad.
The judgment firmly aligns with the CJEU established jurisprudence, especially the principles set out in Meca-Medina (C-519/04 P). According to this precedent, any sporting rule that produces economic effects must comply with EU law. It must pursue a legitimate objective, such as the promotion of youth development, and be both proportionate and necessary to achieve that goal. In other words, the mere fact that a rule serves a sporting interest does not shield it from legal scrutiny; the burden lies with the regulating body to prove that the restriction is justified in the light of EU internal market rules.
Whilst some of the parties and EU Member States involved in the proceedings argued that Article 165 TFEU (the ‘specificity of sport’ principle) could shield sporting rules from stricter legal scrutiny, the CJEU clarified its limited role. Interpreted in the light of Article 6(e) TFEU, Article 165 reflects the Union’s supporting competence in the field of sport, allowing it to promote cooperation, fairness, and youth development, but not to harmonise national laws or create binding exemptions from EU internal market rules.
The CJEU firmly rejected the notion that Article 165 TFEU constitutes a general derogation from fundamental freedoms. Rather than offering immunity, it provides a contextual lens through which sporting rules may be assessed, particularly when evaluating whether a given restriction is justified, necessary, and proportionate under Articles 45 and 101 TFEU.
The ‘specificity of sport’ principle may thus be taken into account, but only as part of a concrete legal analysis focused on the actual content, purpose, and implementation of the “home-grown players” rules. This includes examining how professionalised the sport is, how players and clubs interact within its structure, and how governing bodies exercise their regulatory role. Ultimately, Article 165 TFEU does not exempt sport from EU law. It requires that sport comply with it, whilst acknowledging its particular nature.
Although the Royal Antwerp case arose within the realm of football, its legal implications extend well beyond that sport. Similar rules exist in other sports, such as basketball, rugby, and handball, where training-based or nationality-based eligibility conditions remain common. Following the Royal Antwerp case ruling, the “home-grown players” rules are likely to come under closer scrutiny, especially if they affect players’ freedom of movement or sports clubs’ ability to compete on equal terms.
The message from the CJEU is clear: sporting autonomy must be exercised within the limits of EU law. Sports Federations are encouraged, if not obliged, to reassess the structure and purpose of their eligibility rules and ensure that they do not result in unjustified barriers to market access or labour mobility within the EU.
The Royal Antwerp case judgment marks a significant moment in the evolving relationship between EU law and the governance of sport. It reinforces the principle that sporting regulations, no matter how well-intentioned, must comply with legal standards of transparency, proportionality, and non-discrimination. In doing so, it invites Sports Federations across Europe to demonstrate that their policies not only serve the spirit of the game but also respect the fundamental freedoms guaranteed by the EU Treaties.
We advise on all aspects of sport and EU law, including eligibility rules and disputes, and further information is available by emailing Dr Estelle Ivanova at ivanova@valloni.ch.