The European sports world was dominated in '14 with as much action in the courtroom and boardroom as on the pitch. Formula 1 watched as CEO Bernie Ecclestone battled with English and German courts, and fought off challengers for control of the sport. FIFA ended the year in full crisis mode over the release, or lack thereof, of the findings of its own probe of bids for the next two World Cups. And clubs across Europe felt the sting of UEFA's new financial fair play regulations.
F1 FINANCES: The '14 F1 season had several top stories -- new engine regulations, Mercedes’ dominance, Lewis vs. Nico and Jules Bianchi’s accident -- but the one to remember is the one that threatens the future of the sport. Financial struggles have forced two teams, Caterham and Marussia, to declare bankruptcy during the year. Others complained that if the series’ revenue distribution does not undergo a radical change they will suffer the same fate. Going forward, commercial rights holder Bernie Ecclestone and the teams will have to make a decision on the future of F1 racing. In addition to getting the series back on track, Ecclestone had to deal with a bribery case that was brought against him by German bank BayernLB. With another season in the record books, Lewis Hamilton celebrating his second world championship title, and Ecclestone taking care of his legal issues, the 84-year-old Brit has rejoined F1’s board and will continue as the series’ CEO.
FIFA CORRUPTION PROBE: Accusations of corruption in connection with the 2018 and 2022 World Cup bids by Russia and Qatar, respectively, continue to stir controversy. In early June, FIFA investigator Michael Garcia concluded his investigation of the remaining FIFA exec committee members responsible for awarding the tournament to Russia and Qatar. In September, FIFA was accused of a cover-cup after FIFA Ethics Committee Chair Hans-Joachim Eckert said the organization could not legally publish the full 430-page report. Eckert published a summary of the report which was met with opposition by Garcia, who called it “erroneous” and claimed it misrepresented his findings. The summarized report said aspects surrounding the bids were not serious enough to strip the host nation of its rights and cleared both Russia and Qatar to host the 2018 and 2022 World Cups. Garcia launched an appeal, which was dismissed by FIFA’s appeals committee.
NEW DAY AT IOC: IOC President Thomas Bach won the organization’s presidency by calling for more transparency, modernizing the Games and making it easier and less expensive for countries to host the event. The IOC members unanimously approved his “Olympic Agenda 2020,” which includes 40 recommendations, in early December. The most drastic changes include opening the door to new sports such as surfing, skateboarding and climbing; allowing future Summer Olympics to be held in more than one country; and promoting the use of existing facilities and temporary venues to keep costs in check. The astronomical $50B price tag for the Sochi Winter Games, along with the fact that only two cities remained in the race to host the 2022 Winter Games, made it clear how necessary those changes were for the future of the Olympic movement.
FINANCIAL FAIR PLAY: In April, UEFA for the first time announced what teams have failed to comply with the governing body’s regulation on spending. Teams like Man City and Paris St. Germain had to pay heavy fines and endure restrictions on transfer spending and squad size for failing to comply with UEFA’s Financial Fair Play regulations. The regulations seem to have already made an impact as teams like PSG and Monaco, which are backed by wealthy owners, were forced to rein in their spending due to the limited revenue generated in Ligue 1 during the summer transfer window. UEFA continues to look into the accounts of teams participating in its int’l competitions. As with any new regulation, there certainly are areas that have to be looked at such as the amount a club is allowed to carry in terms of debt. However, UEFA General Secretary Gianni Infantino hailed the success of the first cycle of the implementation of FFP rules, pointing to figures showing the amount of money owed by clubs in its competitions across Europe had decreased.
