Redistribution and Solidarity in the European Model of Sport

Revenue distribution is a central component of European professional team sports. In team sports, it is the role of governing bodies and league organisers to distribute revenue among its members. Much of this money relates to broadcasting rights and solidarity payments. In this context, the word distribution means the money that clubs receive within the league that secures the broadcasting deal, with solidarity payments being the money distributed to teams often in the league below the top tier. There are many different types of redistribution mechanism present in the European Model of Sport, many of which have a significant impact on sporting integrity and competition. This chapter explores redistribution methodologies as they relate to European sport – including the United Kingdom – considering the claim that redistribution is a cornerstone of the European Model of Sport. We consider the role of federations/governing bodies and redistribution, covering multiple sports across the sporting ecosystem, benchmarking them, where appropriate, with American counterparts – a model often used to juxtapose competitive structures. In doing so, we also outline the financial gap between leagues and competition, which is further disrupting the landscape regarding business sustainability and sporting competitive balance.