New players won't queer pitch

Business of Sport: May 1st sees 10 new member states joining the EU and adding 75 million to a population already at 400 million…

Business of Sport: May 1st sees 10 new member states joining the EU and adding 75 million to a population already at 400 million. The EU's gross domestic product (GDP) - 9,200 billion - will equal that of the US. Ireland and Britain are the only two member states opening their doors to labour from these new countries immediately.

Germany and Austria are opting for the seven-year clause, which allows them time before fully accepting citizens from the new EU members as workers.

As enlargement day approaches, some commentators are predicting either an influx of immigrants from Eastern Europe or a drain in investment from West to East - attracted by the cheaper labour in the likes of Romania and Poland - resulting in increased dole queues and economic decline in the West.

So, what has this all to do with sport? Well, just as EU employment rights will extend to the new member states, the same rights will extend to footballers/athletes who wish to ply their trade in the lucrative leagues in Western Europe.

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Many leagues and clubs (from the Bundesliga to the League of Ireland) are already in financial crises and player wages are seen by many as part of the problem. So will Irish players lose jobs to an influx of, say, Romanian or Hungarian footballers?

Fran Gavin, General Secretary of the Professional Footballers Association of Ireland (PFAI) doesn't think so - not yet at any rate.

"I don't see EU enlargement as having a huge effect on our members," he says. "Not from the likes of Poland or Romania anyway, where the standard is higher. It could come from somewhere like Estonia, which might be of comparable standard.

"There is the option of clubs perhaps getting cheaper players from Eastern Europe, which in the current financial climate might seem tempting to them. I suppose whereas before if clubs wanted to bring in a player from outside the EU they had to prove they couldn't get someone of similar standard elsewhere in Europe, the expansion of the market means they have now a wider choice.

"I have to say though that it's a wait-and-see approach. You never know what's going to happen."

The German PFA say that because so many Eastern Europeans are already playing in Germany they don't see expansion as a huge problem. Teams like Energie Cottbus, on the border with Poland, are made up mainly of Polish players, but thanks to the seven-year rule, future immigrants must wait until 2011 for full worker rights.

In Monaco in September 2003, Ms Viviane Reding, a member of the European Commission responsible for Education and Culture, reiterated the EU's position on sport,

"Over the past few years, we have seen a steady increase in the influence of Community policy on the world of sport: as an economic activity, sport now falls within the purview of competition law; the European Court of Justice has recognised the autonomy of the sports movement in accordance with Community law; and sport has also been influenced by Community policies concerning the free movement of professional sportsmen and women."

The Bosman case, in particular, helped pave the way for freedom of movement, and such EU laws will extend to the new member states. In these countries, calling upon such laws cannot but help player unions hitherto subjected to arbitrary federation rulings.

A case in point is Poland, where the football federation established regulations, without the cooperation of the players' union, giving clubs the power to cut player salaries by 50 per cent - despite standing contracts.

EU enlargement, it seems, is a double-edged sword. But if the recent EU finding that 80 per cent of Europeans see sport as a means to promote dialogue among cultures and fight discrimination holds true, then perhaps sport can lead the way in showing expansion to be a good thing.

Big three hogging sponsorship cake

ESB are pulling their sponsorship of Basketball Ireland at the end of March and are rumoured to be looking at getting involved in sponsorship of the GAA at county level. As sports sponsorship grows year on year, will companies increasingly put all their eggs in the baskets of the big three: rugby, soccer and GAA?

These three stellar sports are all going from strength to strength in terms of sponsorship while "minor" sports - or, more accurately, sports with less media coverage - are finding it increasingly difficult to attract big-name sponsors.

ESB's sponsorship is ending after a six-year association and despite attempts in some quarters to explain it in terms of a life-span coming to a natural end, that line appears to be at odds with the current trends of sports sponsorship in Ireland.

As stated in this column before Christmas, sponsorship is outgrowing advertising and it is the multi-year deals with sports teams and organisations that give the brand and association time to settle and adapt.

The Allianz sponsorship of the national football and hurling leagues has entered its 12th year and since its inception has paid off in increased TV coverage and growing audience figures.

Eircom are expected to announce an extension of their sponsorship of Irish soccer later this year - it is expected to continue until 2008 - and that after an association stretching back to 2000. Vodafone are looking to continue to strengthen their sponsorship of the All-Stars and Clare GAA, while Permanent TSB have announced the continuation of their sponsorship with the Irish rugby team until 2006 at least.

But the question now is can the other sports in Ireland survive for much longer without financial support from big business?

Real make impact

A recent survey of brand impact has shown Real Madrid are rated as one of the top 10 brands by Europeans, ahead of such well known names as Puma and Adidas.

The survey, reflecting consumer views for 2003 for brandchannel.com, shows sports companies don't rate that highly overall.

Puma is the only other sports-related brand in the top 10, in which the surprise package has been the emergence of Real Madrid as a brand impacting on people's lives, keeping company with the likes of Nokia and Ikea.

The Manchester United brand fails to get a look in, raising doubts about their "world's most popular club" tag, but the move of David Beckham to Real in the summer must have been a factor in raising popular awareness of the Spanish club.

Globally, Google retains top spot ahead of Apple, with Nike, in eighth place, the only sports brand in the top 10.