This is a significant political and economic decision with very wide-ranging ramifications. In the immediate aftermath of the result it is difficult to make precise predictions about how Britain’s new relationship with the EU will affect the sector.
It will take some time before we can say with certainty what issues will need to be resolved as it is not yet clear what terms the UK Government will seek from the EU.
It may be worth keeping in mind that the EU referendum result is advisory rather than binding; which may mean there remains a possibility of further negotiation with the EU on an alternative to Brexit.
However, as a sector we will want some clarity fairly quickly in the following areas:
o Freedom of movement – There will need to be clarity over any new immigration rules that will be applied to athletes and others working in sport moving to and from Britain and the EU. If additional restrictions are put in place e.g. similar to those for non-EU/EEA nationals, it will affect not only player transfers but also those seeking employment in the broader sport sector both in the UK and in the EU.
o EU funding – Currently the sport sector in the UK receives funding from the EU through a range of funds including the ERASMUS+ Sport programme. The sector will now want to know if it can still bid for project funds in the interim while we negotiate exit and, once the UK leaves, whether funding might still be available through these mechanisms via some bilateral agreement, albeit recognising this would still require some contribution from the UK and would probably mean more restricted access to funds compared to now. If we are no longer eligible for these funds the sector will want to know if there will be equivalent funds provided by the UK government for similar projects, particularly in grassroots sport.
o Broadcasting – The European Commission is in the process of implementing a major programme of reform under the Digital Single Market initiative. While Brexit may slow the pace of this reform, in the longer term it could result in sports content being licensed on a pan-EU basis (rather than by country as now). As the UK is leaving the EU, it will no longer have influence over the reform process as a Member State and rights holders will be faced with the possibility that in future they must sell their content into the EU as a bloc rather than individual countries. This could impact on the value of rights and therefore the amounts available for reinvestment in grassroots.
o Integrity – The UK currently benefits from a range of cooperative arrangements with EU partners on match-fixing and doping including membership of Europol, common data protection/data sharing provisions and UK representation of the EU in international organisations e.g. WADA. We will now need to establish bilateral relationships (and, where necessary, new legislative provisions) to ensure that UK sport continues to be protected from integrity threats that are cross-border in nature.
o Sports goods and equipment – The precise terms of any new trade deal with the EU will be vital in terms of deciding any tariffs that might be imposed on sports goods e.g. footwear, clothing and equipment imported from the EU. Assuming the UK inherits the EU’s current tariff structure as a starting point, prices paid by consumers for some sports goods may well rise. Similarly, sports goods producers in the UK will probably face tariffs or restrictions selling into the EU which could affect the health of the broader UK sports business. What is certain is that, depreciation of the pound will increase the price of imported sports goods, at least in the short term.
o Not-so-United Kingdom – As Scotland has voted to remain the issue of a call for another Scottish independence referendum has been raised. Assuming this happens and Scotland votes for independence we would see the reshaping of UK sports policy and funding as well as fundamental changes to the composition of national teams e.g. for the Olympics and Paralympics. Similar issues may arise in respect of NI's relationship with the rest of the UK given the voting pattern there.
It is clearly very early days in terms of understanding what happens now and the full implications of a vote to leave the EU not least with the resultant announcement that the Prime Minister will step down in the Autumn, the reaction of global financial markets to the news and speculation about the need for an emergency austerity budget.
There will be much more to come on this issue and we will continue to post news and updates in Alliance Member News.
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