international labour market - lecture 4

Types of migration - Maguire (1996,1999)

1. Pioneers

2. Settlers

3. Mercenaries

4. Nomads

5. Returners

Pioneers - Maguire (1996,1999)

advocates for sport, taking it into territories where it is not established and motivation is missionary as much as financial

Settlers - Maguire (1996,1999)

move to a country and stay

Mercenaries - Maguire (1996,1999)

go abroad to earn, fully intending to return home and usually short-term. and monetary gain motivation

Nomads - Maguire (1996,1999)

move for the experience of a different country and a different life

Returners - Maguire (1996,1999)

leave for a range of reasons and eventually come home for good with host. country never becoming home

Maguire’s (1996) 5 dimensions of global flows

1. Migrant

2. Media

3. Financial

4. Technological

5. Ideological

Migrant dimensioon - Maguire’s (1996)

international movement of sports people

Media dimension - Maguire’s (1996)

broadcast and content flows creating demand for foreign talent

Financial dimension - Maguire’s (1996)

capital, transfer fees, wages and investment moving across borders

Technological dimension - Maguire’s (1996)

training methods, sports science and equipment transferring between systems

Ideological dimension - Maguire’s (1996)

ideas about how sport should be organised, funded and played

Superstar effect (Rosen, 1981)

small differences in ability create very large differences in reward once the audience is global

why the sporting market isn’t free?

• transfer systems - restrict when and how players move clubs

• work permits and quotas - limits international recruitment

• buyer power - limited clubs offer realistic contracts, giving them greater bargaining power over young players’ wages and conditions.

• deliberate restraints - salary caps, homegrown quotas and draft restricts wages or recruitment

what changed? (Riordan & Kruger, 1999)

• dismantling Warsaw Pact athlete programmes released state-developed athletes

• athletes from Eastern bloc countries move abroad for greater opportunities

• states paid for development but western clubs get the output

why it mattered? (Riordan & Kruger, 1999)

• showed talent pipeline can be redirected quickly

• agents became structural

• set the pattern of production in one economy, consumption in another

individual sports market

• athlete is the business - prize money, endorsements, scheduling is in their control

• mobility is high with no permission needed

• risk is theirs - no wage floor and injury ends income

team sports market

• player is registered to the club - registration is whats traded

• movement midc-contract needed agreement, compensation or litigation

• higher wage security but lower autonomy

Bosman (1995) 3 things established

1. out-of-contract players in EU can transfer without fees

2. quotas limiting number of EU nationals in squads became unlawful

3. professional sport is economic activity and subject to EU free movement law

what Bosman left standing

• transfer system for players under contract

• non-EU restrictions

• values shifted from fees to wages and agent commissions

• gap widened between clubs that pay wages and clubs that sell

Diarra (2024) sequel to Bosman - 3 FIFA provisions breached EU law

1. joint and several liability (making a signing club liable for player’s contract)

2. withholding the International Transfer Certificate (blocks registration)

3. free movement of workers and ban on anti-competitive agreements

Diarra (2024) aftermath

• amendments to regulation 1st Jan 2021

• settled with no admission or no compensation

• collective claim on behalf of 100,000 player remain

Bosman vs Diarra

• Bosman freed players at the end of a contract

• Diarra attacks machinery governing departure during a contract