The paper says "collective selling is important for the redistribution of income" before stating "the Commission...recommends...alternatively a system of individual selling by clubs linked to a robust solidarity mechanism".

GRASSROOTS BENEFITS

An official with European soccer body UEFA said the ambiguity left open the possibility of court challenges against its collective rights system for Europe's Champions League television revenues, which UEFA says it uses to fund grassroots football.

"We need it to be clearer," the official said.

On the issue of homegrown players -- not necessarily of the same nationality of the parent club, but nurtured by that club through its youth development programme -- the draft says: "The Commission will analyse so-called home-grown players rules to assess whether they present a risk of indirect discrimination, and if so, whether their objective is legitimate."

A British Conservative member of the European Parliament and former soccer referee Chris Heaton-Harris said the majority of politicians see the benefit of quotas as a way to boost local talent as the world's best players are drawn to Europe.

"The politicians, whom the Commission answers to, accept that these rules are good for sport in the long term, so why analyse it now?" he said.

COMPLAINTS EXPECTED

The European Parliament will have a say in the final shape of the reform and several members are due to complain about the draft on Monday to Commission President Jose Manuel Barroso.

William Gaillard, advisor to UEFA boss Michel Platini, said it "could gravely damage all sports across Europe."

EU Competition Commissioner Neelie Kroes wants sports disputes to be decided purely on economic not social grounds, like any other business.

"The majority of the Commission sees the value of giving sport a greater say of its own. But she is not interested and could be headed for a showdown," a Commission source said.

A spokesman for Kroes declined to comment.

1

2