AFLE REVEALS SPORTING AND FINANCING STRUCTURES
Just 24 hours after the European Football Alliance announced that it had terminated its reunion with the European League of Football on the grounds that the latter could not meet the EFA’s ‘mandatory standards for financial stability and transparency’, the rival American Football League Europe has unveiled the principles by which it will launch its own competition later this year.
In a statement issued Friday (16th January), the AFLE — or The League: Europe as it wishes to be known colloquially — outlined key aspects of its organisational and financial framework, the latter having been the main bone of contention that led to a split in the original EFA cohort.
According to the missive, the AFLE is incorporated as an association, meaning it operates as a member-based organisation. The participating teams are the only members of this association and, as a result, sporting, regulatory and structural decisions are made collectively by the franchises themselves, ensuring that control of the league remains in the hands of the teams. Decision-making is supported by formal governance bodies, including a board of governors, working groups and an advisory committee, all of which ensure collaborative leadership and strategic oversight across the league. Teams are granted full inspection and control rights over league operations. They also have the option to involve independent external advisors, with the associated costs covered by the league. Governance standards will continue to be developed and professionalised over time.
So far, so similar to the EFA, but the AFLE’s sporting organisation of the league is being intentionally separated from its financing structure, where a distinct entity manages investments, while the league itself operates through the association.
Team participation in the financial entity is voluntary and not a mandated requirement to compete. For the first two seasons, each team will receive guaranteed payments of €325,000 per year. These payments are not loans and do not require repayment. The funding is fully provided by the investor and is intended to support teams during the league’s initial development phase. In addition, teams will participate in further league revenues. The big picture objective is that approximately 75 percent of total revenues will be distributed to the franchises.
From the third season onward, the fixed guarantees will no longer apply, as the goal is to establish a financially sustainable league model that can operate independently in the long term. The investor has committed a total of €12m to the league and carries the full entrepreneurial risk. Teams have no financial liabilities and are not required to provide guarantees or securities. This structure clearly represents an equity investment rather than a loan.
The statement goes on to explain that ‘competition restrictions apply only while the league is actively operating’ so, should it not start, be discontinued or reach a contractually-defined dissolution point, these restrictions will automatically cease.
“The AFLE remains open to constructive dialogue and believes that transparency is essential for the sustainable development of professional football in Europe,” the announcement concludes. “The league welcomes open discussion and continued engagement from all stakeholders.”
So far, the AFLE has announced six teams — Rhein Fire, Vienna Vikings, Berlin Thunder, Alpine Rams, Wroclaw Panthers and a Paris franchise set to be revealed on Super Bowl Sunday — and also claims to have interest in teams from the UK, Italy and Monaco.
The latter has been subject to speculation since before the festive period, with the Monaco Mariners positioning themselves as a supposed candidate, only to announce last week that they were having to rethink their involvement due to ‘trust issues’. An Instagram account purporting to represent the Mariners has since issued various barbed posts taking shots at the AFLE — one of which was allegedly ‘liked’ by an EFA member — amid the apparent emergence of the Monaco Royal Knights, whose own Instagram feed is emphatic about its AFLE membership…