Football Club Licensing: Between Professionalism and Business Loopholes

The practice of acquiring football club licenses has been occurring for more than the last 20 years in Indonesia. On one hand, this buying and selling of clubs is seen as an effort to save clubs that have already obtained licenses and compete in the prestigious tier of Indonesian football competitions. Through this effort, clubs that have competed at the highest level can remain active even if they must change their name or regional base.

In addition, the buying and selling of club licenses is also considered beneficial for elevating the name of a region that does not yet have a professional football club. Local talents are given the opportunity to play in professional clubs with a high level of competition.

However, on the other hand, the practice of club acquisitions is considered a regression in Indonesian football competition. This is because, through this practice, there are teams from the regions that suddenly appear in the highest tier of Indonesian football without going through the struggle of promotion from the lowest tier.

As a result, the term "phantom team" emerged, referring to clubs that lack historical significance from a regional perspective. The historical issues of these clubs are indeed still very important in the realm of Indonesian football, considering that supporters typically provide their backing to clubs with a long historical record in the area.

In addition, another negative aspect is the emergence of the practice of buying and selling clubs within the governance of football in Indonesia. Teams seem to be deliberately formed to start from the lowest tier. After successfully being promoted, these teams are sold for prices reaching tens of billions of rupiah.

Despite receiving both support and opposition, in practice, the acquisition of club licenses continues to occur to this day. So, why is a license needed in a football club that makes it a constant point of contention?

If we look at the Club Licensing Regulation from the Indonesian football governing body, PSSI, in 2023, this club license is necessary to ensure that football clubs have good management. Through this license, clubs are compelled to meet several requirements across various aspects, including infrastructure, supporting facilities, and the ability to manage the club's finances.

Club licensing also serves as a tool to maintain the credibility of the club. Through the licenses granted, clubs will be monitored during the competition, covering aspects such as finance, youth development, and facilities.

The legality of a football club is also regulated in the Minister of Youth and Sports Regulation Number 14 of 2024 concerning Standards for the Management of Sports Organizations in the Scope of Competitive Sports. This regulation states that competitive sports organizations can be established in the form of a legal entity association. With the legal entity status held, a club has legitimacy as a professional club under the auspices of an official organization or company in Indonesia.

After obtaining legal status, the club must begin the struggle to acquire a license. Obtaining a football club license is not easy. This is because there are several requirements that must be met. In terms of development, for instance, the club must have a youth team as well as a youth team development program. This requirement is an effort for regeneration carried out through a professional football team.

Stricter requirements must be met regarding infrastructure aspects. A club must have a stadium that meets the standards of PSSI and AFC. The registered stadium must also have basic regulations, such as seating rules, a smoking ban, and a prohibition on racist behavior within the stadium. These regulations must be posted inside the stadium as a form of warning.

Each team must also have a general manager responsible for running day-to-day operations. Additionally, the team must have a technical director, media officer, team doctor, and physiotherapist. These are the primary requirements for a team to receive a license to compete.

If we look at the requirements presented, each team is required to become a professional club by possessing a number of physical and non-physical aspects. This requirement is certainly quite challenging to fulfill, especially for teams that are just starting out in the third or fourth tier on a local scale.

The heavy requirements proposed have been addressed by several regions in a practical manner, namely by purchasing club licenses. By acquiring a license, the team no longer needs to start from the lowest tier of the league but can continue competing in the league that was previously participated in by the acquired team.

This issue has attracted the attention of the Fédération Internationale de Football Association (FIFA). In fact, FIFA regulations regarding club licensing explicitly state that licenses cannot be transferred. However, under certain conditions, the ownership status of a club may change hands.

In Indonesia, this regulation is attempted to be circumvented through the method of club share ownership. Acquisition practices are used to avoid the term "buying and selling." Unfortunately, this practice is essentially akin to buying and selling clubs, considering that acquisitions are usually accompanied by changes in territorial bases, alterations in basic infrastructure, and shifts in management governance.

The acquisition of club shares is actually a common occurrence in the realm of football. In Europe, this practice is quite prevalent, especially when a team faces financial difficulties. This was previously done by the current Chairman of PSSI, Erick Thohir, when he purchased a portion of Inter Milan's shares in 2013. However, at that time, Inter Milan remained Inter Milan.

The club from the city of Milan has not changed its territorial base, thus the historical aspect of football in the city of Milan does not simply disappear. This condition is very different from that in Indonesia. Club acquisitions are often accompanied by changes in territorial bases, which frequently lead to conflicts at the grassroots level.

Unfortunately, this condition has not yet been officially regulated by PSSI as the governing body of football in Indonesia. PSSI still adheres to AFC regulations, which state that a team can still obtain a license as long as the stipulated requirements are met. This regulation applies regardless of any buying or acquisition practices that may occur.

If this condition continues to be neglected, Indonesian football will undoubtedly experience a decline as the practice of buying and selling clubs persists. Strict regulations regarding the buying and selling of clubs are needed so that clubs do not easily change their regional bases as seen in European countries.

On the other hand, existing clubs also need the support of the public, supporters, and the business world to continue growing and maintain their licenses as a proud demonstration of professionalism. (Kompas Research and Development)