Asser International Sports Law Blog

Our International Sports Law Diary
The Asser International Sports Law Centre is part of the T.M.C. Asser Instituut

[New Publication] - The European Roots of the Lex Sportiva: How Europe Rules Global Sport - Antoine Duval , Alexander Krüger and Johan Lindholm (eds) - Open Access

Dear readers, 


I have the pleasure to inform you that our (with Prof. Johan Lindholm and Alexander Kruger from Umeå University) edited volume entitled 'The European Roots of the Lex Sportiva: How Europe Rules Global Sport' has been published Open Access by Hart Publishing. 



You can freely access the volume at: https://www.bloomsburycollections.com/monograph?docid=b-9781509971473


Abstract

This open access book explores the complexity of the lex sportiva, the transnational legal regime governing international sports. Pioneering in its approach, it maps out the many entanglements of the transnational governance of sports with European legal processes and norms. The contributors trace the embeddedness of the lex sportiva within national law, European Union law and the European Convention on Human Rights. While the volume emphasizes the capacity of sports governing bodies to leverage the resources of national law to spread the lex sportiva globally, it also points at the fact that European legal processes are central when challenging the status quo as illustrated recently in the Semenya and Superleague cases. Ultimately, the book is also a vantage point to start critically investigating the Eurocentricity and the complex materiality underpinning the lex sportiva.


Table of contents

1. Made in Europe: Lex Sportiva as Embedded Transnational Law - 1–14 - Antoine Duval , Alexander Krüger and Johan Lindholm

I. The European Roots of Lex Sportiva

2. Embedded Lex Sportiva: The Swiss Roots of Transnational Sports Law and Governance - 17–40 - Antoine Duval

3. Putting the Lex into Lex Sportiva: The Principle of Legality in Sports - 41–68 - Johan Lindholm

4. Europeanisation of the Olympic Host (City) Contracts - 69–92 - Yuliya Chernykh

5. The Influence of European Legal Culture on the Evolution of Lex Olympica and Olympic Law - 93–118 - Mark James and Guy Osborn

6. Who Regulates the Regulators? How European Union Regulation and Regulatory Institutions May Shape the Regulation of the Football Industry Globally - 119–152 - Christopher A Flanagan

7. The Europeanisation of Clean Sport: How the Council of Europe and the European Union Shape the Proportionality of Ineligibility in the World Anti-Doping Code - 153–188 - Jan Exner

II. The Integration of European Checks into the Lex Sportiva

8. False Friends: Proportionality and Good Governance in Sports Regulation - 191–210 - Mislav Mataija

9. Sport Beyond the Market? Sport, Law and Society in the European Union - 211–228 - Aurélie Villanueva

10. EU Competition Law and Sport: Checks and Balances ‘à l’européenne’ - 229–256 - Rusa Agafonova

11. Is the Lex Sportiva on Track for Intersex Person’s Rights? The World Athletics’ Regulations Concerning Female Athletes with Differences of Sex Development in the Light of the ECHR - 257–282 - Audrey Boisgontier

III. Engaging Critically with a Eurocentric Lex Sportiva 

12. Lex Sportiva and New Materialism: Towards Investigations into Sports Law’s Dark Materials? 285–308 - Alexander Krüger


12th round of Caster Semenya’s legal fight: too close to call? - By Jeremy Abel

Editor's note: Jeremy Abel is a recent graduate of the LL.M in International Business Law and Sports of the University of Lausanne.

 

1.     Introduction

The famous South African athlete Caster Semenya is in the last lap of her long legal battle for her right to run without changing the natural testosterone in her body. After losing her cases before the Court of Arbitration for Sport (CAS) and the Swiss Federal Tribunal, she filed an application before the European Court of Human Rights (Court). In the meantime, the Court has released a summary of her complaint and a series of questions addressed to the parties of the case.

As is well known, she is challenging the World Athletics’ Eligibility Regulations for the Female Classification (Regulations) defining the conditions under which female and intersex athletes with certain types of differences of sex development (DSDs) can compete in international athletics events. Despite the Regulations emanating from World Athletics, the last round of her legal battle is against a new opponent: Switzerland.

The purpose of this article is to revisit the Semenya case from a European Convention on Human Rights (ECHR) perspective while considering certain excellent points made by previous contributors (see here, here and here) to this blog. Therefore, the blog will follow the basic structure of an ECHR case. The following issues raised by Semenya shall be analysed: the applicability of the ECHR, Semenya’s right to private life (Article 8 ECHR) and to non discrimination (Article 14 ECHR), as well as the proportionality of the Regulations. More...


Revisiting FIFA’s Training Compensation and Solidarity Mechanism - Part. 4: The New FIFA Clearing House – An improvement to FIFA’s training compensation and solidarity mechanisms? - By Rhys Lenarduzzi

Editor’s note: Rhys Lenarduzzi recently completed a Bachelor of Law (LL.B) and a Bachelor of Philosophy (B.Phil.) at the University of Notre Dame, Sydney, Australia. As a former professional athlete, then international sports agent and consultant, Rhys is interested in international sports law, policy and ethics. He is currently undertaking an internship at the T.M.C. Asser Institute with a focus on Transnational Sports Law.

In September 2018, the Football Stakeholders Committee endorsed the idea of a Clearing House that was subsequently approved in October of the same year by the FIFA Council. A tender process commenced in July 2019 for bidders to propose jurisdiction, operation and establishment. Whilst many questions go unanswered, it is clear that the Clearing House will be aimed at closing the significant gap between what is owed and what is actually paid, in respect to training compensation and solidarity payments. The Clearing House will have other functions, perhaps in regard to agents’ fees and other transfer related business, though those other operations are for another blog. It will hence act as an intermediary of sorts, receiving funds from a signing and therefore owing club (“new” club) and then moving that money on to training clubs. Whilst separate to FIFA, to what extent is unclear.

I have landed at the position of it being important to include a section in this blog series on the soon to commence Clearing House, given it appears to be FIFA’s (perhaps main) attempt to improve the training compensation and solidarity mechanisms. As will be expanded upon below, I fear it will create more issues than it will solve. Perhaps one should remain patient and optimistic until it is in operation, and one should be charitable in that there will undoubtedly be teething problems. However, it is of course not just the function of the Clearing House that is of interest, but also what moving forward with the project of the Clearing House represents and leaves unaddressed, namely, the issues I have identified in this blog series. More...

International and European Sports Law – Monthly Report – October 2020 - By Rhys Lenarduzzi

Editor’s note: Rhys Lenarduzzi is a final semester Bachelor of Law (LL.B) and Bachelor of Philosophy (B.Phil.) student, at the University of Notre Dame, Sydney, Australia. As a former professional athlete, then international sports agent and consultant, Rhys is interested in international sports law, policy and ethics. He is currently undertaking an internship at the T.M.C. Asser Institute with a focus on Transnational Sports Law.


The Headlines

Aguero and Massey-Ellis incident: An Opportunity for Change and Education?

In mid-October a clip went viral of Argentinian star Sergio Aguero putting his hands on sideline referee, Sian Massey-Ellis. A heated debate ensued in many circles, some claiming that Aguero’s conduct was commonplace, others taking aim at the appropriateness of the action, around players touching official and a male touching a female with an unsolicited arm around the back, the squeeze and pull in. Putting the normative arguments aside for a moment, the irony of the debate was that all sides had a point. Football, almost exclusively, has grown a culture of acceptance for touching officials despite the regulations. Male officials who have let such conduct slide, have arguably let their female colleague down in this instance.

Whilst a partial defence of Aguero might be that this kind of conduct takes place regularly, the incident could serve as a learning experience. If Massey-Ellis’ reaction was not enough, the backlash from some of the public might provide Aguero and other players the lesson, that touching a woman in this way is not acceptable.

Returning to football, the respect and protection of officials in sport, the key here appears to be cracking down on touching officials entirely. This is not a foreign concept and football need only look at the rugby codes. Under no circumstances does the regulations or the culture permit that a player from the rugby codes touch a referee. It is likely the case that the obvious extra level of respect for officials in these sports derives from a firm culture of no touching, no crowding officials, communicating with officials through the team captain only, with harsh sanctions if one does not comply.

The Football Association of England has decided no action was necessary, raising questions of how seriously they take the safety of officials, and gender issues. This is ultimately a global football issue though, so the confederations or international bodies may need step in to ensure the protections that appear at best fragile.  


Rugby Trans issue

The World Rugby Transgender guideline has been released and contains a comprehensive unpacking of the science behind much of the regulatory framework. Despite many experts applauding World Rugby on the guidelines and the extensive project to reach them, the England Rugby Football Union is the first to defy the World Rugby ruling and transgender women will still be allowed to play women’s rugby at all non-international levels of the game in England for the foreseeable future. This clash between national bodies and the international body on an important issue is concerning and will undoubtedly be one to keep an eye on.

 

CAS rejects the appeal of Munir El Haddadi and the Fédération Royale Marocaine de Football (FRMF)

The refusal to authorise a footballer to change national federation is in the headlines with the CAS dismissing the appeal of the player and Moroccan federation, confirming the original determination of the FIFA Players’ Status Committee.

This has been given considerable recent attention and seemingly worth following, perhaps best summed up by FIFA Director of Football Regulatory, James Kitching, where in a tweet he notes: “The new eligibility rules adopted by the FIFA Congress on 18 September 2020 have passed their first test. We will be publishing our commentary on the rules in the next fortnight. Watch this space.” More...



International and European Sports Law – Monthly Report – September - October 2020 - By Rhys Lenarduzzi


The Headlines


Human rights and sport  

Caster Semenya

Human rights issues are taking the headlines in the sporting world at present. A short time ago, Caster Semenya’s appeal at the Swiss Federal Tribunal against the CAS decision was dismissed, perhaps raising more questions than answering them. Within the last few days however, the message from the Semenya camp has been that this is not over (see here).  See the contributions from a range of authors at Asser International Sports Law Blog for a comprehensive analysis of the Semenya case(s) to date.

Navid Afkari

As the sporting world heard of the execution of Iranian Wrestler Navid Afkari, a multitude of legal and ethical questions bubbled to the surface. Not least of all and not a new question: what is the responsibility of sport and the governing bodies therein, in the space of human rights?  And, if an athlete is to acquire a high profile through sporting excellence, does that render athletes vulnerable to be made an example of and therefore in need of greater protection than is currently afforded to them? There are differing views on how to proceed. Consider the following from the World Players Association (Navid Afkari: How sport must respond) and that from the IOC (IOC Statement on the execution of wrestler Navid Afkari) which shows no indication through this press releases and other commentary, of undertaking the measures demanded by World Players Association and other socially active organisations. (See also, Benjamin Weinthal - Olympics refuses to discuss Iranian regime’s murder of wrestler).

Yelena Leuchanka

As this is written and relevant to the above, Yelena Leuchanka is behind bars for her participation in protests, resulting in several sporting bodies calling for her immediate release and for reform in the sporting world around how it ought to deal with these issues. As a member of the “Belarus women's national basketball team, a former player at several WNBA clubs in the United States and a two-time Olympian”, Leuchanka has quite the profile and it is alleged that she is being made an example of. (see here)

Uighur Muslims and Beijing Winter Olympics

British Foreign Secretary, Dominic Raab does not rule out Winter Olympics boycott over Uighur Muslims. ‘The foreign secretary said it was his "instinct to separate sport from diplomacy and politics" but that there "comes a point where that might not be possible".’ Though Raab’s comments are fresh, this issue is shaping as a “watch this space” scenario, as other governments might echo a similar sentiment as a result of mounting pressure from human rights activist groups and similar, in lead up to the Winter Games. More...



New Transnational Sports Law Articles Released on SSRN - Antoine Duval

I have just released on SSRN four of my most recent articles on Lex Sportiva/Transnational Sports Law. The articles are available open access in their final draft forms, the final published version might differ slightly depending on the feedback of the editors. If you wish to cite those articles I (obviously) recommend using the published version.

I hope they will trigger your attention and I look forward to any feedback you may have!

Antoine


Abstract: This chapter focuses on the emergence of a transnational sports law, also known as lex sportiva, ruling international sports. In the transnational law literature, the lex sportiva is often referred to as a key example or case study, but rarely studied in practice. Yet, it constitutes an important playground for transnational legal research and practice, and this chapter aims to show why. The focus of the chapter will first be on the rules of the lex sportiva. Law, even in its transnational form, is still very much connected to written rules against which a specific behaviour or action is measured as legal or illegal. As will be shown, this is also true of the lex sportiva, which is structured around an ensemble of rules produced through a variety of law-making procedures located within different institutions. The second section of this chapter will aim to look beyond the lex sportiva in books to narrate the lex sportiva in action. It asks, what are the institutional mechanisms used to concretize the lex sportiva in a particular context? The aim will be to go beyond the rules in order to identify the processes and institutions making the lex sportiva in its daily practice. Finally, the enmeshment of the lex sportiva with state-based laws and institutions is highlighted. While the lex sportiva is often presented as an autonomous transnational legal construct detached from territorialized legal and political contexts, it is shown that in practice it operates in intimate connection with them. Hence, its transnational operation is much less characterized by full autonomy than assemblage.


Abstract: This chapter aims to show that the work of the Court of Arbitration for Sport (‘CAS’), which is often identified as the institutional centre of the lex sportiva, can be understood as that of a seamstress weaving a plurality of legal inputs into authoritative awards. In other words, the CAS panels are assembling legal material to produce (almost) final decisions that, alongside the administrative practices of sports governing bodies (‘SGBs’), govern international sports. It is argued that, instead of purity and autonomy, the CAS’ judicial practice is best characterised by assemblage and hybridity. This argument will be supported by an empirical study of the use of different legal materials, in particular pertaining to Swiss law, EU law and the European Convention on Human Rights (‘ECHR’), within the case law of the CAS. The chapter is a first attempt at looking at the hermeneutic practice of the CAS from the perspective of a transnational legal pluralism that goes beyond the identification of a plurality of autonomous orders to turn its sights towards the enmeshment and entanglement characterising contemporary legal practice.


Abstract: Has the time come for the Court of Arbitration for Sport to go public? This article argues that after the Pechstein decision of the European Court of Human Rights, CAS appeal arbitration must be understood as forced arbitration and therefore must fully comply with the due process guarantees enshrined in Article 6(1) ECHR. In particular, this entails a strong duty of transparency with regard to the hearings at the CAS and the publication of its awards. This duty is of particular importance since the rationale for supporting the validity of CAS arbitration, if not grounded in the consent of the parties, must be traced back to the public interest in providing for the equality before the (sports) law of international athletes. Thus, the legitimacy and existence of the CAS is linked to its public function, which ought to be matched with the procedural strings usually attached to judicial institutions. In short, if it is to avoid lengthy and costly challenges to its awards, going public is an urgent necessity for the CAS.


Abstract: In 1998 the FIFA welcomed the Palestinian Football Association as part of its members - allegedly, as an attempt by then FIFA President, the Brazilian João Havelange, to showcase football as an instrument of peace between Israeli and Palestinians. Ironically, almost 20 years after Palestine’s anointment into the FIFA family, instead of peace it is the conflict between Israeli and Palestinians that moved to FIFA. In recent years the Palestinian Football Association (PFA) and the Israeli Football Association (IFA) have been at loggerheads inside FIFA over the fate - I will refer to it as the transnational legality – of five (and then six) football clubs affiliated to the IFA which are physically located in the Israeli settlements in the Occupied Palestinian Territories (OPT). This chapter chronicles the legal intricacies of this conflict, which will serve as a backdrop to discuss arguments raised regarding the legality of business activities of corporations connected to the Israeli settlements. Indeed, as will be shown in the first part of this chapter, the discussion on the legality of economic activities in the OPT has recently taken a business and human rights turn involving systematic targeting of corporations by activists. Interestingly, we will see that this business and human rights turn also played a role in the conflict between the IFA and the PFA. This case study is therefore an opportunity to examine how the strategy of naming and shaming private corporations, and in our case not-for-profit associations, for their direct or indirect business involvement in the settlements has fared. It is also an occasion to critically assess the strength of the human rights ‘punch’ added to the lex sportiva, by the UNGPs.

International and European Sports Law – Monthly Report – June - August 2020 by Thomas Terraz

Editor's note: This report compiles the most relevant legal news, events and materials on International and European Sports Law based on the daily coverage provided on our twitter feed @Sportslaw_asser. 

 

 

The Headlines

CAS Decision on Manchester City FC Case

After the UEFA’s Adjudicatory Chamber of the Club Financial Control’s (CFCB) decision earlier this year to ban Manchester City FC for two seasons, observers waited impatiently to see the outcome of this high profile dispute. The CFCB’s decision had found that Manchester City FC overstated sponsorship revenues and in its break-even information given to UEFA. While some feared this showdown could lead to the demise of UEFA’s Financial Fair Play (FFP) regulations, the now publicized CAS panel’s decision is more nuanced. The panel’s decision turned on (see analysis here and here) (a) whether the ‘Leaked Emails’ were authentic and could be admissible evidence, (b) whether the ‘CFCB breached its obligations of due process’, (c) whether the conclusions of the 2014 Settlement Agreement prevents the CFCB from charging Manchester City FC, (d) whether the charges are time-barred, (e) the applicable standard of proof, (f) whether Manchester City FC masked equity funding as sponsorship contributions, and (g) whether Manchester City FC failed to cooperate with CFCB. In the end, among other findings, the Panel held that some of the alleged breaches were time-barred but maintained that Manchester City FC had failed to cooperate with CFCB’s investigation. In light of this, the Panel significantly reduced the sanction placed on Manchester City FC by removing the two-season suspension and reducing the sanction from 30 million euros to 10 million euros.

 

Qatar Labour Law Reforms Effectively Abolishes the Kafala System

Just a few days after Human Rights Watch released a lengthy report on abusive practices suffered by migrant workers in Qatar, Qatar adopted a series of laws that effectively gets rid of the Kafala system by no longer requiring migrant workers to obtain a ‘No Objection Certificate’ from their employer in order to start another job. The International Labour Organization declared that this development along with the elimination of the ‘exit permit requirements’ from earlier this year means that the kafala system has been effectively abolished. In addition to these changes, Qatar has also adopted a minimum wage that covers all workers and requires that employers who do not provide food or housing at least give a minimum allowance for both of these living costs. Lastly, the new laws better define the procedure for the termination of employment contracts.

In reaction to these changes, Amnesty International welcomed the reforms and called for them to be ‘swiftly and properly implemented’. Indeed, while these amendments to Qatar’s labour laws are a step in the right direction, Amnesty International also cautions that the minimum wage may still be too low, and in order to be effective, these new laws will have to be followed with ‘strong inspection and complaint mechanisms’.

 

CAS Decision Concerning Keramuddin Karim Abuse Case

In June of last year, Keramuddin Karim, former president of Afghanistan’s soccer federation, was banned by FIFA for life (see the decision of the adjudicatory Chamber of the FIFA Ethics Committee) after reports of sexual and physical abuse that emerged in late 2018. Following a lengthy and tumultuous investigation in Afghanistan, Afghan officials came forward with an arrest warrant for Mr. Karim. Nevertheless, despite attempts to apprehend Mr. Karim, Mr. Karim has still avoided arrest over a year later. Most recently in August, Afghan Special Operation officers attempted to apprehend him but he was not at the residence when they arrived.

Meanwhile, Mr. Karim had appealed FIFA’s lifetime ban to the CAS and the CAS Panel’s decision has recently been released. In its decision, the Panel upheld both the lifetime ban and the 1,000,000 CHF fine, finding that due to the particular egregious nature of Karim’s acts, ‘they warrant the most severe sanction possible available under the FCE’. Since both Karim and his witnesses were unable to be heard, the case raises questions connected to the respect of fundamental procedural rights at the CAS.  More...

International and European Sports Law – Monthly Report – March-May 2020 by Thomas Terraz

Editor's note: This report compiles the most relevant legal news, events and materials on International and European Sports Law based on the daily coverage provided on our twitter feed @Sportslaw_asser. 

 

The Headlines

Coronavirus Pandemic Takes Over Sports

Since the last monthly report, the coronavirus pandemic has completely taken over the headlines and has had enormous impacts on the sports field. The most significant of these impacts so far was the rather slow (see here and here) decision by the IOC to move the Tokyo 2020 Olympic Games to 2021 after a widespread push among athlete stakeholders to do so. Concerns were raised that besides the wellbeing of the participants, athletes under lockdowns would not have the access to the training facilities, meaning preparations for the Games would suffer. The IOC has already started its new planning for Tokyo 2021 and sees this new opportunity to be ‘an Olympic flame’ at the end of a ‘dark tunnel’ for the entire world.

Besides the Olympics, football has also experienced colossal effects as this crisis landed right as leagues were approaching the end of their season. In this context, FIFA has released specific guidelines on player contracts and transfer windows, which has included extending player contracts to the new postponed end of season dates. It has also organized a working group on COVID-19, which has already made recommendations to postpone all men and women’s international matches that were to be played during the June 2020 window. Earlier in March, UEFA had already announced that the EURO 2020 was also postponed by 12 months and has also recently approved guidelines on domestic competitions. These guidelines place emphasis on ‘sporting merit’ and urge ‘National Associations and Leagues to explore all possible options to play all top domestic competitions giving access to UEFA club competitions to their natural conclusion’. Nevertheless, UEFA also emphasizes that the health of all stakeholders must remain the top priority.

In the end, numerous sport federations have also had to amend their calendars due to the pandemic (see UCI and FIBA) and a variety of sport stakeholders have been confronted with immense financial strain (e.g. football, tennis and cycling). For example, UEFA has acted preemptively in releasing club benefit payments to try to alleviate the economic pressure faced by clubs. There have also been efforts to support athletes directly (e.g. FIG and ITF). All in all, the social and economic impacts of the coronavirus pandemic on sport have been unprecedented and will require creative solutions while continuing to place public health as the top priority.

Platini’s ECtHR Appeal Falls Flat

There have also been a few other stories that have (understandably) been overshadowed by the pandemic. One of these include Michel Platini’s unsuccessful appeal to the ECtHR challenging his 2015 football ban. The ECtHR’s decision concerned the admissibility of his appeal and in the end found it to be ‘manifestly ill-founded’. This is because he failed to raise his procedural rights concerns under Article 6 (1) ECHR in his proceedings at the Swiss Federal Tribunal. Besides rejecting his other claims based on Article 7 and 8 ECHR, the ECtHR decision also touched upon the issue of CAS’ procedural and institutional independence. In doing so, it referred to its Pechstein decision and once more affirmed that the CAS is sufficiently independent and impartial (see para 65), further giving credence to this notion from its case law. However, there are still concerns on this matter as was highlighted in the Pechstein dissent. Overall, the decision indicates that the ECtHR is willing to give the CAS the benefit of the doubt so long as it sufficiently takes into account the ECHR in its awards.

Mark Dry – UKAD Dispute

In February, Mark Dry was suspended by UKAD after a decision of the National Anti-Doping Panel (NADP) Appeal Tribunal  for four years after having given a ‘false account’ in order to ‘subvert the Doping Control process’. Specifically, Dry had told anti-doping authorities that he had been out fishing after he had missed a test at his residence. After further investigation, Dry admitted that he had forgotten to update his whereabouts while he was actually visiting his parents in Scotland and in panic, had told anti-doping authorities that he had been out fishing. Following the decision of the NADP Appeal Tribunal, athlete stakeholders have argued the four-year ban was disproportionate in this case. In particular, Global Athlete contended that Whereabouts Anti-Doping Rule Violations only occur in cases where an athlete misses three tests or filing failures within a year. Furthermore, even if Dry had ‘tampered or attempted to tamper’, a four-year sanction is too harsh. Subsequently, UKAD responded with a statement, arguing that ‘deliberately providing false information’ is ‘a serious breach of the rules’ and that the UKAD NADP Appeal Tribunal ‘operates independently’. In light of the mounting pressure, Witold Bańka, WADA President, also responded on Twitter that he is ‘committed to ensuring that athletes’ rights are upheld under the World Anti-Doping Code’. More...

International and European Sports Law – Monthly Report – February 2020 - By Thomas Terraz

Editor's note: This report compiles the most relevant legal news, events and materials on International and European Sports Law based on the daily coverage provided on our twitter feed @Sportslaw_asser. 

 

The Headlines

Manchester City sanctioned by UEFA’s Financial Fair Play

Manchester City has been sanctioned under UEFA’s Financial Fair Play (FFP) regulations for two seasons for ‘overstating its sponsorship revenue in its accounts and in the break-even information’ it had provided UEFA. The February 14 decision of the Adjudicatory Chamber of the Club Financial Control Body (CFCB) likely heralds the start of a long and bitter legal war between Manchester City and UEFA, which may end up settling many of the questions surrounding the legality of FFP rules. Since its introduction in 2010, the compatibility of FFP with EU law, especially in terms of free movement and competition law, has been a continued point of contention amongst the parties concerned and commentators (see discussion here, here and here). It was only a matter of time that a case would arise to test this issue and the present circumstances seem to indicate that this may go all the way.                                 

Regardless, the ban will not be enforced this season and in light of the appeal process, it is hard to predict when the CFCB’s decision will have any effect. Indeed, Manchester City has shown an incredible willingness to fighting this out in the courts and shows no signs of backing down. The next stop will be the CAS and perhaps followed by the Swiss Federal Tribunal. It should also be recalled that the CAS has already examined FFP in its Galatasaray award, where it found FFP compatible with EU law (see commentary here). There is even a decent chance that this emerging saga may end up in front of the European Commission and eventually the Court of Justice of the European Union.

Sun Yang CAS award published

After a much-anticipated public hearing, the Panel’s award in the Sun Yang case has finally been published, sanctioning Sun Yang with an eight-year period of ineligibility (see here for a detailed commentary). The decision does not reveal anything groundbreaking in terms of its legal reasoning and in many ways the case will most likely be remembered for its historical significance: the case that jumpstarted a new era of increased public hearings at the CAS.

Perhaps of some interest is the extent to which the panel took into account Sun Yang’s behavior during the proceedings in order to support its assessment of the case. For example, the panel describes how Sun Yang had ignored the procedural rules of the hearing by inviting ‘an unknown and unannounced person from the public gallery to join him at his table and act as an impromptu interpreter’. The Panel interpreted this as Sun Yang attempting ‘to take matters into his own hands’ which it found resembled the athlete’s behavior in the case (see para 358). The Panel also found it ‘striking’ that Sun Yang did not express any remorse concerning his actions during the proceedings. Since the proceedings were held publicly and have been recorded, it is possible to verify the Panel’s assessment in this regard.

In the end, it is possible that Sun Yang may seek to reduce the period of ineligibility once the 2021 WADA Code comes into force (see para 368). For now, Sung Yang may also try to appeal the award to the Swiss Federal Tribunal on procedural grounds, and has already indicated his wish to do so. More...

International and European Sports Law – Monthly Report – January 2020 - By Thomas Terraz

Editor's note: This report compiles the most relevant legal news, events and materials on International and European Sports Law based on the daily coverage provided on our twitter feed @Sportslaw_asser. 

 

The Headlines

IOC Athlete Commission releases its Rule 50 Guidelines for Tokyo 2020

The IOC Athlete Commission presented its Rule 50 Guidelines for Tokyo 2020 at its annual joint meeting with the IOC Executive Board. It comes as Thomas Bach had recently underlined the importance of political neutrality for the IOC and the Olympic Games in his New Year’s message. Generally, rule 50 of the Olympic Charter prohibits any political and religious expression by athletes and their team during the Games, subject to certain exceptions. The Guidelines clarify that this includes the ‘field of play’, anywhere inside the Olympic Village, ‘during Olympic medal ceremonies’ and ‘during the Opening, Closing and other official ceremonies’. On the other hand, athletes may express their views ‘during press conferences and interview’, ‘at team meetings’ and ‘on digital or traditional media, or on other platforms. While rule 50 is nothing new, the Guidelines have reignited a debate on whether it could be considered as a justified restriction on one’s freedom of expression.

 

The IOC has made the case that it is defending the neutrality of sport and that the Olympics is an international forum that should help bring people together instead of focusing on divisions. Specifically, Richard Pound has recently made the argument that the Guidelines have been formulated by the athletes themselves and are a justified restriction on free expression with its basis in ‘mutual respect’. However, many commentators have expressed their skepticism to this view (see here, here and here) citing that politics and the Olympics are inherently mixed, that the IOC is heavily involved in politics, and that the Olympics has often served as the grounds for some of history’s most iconic political protests. All in all, the Guidelines have certainly been a catalyst for a discussion on the extent to which the Olympics can be considered neutral. It also further highlights a divide between athlete committees from within the Olympic Movement structures and other independent athlete representation groups (see Global Athlete and FIFPro’s statements on rule 50).

 

Doping and Corruption Allegations in Weightlifting 

The International Weightlifting Federation (IWF) has found itself embroiled in a doping and corruption scandal after an ARD documentary was aired early in January which raised a wide array of allegations, including against the President of the IWF, Tamás Aján. The documentary also included hidden camera interviews from a Thai Olympic medalist who admits having taken anabolic steroids before having won a bronze medal at the 2012 London Olympic Games and from a team doctor from the Moldovan national team who describes paying for clean doping tests. The IWF’s initial reaction to the documentary was hostile, describing the allegations as ‘insinuations, unfounded accusations and distorted information’ and ‘categorically denies the unsubstantiated’ accusations. It further claims that it has ‘immediately acted’ concerning the situation with the Thai athletes, and WADA has stated that it will follow up with the concerned actors. However, as the matter gained further attention in the main stream media and faced increasing criticism, the IWF moved to try to ‘restore’ its reputation. In practice, this means that Tamás Aján has ‘delegated a range of operation responsibilities’ to Ursual Papandrea, IWF Vice President, while ‘independent experts’ will conduct a review of the allegations made in the ARD documentary. Richard McLaren has been announced to lead the investigation and ‘is empowered to take whatever measures he sees fit to ensure each and every allegation is fully investigated and reported’. The IWF has also stated that it will open a whistleblower line to help aid the investigation.More...


Asser International Sports Law Blog | Can a closed league in e-Sports survive EU competition law scrutiny? The case of LEC - By Thomas Terraz

Asser International Sports Law Blog

Our International Sports Law Diary
The Asser International Sports Law Centre is part of the T.M.C. Asser Instituut

Can a closed league in e-Sports survive EU competition law scrutiny? The case of LEC - By Thomas Terraz

Editor’s note: Thomas Terraz is a third year LL.B. candidate at the International and European Law programme at The Hague University of Applied Sciences with a specialisation in European Law. Currently he is pursuing an internship at the T.M.C. Asser Institute with a focus on International and European Sports Law.


1.     Introduction

The organizational structure of sports in Europe is distinguished by its pyramid structure which is marked by an open promotion and relegation system. A truly closed system, without promotion and relegation, is unknown to Europe, while it is the main structure found in North American professional sports leagues such as the NFL, NBA and the NHL. Recently, top European football clubs along with certain members of UEFA have been debating different possibilities of introducing a more closed league system to European football. Some football clubs have even wielded the threat of forming an elite closed breakaway league. Piercing through these intimidations and rumors, the question of whether a closed league system could even survive the scrutiny of EU competition law remains. It could be argued that an agreement between clubs to create a completely closed league stifles competition and would most likely trigger the application of Article 101 and 102 TFEU.[1] Interestingly, a completely closed league franchise system has already permeated the European continent. As outlined in my previous blog, the League of Legends European Championship (LEC) is a European e-sports competition that has recently rebranded and restructured this year from an open promotion and relegation system to a completely closed franchise league to model its sister competition from North America, the League Championship Series. This case is an enticing opportunity to test how EU competition law could apply to such a competition structure.

As a preliminary note, this blog does not aim to argue whether the LEC is a ‘real’ sport competition and makes the assumption that the LEC could be considered as a sports competition.[2]



2.     LEC’s Position in the League of Legends Competitive Structure

The LEC is the pinnacle of League of Legends (LoL) competition in Europe that is organized by its developer, Riot Games. Currently, the LEC is the only path to the League of Legends World Championship. Its previous name was the EU League Championship Series (EU LCS), and it featured a promotion and relegation system with the EU Challenger Series. The EU Challenger Series has been replaced with the European Masters, which is a tournament that places the top seed from European regional leagues against each other. It is important to highlight that the teams in the LEC do not compete on behalf of their region (although some of the organizations from the LEC have their second team competing in a regional leagues).

The franchise agreement between the LEC and the participant e-sport organizations required organizations to buy-in at 10.5 million euros into the LEC. The ensuing partnership lasts three years and ensures that the organization is guaranteed a spot in the LEC during this period, unless there are “consistent poor performance or disciplinary issues”. The agreement effectively prevents any other European organization/team from the regional leagues and the European Masters from accessing the highest LoL championship in Europe (the LEC) and completely cuts off any opportunity to reach the League of Legends World Championships for at least three years.

The previous system of relegation and promotion has helped foster talent and create new successful European e-sports organizations. Currently, the winners of Mid-Season Invitational 2019 (a mid-year world championship) is G2 Esports, which was able to rise to the EU LCS through the EU Challenger Series in late 2015. As a result, concerns have been expressed that by adopting the closed league model, the LEC will not be able to nurture new talent and competitive organizations. This worry goes to the heart of Article 165 TFEU’s aim to develop the ‘openness’ of sporting competitions and gives merit to analyzing the LEC under EU competition law rules.[3]

 

3.     EU Competition Law and its Application to Sports

Generally speaking, EU competition law seeks to ensure ‘effective’ competition between undertakings in Europe. Concerning the field of sports, the CJEU asserted that rules of sport governing bodies fall under the inspection of EU competition law even if they are purely sporting in nature.[4] However, the CJEU left room for sport governing bodies to defend their measures which fall within the scope of competition rules. Sporting rules can escape the prohibitions of EU competition law if it can be shown that the concerned measures are inherent to the objectives it seeks to achieve and that they are “proportionate to the legitimate genuine sporting interest pursued”.  In other words, the specificity of sport must be taken into account.[5] Additionally, the CJEU has recognized that the participation in sport competitions can constitute economic activity because of the exposure that participation may provide.[6] Thus, preventing other organizations and their athletes from taking part in a league competition and as a consequence, the world championships, can have detrimental economic impacts on that organization and its athletes.

For this reason, the organizational structure of sport competitions may have colossal economic ramifications and easily fall within the scope of the Treaties. Articles 101 and 102 TFEU are the two cornerstones of EU competition law that prima facie would be applicable to this case. Essentially, Article 101 TFEU prohibits agreements between undertakings that restrict competition, and Article 102 TFEU forbids an undertaking or group of undertakings (collective dominance) from abusing its dominant position on the relevant market. So when a group of undertakings hold a dominant position in the relevant market and make an agreement which abuses their dominant position, the CJEU has recognized that both Article 101 and 102 TFEU may be applied. Nevertheless, the following analysis will concentrate on Article 102 TFEU.

 

4.     Does LEC (and its participant organizations) have a Dominant Position?

4.1.Are the LEC (and its participant organizations) undertakings?

As a preliminary point, the European Commission and the CJEU has repeatedly qualified sport governing bodies as undertakings under EU competition law.[7] The key criteria to determine whether an entity is an undertaking under EU law is whether the entity is engaged in ‘economic activity’. In MOTOE, the CJEU ruled that ELPA, a body that was organizing motorcycling events, was engaged in economic activity because it entered into “sponsorship, advertising and insurance contracts designed to exploit those events commercially”.[8] In the present case, there is little doubt that the League European Championship Limited, which is a private company limited by shares incorporated in the Republic of Ireland controlled by Riot Games, could be considered an undertaking since it concludes sponsorships and advertises its events.

The organizations that have signed the franchise agreement with Riot Games are mainly private limited companies.[9] These organizations enter into sponsorship agreements, and as stated earlier, the CJEU found that the participation in a sport competition could constitute economic activity. It follows that these e-sport organizations would easily be considered as undertakings.

 

4.2.What is the relevant market?

The next issue is determining the relevant market, including the relevant product and geographic market, the LEC and its participant organizations occupy. To identify the relevant product market, EU competition law examines the substitutability of the product or service. For example, in defining the relevant product or service market, the CJEU in MOTOE quite readily found that ELPA was “engaged ... in the organisation of motorcycling events and … their exploitation by means of sponsorship, advertising and insurance contracts”.[10]

From the outset, it should be underlined that games considered as e-sports greatly differ from one another.[11] E-sports usually fall within different genres of games, such as Real-Time Strategy (RTS), First-Person Shooter (FPS), Fighting, and Sports games. LoL falls within the Multiplayer Online Battle Arena (MOBA) genre. Thus, one may argue the relevant market in this case is e-sports competitions in the MOBA market. One way to test this market definition would be examining the ability of e-sports players to move from one e-sport to another.

Unfortunately, there has not been a complete study on the maneuverability of e-sport professionals between games of the same genre or of a different genre. As a result, it is difficult to have a complete view on the issue. Nevertheless, while there have been cases where certain players from e-sports of a different genre were able to move to LoL successfully (Ggoong [e-sports players are known by their own made up player names]) and others who have moved from LoL to another e-sport (Gesture, Bischu), there have been others who have attempted such moves without success (Destiny). On the other hand, when examining ‘traditional’ sports there are also many examples of athletes who have moved from one sport to another. For example, Primož Roglič was a high-level ski jumper, and even won the Junior Ski World Championship in this discipline, who then moved into professional road cycling and most recently came third in the Giro d’Italia. Ski jumping and road cycling arguably have very little in common, and it would be highly doubtful that the Commission or the CJEU would include both in the same market. Such an extreme example demonstrates that focusing on the maneuverability of e-sports athletes between e-sports may not always be the best way to define an e-sport market, and perhaps a more suitable approach would be to examine the specific features of the e-sport.

In this sense, it should be borne in mind that e-sports in the same genre, while sharing many basic characteristics and many of the fine motor skills, still diverge in terms of gameplay and strategy. If this were not the case, a professional LoL player could become a professional DOTA 2 (another MOBA e-sport) player without any extra effort. In reality, to make a transition, the professional LoL player would have to learn the intricacies and nuances of DOTA 2 compared to LoL, e.g. the champions and their builds, the pace of play, meta (the best strategies to win the game) etc. All of these differences support the argument that perhaps defining the product or service market in this case to MOBA e-sport competitions may be too broad, and it could be more appropriate to narrow the definition to LoL e-sport competitions.

Lastly, the geographic market is much more straightforward to define since the LEC Regulations define the EU Competitive Region in its 2019 Season Official Rules.[12] Therefore, the relevant geographic market would most likely be the EU Competitive Region.

 

4.3.Does LEC (and its participating organizations) have a dominant position in this market?

The Commission provides the most relevant criteria to ascertain whether an undertaking or undertakings hold a dominant position on the relevant market in its Guidance on enforcement of Article 82 of the EC Treaty (now Article 102 TFEU). Pertinent benchmarks include the “position of the dominant undertaking and its competitors”, “expansion and entry” of actual or future competitors, and the “bargaining strength of the undertaking’s customers” (countervailing buyer power). Usually, market shares are used to give a preliminary indication whether an undertaking occupies a dominant position in the market. The minimum threshold market share for which an undertaking or undertakings may be found to hold a dominant position is around 40-50%.[13]

If the relevant market was defined as the e-sport competitions in the MOBA market in the EU Competitive Region, one would have to examine competitive LoL in comparison to other e-sport competitions in the MOBA genre in Europe. For the purposes of this blog, there is rather limited information on the market share of LoL competitions in comparison to other MOBA e-sports in Europe. However, to at least give an idea of the size and dominance of LoL in the general MOBA market, LoL was projected to have an estimated 66% market share in 2016. When one compares this share to the second place, DOTA 2 with 14 %, it is evident that LoL generally holds a powerful position in the MOBA market and this most likely extends to its e-sports competitions.

In contrast, if the relevant market is narrowed to LoL e-sport competitions in the EU Competitive Region only, there would be an even higher chance of the LEC and its participant organizations being found to hold a dominant position. It could be argued that the European Masters (although Riot Games is a co-organizer) and the LoL regional leagues could be seen as ‘competitors’. Once more, direct information on market shares is scant. However, if one observes the viewership numbers of the LEC versus the European Masters, the LEC completely dwarfs the European Masters. The LEC in its 2019 Spring Split had a peak viewership of over 475,000 viewers and an average concurrent viewership of over 200,000 viewers. By comparison, the European Masters Spring 2019 competition had a peak viewership of just over 60,000 viewers and an average concurrent viewership of 32,000 viewers. From these numbers, it is evident that the LEC is overwhelmingly more popular and as a corollary, it may indicate that the LEC’s market share is likely to also reflect this.

 

5.     Does LEC abuse its Dominant Position?

5.1.Is the dominant position being abused and can it be justified (sporting exceptions)?

The finding of a dominant position is not enough to constitute a breach of EU competition law. Article 102 TFEU also requires that the dominant undertaking or undertakings abuse its dominant position, and it allows the dominant undertaking(s) to demonstrate how the relevant measures may be justified and proportionate. Within the sport context, the sport governing body must explain how the conduct which restricts competition pursues a legitimate objective and the anti-competitive effects must be “inherent in the pursuit of those objectives … and are proportionate to them”.[14]  There are a variety of ways an undertaking may abuse its dominant position, but in the present case, the LEC and its participant organizations agreement to seal the LEC and the LoL World Championship from any other European competitors would most likely fall under a non-price based exclusionary abuse. More specifically, exclusionary conduct must constitute ‘anti-competitive foreclosure’ which according to the Commission’s Guidance Paper is “a situation where effective access of actual or potential competitors to supplies or markets is hampered or eliminated as a result of the conduct of the dominant undertaking whereby the dominant undertaking is likely to be in a position to profitably increase prices to the detriment of consumers” (emphasis added).[15] 

The foreclosure requirement in this case is quite evidently satisfied since the LEC and its participant organizations have effectively excluded other organizations in Europe from the highest European competition of LoL and as a result, the LoL World Championship. Actually assessing whether there has been an increase in price to the detriment of consumers is not necessary, and the CJEU has ruled that “Article 102 TFEU must be interpreted as referring not only to practices which may cause damage to consumers directly, but also to those which are detrimental to them through their impact on competition”.[16] Moreover, a dominant undertaking “has a special responsibility not to allow its conduct to impair genuine undistorted competition in the internal market” and “[Article 102 TFEU] is aimed not only at the practices which may cause prejudice to consumers directly, but also at those which are detrimental to them through their impact on the competition structure”.[17] Therefore, it is not necessary to show direct harm to consumers, but that the foreclosure effects damage competition to a sufficient degree to their disadvantage.

As discussed earlier, the former promotion and relegation system helped promote new talent and organizations that were able to develop new fanbases, giving the opportunity for the European LoL viewers to get behind up and coming organizations. By stifling the prospects of new organizations from emerging in the LEC or the Worlds stage, market development may be hindered in contravention with Article 102 (b) TFEU at the European LoL e-sport’s expense.

Nonetheless, the LEC hopes that the closed structure “provides teams with more security to make longer investments that will strengthen and support pros, and provide better experiences for fan (sic)”, to “unlock revenue sharing” and “to focus on shaping the long-term future”. Basically, the LEC and its members seek greater financial security for themselves in order to invest more in its players and fans. The question is then whether the restrictions of competition resulting from the closed league described above are inherent to the pursuit of the aforementioned objectives.[18] While “the ensuring of financial stability of sport clubs/teams” could be a legitimate objective,[19] it is possible to envisage less restrictive means to achieve financial stability without completely excluding other European organizations from competing for the final LEC title and the LoL World Championship. For example, perhaps the LEC play-offs could give the opportunity for teams number 5 and 6 from the regular season to first face off against the top two teams of the European Masters Tournament.[20] A similar play-in format could easily be introduced for the LoL World Championships. Despite these changes, new organizations would still be precluded from joining the LEC. Perhaps this would require the LEC to come up with new creative structures that allow new organizations to join the LEC after having proven their worth. An example of such a system can be found in the top European basketball competition, EuroLeague, which issues different license/partner tiers for its participating clubs in order to provide better financial security for itself and its participants but still provides the possibility for a better performing national team to participate in the EuroLeague.[21] Based on my analysis, it is probable that the anti-competitive effects of a completely closed league will not be found to be entirely ‘inherent’ in the pursuit of financial stability.

 

6.     Conclusion

Taken altogether, the issue with EU competition law does not solely materialize because the LEC aims to provide greater financial stability for itself and its partners. Instead, the problems arise when there are no or very limited avenues for new competitors, in this case European e-sport organizations and their cyberathletes, to progress to the highest levels of competitive LoL in Europe. The closed league structure of the LEC precludes any outside organizations from playing in the LEC Playoffs and Finals, and as a result, they also may never participate in the LoL World Championship. On the other hand, it is understandable that the LEC seeks to create further financial stability for itself, the organizations and ultimately the cyberathletes. However, this should not come at the detriment of new competitors who could help elevate the level of competition in the LEC.

By extending this analysis to the wider sports world, it would be advisable for sports governing bodies who wish to create a more closed competitive league to pay close attention to the anti-competitive effects such restructuring could produce. Moreover, these effects would have to be proportionate and in the sporting context, “inherent in the pursuit of those objectives”.[22] All things considered, it does seem rather difficult to reconcile a completely closed league, as the one found in the LEC, with EU competition law.



[1] Stephen Weatherill, Principles and Practice in EU Sports Law (1st edn, Oxford University Press 2017) 282-283.

[2] See my previous blog for an analysis of whether LoL and the LEC could be a sport.

[3] Weatherill (n 1) 283.

[4] Case C-519/04 David Meca-Medina and Igor Majcen v Commission of the European Communities [2006] ECR I-06991 para. 27; White Paper on Sport, COM (2007) 391, 11 July 2007, 13.

[5] White Paper on Sport ibid.

[6] Joined Cases C-51/96 and C-191/97 Christelle Deliège v Ligue francophone de judo et disciplines associées ASBL, Ligue belge de judo ASBL, Union européenne de judo [2000] ECR I-02549 para 57.

[7] Cases IV/33.384 and IV/33.378 FIFA-distribution of package tours during the 1990 World Cup [1992] European Commission, OJ L326/31; Meca-Medina (n 4); Case C-49/07 Motosykletistiki Omospondia Ellados NPID (MOTOE) v Elliniko Dimosio [2008] ECR I-04863.

[8] MOTOE (n 7) para 23.

[9] See for example: Fnatic (Private limited company), G2 Esports (GmbH) and Origen Esports (ApS).

[10] MOTOE (n 7) para 33.

[11] Cem Abanazir, ‘E-sport and the EU: the view from the English Bridge Union’ (2019) International Sports Law Journal 102.

[12] The LEC 2019 Season Official Rules Glossary defines the EU Competitive Region as: “Albania, Andorra, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Kosovo, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Monaco, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom (UK), Vatican City (Holy See)”.

[13] Alison Jones and Brenda Sufrin, EU Competition Law: Text, Cases, and Materials (6th edn, Oxford University Press 2016) 325.

[14] Meca-Medina (n 4) para 42; also see Guidance on the Commission’s enforcement priorities in applying Article 82 of the EC Treaty to abusive exclusionary conduct by dominant undertakings [2009] OJ C45/02 para 28.

[15] Guidance on the Commission’s enforcement priorities in applying Article 82 (n 14) para 19.

[16] Case C-52/09 Konkurrensverket v TeliaSonera Sverige AB [2011] ECR I-00527 para 24.

[17] ibid; Case C-95/04 British Airways plc v Commission of the European Communities [2007] ECR I-02331 para 106.

[18] Meca-Medina (n 4) para 42; Commission Staff Working Document - The EU and Sport: Background and Context - Accompanying document to the White Paper on Sport (2007) COM 391 at 2.1.5.

[19] White Paper on Sport (n 4) 68.

[20] See here for the current format of the 2019 LEC Playoffs.

[21] See Chapter II and III of the EuroLeague Bylaws.

[22] Meca-Medina (n 4) para 42.

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