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

Blog Symposium: Third-party entitlement to shares of transfer fees: problems and solutions - By Dr. Raffaele Poli (Head of CIES Football Observatory)

Introduction: FIFA’s TPO ban and its compatibility with EU competition law.
Day 1: FIFA must regulate TPO, not ban it.
Day 3: The Impact of the TPO Ban on South American Football.
Day 4: Third Party Investment from a UK Perspective.
Day 5: Why FIFA's TPO ban is justified.

Editor’s note: Raffaele Poli is a human geographer. Since 2002, he has studied the labour and transfer markets of football players. Within the context of his PhD thesis on the transfer networks of African footballers, he set up the CIES Football Observatory based at the International Centre for Sports Studies (CIES) located in Neuchâtel, Switzerland. Since 2005, this research group develops original research in the area of football from a multidisciplinary perspective combining quantitative and qualitative methods. Raffaele was also involved in a recent study on TPO providing FIFA with more background information on its functioning and regulation (the executive summary is available here).

This is the third blog of our Symposium on FIFA’s TPO ban, it is meant to provide an interdisciplinary view on the question. Therefore, it will venture beyond the purely legal aspects of the ban to introduce its social, political and economical context and the related challenges it faces. More...






Blog Symposium: FIFA must regulate TPO, not ban it. The point of view of La Liga.

Introduction: FIFA’s TPO ban and its compatibility with EU competition law.
Day 2: Third-party entitlement to shares of transfer fees: problems and solutions
Day 3: The Impact of the TPO Ban on South American Football.
Day 4: Third Party Investment from a UK Perspective.
Day 5: Why FIFA's TPO ban is justified.

Editor's note: This is the first blog of our symposium on FIFA's TPO ban, it features the position of La Liga regarding the ban and especially highlights some alternative regulatory measures it would favour. La Liga has launched a complaint in front of the European Commission challenging the compatibility of the ban with EU law, its ability to show that realistic less restrictive alternatives were available is key to winning this challenge. We wish to thank La Liga for sharing its legal (and political) analysis of FIFA's TPO ban with us.

INTRODUCTION

The Spanish Football League (La Liga) has argued for months that the funding of clubs through the conveyance of part of players' economic rights (TPO) is a useful practice for clubs. However, it also recognized that the practice must be strictly regulated. In July 2014, it approved a provisional regulation that was sent to many of the relevant stakeholders, including FIFA’s Legal Affairs Department. More...






Blog Symposium: FIFA’s TPO ban and its compatibility with EU competition law - Introduction - Antoine Duval & Oskar van Maren

Day 1: FIFA must regulate TPO, not ban it.
Day 2: Third-party entitlement to shares of transfer fees: problems and solutions
Day 3: The Impact of the TPO Ban on South American Football.
Day 4: Third Party Investment from a UK Perspective.
Day 5: Why FIFA's TPO ban is justified.

On 22 December 2014, FIFA officially introduced an amendment to its Regulations on the Status and Transfers of Players banning third-party ownership of players’ economic rights (TPO) in football. This decision to put a definitive end to the use of TPO in football is controversial, especially in countries where TPO is a mainstream financing mechanism for clubs, and has led the Portuguese and Spanish football leagues to launch a complaint in front of the European Commission, asking it to find the FIFA ban contrary to EU competition law.

Next week, we will feature a Blog Symposium discussing the FIFA TPO ban and its compatibility with EU competition law. We are proud and honoured to welcome contributions from both the complainant (the Spanish football league, La Liga) and the defendant (FIFA) and three renowned experts on TPO matters: Daniel Geey ( Competition lawyer at Fieldfisher, aka @FootballLaw), Ariel Reck (lawyer at Reck Sports law in Argentina, aka @arielreck) and Raffaele Poli (Social scientist and head of the CIES Football Observatory). The contributions will focus on different aspects of the functioning of TPO and on the impact and consequences of the ban. More...





The CAS and Mutu - Episode 4 - Interpreting the FIFA Transfer Regulations with a little help from EU Law

On 21 January 2015, the Court of arbitration for sport (CAS) rendered its award in the latest avatar of the Mutu case, aka THE sports law case that keeps on giving (this decision might still be appealed to the Swiss Federal tribunal and a complaint by Mutu is still pending in front of the European Court of Human Right). The decision was finally published on the CAS website on Tuesday. Basically, the core question focuses on the interpretation of Article 14. 3 of the FIFA Regulations on the Status and Transfer of Players in its 2001 version. More precisely, whether, in case of a dismissal of a player (Mutu) due to a breach of the contract without just cause by the player, the new club (Juventus and/or Livorno) bears the duty to pay the compensation due by the player to his former club (Chelsea). Despite winning maybe the most high profile case in the history of the CAS, Chelsea has been desperately hunting for its money since the rendering of the award (as far as the US), but it is a daunting task. Thus, the English football club had the idea to turn against Mutu’s first employers after his dismissal in 2005, Juventus and Livorno, with success in front of the FIFA Dispute Resolution Chamber (DRC), but as we will see the CAS decided otherwise[1]. More...

The UCI Report: The new dawn of professional cycling?

The world of professional cycling and doping have been closely intertwined for many years. Cycling’s International governing Body, Union Cycliste Internationale (UCI), is currently trying to clean up the image of the sport and strengthen its credibility. In order to achieve this goal, in January 2014 the UCI established the Cycling Independent Reform Commission (CIRC) “to conduct a wide ranging independent investigation into the causes of the pattern of doping that developed within cycling and allegations which implicate the UCI and other governing bodies and officials over ineffective investigation of such doping practices.”[1] The final report was submitted to the UCI President on 26 February 2015 and published on the UCI website on 9 March 2015. The report outlines the history of the relationship between cycling and doping throughout the years. Furthermore, it scrutinizes the role of the UCI during the years in which doping usage was at its maximum and addresses the allegations made against the UCI, including allegations of corruption, bad governance, as well as failure to apply or enforce its own anti-doping rules. Finally, the report turns to the state of doping in cycling today, before listing some of the key practical recommendations.[2]

Since the day of publication, articles and commentaries (here and here) on the report have been burgeoning and many of the stakeholders have expressed their views (here and here). However, given the fact that the report is over 200 pages long, commentators could only focus on a limited number of aspects of the report, or only take into account the position of a few stakeholders. In the following two blogs we will try to give a comprehensive overview of the report in a synthetic fashion.

This first blogpost will focus on the relevant findings and recommendations of the report. In continuation, a second blogpost will address the reforms engaged by the UCI and other long and short term consequences the report could have on professional cycling. Will the recommendations lead to a different governing structure within the UCI, or will the report fundamentally change the way the UCI and other sport governing bodies deal with the doping problem? More...

Book Review - Camille Boillat & Raffaele Poli: Governance models across football associations and leagues (2014)

Camille Boillat & Raffaele Poli: Governance models across football associations and leagues (2014)

Vol. 4, Centre International d'Etude du Sport, Neuchâtel, Switzerland, softback, 114 pages, ISBN 2-940241-24-4, Price: €24




Source: http://www.cies.ch/en/cies/news/news/article/new-publication-in-the-collection-editions-cies-governance-models-across-football-associations-an/

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The aftermath of the Pechstein ruling: Can the Swiss Federal Tribunal save CAS arbitration? By Thalia Diathesopoulou

It took only days for the de facto immunity of the Court of Arbitration for Sport (CAS) awards from State court interference to collapse like a house of cards on the grounds of the public policy exception mandated under Article V(2)(b) of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards . On 15 January 2015, the Munich Court of Appeals signalled an unprecedented turn in the longstanding legal dispute between the German speed skater, Claudia Pechstein, and the International Skating Union (ISU). It refused to recognise a CAS arbitral award, confirming the validity of a doping ban, on the grounds that it violated a core principle of German cartel law which forms part of the German public policy. A few weeks before, namely on 30 December 2014, the Court of Appeal of Bremen held a CAS award, which ordered the German Club, SV Wilhelmshaven, to pay ‘training compensation’, unenforceable for non-compliance with mandatory European Union law and, thereby, for violation of German ordre public. More...

‘The reform of football': Yes, but how? By Marco van der Harst

'Can't fight corruption with con tricks
They use the law to commit crime
And I dread, dread to think what the future will bring
When we're living in gangster time'
The Specials - Gangsters


The pressing need for change 

The Parliamentary Assembly (PACE) of the Council of Europe (CoE), which is composed of 318 MPs chosen from the national parliaments of the 47 CoE member states, unanimously adopted a report entitled ‘the reform of football’ on January 27, 2015. A draft resolution on the report will be debated during the PACE April 2015 session and, interestingly, (only?) FIFA’s president Sepp Blatter has been sent an invitation

The PACE report highlights the pressing need of reforming the governance of football by FIFA and UEFA respectively. Accordingly, the report contains some interesting recommendations to improve FIFA’s (e.g., Qatargate[1]) and UEFA’s governance (e.g., gender representation). Unfortunately, it remains unclear how the report’s recommendations will actually be implemented and enforced. 

The report is a welcomed secondary effect of the recent Qatargate directly involving former FIFA officials such as Jack Warner, Chuck Blazer, and Mohamed Bin Hammam[2] and highlighting the dramatic failures of FIFA’s governance in putting its house in order. Thus, it is undeniably time to correct the governance of football by FIFA and its confederate member UEFA – nolens volens. The real question is how to do it.



            Photograph: Fabrice Coffrini/AFP/Getty Images                   Photograph: Octav Ganea/AP

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SV Wilhelmshaven: a Rebel with a cause! Challenging the compatibility of FIFA’s training compensation system with EU law

Due to the legitimate excitement over the recent Pechstein ruling, many have overlooked a previous German decision rendered in the Wilhelmshaven SV case (the German press did report on the decision here and here). The few academic commentaries (see here and here) focused on the fact that the German Court had not recognized the res judicata effect of a CAS award. Thus, it placed Germany at the spearhead of a mounting rebellion against the legitimacy of the CAS and the validity of its awards. None of the commentators weighed in on the substance of the decision, however. Contrary to the Court in Pechstein, the judges decided to evaluate the compatibility of the FIFA rules on training compensations with the EU free movement rights. To properly report on the decision and assess the threat it may constitute for the FIFA training compensation system, we will first summarize the facts of the case (I), briefly explicate the mode of functioning of the FIFA training compensation system (II), and finally reconstruct the reasoning of the Court on the compatibility of the FIFA rules with EU law (III).More...

In Egypt, Broadcasting Football is a Question of Sovereignty … for Now! By Tarek Badawy, Inji Fathalla, and Nadim Magdy

On 15 April 2014, the Cairo Economic Court (the “Court") issued a seminal judgment declaring the broadcasting of a football match a sovereign act of State.[1]


Background

In Al-Jazeera v. the Minister of Culture, Minister of Information, and the Chairman of the Board of Directors of the Radio and Television Union, a case registered under 819/5JY, the Al-Jazeera TV Network (the “Plaintiff” or “Al-Jazeera”) sued the Egyptian Radio and Television Union (“ERTU” or the “Union”) et al. (collectively, the “Respondents”) seeking compensation for material and moral damages amounting to three (3) million USD, in addition to interest, for their alleged breach of the Plaintiff’s exclusive right to broadcast a World Cup-qualification match in Egypt.  Al-Jazeera obtained such exclusive right through an agreement it signed with Sportfive, a sports marketing company that had acquired the right to broadcast Confederation of African Football (“CAF”) World Cup-qualification matches.

ERTU reportedly broadcasted the much-anticipated match between Egypt and Ghana live on 15 October 2013 without obtaining Al-Jazeera’s written approval, in violation of the Plaintiff’s intellectual property rights.

More...


Asser International Sports Law Blog | Sports Politics before the CAS: Early signs of a ‘constitutional’ role for CAS? By Thalia Diathesopoulou

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

Sports Politics before the CAS: Early signs of a ‘constitutional’ role for CAS? By Thalia Diathesopoulou

It took almost six months, a record of 26 witnesses and a 68 pages final award for the CAS to put an end to a long-delayed, continuously acrimonious and highly controversial presidential election for the Football Association of Thailand (FAT). Worawi Makudi can sit easy and safe on the throne of the FAT for his fourth consecutive term, since the CAS has dismissed the appeal filed by the other contender, Virach Chanpanich.[1]

Interestingly enough, it is one of the rare times that the CAS Appeal Division has been called to adjudicate on the fairness and regularity of the electoral process of a sports governing body. Having been established as the supreme judge of sports disputes, by reviewing the electoral process of international and national sports federations the CAS adds to its functions a role akin to the one played by a constitutional court in national legal systems. It seems that members of international and national federations increasingly see the CAS as an ultimate guardian of fairness and validity of internal electoral proceedings. Are these features - without prejudice to the CAS role as an arbitral body- the early sign of the emergence of a Constitutional Court for Sport?


The CAS as reviewer of electoral proceedings in sports governing bodies

The CAS Appeal Division jurisprudence reviewing electoral processes in sports governing bodies, albeit still at a nascent stage, has provoked vivid reactions due to its potential impact. One of the particularly significant values of retracing this case-law is found not in the outcomes of the decisions, but in the way the panels have scrutinized the electoral processes.[2]

On 27 September 2010, the CAS shaked the chess world by rendering its decision on the validity of Kirsan Illymzhinov’s candidature for the presidency of the Fédération Internationale des Echecs (FIDE).[3] Namely, the CAS proceedings were initiated by Karpov 2010 Inc. and five national federations (of France, Germany, Switzerland, Ukraine and the US) against FIDE. The claimant alleged the invalidity of the presidential ticket of Illymzhinov, who had been nominated by the Russian Chess Federation as their candidate for the FIDE presidential election. The majority of the CAS panel considered that it had jurisdiction to decide on the National Federations’ claims and proceeded with the merits. Taking into consideration the FIDE’s practice on membership requirements for candidates on a presidential ticket and its compliance with the text of FIDE Electoral Regulations, the CAS confirmed the validity of Illymzhinov’s ticket and dismissed the appeal. Had the CAS accepted the arguments of the claimant, Anatoly Karpov would have been declared new FIDE President. FIDE welcomed the award, since it sets straightforward and transparent standards for the electoral proceedings, putting, therefore, an end to what was perceived as frivolous claim against FIDE.

Three years later, the CAS was asked again to review electoral proceedings, this time involving the Union Cycliste Internationale (UCI). In fact, five national federations asked the UCI Executive Board to submit to the CAS a request for interpretation of Article 51.1 of the UCI Constitution concerning the nomination of prospective candidates for office of President of UCI. The federations claimed that the language of Article 51.1, which required that any Presidential candidate be nominated by the ‘federation of the candidate’, was ambiguous: it was unclear whether the provision was allowing an individual to be nominated by any federation of which the candidate is a member or whether only a nomination from the home federation of the candidate was allowed. The UCI rejected the request to bring the case before the CAS and declared that the UCI Congress was the only competent authority to decide on issues linked to the elections. Nevertheless, it is remarkable that the parties regarded the CAS as the ultimate guardian of fair and democratic elections, which could, “provide a much-needed degree of certainty for UCI delegates in knowing that the current and future candidates standing for election are in fact eligible to do so”.

Furthermore, in September 2014, the Nigeria Football Federation’s (NFF) President, Chris Giwa, appealed FIFA’s order to vacate his post to the CAS in his last-ditch effort to hold onto the presidency and despite FIFA’s threat to suspend the NFF in the event he would stay president. The CAS dismissed his request for provisional measures on the ground that the request was without object, as FIFA decided that “two cumulative conditions mentioned in the Emergency Committee’s decision dated 3 September 2014 had been complied with and that therefore the NFF would not be finally suspended”. Indeed, at the last minute, Giwa abandoned his post and therefore the order was not valid anymore. It is noticeable again that CAS was called to be the final arbiter of a contested election.

However, it is in the Thai case that the CAS for the first time was given broad authority to review several irregularities in the electoral process. Namely, the appellant, Chanpanich, challenged the validity of the presidential election for the FAT before the CAS, alleging the existence of a plethora of procedural irregularities- starting from the adoption of the 2013 Statues of the Electoral Code - so severe as to flaw the election entirely. In addition, the appellant requested from the CAS panel to issue guidelines as to the manner in which such elections were to be held. On the basis of a specific arbitration agreement, the CAS admitted jurisdiction on the dispute and proceeded with the merits. The CAS was asked to address the following set of irregularities and breaches: the alleged interference of the FAT Secretary General (‘M.’) and of the Secretary of the Electoral Committee (‘U.’) with the electoral process; the unlawful amendment in the composition of the Electoral Appeal Committee; the violation of basic standards of procedural fairness (no proper hearing, no present parties, limited documentation) in the proceedings before the Electoral Appeal Committee; and the participation in the voting process of ineligible delegates, i.e. non-members and members of the FAT Executive Committee. In scrutinizing the electoral process, the CAS relied first on the text itself of the FAT 2013 Statutes and Electoral Code, which were adopted on the basis of FIFA’s fundamental principles of separation of powers, accountability and transparency, and under the FIFA supervision, and then on the factual evidence. On the ground of the lack of sufficient evidence in conjunction with the rules of the Electoral Code, the CAS rejected the alleged irregularities.

With regard to the CAS’s reasoning, two remarks can to be made. Firstly, although the FAT Congress acted in breach of Article 4 of the Electoral Code by allowing the members of the electoral bodies to be appointed by the candidates themselves on the basis of a mandate granted to them by the Congress and along a repartition agreed by the candidates, the CAS chose to qualify this breach as a “deviation” which should be tolerated due to ‘political reasons’.[4] Namely, the CAS panel embraced the “good intentions”[5] of the FAT Congress to pave the way to an electoral process based on consent, healing, therefore, the violation of the Electoral Code. As a result of this “deviation”, according to the CAS, the parties should accept the consequences it produced. This assessment leads to the second remark. With regard to the alleged violation of procedural fairness, the CAS recognized that the Appeal Electoral Committee had limited time to render its decision, because of the delayed previous decision of the Electoral Committee. However, since the Electoral Committee was composed by Chanpanich - pursuant to the above mentioned deal between the candidates and the Congress -, the appellant had to accept the consequences of this situation. These assessments seem at least questionable: the CAS qualifies a clear breach of the Electoral Code as “deviation”[6] and then declares that the parties are responsible for the problems provoked by this “deviation”!

It is remarkable that although the CAS has been given broad reviewing authority, it chose to stick to an ‘ostrich like behaviour. It refused to proceed with a true control of the conformity of the electoral process with the relevant electoral code and left the door open for more ‘behind the curtains’ irregularities, which would be based on the consent of the Congress and the candidates. Thus, it seems that the CAS is adopting a very cautious, hands-off, approach when reviewing electoral proceedings.


The emerging constitutional role of the CAS: A shift towards a sui generis function for arbitration?

From the above brief overview of the CAS jurisprudence, two major trends can be identified: the diminishing autonomy of national and international federations in deciding on their internal electoral proceedings (1) and the growing readiness of the members of sports federations to have recourse to the CAS to control the fairness of the electoral proceedings in sports governing bodies. So far, the CAS Appeal Division has ruled over the eligibility of the potential candidates for the presidential elections of sports federations as well as over the regularity, validity and procedural fairness of the electoral process itself. At this point, it has to be noticed that, apart from the sports federations’ electoral processes, the CAS has also been asked to rule on the validity of the pre-electoral practices of the candidates for the election to the IOC Athlete’s Commission.[7] By controlling as well the electoral process of the IOC Commissions the CAS adds more credentials to its function as guarantor of fair and democratic electoral proceedings in international sports.

Since its emergence in the mid-1980s, the CAS’s role as the arbitral body competent to resolve international sporting disputes arising from appeals of decisions of sports governing bodies has evolved significantly. The CAS Appeal Division has mainly played a role in disciplinary matters, in doping cases for example, or contractual disputes, as in cases concerning transfers in football. Nonetheless, it seems as if it is also about to become an important institutional player in ‘constitutional’ disputes involving the political structure of sports governing bodies. By deciding on the eligibility of the candidates, on the composition of the electoral body, or on the conformity of the electoral proceedings with the applicable electoral code and minimum standards of fairness, the CAS acts not unlike a constitutional court of the international sports world. This functional evolution appears to be the reflexive answer of the CAS to the disputes submitted to it by sports governing bodies.


The unsettled interplay between Sports Politics and the CAS: an emerging political role for the CAS?

The review of electoral proceedings can also imply a political role – from a sporting point of view - of the CAS, bringing to the surface the thorny issue of the political role of arbitrators in general. In the Thai case, the CAS in a remarkable obitur dictum declared its duty to settle “a legal dispute according to the law”, denying, thereby, any intention to enter the field of sports politics. It recognized, though, the political implications “at least from a sporting point of view” of its award on the governance of FAT.[8] The panel was clear: it did not want to address sports politics, “let alone politics tout court”[9]. The CAS insisted on its legal role “rendering unto sports the things that are sport and to courts the things that are legal”[10]. This assessment is not surprising. There is a widespread view that judges and arbitrators only apply the law, irrespective of their policy beliefs and backgrounds. This de-politicization of the arbitral process, however, masks the fact that arbitral tribunals are composed of human beings, who are consciously or not driven by non-legal factors, such as the political and sociological factors. The CAS panels do not constitute an exception. A brief look at the CAS jurisprudence demonstrates in the view of the author of this blogpost that CAS panels are more likely to adopt a pro-international sports governing bodies approach, acting very cautiously when it is called to interpret their regulations and their decisions. Similarly, the CAS is aware of the significant impact of its rulings on the governance of sports and their de facto precedential value at the international and even national levels of sports.[11] Consequently, its awards have become increasingly self-referent, leaving a small room for divergent interpretations.

However, it is the author’s opinion that the CAS, even when acting as a “neutral” arbitral tribunal reviewing the electoral processes, will inevitably grapple with the political dimensions of those decisions. Despite the declaration of the Thai panel that it would abstain from any involvement in sports politics, the Panel, as noted above, justified a breach of the Electoral Code as mandated by political reasons and particularly by the overriding goal to guarantee electoral process based on the consent of FTA’s members. This decision was not neutral: in practice the panel decided who was to be president of the FTA. This is a highly political decision and it is a duty of CAS to be aware and reflexive of its impact when opting for one legal interpretation over the other.

In overall, a modicum of sports politics does not seem totally incompatible with the CAS role. 


Conclusion

The former President of the IOC and founder of the CAS, Juan Antonio Samaranch, had a dream: he envisaged the CAS as a “kind of Hague court for the sports world”[12]. In fact, 30 years after, and despite its permanent roots in arbitration, it seems that the CAS is becoming the Supreme Court of world sport. The CAS is a legal chameleon, being one day a quasi-criminal Court and the next a constitutional one. However, its increasing tendency to scrutinize the political processes at play in sports governing bodies is probably one of its least developed, but also most intriguing functions.

It remains to be seen whether the CAS will continue to be prudent and deferent when reviewing electoral processes, or whether it has the potential to morph into a more audacious, and maybe more “political”, constitutional role.


[1] CAS 2013/A/3389, Virach Chanpanich v The Football Association of Thailand

[2] A Erbsen, ‘The Substance and Illusion of Lex Sportiva’ in I Blackshaw and others (eds) The Court of Arbitration for Sport 1984-2004 (The Hague, TMC Asser Press 2006), 441.

[3] 2010/0/2166, National Chess Federation of France et al. v.FIDE

[4] CAS 2013/A/3389 (n 1) paras 122-123

[5] Ibid, para 123.

[6] Ibid

[7] CAS 2012/A/2913 Mu-yen Chu & Chinese Taipei Olympic Committee v.

International Olympic Committee (IOC) & CAS 2012/A/2912 Koji Murofushi & Japanese Olympic Committee v. International

Olympic Committee

[8] CAS 2013/A/3389 (n1), para 115

[9] Ibid

[10] M Beloff QC, ‘Is there such a thing as Sports Law’ (2011) 33 The Circuiteer 13

[11] G Kaufmann Kohler, ‘Arbitral Precedent: Dream, Necessity or Excuse?’ (2007) 23 Arbitration International (3) 357

[12] ‘ Speech Delivered by Mr Juan Antonio Samaranch’ (1982) 176 Olympic Review 314, 317

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