Editor’s Note: Shervine Nafissi (@SNafissi) is a Phd Student in sports law and teaching assistant in corporate law at University of Lausanne (Switzerland), Faculty of Business and Economics (HEC).
The factual background
The dispute concerns a TPO contract entitled “Economic Rights Participation Agreement” (hereinafter “ERPA”) concluded in 2012 between Sporting Lisbon and the investment fund Doyen Sports. The Argentine player was transferred in 2012 by Spartak Moscow to Sporting Lisbon for a transfer fee of €4 million. Actually, Sporting only paid €1 million of the fee while Doyen Sports financed the remaining €3 million. In return, the investment company became the owner of 75% of the economic rights of the player. Thus, in this specific case, the Portuguese club was interested in recruiting Marcos Rojo but was unable to pay the transfer fee required by Spartak Moscow, so that they required the assistance of Doyen Sports. The latter provided them with the necessary funds to pay part of the transfer fee in exchange of an interest on the economic rights of the player.
Given that the facts and circumstances leading to the dispute, as well as the decision of the CAS, were fully described by Antoine Duval in last week’s blog of Doyen vs. Sporting, this blog will solely focus on the decision of the Swiss Federal Supreme Court (“FSC”) following Sporting’s appeal against the CAS award. As a preliminary point, the role of the FSC in the appeal against CAS awards should be clarified.More...
the end of December 2015, the CAS decided on a very public contractual
dispute between Sporting Clube de Portugal Futebol SAD (Sporting) and
Doyen Sports Investments Limited (Doyen). The club was claiming that
Doyen’s Economic Rights Participation Agreement
(ERPA) was invalid and refused to pay Doyen’s due share on the transfer
of Marcos Rojo to Manchester United. The dispute made a lot of noise
(see the excellent coverage by Tariq Panja from Bloomberg here, here and here)
as it was the first TPO case heard by the CAS after FIFA’s ban. Yet,
and it has to be clear from the outset, the case does not affect the
legality of FIFA’s TPO ban; it concerned only the compatibility of
Doyen’s ERPA with Swiss civil law. The hearing took place in June 2015,
but the case was put under a new light by the football leaks revelations unveiled at the end of 2015 (see our blog from December 2015). Despite these revelations, the CAS award favoured Doyen, and was luckily for us quickly made available on the old football leaks website.
This blog will provide a commentary of the CAS decision. It will be
followed in the coming days by a commentary by Shervine Nafissi on the
judgment, on appeal, by the Swiss Federal Tribunal. More...
On 12 January 2017 UEFA published its eighth club licensing benchmarking report on European
football, concerning the financial
year of 2015. In the press release that accompanied the report, UEFA proudly announced
that Financial Fair Play (FFP) has had a huge positive impact on European
football, creating a more stable financial environment. Important findings included
a rise of aggregate operating profits of €1.5bn in the last two years, compared
to losses of €700m in the two years immediately prior to the introduction of
Financial Fair Play.
eighth club licensing benchmarking report on European football, slide
Meanwhile the aggregate losses dropped by 81% from
€1.7bn in 2011 to just over €300m in 2015.More...
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ruling of the Tribunal of Charleroi
On 19 January 2017, the Hainaut Commercial Tribunal –
Charleroi rendered its decision on the lawsuit filed by the football player
Lassana Diarra against FIFA and the Belgian FA (URBSFA) for damages caused by
not being able to exercise the status of a professional football player during
the entire 2014/2015 season. The lawsuit is linked to the decision, rendered by
the FIFA Dispute Resolution Chamber (DRC) on April 2015, to support Lokomotiv’s
decision to terminate the player’s contract and to order Diarra to pay Lokomotiv
the amount of EUR 10,500,000 for having breached his contract. According to the
plaintiff, Diarra’s opportunity to be recruited by Sporting Charleroi was
denied due to the club being potentially considered jointly liable for Diarra’s
compensation pursuant to Article 17 (2) RSTP. The Belgian court held strongly
that “when the contract is terminated by the club, the player must have the
possibility to sign a new contract with a new employer, without restrictions to
his free movement”. This case highlighted, once again, the need to read
the RSTP in the light of EU law. Moreover, the decision is laying further
ground for broader challenges to the RSTP on the basis of EU law (for a deeper
insight into the Diarra ruling, see the recent blog written by our senior researcher
Antoine Duval) More...
Note: Emre Bilginoglu
is an attorney in Istanbul and the co-founder of the Turkish E-Sports Players
Association, a non-profit based in Istanbul that aims to provide assistance to
professional gamers and to work on the relevant laws affecting them.
The world is witnessing the
rise of a new sport that is growing at an incredible speed: E-Sports. We are
only starting to understand its legal implications and challenges.
recent years, E-Sports has managed to attract thousands of fans to arenas to
see a group of people play a video game. These people are literally
professional gamers (cyber athletes)
who make money by competing in tournaments. Not all video games have tournaments
in which professional players compete against each other.
The most played
games in E-Sports competitions are League of Legends (LoL),
Defense of the Ancients 2 (DotA 2) and Counter-Strike: Global
Offensive (CS:GO). LoL and DotA are both Multiplayer online
battle arena (MOBA) games, a genre of strategy video games in which the player
controls a single character in one of two teams. The goal of the game is to
destroy the opponent’s main structure. CS:GO is a first-person shooter (FPS)
game, a genre of video games where the player engages combat through a
first-person perspective. The main objective in CS:GO is to eliminate the opposing team
or to terrorize or counter-terrorize, planting bombs or rescuing hostages. Other
games that have (popular) E-Sports competitions include Starcraft II (real time
strategy), Hearthstone (collectible card video game), Call of Duty (FPS) and
gaming requires cooperation between team players, a high level of concentration,
rapid reactions and some seriously fast clicking. E-Sports is a groovy term to
describe organized competitive computer gaming. The E-Sports industry is
exponentially growing, amounting to values expressed in billions of dollars. According
a website dedicated to the collection of E-Sports data, there are some 250
million occasional viewers of E-Sports with Asia-Pacific accounting for half of
the total amount. The growth of the industry is indubitably supported by online
streaming media platforms. This article aims to explain what E-Sports is and to give the readers
an insight on the key legal questions raised by it. More...