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

International and European Sports Law – Monthly Report – March 2017. By Tomáš Grell

 Editor's note: This report compiles all relevant news, events and materials on International and European Sports Law based on the daily coverage provided on our twitter feed @Sportslaw_asser. You are invited to complete this survey via the comments section below, feel free to add links to important cases, documents and articles we might have overlooked.

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The legality of surety undertakings in relation to minor football players: the Lokilo case. By Adriaan Wijckmans

Editor's note: Adriaan Wijckmans is an associate specialized in sports law at the Belgium law firm Altius.

In a recent judgment, the Brussels Court of First Instance confirmed the legality of a so-called surety undertaking, i.e. an agreement in which the parents of a minor playing football guarantee that their child will sign a professional contract with a football club as soon as the child reaches the legal age of majority.

This long-awaited ruling was hailed, on the one hand, by clubs as a much needed and eagerly anticipated confirmation of a long-standing practice in Belgian football[1] and, on the other hand, criticised by FIFPro, the international player’s trade union, in a scathing press release. More...



Kosovo at the Court of Arbitration for Sport – Constructing Statehood Through Sport? By Ryan Gauthier (Thompson Rivers University)

Editor's Note: Ryan is Assistant Professor at Thompson Rivers University, he defended his PhD at Erasmus University Rotterdam in December 2015. His dissertation examined human rights violations caused by international sporting events, and how international sporting organisations may be held accountable for these violations. 


“Serious sport…is war minus the shooting.” – George Orwell

 

In May 2016, the Union of European Football Associations (UEFA) admitted the Football Federation of Kosovo (Kosovo) as a member. The voting was close, with 28 member federations in favour, 24 opposed, and 2 whose votes were declared invalid. The practical outcome of this decision is that Kosovo would be able participate in the UEFA Euro championship, and that Kosovo teams could qualify for the UEFA Champions’ League or Europa League. More...


International and European Sports Law – Monthly Report – February 2017. By Tomáš Grell

 Editor's note: This report compiles all relevant news, events and materials on International and European Sports Law based on the daily coverage provided on our twitter feed @Sportslaw_asser. You are invited to complete this survey via the comments section below, feel free to add links to important cases, documents and articles we might have overlooked. More...

FIFA's Responsibility for Human Rights Abuses in Qatar – Part II: The Zurich Court's Ruling - By Tomáš Grell

Editor’s note: Tomáš Grell comes from Slovakia and is currently an LL.M. student in Public International Law at Leiden University. He contributes also to the work of the ASSER International Sports Law Centre as a part-time intern.

This is a follow-up contribution to my previous blog on FIFA's responsibility for human rights abuses in Qatar published last week. Whereas the previous part has examined the lawsuit filed with the Commercial Court of the Canton of Zurich ('Court') jointly by the Dutch trade union FNV, the Bangladeshi Free Trade Union Congress, the Bangladesh Building and Wood Workers Federation and the Bangladeshi citizen Nadim Shariful Alam ('Plaintiffs') against FIFA, this second part will focus on the Court's ruling dated 3 January 2017 ('Ruling').[1]  More...



FIFA's Responsibility for Human Rights Abuses in Qatar - Part I: The Claims Against FIFA - By Tomáš Grell

Editor’s note: Tomáš Grell comes from Slovakia and is currently an LL.M. student in Public International Law at Leiden University. He contributes also to the work of the ASSER International Sports Law Centre as a part-time intern.

On 2 December 2010, the FIFA Executive Committee elected Qatar as host of the 2022 FIFA World Cup ('World Cup'), thereby triggering a wave of controversies which underlined, for the most part, the country's modest size, lack of football history, local climate, disproportionate costs or corruption that accompanied the selection procedure. Furthermore, opponents of the decision to award the World Cup to the tiny oil-rich Gulf country also emphasized the country's negative human rights record.

More than six years later, on 3 January 2017, the Commercial Court of the Canton of Zurich ('Court') dismissed the lawsuit filed against FIFA[1] jointly by the Dutch trade union FNV, the Bangladeshi Free Trade Union Congress, the Bangladesh Building and Wood Workers Federation and the Bangladeshi citizen Nadim Shariful Alam ('Plaintiffs').[2] The Plaintiffs requested the Court to find FIFA responsible for alleged human rights violations of migrant workers in connection with the World Cup in Qatar. Had the Plaintiffs' claims been upheld by the Court, such decision would have had far-reaching consequences on the fate of thousands of migrants, mostly from India, Nepal and Bangladesh, who are currently working on the construction of sporting facilities and other infrastructure associated with organization of the World Cup. More...

Doyen vs. Sporting II: The Bitter End of Sporting’s Fight at the Swiss Federal Supreme Court. By Shervine Nafissi

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).

 

Introduction

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.[1] 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...

Doyen vs. Sporting I: Doyen’s Pyrrhic Victory at the CAS

At 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...

UEFA’s Financial Fair Play Regulations and the Rise of Football’s 1%

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.



Source: UEFA’s eighth club licensing benchmarking report on European football, slide 107.


 Meanwhile the aggregate losses dropped by 81% from €1.7bn in 2011 to just over €300m in 2015.More...




Asser International Sports Law Blog | The New Olympic Host City Contract: Human Rights à la carte? by Ryan Gauthier, PhD Researcher (Erasmus University Rotterdam)

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

The New Olympic Host City Contract: Human Rights à la carte? by Ryan Gauthier, PhD Researcher (Erasmus University Rotterdam)

Three weeks ago, I gave a talk for a group of visiting researchers at Harvard Law School on the accountability of the IOC for human rights abuses caused by hosting Olympic Games. On the day of that talk, Human Rights Watch announced that the International Olympic Committee (“IOC”) would insert new language into the Host City Contract presumably for the 2022 Olympic Games onwards. The new language apparently requires the parties to the contract to:

“take all necessary measures to ensure that development projects necessary for the organization of the Games comply with local, regional, and national legislation, and international agreements and protocols, applicable in the host country with regard to planning, construction, protection of the environment, health, safety, and labour laws.”

This language would apply to the National Olympic Committee, the Organizing Committee for the Olympic Games, and the host city.

This language has been hailed by Human Rights Watch as a strong first step, and for good reason. It seems that the IOC is listening to complaints about the construction of the Olympic Games. The IOC has said before that it would address the violations of labour rights associated with the Olympic Games, in the XIII Olympic Congress, and its Recommendations, made in 2009:

The IOC will intervene at the OCOG level in the event of serious abuse, such as:

·       Mistreatment of people displaced due to Olympic venue construction sites;

·       Abuse of migrant workers at Olympic venue construction sites;

·       Child labour;

·       Improper restrictions on the media’s freedom to cover the Games, including cultural aspects.

The IOC will establish a system for correctly identifying and dealing with “legitimate complaints” from official sources.

The IOC will not intervene in non-sport human rights issues.

The leverage that the IOC has towards the Organising Commitres for the Olympic Games (OCOGs) should be determined. This might lead to amendments to the Host City Contract and Documentation for Bid Cities.

However, the experience of Sochi with its displacement of persons, and abuse of migrant workers at Olympic venue construction sites appears to have put lie to that promise. Therefore, it would seem that the prospective contractual language would be a strong first step. But, looking closer at the language, there are some causes for concern.

 

Old Wine in New Bottles?

First, it should be noted that this language is not novel. The IOC has similar language in its Candidature Procedure, under “Environment”:

Provide (a) guarantee(s) from the competent authorities stating that all construction work necessary for the organisation of the Olympic Games will comply with:

·       Local, regional and national environmental regulations and acts

·       International agreements and protocols regarding planning, construction and protection of the environment (2020 Candidature Procedure, Q 5.4)

That the new language in the host city contract is under the heading of “Sustainable Human and Environmental Development” should therefore not be surprising. However, the environmental requirements presented above were in the host selection process. This new language is contractual language, and should be evaluated as such (one could make the same argument re the host selection process documents – but, just like the IOC…small steps).

 

A “Toothless” Paper Tiger

Overall, however, the clause in the Host City Contract appears to fall short in four key ways:

1)    Weak standard: The standard used in the contract is compliance with national laws and international agreements/protocols. This standard has been problematic, as it can be a moving target. National laws can be changed. Consider the next two states hosting the FIFA World Cup. Russia has passed Law 108-FZ in advance of the 2018 FIFA World Cup. The law affects the rights of migrant workers brought in to work on the World Cup facilities. Migrant workers no longer need to be registered with local authorities. Restrictions on the length of the working day are removed, and overtime pay is replaced with time off in lieu. Law 108-FZ is a national law, and presumably the parties would comply with it. Although a question arises if the national law conflicts with international agreements…which prevails? The same can be said for another FIFA World Cup host – Qatar – that has also bid to host the 2016 and 2020 Summer Olympic Games. Qatar’s kafala system is certainly national legislation. But compliance with said legislation would not improve human rights.

2)    Vagueness: Vagueness in a contract will lead to conflict. In this case, what is “compliance”, or more to the point, what is “non-compliance”? Who determines non-compliance? Is non-compliance simply a complaint? Or an adverse court ruling? Who makes the determination of non-compliance? Is it in the IOC’s sole discretion? Or an agreement of the parties? Presuming this is meant to be an enforceable contract, a lack of precise terminology is problematic. Also, given the language of “take all necessary measures”, does this require a host to take all measures, regardless of the cost? Or to the point of undue hardship? This seems to be a rather high bar, but is it a reasonable one?

3)    Remedies/Enforcement: While in an ideal world, everyone will adhere to an agreement, breaches do occur. In the 2014 Host City Contract, the one particular remedy for breach is that the IOC can withdraw the right to host the Games. However, given the complexity of removing the Games to another city (which to my knowledge was only done in 1976 – with a move from Denver to Innsbruck), this is likely to remain a “nuclear option”. What other remedies might there be to make a sanction a reasonable deterrent? In addition, if there are disputes over whether or not there is a breach of this clause, the Court of Arbitration for Sport has jurisdiction. It may deny jurisdiction, and if it does so, then the proceedings move to the Swiss courts. Would CAS or the Swiss courts be interested in adjudicating what is essentially human rights litigation in another state? Would a Swiss court truly say, for instance, “Russia has not complied with international human rights standards”? It does not seem likely.

4)    Absence of Dialogue: The problem with inserting such language into a contract is that it creates a “take-it-or-leave-it” environment, without specifying what the “take-it-or-leave-it” is. Using the host selection process to tease out human rights concerns enables the IOC to ask questions of the potential hosts about best practices, concerns, or processes that could be put into place to address future problems. The answers in the host selection process would then create a more robust standard to hold a host to, giving the language in the contract more weight. Absent this, the language becomes window-dressing. Also, in the event of a host breaching this provision, will there be dialogue? Will that dialogue be public?

 

Given the above, the contractual language falls far short, if it is to be taken as an actual contract. However, it is a strong signal that the IOC seems willing to address human rights issues caused by the Olympic Games. If this is so, then the language is a meaningful first step. Other steps, however, are required. For instance (and here is the shameless plug), my PhD research examines the use of the host selection process to tackle human rights issues in the host countries, amongst other proposals. For now, those expecting to use the contract as a legal mechanism to ensure that future hosts respect human rights, it might be best not to hold your breath.

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