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

Call for papers - Third Annual International Sports Law Conference of the International Sports Law Journal - 24 and 25 October 2019 - Asser Institute

The Editors of the International Sports Law Journal (ISLJ) invite you to submit abstracts for the third ISLJ Annual Conference on International Sports Law, which will take place on 24 and 25 October 2019 at the Asser Institute in The Hague. The ISLJ, published by Springer and Asser Press, is the leading academic publication in the field of international sports law. The conference is a unique occasion to discuss the main legal issues affecting international sports with renowned academic experts and practitioners.


We are delighted to announce the following confirmed keynote speakers:


  • Beckie Scott (Chair of the World Anti-Doping Agency (WADA) Athlete Committee, Olympic Champion, former member of the WADA Executive Committee and the International Olympic Committee (IOC)),
  • Ulrich Haas (Professor of Law at Univerzität Zürich, CAS arbitrator), and
  • Kimberly Morris (Head of FIFA Transfer Matching System (TMS) Integrity and Compliance).


We welcome abstracts from academics and practitioners on any question related to international sports law. We also welcome panel proposals (including a minimum of three presenters) on a specific issue. For this year’s edition, we specifically invite submissions on the following themes:


  • The role of athletes in the governance of international sports
  • The evolution of sports arbitration, including the Court of Arbitration for Sport
  •  The role and functioning of the FIFA transfer system, including the FIFA TMS
  •  The intersection between criminal law and international sports (in particular issues of corruption, match-fixing, human trafficking, tax evasion)
  • Hooliganism
  • Protection of minor athletes
  • Civil and criminal liability relating to injuries in sports


Please send your abstract of 300 words and CV no later than 30 April 2019 to a.duval@asser.nl. Selected speakers will be informed by 15 May.


The selected participants will be expected to submit a draft paper by 1 September 2019. All papers presented at the conference are eligible (subjected to peer-review) for publication in a special issue of the ISLJ.  To be considered for inclusion in the conference issue of the journal, the final draft must be submitted for review by 15 December 2019.  Submissions after this date will be considered for publication in later editions of the Journal.


The Asser Institute will cover one night accommodation for the speakers and will provide a limited amount of travel grants (max. 250€). If you wish to be considered for a grant please indicate it in your submission. 

A Reflection on the Second Report of FIFA’s Human Rights Advisory Board - By Daniela Heerdt (Tilburg University)

Editor's note: Daniela Heerdt is a PhD candidate at Tilburg Law School in the Netherlands and works as Research Officer for the Centre for Sports and Human Rights. Her PhD research deals with the establishment of responsibility and accountability for adverse human rights impacts of mega-sporting events, with a focus on FIFA World Cups and Olympic Games. She published an article in the International Sports Law Journal that discusses to what extent the revised bidding and hosting regulations by FIFA, the IOC and UEFA strengthen access to remedy for mega-sporting events-related human rights violations.

 

On November 26th, the Human Rights Advisory Board[1] of the Fédération Internationale de Football Association (FIFA) published its second report. This blog provides a summary and brief evaluation of the report, by drawing a comparison to the previous report issued by the Human Rights Advisory Board (hereinafter: the Board) based on the content of the recommendations and FIFA’s efforts to implement the Board’s recommendations. The third part of this blog briefly reflects on the broader implications of some of the new recommendations issued for FIFA’s internal policies. The conclusion provides five more general points of observation on the report. More...

The Kristoffersen ruling: the EFTA Court targets athlete endorsement deals - By Sven Demeulemeester and Niels Verborgh

Editor’s note: Sven Demeulemeester and Niels Verborgh are sports lawyers at the Belgium law firm, Altius.

 

Introduction

In its 16 November 2018 judgment, the Court of Justice of the European Free Trade Association States (the EFTA Court) delivered its eagerly awaited ruling in the case involving Henrik Kristoffersen and the Norwegian Ski Federation (NSF). 

On 17 October 2016, Kristoffersen had taken the NSF to the Oslo District Court over the latter’s refusal to let the renowned alpine skier enter into a sponsorship with Red Bull. At stake were the commercial markings on his helmet and headgear in races organised under the NSF’s umbrella. The NSF refused this sponsorship because it had already granted the advertising on helmet and headgear to its own main sponsor, Telenor. Kristoffersen claimed before the Oslo District Court, that the NSF should be ordered to permit him to enter into an individual marketing contract with Red Bull. In the alternative, Kristoffersen claimed damages up to a maximum of NOK 15 million. By a letter of 25 September 2017, the Oslo District Court referred several legal questions to the EFTA Court in view of shedding light on the compatibility of the rules that the NSF had invoked with EEA law.

If rules do not relate to the conduct of the sport itself, but concern sponsorship rights and hence an economic activity, these rules are subject to EEA law. The EFTA Court ruling is important in that it sets out the framework for dealing with - ever more frequent - cases in which an individual athlete’s endorsement deals conflict with the interest of the national or international sports governing bodies (SGBs) that he or she represents in international competitions.More...


Season 2 of football leaks: A review of the first episodes

Season 2 of #FootballLeaks is now underway since more than a week and already a significant number of episodes (all the articles published can be found on the European Investigative Collaborations’ website) covering various aspect of the (lack of) transnational regulation of football have been released (a short German documentary sums up pretty much the state of play). For me, as a legal scholar, this new series of revelations is an exciting opportunity to discuss in much more detail than usual various questions related to the operation of the transnational private regulations of football imposed by FIFA and UEFA (as we already did during the initial football leaks with our series of blogs on TPO in 2015/2016). Much of what has been unveiled was known or suspected by many, but the scope and precision of the documents published makes a difference. At last, the general public, as well as academics, can have certainty about the nature of various shady practices in the world of football. One key characteristic that explains the lack of information usually available is that football, like many international sports, is actually governed by private administrations (formally Swiss associations), which are not subject to the similar obligations in terms of transparency than public ones (e.g. access to document rules, systematic publication of decisions, etc.). In other words, it’s a total black box! The football leaks are offering a rare sneak peak into that box.

Based on what I have read so far (this blog was written on Friday 9 November), there are three main aspects I find worthy of discussion:

  • The (lack of) enforcement of UEFA’s Financial Fair Play (FFP) Regulations
  • The European Super League project and EU competition law
  • The (lack of) separation of powers inside FIFA and UEFA More...

Supporters of the ISLJ Annual International Sports Law Conference 2018: Altius

Editor's note: In the coming days we will introduce the supporters of our upcoming ISLJ Annual International Sports Law Conference 2018 (also known as #ISLJConf18). To do so, we have sent them a tailored questionnaire aimed at reflecting both their activities and their expectations for the conference. It is a good opportunity for us to thank them for their enthusiastic support and commitment to international sports law research. We are very happy to finish this series of interviews with Sven Demeulemeester from Altius, a Belgian law firm based in Brussels with a very fine (and academically-minded!) sports law team. 


1. Can you explain to our readers the work of Altius in international sports law? 

Across different sports’ sectors, Altius’ sports law practice advises and assists some of the world’s most high-profile sports governing bodies, clubs and athletes, at both the national and the international level. The team has 6 fully-dedicated sports lawyers and adopts a multi-disciplinary approach, which guarantees a broad range of legal expertise for handling specific cases or wider issues related to the sports industry. We are proud to be independent but, in cross-border matters, are able to tap into a worldwide network.

2. How is it to be an international sports lawyer? What are the advantages and challenges of the job? 

Sports law goes beyond one specific field of law. The multiplicity of legal angles keeps the work interesting, even after years of practising, and ensures that a sports lawyer rarely has a dull moment. The main downside is that the sports industry is fairly conservative and sometimes ‘political’. While the law is one thing, what happens in practice is often another. Bringing about change is not always easy. 

3. What are the burning issues in international sports law that you would like to see discussed at the conference? 

 The much-anticipated overhaul of the football transfer system is eagerly anticipated and is worth a thorough debate, also in terms of possible, viable alternatives. The impact of EU law - both internal market rules, competition law and fundamental rights – can hardly be underestimated. Also, dispute resolution mechanisms within the realm of sports - and an accessible, transparent, independent and impartial sports arbitration in particular - will remain a ‘hot’ topic in the sector for years to come. Furthermore, ethics and integrity issues should remain top of the agenda, as is being demonstrated by the current money-laundering and match-fixing allegations in Belgium. Finally, in a sector in which the use of data is rife, the newly-adopted GDPR’s impact remains somewhat ‘under the radar’.

4. Why did you decide to support the ISLJ Annual International Sports Law Conference? 

The ISLJ Annual International Sports Law Conference is refreshing, both in terms of its topics and participants. The academic and content-driven approach is a welcome addition to other sports law conferences in which the networking aspect often predominates.

Supporters of the ISLJ Annual International Sports Law Conference 2018: LawInSport

Editor's note: In the coming days we will introduce the supporters of our upcoming ISLJ Annual International Sports Law Conference 2018 (also known as #ISLJConf18). To do so, we have sent them a tailored questionnaire aimed at reflecting both their activities and their expectations for the conference. It is a good opportunity for us to thank them for their enthusiastic support and commitment to international sports law research. We are very happy to continue this series of interviews with LawInSport, a knowledge hub and educational platform for the community of people working in or with an interest in sport and the law  (many thanks to LawInSport's CEO Sean Cottrell for kindly responding to our questions).


1. Can you explain to our readers what LawInSport is about?

LawInSport is a knowledge hub, educational platform and global community of people working in or with an interest in sport and the law.

Our objective is to help people ‘understand the rules of the game™’. What does this mean? It means people in sport having access to information that enables them to have a better understanding the rules and regulations that govern the relationships, behaviours and processes within sports. This in turn creates a foundation based on the principles of the rule of law, protecting the rights of everyone working and participating in sport.  

2. What are the challenges and perks of being an international sports law 'reporter’ ?

I do not consider myself a reporter, but as the head of an organisation that has a responsibility to provide the highest quality information on legal issues in sport,  focusing on what is important and not just what is popular, whilst trying to stay free from conflicts of interests. These two issues, popularism and conflict of interest, are the two of the biggest challenges.

Popularism and the drive to win attention is, in my opinion, causing a lack of discipline when it comes to factual and legal accuracy in coverage of sports law issues, which on their own may seem harmless, but can cause harm to organisations and individuals (athletes, employees, etc).

Conflict of interest will obviously arise in such a small sector, however, there is not a commonly agreed standard in internationally, let alone in sports law. Therefore, one needs to be diligent when consuming information to understand why someone may or may not hold a point of view, if they have paid to get it published or has someone paid them to write it. For this reason it can be hard to get a full picture of what is happening in the sector.

In terms of perks, I get to do something that is both challenging and rewarding on a daily basis, and as  a business owner I have the additional benefit of work with colleagues I enjoy working with. I have the privilege of meeting world leaders in their respective fields (law, sport, business, science, education, etc) and gain insights from them about their work and life experiences which is incredibly enriching.  Getting access to speak to the people who are on the front line, either athletes, coaches, lawyers, scientists, rather than from a third party is great as it gives you an unfiltered insight into what is going on.

On the other side of things, we get the opportunity to help people through either having a better understand of the legal and regulatory issues in sports or to understand how to progress themselves towards their goals academically and professionally is probably the most rewarding part of my work. 

3. What are the burning issues in international sports law that you would like to see discussed at the conference?

  • The long-term implications of human rights law in sport;
  • The importance of meaningful of stakeholder consultation in the creation and drafting of regulations in sport;
  • Effective international safeguarding in sport.

4. Why did you decide to support the ISLJ Annual International Sports Law Conference?

We support ISLJ Annual International Sports Law Conference as it is a non-profit conference that’s purpose is to create a space to explore a wide range of legal issues in sport. The conference is an academic conference that does a great job in bringing a diverse range of speakers and delegates. The discussions and debates that take place will benefit the wider sports law community.  Therefore, as LawInSport’s objective is focused on education it was a straight forward decision to support the conferences as it is aligned with our objectives. 

Supporters of the ISLJ Annual International Sports Law Conference 2018: Women in Sports Law

Editor's note: In the coming days we will introduce the supporters of our upcoming ISLJ Annual International Sports Law Conference 2018 (also known as #ISLJConf18). To do so, we have sent them a tailored questionnaire aimed at reflecting both their activities and their expectations for the conference. It is a good opportunity for us to thank them for their enthusiastic support and commitment to international sports law research. We are very proud to start this series of interviews with Women in Sports Law, an association launched in 2016 and which has already done so much to promote and advance the role of women in international sports law (many thanks to Despina Mavromati for kindly responding to our questions on behalf of WISLaw).


1. Can you explain to our readers what WISLaw is about?

Women In Sports Law (WISLaw, www.wislaw.co) is an international association based in Lausanne that unites more than 300 women from 50 countries specializing in sports law. It is a professional network that aims at increasing the visibility of women working in the sector, through a detailed members’ directory and various small-scale talks and events held in different countries around the world. These small-scale events give the opportunity to include everyone in the discussion and enhance the members’ network. Men from the sector and numerous arbitral institutions, conference organizers and universities have come to actively support our initiative.


2. What are the challenges and opportunities for women getting involved in international sports law?

Women used to be invisible in this sector. All-male panels were typical at conferences and nobody seemed to notice this flagrant lack of diversity. WISLaw created this much-needed platform to increase visibility through the members’ directory and through a series of small-scale events where all members, independent of their status or seniority, can attend and be speakers.

Another difficulty is that European football (soccer) is traditionally considered to be a “male-dominated” sport, despite the fact that there are so many great female football teams around the world. The same misperception applies to sports lawyers!

Last, there is a huge number of women lawyers working as in-house counsel and as sports administrators. There is a glass ceiling for many of those women, and the WISLaw annual evaluation of the participation of women in those positions attempts to target their issues and shed more light into this specific problem.


3. What are the burning issues in international sports law that you would like to see discussed at the conference?

The ISLJ Annual Conference has already set up a great lineup of topics combining academic and more practical discussions in the most recent issues in international sports law. 


4. Why did you decide to support the ISLJ Annual International Sports Law Conference?

The Asser International Sports Law Centre has promoted and supported WISLaw since the very beginning. The ISLJ Annual International Sports Law Conference was the first big conference to officially include a WISLaw lunch talk in its program, allowing thus the conference attendees to be part of a wider informal discussion on a specific topical issue and raise their questions with respect to WISLaw. Another important reason why WISLaw supports this conference is because the conference organizers are making sincere efforts to have increased diversity in the panels : this year’s ISLJ Annual International Sports Law Conference is probably the first sports law conference to come close to a full gender balance in its panels, with 40% of the speakers being women !

The proportionality test under Art. 101 (1) TFEU and the legitimacy of UEFA Financial fair-play regulations: From the Meca Medina and Majcen ruling of the European Court of Justice to the Galatasaray and AC Milan awards of the Court of Arbitration for Sport – By Stefano Bastianon

Editor’s note: Stefano Bastianon is Associate Professor in EU Law and EU sports law at the University of Bergamo and lawyer admitted to the Busto Arsizio bar. He is also member of the IVth Division of the High Court of Sport Justice (Collegio di Garanzia dello sport) at the National Olympic Committee.

 

1. On the 20th July 2018, the Court of Arbitration for Sport (hereinafter referred to as “CAS”) issued its decision in the arbitration procedure between AC Milan and UEFA. The subject matter of this arbitration procedure was the appeal filed by AC Milan against the decision of the Adjudicatory Chamber of the UEFA Financial Control Body dated 19th June 2018 (hereinafter referred to as “the contested decision”). As many likely know, the CAS has acknowledged that, although AC Milan was in breach of the break-even requirement, the related exclusion of the club from the UEFA Europe League was not proportionate. To date, it is the first time the CAS clearly ruled that the sanction of exclusion from UEFA club competitions for a breach of the break-even requirement was not proportionate. For this reason the CAS award represents a good opportunity to reflect on the proportionality test under Art. 101 TFEU and the relationship between the landmark ruling of the European Court of Justice (hereinafter referred to as “ECJ”) in the Meca Medina and Majcen affair and the very recent case-law of the CAS. More...

The “Victory” of the Court of Arbitration for Sport at the European Court of Human Rights: The End of the Beginning for the CAS

My favourite speed skater (Full disclosure: I have a thing for speed skaters bothering the ISU), Claudia Pechstein, is back in the news! And not from the place I expected. While all my attention was absorbed by the Bundesverfassungsgericht in Karlsruhe (BVerfG or German Constitutional Court), I should have looked to the European Court of Human Rights in Strasbourg (ECtHR). The Pechstein and Mutu joint cases were pending for a long time (since 2010) and I did not anticipate that the ECtHR would render its decision before the BVerfG. The decision released last week (only available in French at this stage) looked at first like a renewed vindication of the CAS (similar to the Bundesgerichtshof (BGH) ruling in the Pechstein case), and is being presented like that by the CAS, but after careful reading of the judgment I believe this is rather a pyrrhic victory for the status quo at the CAS. As I will show, this ruling puts to rest an important debate surrounding CAS arbitration since 20 years: CAS arbitration is (at least in its much-used appeal format in disciplinary cases) forced arbitration. Furthermore, stemming from this important acknowledgment is the recognition that CAS proceedings must comply with Article 6 § 1 of the European Convention of Human Rights (ECHR), in particular hearings must in principle be held in public and decisions freely available to all. Finally, I will criticise the Court’s finding that CAS complies with the requirements of independence and impartiality imposed by Article 6 § 1 ECHR. I will not rehash the  well-known facts of both cases, in order to focus on the core findings of the decision. More...

Asser International Sports Law Blog | Unpacking Doyen’s TPO Deals – Sporting Lisbon’s rebellion in the Rojo case. By Antoine Duval and Oskar van Maren

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

Unpacking Doyen’s TPO Deals – Sporting Lisbon’s rebellion in the Rojo case. By Antoine Duval and Oskar van Maren

In this blog we continue unpacking Doyen’s TPO deals based on the documents obtained via footballleaks. This time we focus on the battle between Doyen and Sporting over the Rojo case, which raises different legal issues as the FC Twente deals dealt with in our first blog.

 

I.              The context: The free-fall of Sporting

Sporting Lisbon, or Sporting Club de Portugal as the club is officially known, is a Portuguese club active in 44 different sports. Although the club has the legal status of Sociedade Anónima Desportiva, a specific form of public limited company, it also has over 130.000 club members, making it one of the biggest sports clubs in the world.

The professional football branch of Sporting is by far the most important and famous part of the club, and with its 19 league titles in total, it is a proud member of the big three cartel, with FC Porto and Benfica, dominating Portuguese football. Yet, it has not won a league title since 2002.

The members of Sporting get to elect the club’s president. A typical election campaign is akin to a political one with regard to status, media coverage and campaign funds. In fact, former Sporting president Pedro Santana Lopes went on to become the Prime Minister of Portugal in 2004-2005. In 2011, the elections were hotly disputed with Godinho Lopes defeating his main rival Bruno de Carvalho by only 300 votes. A request by De Carvalho to recount the votes was later dismissed, causing local unrests and police intervention.

Under Godinho Lopes’ presidency, Sporting obtained very poor sporting results, including a seventh place in the 2012/13 season, the worst ranking in the club’s history. New elections were held in 2013 and won by Bruno de Carvalho in a landslide. In addition to underwhelming results on the field, it turned out that the financial health of the club off the field was also at risk. Bruno de Carvalho faced a loss of €43 million in the 2012/13 season alone. This large financial debt was one of the reasons why on 1 October 2014, the General Assembly approved the proposal by the new Board of Directors to press liability charges against Godinho Lopes for breaching due diligence duties.

In the midst of the financial and managerial chaos surrounding Sporting, one dispute stands out as being relevant to our series of blogs on Doyen’s TPO deals. Faced with financial difficulties, Godinho Lopes had recourse to Doyen Sport to finance the recruitment of a number of players, amongst them Marco Rojo, an Argentine defender coming from Spartak Moscow in 2012. After two years at the club, the player was transferred against a healthy €20 million fee to Manchester United in 2014. However, the club staunchly refused to pay out the share of the economic rights owned by Doyen. Thus, giving way to a legal dispute on which we will put the spotlight in this blog. Although the case is still pending in front of CAS, several documents related to it were published on the footballleaks website.[1]

 

II.            The facts: the Rojo case

Before analysing the fine prints of the Economic Rights Participation Agreement (ERPA) between Doyen and Sporting concerning the economic rights of Rojo, a bit of background on the player and his career is needed. Marcos Rojo is an Argentine professional football player who appeared on the elite football scene at a young age. In 2009, by the age of 19, he won the Copa Libertadores with his side Estudiantes de la Plata, and in 2011, aged 21, he was a regular starter for the Argentinian national team during the Copa America. Sporting, under Godinho’s presidency, signed Rojo from Spartak Moscow for €5.43 million in July 2012.[2] In order to finance the signing of Rojo, Sporting needed fresh money, thus it turned to Doyen as a “last resort initiative”.[3] As provided by the ERPA, the Maltese investment company paid € 3 million and obtained in return 75% of Rojo’s Economic rights. The agreement includes similar provisions to the ones outlined in detail in our FC Twente blog. Notably, in the case Sporting would receive a transfer offer for Rojo of more than €8 million, Doyen could request that the club accept the offer or pay an amount equivalent to 75% of the offer to buy back the rights of the player from the fund. Moreover, in the case the club was to renew the contract of the player or failed to avoid that his contract runs out, it was bound to pay a minimum fee of €4.2 million (in case of renewal, Doyen could also chose to keep its share of the player’s economic rights).

Rojo’s outstanding 2014 World Cup (he was selected for the World Cup All-Star Team) triggered interest from English Premier League clubs, most notably Southampton and Manchester United. Both sides were keen on signing him in the summer of 2014, but Sporting president De Carvalho had no intention of selling him. According to De Carvalho, Rojo was key to the club’s ambition of becoming Portuguese champion. Sporting claimed that Doyen, via its director Nelio Lucas, was “promoting and forcing this transfer” and, thus, “violating his duty to respect Sporting’s independence in transfer related matters”.[4] De Carvalho maintained that Doyen’s influence breached then art.18bis of the FIFA RSTP. In retaliation against Doyen’s perceived influence, Sporting refused to pay to Doyen the agreed 75% share of the proceeds from the transfer of Rojo to Manchester United. Instead, it argued that Doyen had breached its contractual duties and declared the ERPA (and the guarantees attached to it) null and void. Nonetheless, the club did transfer back to Doyen the €3 million it invested at the outset. Hence, Sporting put Doyen’s contractual edifice to the test and Doyen was forced to go to court (and more precisely to the Court of Arbitration for Sport) to try to enforce its rights under the ERPA agreement.

 

III.         The showdown: The CAS as ultimate arbiter of the legality of Doyen’s TPO contracts

The ERPA signed by Doyen and Sporting contains both a clause defining Swiss law as the law applicable to the contract and the CAS as the jurisdiction competent to deal with disputes arising out of the contract.[5] Henceforth, it was mandatory for Doyen to turn to the CAS as soon as it became obvious that it would not recoup the 75% it believes it was owed on Rojo’s transfer. The dispute was finally heard by a CAS panel in June of this year and the final decision is still, as far as we know, pending (see the outstanding coverage of the issue by Tariq Panja from Bloomberg, here and here). The case is of great importance to Doyen, if the CAS finds that Doyen’s ERPA is contrary to Swiss law, this finding will most likely apply to each of Doyen’s TPO deals that are based on a similar model and dramatically weaken its contractual position. The good news for Doyen is that it probably has only relatively few ERPA’s still in place (for example FC Twente and Doyen agreed to put an end to their agreement), as the FIFA ban should have blocked it from entering into new agreements.

This case is not about former article 18bis of the FIFA RSTP, as is often misunderstood. This would come only into play if FIFA were to sanction Sporting for having had recourse to an ERPA with Doyen, an issue that might still arise and a configuration potentially already at play in the FC Twente case. The Rojo dispute between Sporting and Doyen, however, is of a purely contractual nature. It is only about whether Doyen’s TPO deals are compatible with Swiss civil law. In this regard, footballleaks has recently published a very interesting document: a confidential report by a Swiss law firm on the legality of Doyen’s Model ERPA in light of Swiss law. This report raises a number of thorny legal issues that the CAS will have to weigh on.

The ERPA between Doyen and Sporting must abide by the requirements of Swiss civil law. In general, the Swiss Civil Code is favourable to contractual autonomy, yet there are some restrictions to the freedom of the parties. To be valid, an agreement should not be contrary to the bonos mores. In other words, the moral values or ethical principles supported by the Swiss legal system. Indeed, as foreseen by Art. 20.1 of the Swiss Code of Obligations, a “contract is void if its terms are impossible, unlawful or immoral”.

The whole Rojo case in front of the CAS is likely to hang on the determination whether Doyen’s ERPA model is immoral or not from the Swiss perspective. Immorality is constituted especially if the contract introduces a serious imbalance between the obligations of the parties. The Swiss law firm mandated by Doyen doubted the signature of an ERPA would create such imbalance, simply because “both the FUND [Doyen] and the Club have rights and obligations according to the Agreement”.[6] This falls a bit short. As we have seen, Doyen uses the leverage offered by the financial difficulties of clubs (FC Twente or Sporting) to impose very harsh contractual conditions and high interest rates. This harshness is clearly acknowledged in the ERPA. For example, clause 10.6 indicates that Sporting “is conscious of the harshness and the severity of the consequences of clauses 10.4 and 10.5”. Whether the embedded contractual imbalance in the ERPA is sufficient to be deemed immoral under Swiss law is for the CAS to decide, but it is not a possibility that should be discarded lightly. Moreover, this potential immorality is also supported by the willingness of FIFA to ban TPO as it points at the conflicts of interest and integrity risks arising out of its use.

The ERPA could also be contrary to art. 27.2 of the Swiss Civil Code, which provides that: “No person may surrender his or her freedom or restrict the use of it to a degree which violates the law or public morals”. According to the Swiss law firm contracted by Doyen, this is especially the case if a legal entity’s “economic freedom is restricted in such a way that its economic existence is in danger”.[7] It also argued that, “the undertakings of the Club cannot in principle be considered excessive”, as “there is no obvious disparity between the considerations of the Parties”.[8] Here again, the arguments provided by Doyen’s law firm are feeble at best. In fact, the contractual imbalance is openly acknowledged in Doyen’s own contract. The economic freedom of Sporting (or FC Twente for that matter) is so drastically reduced that a club is forced into selling its best players at Doyen’s will.[9] Those players are at the heart of the “economic existence” of a club. In fact, the fate of FC Twente illustrates how the loss of its best players led to the club facing financial and sporting bankruptcy.

Finally, Sporting is also likely to have argued that Doyen was in breach of its contractual duties. Clause 14 of the ERPA stipulates that Doyen “recognizes that the Club is an independent entity in so far as the Club’s employment and transfer-related matters are concerned and [Doyen] shall not, either though this Agreement or otherwise, seek to exert influence over these matters […]”. The Club claimed in its termination letter of the ERPA that “Doyen has seriously and irremediably violated its obligations of non-influence in Sporting transfer policy […] which constitutes a material breach of the agreement”. Swiss contract law may entail the right for Sporting to refuse to execute its part of the deal in case of breach of contract by Doyen. In that regard, Sporting would have had to factually demonstrate the faulty character of Doyen’s intervention in Rojo’s transfer.

It is certainly not a given that the CAS will consider Doyen’s ERPA contrary to Swiss law or for Doyen to be in breach of its contractual duties, but there are credible legal arguments that point in both directions. Surely, the hubris of the management of Sporting and FC Twente is chiefly responsible for the terrible deals closed with Doyen. Yet, Doyen leveraged their dire financial situations and irrational ambitions to strong-arm them into one-sided agreements that are imposing unfair terms on the clubs. Doyen takes on very little risk: If a player fails to become a star, the fund will recoup its investment plus very reasonable interests (unless the club is bankrupt); if a player breaks through, it will pocket the jackpot. The fund is a true vulture fund geared to the football industry. It buys under-priced assets (economic rights attached to players) in fire sales and hopes for a huge profit.

We will hear soon from the CAS whether it deems this practice legal under Swiss law. In any event, FIFA has decided to ban TPO outright, raising the opposite question of the compatibility of the ban with EU law. This will be the subject of our final blog.

 


[1] The documents used, especially the ERPA applicable to Rojo and the termination letter send out by Sporting, might be blocked or unavailable due to complaints lodged by Doyen. They are on file with the authors.

[2] http://www.transfermarkt.nl/marcos-rojo/profil/spieler/93176.

[3] Rojo ERPA, 23 August 2012, p.2.

[4] Letter of termination of the ERPA, 14 August 2014, para.15. See also paras 17-20.

[5] Rojo ERPA, 23 August 2012, clause 22 and 23.

[6] FRORIEP, ‘Memorandum on certain questions of Swiss law in relation to a draft ERPA’, para.16.

[7] Ibid, para.23.

[8] Ibid, para.25.

[9] Doyen could not ignore the fact that those clubs were in such financial difficulties, that they would be unable to pay on their own the share of a transfer offer above the agreed amount and thus retain their player.

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Asser International Sports Law Blog | (A)Political Games? Ubiquitous Nationalism and the IOC’s Hypocrisy

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

(A)Political Games? Ubiquitous Nationalism and the IOC’s Hypocrisy

Editor’s note: Thomas Terraz is a L.LM. candidate in the European Law programme at Utrecht University and a former intern of the Asser International Sports Law Centre

 

1.     Sport Nationalism is Politics

Despite all efforts, the Olympic Games has been and will be immersed in politics. Attempts to shield the Games from social and political realities are almost sure to miss their mark and potentially risk being disproportionate. Moreover, history has laid bare the shortcomings of the attempts to create a sanitized and impenetrable bubble around the Games. The first blog of this series examined the idea of the Games as a sanitized space and dived into the history of political neutrality within the Olympic Movement to unravel the irony that while the IOC aims to keep the Olympic Games ‘clean’ of any politics within its ‘sacred enclosure’, the IOC and the Games itself are largely enveloped in politics. Politics seep into the cracks of this ‘sanitized’ space through: (1) public protests (and their suppression by authoritarian regimes hosting the Games), (2) athletes who use their public image to take a political stand, (3) the IOC who takes decisions on recognizing national Olympic Committees (NOCs) and awarding the Games to countries,[1] and (4) states that use the Games for geo-political posturing.[2] With this background in mind, the aim now is to illustrate the disparity between the IOC’s stance on political neutrality when it concerns athlete protest versus sport nationalism, which also is a form of politics.

As was mentioned in part one of this series, the very first explicit mention of politics in the Olympic Charter was in its 1946 version and aimed to combat ‘the nationalization of sports for political aims’ by preventing ‘a national exultation of success achieved rather than the realization of the common and harmonious objective which is the essential Olympic law’ (emphasis added). This sentiment was further echoed some years later by Avery Brundage (IOC President (1952-1972)) when he declared: ‘The Games are not, and must not become, a contest between nations, which would be entirely contrary to the spirit of the Olympic Movement and would surely lead to disaster’.[3] Regardless of this vision to prevent sport nationalism engulfing the Games and its codification in the Olympic Charter, the current reality paints quite a different picture. One simply has to look at the mass obsession with medal tables during the Olympic Games and its amplification not only by the media but even by members of the Olympic Movement.[4] This is further exacerbated when the achievements of athletes are used for domestic political gain[5] or when they are used to glorify a nation’s prowess on the global stage or to stir nationalism within a populace[6]. Sport nationalism is politics. Arguably, even the worship of national imagery during the Games from the opening ceremony to the medal ceremonies cannot be depoliticized.[7] In many ways, the IOC has turned a blind eye to the politics rooted in these expressions of sport nationalism and instead has focused its energy to sterilize its Olympic spaces and stifle political expression from athletes. One of the ways the IOC has ignored sport nationalism is through its tacit acceptance of medal tables although they are expressly banned by the Olympic Charter.

At this point, the rules restricting athletes’ political protest and those concerning sport nationalism, particularly in terms of medal tables, will be scrutinized in order to highlight the enforcement gap between the two.

 

2.     The Legal Framework

a.     Athlete Led Political Protest

The groundwork for political neutrality is set out in the Fundamental Principles of Olympism (point 5) and Rule 2 (5) of the Olympic Charter. As was illuminated in the first blog, this is presented by the Olympic Charter to ensure the autonomy of sport. One of the specific ways in which the Olympic Charter tries to secure this ideal is through Rule 50 which bans political protest at Olympic sites.[8] Last year, the IOC Athletes’ Commission released its Guidelines on Rule 50 which underscored the far-reaching prohibitions Rule 50 entails. Athletes are not allowed to display any sort of ‘political messaging’ or make any ‘gestures of a political nature’. This includes no ‘signs or armbands’, no ‘hand gestures or kneeling’. Even ‘refusal to follow the Ceremonies protocol’ is considered a violation of Rule 50. Rubbing salt in the wound is the fact that the geographic scope of this ban extends to ‘all Olympic venues’, thus even covering the Olympic Village. Athletes may only disperse their political speech during ‘press conferences and interviews’, ‘team meetings’ and through ‘digital or traditional media, or on other platforms’. The Guidelines, however, underline that this exception only applies to ‘expressing views’, making a distinction from ‘protests and demonstrations’, which includes the actions described above. Arguably, drawing such a line may be blurry in practice. In other words, at what point does an athlete’s expression of a view become political protest? This question is particularly relevant given the broad interpretation the Guidelines have taken on what constitutes political protest. In the end, while the Guidelines claim that this is only to ensure that everyone ‘can enjoy the experience of the Olympic Games without any divisive disruption’, such a broad interpretation of Rule 50 arguably goes beyond the attempt to prevent any ‘disruption’ to athletes’ achievements.

The consequences for athletes who do not follow these rules can be very serious. Bye-Law 1 to Rule 50 states that if such ‘propaganda’ appears on an athlete’s clothing or equipment (e.g. an armband or hidden t-shirt), they may be disqualified. The Guidelines, on the other hand, remain rather vague. Instead, each case is to be decided by the athlete’s ‘National Olympic Committee, International Federation and the IOC’ and ‘disciplinary action’ will be decided on an individual basis. Nevertheless, given simply the looming threat of a disqualification, it is likely that the vast majority of athletes will simply fall into line.[9]

 

b.    Sport Nationalism and Medal Tables

The clearest example of the wilful disregard of the Olympic Movement to combat sport nationalism is its tacit acceptance of Olympic medal tables despite an explicit ban in the Olympic Charter. The foundations of this ban can be found in Rule 6 of the Olympic Charter which stipulates that the ‘Olympic Games are competitions between athletes in individual or team events and not between countries’ (emphasis added). Rule 57 then specifically addresses medal tables, stating that the ‘IOC and the OCOG shall not draw up any global ranking per country’. Finally, Rule 27 (6) highlights how NOCs bear a special responsibility to ‘preserve their autonomy and resist all pressures of any kind, including but not limited to political, legal, religious or economic pressures which may prevent them from complying with the Olympic Charter’. With this framing, while the IOC and OCOG are not allowed to create a medal table, the NOCs have essentially been left off the hook. In practice, NOCs have not hesitated to boast of their performances on medal tables. For instance, the United States Olympic Committee jumped at the opportunity to celebrate how it had topped the medal chart for the ‘6th straight games’ at Rio 2016.[10] In the meantime, political leaders and the media continue to gush over the achievements of their countries through their standing in the medal table.[11] While hosting Olympic athletes at the White House, Obama emphasized how Team USA had ‘won the most medals by far’ at the Rio Games.[12] Additionally, national governments are aware of their standings in medal tables and have used them to shape their sport policies, including funding for elite sport.[13] NOCs play a role here as well. For example, the Dutch NOC*NSF, in its overview of its elite sport strategy and finance, has set its goal to be a top 10 nation in elite sport, which involves ‘striving for more medals’.[14] Indeed, the determination of whether a nation is in the top 10 presupposes the creation of some sort of ‘global ranking per country’. Lastly, concerning the media, the IOC’s editorial guidelines for Olympic properties at Rio 2016 even clearly states that it has ‘no objection’ to medal tables in published material.[15]

The Olympic Charter requires the IOC ‘to oppose any political ... abuse of sport and athletes’.[16] All the above examples are illustrations of using sport and athletes’ achievements for political purposes.[17] Given this picture, it could be argued that the IOC has increasingly taken a rather laid back approach to medal tables and does not seem to mind how other actors – both within and outside the Olympic Movement – use them to stimulate a country versus country narrative around the Olympic Games.[18] In essence, medal tables paint those countries at the top as the winners and those at the bottom as the losers, further elevating nationalist politics: the myth of the nations of the innately strong and those of the weak. The IOC, as the ‘supreme authority’ of the Olympic Movement, could adopt a stronger tone to push back against the omnipresent nature of medal tables within the Games as it stands in complete opposition to its fundamental principles.[19] Indeed, part of the IOC’s mission is to ‘to take action to strengthen the unity of the Olympic Movement, to protect its independence, to maintain and promote its political neutrality and to preserve the autonomy of sport’ (emphasis added).[20] But there is no unity in the Olympic Movement concerning medal tables, only disarray, ranging from tacit acceptance to zealous celebrations of a nation’s ranking.

3.     Unveiling the Hypocrisy

In view of this, there seems to be a disparity in the Olympic Movement’s approach to politics when it comes from athletes, where there is the potential for severe sanctions, compared to sport nationalism arising from medal tables, where it seems to have all but accepted their existence. Looking beyond simply medal tables, so much of the Olympic Games emphasizes a competition between countries, further stimulating sport nationalism: (1) an opening ceremony where athletes march into an arena behind their nation’s flag and where the host puts on ‘cultural performances’ that ‘dramatize national myths, experiences, and values’[21]; (2) national anthems that are religiously played during each medal ceremony while national flags are hoisted up; (3) the way in which many team sports are played between countries. More credence is given to this view when one also observes how the media – and sometimes even NOCs -  help push a country versus country narrative, which can potentially overshadow athletes’ individual accomplishments.[22] The constant flood of national imagery during the Games casts doubt on the idea that the Olympic Games is not a competition between countries, creating greater friction between the ideas of ‘universalism and nationalism’.[23] It should also be recalled, as was pointed out in the first blog, that states use sport nationalism to help push foreign and internal political agendas.  Some have argued that in this way sport can be ‘regarded as compensation, a sense of nostalgia or as a cure against the erosion of national identity’, even becoming ‘an alternative to war’.[24] Others have taken another view that instead of acting as a sort of pressure release, the Games ‘may provide opportunities for extending and exacerbating nationalist-inspired conflicts’, further entrenching nationalism.[25]

However, this blog is not arguing that the IOC should take heavy handed action to discourage the media from tallying up medals or to reel in a NOC’s pride in the performance of its athletes or to rid the Olympic Games of all signs of national imagery. On the contrary, it seems that the idea to minimize sport nationalism through the inclusion of Rule 6 and 57 of the Olympic Charter should be characterized as an expression of a lofty ideal that personifies international unity – i.e. something to be aspired to but not some concrete goal to be realized through rigorous enforcement. Again, it is completely legitimate for the Olympic Movement to strive for this ideal and to also defend its political neutrality. Yet, given how the IOC has all but accepted this form of politics (sport nationalism), it is puzzling why it has not taken a more tolerant approach to political expression from athletes, including protests/demonstrations, especially when considering how medal tables arguably pose a far greater threat to the fundamental principles of the Olympic Movement.[26] Perhaps given how sports can help stir national pride within a populace, it is possible that this phenomenon may encourage more viewership hours. Consequently, presenting the Games as a country versus country competition may be more lucrative. On the other hand, potentially unpredictable athlete protests may risk dividing audiences and may also put Olympic sponsors on edge. But assuming this is the case, is this reason enough to ban such expression altogether?

Regardless, in the same way sport nationalism will likely never be completely erased, athletes’ political expression will continue to be part of the Olympic fabric. Fundamentally, it all boils down to whether it is truly possible to disentangle politics and sport? If so, is it realistic or even desirable? One could maybe argue that this unbundling is necessary to promote international unity and to ensure the universality, neutrality and autonomy of sport. However, how far should the Olympic Movement go to achieve this result and is such a consequentialist approach appropriate considering the pressures it places on athletes – i.e. do the ends justify the means? I would argue that this process of sanitization is burdened with too many moral concerns and is an enforcement minefield in practice. While outside the scope of this blog, it should be noted that it is not difficult to imagine an athlete challenging the concerned provisions on the basis of human rights and/or EU law.

All things considered, the IOC chooses the kind of politics it is willing to tolerate within its sphere of influence. The national structures within the Olympic Movement, the influence of national governments, and the seducing narratives of nationalism create significant headwinds in favor of the politics of sport nationalism. Therefore, the IOC, an entity that embodies the transnational, has a responsibility to be a counterbalance in this system.[27] In doing so, the IOC - the leader of the Olympic Movement – should defend, or at least tolerate, the free expression of its ‘people’, the athletes. This is not a radical proposition. It is worth remembering that athletes form an integral part of the Olympic Movement.[28] Simply respecting the free expression of athletes does not automatically sacrifice the political neutrality of the Olympic Movement.

4.     Conclusion

Over the past year, the IOC has faced increasing public pressure, particularly from athlete stakeholders (see here, here and here) to reverse its course concerning Rule 50 of the Olympic Charter. As a result, it announced that the IOC Athletes Commission would conduct a consultation process concerning Rule 50. The IOC Athletes Commission just recently finished its consultation and its ‘recommendations will be presented to the IOC Executive Board by the end of April 2021’. Meanwhile, NOCs have also individually taken certain steps to allow more athlete activism, such as the US Olympic and Paralympic Committee (USOPC) which has committed to not sanction athletes who ‘peacefully and respectfully’ protest ‘in support of racial and social justice for all human beings’. In this regard, the USOPC declared that ‘human rights are not political, calls for equity and equality must not be confused with divisive demonstrations’. While perhaps attractive at first glance, the USOPC is only moving the goalposts by playing semantics with ‘politics’ by narrowing its definition to eliminate ‘human rights’[29] from its ambit. In doing so, the USOPC does not explain why human rights are not political issues. The reality is that the scope and implications of human rights remain hotly contested issues everywhere in the world, they can hardly be depoliticized. Nevertheless, the softening of the USOPC’s position and its acknowledgement of some its past mistakes is a good start.[30]

In view of today’s strong social currents, the IOC may be forced to abandon its dream of a pure and apolitical Olympic Games. Politics has and will continue to ooze into the sanitized spaces of the Olympic Games. Allowing athletes to raise their voice during the Games would allow them to share their political views with the world, instead of confining them to remaining passive laborers in the Olympic economy subject to the power politics of states.


[1] Although the current IOC President, Thomas Bach, would likely dispute this point. Bach recently argued: ‘Neither awarding the Games, nor participating, are a political judgment regarding the host country.’ See Thomas Bach, ‘The Olympics are about diversity and unity, not politics and profit. Boycotts don't work’ (The Guardian, 24 October 2020).

[2] This is by no means an exhaustive list.

[3] Philip Barker, ‘The forbidden Olympic table’ (Inside the Games, 24 January 2020).

[4] See how the Washington Post gleefully counts the number of US gold medals and celebrates the fact that the U.S. has ‘more than double any other country’s count’. See Team GB’s (British Olympic Association) fervent count of its medals at Rio 2016. See also Team USA’s (U.S. Olympic and Paralympic Committee) glorification of its record-breaking medal count at the Rio 2016.

[5] For example when athletes are used during photo ops for political leaders around the world. See United States (Trump and Obama), Russia (here and here), and The Netherlands among many others.

[6] Ivo van Hilvoorde, Agnees Elling and Ruud Stokvis, ‘How to influence national pride? The Olympic medal index as a unifying narrative’ [2010] 45 International Review for the Sociology of Sport 87.

[7] Jackie Hogan, ‘Staging The Nation: Gendered and Ethnicized Disources of National Identity in Olympic Opening Ceremonies’ [2003] 27 Journal of Sport and Social Issues 100.

[8] Rule 50: ‘No kind of demonstration or political, religious or racial propaganda is permitted in any Olympic sites, venues or other areas.’

[9] Indeed, athletes have been banned for life in the past for political actions. For instance, Vince Matthews and Wayne Collett who were banned for life after a podium protest at the 1972 Munich Olympics. Recently, there have been calls to undo their life bans.

[10] See also Team GB’s tracking of its own ‘record-breaking’ medal performance at the Rio Games.

[11] For some examples of the media obsession around the Olympic Games’ medal tables see: ‘Tokyo Olympics 2020 medal table: How does it work, which country usually wins and what are Britain's hopes?’ (The Telegraph, 26 January 2021); ‘Rio Olympics 2016: Team GB’s record breakers return home from Rio’ (BBC, 23 August 2016). ‘2020 Olympics: USA forecast to top medals table with GB and Australia fifth’ (The Guardian, 23 July 2019); Lazaro Gamio, Kim Soffen and Chiqui Esteban, ‘1,000 Times Gold’ (The Washington Post).

[12] Some have even suggested that the US performance at the 2012 London Olympics could have contributed to a boost in Obama’s polling for the presidential election that year. See John Cassidy, ‘Did the Olympics Boost Obama?’ (The New Yorker, 10 August 2012).

[13] See Germany’s concern of its place in medal rankings to justify restructuring its funding for elite sport. This is also acknowledged by van Hilvoorde, Elling and Stokvis (n 6).

[14] Original: ‘We streven naar meer medailles, in meer disciplines, met meer impact.’

[15] The Pyeongchang editorial guidelines (page 14) do not discourage their use.

[16] Rule 2 (11) Olympic Charter.

[17] See also other examples of the abuse of sport and athletes for political purposes by ‘states that use the Games for geo-political posturing’ in the first blog of this series.

[18] On the narratives around medal tables and the Games see van Hilvoorde, Elling and Stokvis (n 6).

[19] Rule 1 (1) Olympic Charter. Principles such as political neutrality and the autonomy and universality of sport.

[20] Rule 2 (5) Olympic Charter.

[21] Hogan (n 7).

[22] The media may also help stir nationalism by depicting the athletes of its home-nation as ‘succeeding because of their intellect, commitment, and consonance’ while foreign athletes fail due to insufficient ‘strength and skill’. See James Angelini, Andrew Billings and Paul MacArthur, ‘The Nationalistic Revolution Will Be Televised: The 2010 Vancouver Olympic Games on NBC’ [2012] 5 International Journal of Sport Communication 193. Also – Andrew Billings and others, Nationalistic Notions of the Superpowers: Comparative Analyses of the American and Chinese Telecasts in the 2008 Beijing Olympiad [2011] 55 Journal of Broadcasting & Electronic Media 251. Again, on narratives surrounding the Games and medal tables see van Hilvoorde, Elling and Stokvis (n 6).

[23] See Hogan (n 7). See also John Hargreaves, ‘Olympism and Nationalism: Some Preliminary Consideration’ [1992] 27 International Review for the Sociology of Sport 119.

[24] van Hilvoorde, Elling and Stokvis (n 6). See also George Orwell’s description of nationalism and sport in ‘The Sporting Spirit’.

[25] Hargreaves (n 23). It is interesting to note Hargreaves mentions how the Olympic Movement in of itself could perhaps be a sort of counterweight to such a ‘international relation model’. However, given how the Olympic Movement seems to have in many respects abandoned its fight against sport nationalism in the decades since, this caveat has arguably lost much of its weight.

[26] IOC President Thomas Bach even recognizes the trends of ‘rising nationalism’.

[27] This relates to Hargreaves’ point of the Olympic Movement acting to a certain extent autonomously and not simply ‘instruments of foreign policy’ of states. See Hargreaves (n 23).

[28] Rule 1 (1) Olympic Charter: ‘Under the supreme authority and leadership of the International Olympic Committee, the Olympic Movement encompasses organisations, athletes and other persons who agree to be guided by the Olympic Charter. The goal of the Olympic Movement is to contribute to building a peaceful and better world by educating youth through sport practised in accordance with Olympism and its values.’ (emphasis added)

[29] It is possible that the USOPC primarily is referring to ‘racial and social justice’.

[30] The USOPC also recognized its past errors in taking positions against athletes in previous instances.

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