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: The Impact of the TPO Ban on South American Football. By Ariel N. Reck

Introduction: FIFA’s TPO ban and its compatibility with EU competition law.
Day 1: FIFA must regulate TPO, not ban it.
Day 2: Third-party entitlement to shares of transfer fees: problems and solutions
Day 4: Third Party Investment from a UK Perspective.
Day 5: Why FIFA's TPO ban is justified.

Editor’s note: Ariel N. Reck is an Argentine lawyer specialized in the football industry. He is a guest professor at ISDE’s Global Executive Master in International Sports Law, at the FIFA CIES Sports law & Management course (Universidad Católica Argentina) and the Universidad Austral Sports Law diploma (Argentina) among other prestigious courses. He is a regular conference speaker and author in the field of sports law.

Being an Argentine lawyer, Ariel will focus on the impact FIFA’s TPO ban will have (and is already having) on South American football.More...





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...

Asser International Sports Law Blog | A Reflection on Recent Human Rights Efforts of National Football Associations - By Daniela Heerdt (Tilburg University)

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 Reflection on Recent Human Rights Efforts of National Football Associations - By Daniela Heerdt (Tilburg University)

Editor's Note: Daniela Heerdt is a PhD researcher at Tilburg Law School in the Netherlands. 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 a number of articles on mega-sporting events and human rights, in the International Sports Law Journal, Tilburg Law Review, and the Netherlands Quarterly of Human Rights.

 

In the past couple of years, the Fédération Internationale de Football Association (FIFA) made remarkable steps towards embedding human rights into their practices and policies. These developments have been discussed at length and in detail in this blog and elsewhere, but a short overview at this point is necessary to set the scene. Arguably, most changes were sparked by John Ruggie’s report from 2016, in which he articulated a set of concrete recommendations for FIFA “on what it means for FIFA to embed respect for human rights across its global operations”, using the UN Guiding Principles on Business and Human Rights (UNGPs) as authoritative standard.[i] As a result, in May 2017, FIFA published a human rights policy, in which it commits to respecting human rights in accordance with the UNGPs, identifies its salient human rights risks, and acknowledges the potential adverse impacts it can have on human rights in general and human rights of people belonging to specific groups. In October 2017, it adopted new bidding regulations requiring bidders to develop a human rights strategy and conduct an independent human rights risk assessment as part of their bid. In March 2017, FIFA also created a Human Rights Advisory Board, which regularly evaluated FIFA’s human rights progress and made recommendations on how FIFA should address human rights issues linked to its activities. The mandate of the Advisory Board expired at the end of last year and the future of this body is unknown at this point.

While some of these steps can be directly connected to the recommendations in the Ruggie report, other recommendations have largely been ignored. One example of the latter and focus of this blog post is the issue of embedding human rights at the level of national football associations. It outlines recent steps taken by the German football association “Deutscher Fussball-Bund” (DFB) and the Dutch football association “Koninklijke Nederlandse Voetbalbond” (KNVB) in relation to human rights, and explores to what extent these steps can be regarded as proactive moves by those associations or rather spillover effects from FIFA’s human rights efforts.

The DFB

Since 2017, DFB runs a working group on the association’s human rights concept. This was triggered by DFB’s application to host the EURO 2024 and the social programs around the 2018 World Cup. In particular, the required human rights strategy for the EURO 2024 application led DFB to adopt a statutory commitment to human rights in 2019. Paragraph 2 of DFB’s Statutes read as follows:

“The DFB takes responsibility for respecting all internationally-recognized human rights and promotes the respect for these rights. It strictly opposes unconstitutional behaviour as well as any form of discriminatory or inhuman attitudes and behaviours. This applies to every form of violence, irrespective of it being of physical or mental nature. The DFB commits in particular to the protection of children and youth from sexual abuse”.[ii]

The human rights strategy for the 2024 tournament has been developed through engaging a variety of stakeholders, including the German Human Rights Institute, the German Olympic Committee and a range of civil society organizations representing the rights of children or fans amongst others. According to the DFB and some of these stakeholders, the strategy builds on and streamlines existing initiatives regarding corporate social responsibility and youth work. The DFB claims that human rights have been part of the DFB’s national and international activities for years, although not framed within recognized human rights standards. Since 2010, its Ethics Code enshrines values such as respect, diversity, integrity, transparency and solidarity in football. Moreover, it promotes projects on participation, integration, fair play, diverse fan cultures, and the prevention of violence and promotion of equality both at grass-roots and elite level sports. This certainly provides a good vantage point for DFB’s human rights efforts. Currently, the DFB is finalizing its human rights policy, and in the meantime, a number of smaller initiative were taken, such as the organization of hearings on the issue of political statements of players in 2020.

The KNVB

Last month, the KNVB announced its support for the adoption of a sport and human rights covenant, similar to the existing agreements on international responsible business conduct. In its announcement, it acknowledges the unique position of sports to promote human rights and highlights the need to use this power also in the context of international tournaments. According to the KNVB, such a covenant would advance collaboration with governments in host countries and help to address issues, promote dialogue and investigation, facilitate the exchange of knowledge and information, and create a level-playing field. Moreover, the KNVB claims that it can help to foster sustainable positive change regarding the human rights situation in host countries and provide players and associations with a responsible manner to participate in international tournaments.

KNVB’s call for a covenant has not been without criticism. Amnesty Netherlands explicitly voiced their concerns regarding the initiative on twitter, welcoming the efforts of KNVB to look at the human rights situation in Qatar in more detail, but opposing the creation of a covenant, for the reason that it would not provide any remedy to migrant workers in Qatar. The hazardous and inhuman working conditions on World Cup-related construction sites have been documented extensively, including in a recent study conducted by Amnesty Netherlands. These reports show that despite legislative changes to Qatar’s labour law, changes on the ground are lacking and additional human rights issues related to the 2022 World Cup, such as the protection of LGBTQI fans remain largely unaddressed. While the KNVB published its point of views on a World Cup in Qatar together with a list of initiatives regarding the tournament, these points and measures are rather broad and do not explicitly address existing human rights risks. An exception is an event planned for this year on human rights and sport events hosted together with the Dutch House of Representatives.

In addition to KNVB’s recent decision to adopt a sport and human rights covenant, a number of existing KNVB initiatives are worth highlighting from a human rights perspective. For instance, the KNVB was one of the football associations pushing FIFA to integrate human rights requirements into bidding regulations for international tournaments. Other examples relate more to the day-to-day business of football, rather than events, such as KNVB’s efforts on promoting diversity and countering racism and other forms of discrimination within the world of Dutch football. While these efforts are clearly linked to human rights standards, they are not framed in a human rights language, nor streamlined under a commitment to human rights.

FIFA’s ‘trickle down effect’ or civil society pressure?

On a global scale, the DFB and KNVB might be the pioneers of national football associations starting concrete efforts to embed human rights into their policies and practices. Clearly, the DFB is a couple of steps ahead of the KNVB, but both associations are committed to in particular addressing human rights issues in host countries of football tournaments. Furthermore, both draw inspiration from the broader business and human rights movement and explicitly reference the respective National Action Plans on business and human rights, which are policy documents adopted by the governments to implement the UNGPs. However, it becomes clear that through focusing on human rights risks related to host countries of international tournaments, the KNVB only reacts to a fraction of the actual human rights risks involved in the world of football.

Nevertheless, both associations are making a start and in order to find ways for encouraging other national football associations to follow suit, it is essential to understand what triggered these recent initiatives and changes. Arguably, there are two possible explanations. The first is that FIFA’s human rights efforts begin to have a trickle down-effect. The need for this has been stressed by Ruggie in his 2016 report. He recommends FIFA to adopt a human rights policy that applies to its relationships with its member associations (Recommendation 1.1) and advises FIFA to use its annual member associations’ conferences to raise awareness on human rights responsibilities of national football associations (Recommendation 4.5). Moreover, he recommends that “FIFA should ensure that the human rights commitment in Article 3 of the FIFA Statutes is mirrored in the requirements of the Standard Statutes for member associations, and is also extended to the requirements for confederations’ statutes at the earliest opportunity” (Recommendation 1.3). While FIFA has not yet adapted the Standard Statutes for member associations, DFB nevertheless decided to mirror FIFA’s statutory human rights commitment in its own Statutes. In fact, when presenting its human rights efforts on its website, the DFB explicitly refers to FIFA’s human rights policy and human rights-related regulations of UEFA.

The second explanation concerns the increasing pressure from civil society in both countries, due to the 2022 World Cup coming closer, but also due to the rise of reports on cases of abuse in the world of football in the past years. In particular the cases of mental, physical, and sexual abuse of female football players on the national team of Afghanistan & Haiti made international headlines, as well as the recent revelations of cases of sexual abuse of young football players in clubs in the United Kingdom in the 1970s. While these types of abuses where not explicitly addressed in Ruggie’s report, it does identify gender discrimination as “endemic human rights challenge” for the world of association football.[iii] Pressure on national football associations arguably also increased through national and regional regulation. Both associations seem to acknowledge the parallels to the broader business and human rights movement, which currently sees a trend of mandatory due diligence laws on national and regional levels. The fact that football is big business, both on a day-to-day basis and when big tournaments are happening is uncontested. Therefore, there is no doubt that the UNGPs’ corporate responsibility to respect human rights applies to national football associations and that the UNGPs provide a good starting point and framework for national football associations to understand and implement their human rights responsibilities.

Conclusion

Obviously, these two explanations are not mutually exclusive and FIFA’s human rights journey plays an important role in the efforts taken by the DFB and the KNVB. Moreover, the importance of Ruggie’s report in 2016 cannot be underestimated. Nevertheless, it seems like some of these recent human rights efforts by national football associations are rather reactive than proactive, following FIFA’s lead and the pressure by civil society on the world of sports more generally. As long as the result would be the same, it should not matter much. That, however, is questionable when it comes to sport and human rights. Reacting to specific issues when they arise can result in a piece-meal approach that might not only be more labour intensive but more importantly is likely to overlook a range of human rights risks related to the world of football and sports more generally. Therefore, a comprehensive approach is key to understanding the human rights risks involved and identifying ways to address these risks.[iv]

The hope is that DFB’s and KNVB’s efforts will develop further and eventually ensure that human rights are fully embedded and respected in the world of (national) football. Very concretely, these efforts can have great potential for the joint bid of these two countries together with Belgium for the 2027 Women’s World Cup, which provides a good opportunity for knowledge exchange between those associations on their human rights efforts.


[i] John G Ruggie, ‘“For the Game. For the World.” - FIFA and Human Rights’ (2016) 4

[ii] Translated by the author. See original source here.

[iii] John G Ruggie, ‘“For the Game. For the World.” - FIFA and Human Rights’ (2016) 24

[iv] Sally Engle Merry, The Seductions of Quantification: Measuring Human Rights, Gender Violence, and Sex Trafficking (The University of Chicago Press 2016) 46; Daniela Heerdt & Nadia Bernaz, Football and Women’s Rights: the Case for Indicators for FIFA’s Feminist Transformation (2020) 34, Jean Monnet Working Paper 5/20.

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