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 – January 2018 - 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. 


The Headlines 

Anti-doping whereabouts requirements declared compatible with the athletes' right to privacy and family life

On 18 January 2018, the European Court of Human Rights rendered a judgment with important consequences for the world of sport in general and the anti-doping regime in particular. The Strasbourg-based court was called upon to decide whether the anti-doping whereabouts system – which requires that a limited number of top elite athletes provide their National Anti-Doping Organisation or International Federation with regular information about their location, including identifying for each day one specific 60-minute time slot where the athlete will be available for testing at a pre-determined location – is compatible with the athletes' right to private and family life under Article 8 of the European Convention on Human Rights and their freedom of movement pursuant to Article 2 Protocol No. 4 of the Convention. The case was brought by the French cyclist Jeannie Longo and five French athlete unions that had filed their application on behalf of 99 professional handball, football, rugby, and basketball players.

While acknowledging that the whereabouts requirements clash with the athletes' right to private and family life, the judges took the view that such a restriction is necessary in order to protect the health of athletes and ensure a level playing field in sports competitions. They held that ''the reduction or removal of the relevant obligations would lead to an increase in the dangers of doping for the health of sports professionals and of all those who practise sports, and would be at odds with the European and international consensus on the need for unannounced testing as part of doping control''. Accordingly, the judges found no violation of Article 8 of the Convention and, in a similar vein, ruled that Article 2 Protocol No. 4 of the Convention was not applicable to the case.

 

Football stakeholders preparing to crack down on agents' excessive fees

It has been a record-breaking January transfer window with Premier League clubs having spent an eye-watering £430 million on signing new acquisitions. These spiralling transfer fees enable football agents, nowadays also called intermediaries, to charge impressive sums for their services. However, this might soon no longer be the case as the main stakeholders in European football are preparing to take action. UEFA, FIFPro, the European Club Association and the European Professional Football Leagues acknowledge in their joint resolution that the 2015 FIFA Regulations on Working with Intermediaries failed to address serious concerns in relation to the activities of intermediaries/agents. They recognise in broad terms that a more effective regulatory framework is needed and call among other things for a reasonable and proportionate cap on fees for intermediaries/agents, enhanced transparency and accountability, or stronger provisions to protect minors.

 

The CAS award in Joseph Odartei Lamptey v. FIFA 

On 15 January 2018, FIFA published on its website an arbitral award delivered on 4 August 2017 by the Court of Arbitration for Sport (CAS) in the dispute between the Ghanian football referee Joseph Odartei Lamptey and FIFA. The CAS sided with FIFA and dismissed the appeal filed by Mr Lamptey against an earlier decision of the FIFA Appeal Committee which (i) found him to have violated Article 69(1) of the FIFA Disciplinary Code as he unlawfully influenced the 2018 World Cup qualifying match between South Africa and Senegal that took place on 12 November 2016; (ii) as a consequence, banned him for life from taking part in any football-related activity; and (iii) ordered the match in question to be replayed. In reaching its conclusion, the CAS relied heavily on multiple reports of irregular betting activities that significantly deviated from usual market developments.  More...


Towards a Suitable Policy Framework for Cricket Betting in India - By Deeksha Malik

Editor's note: Deeksha Malik is a final-year student at National Law Institute University, India. Her main interest areas are corporate law, arbitration, and sports law. She can be reached at dkshmalik726@gmail.com.


In 2015, while interrogating cricketer Sreesanth and others accused in the IPL match-fixing case, Justice Neena Bansal, sitting as Additional Sessions Judge, made the following observations as regards betting on cricket matches.

“Cricket as a game of skill requires hand-eye-coordination for throwing, catching and hitting. It requires microscopic levels of precision and mental alertness for batsmen to find gaps or for bowlers to produce variety of styles of deliveries’ (medium pace, fast, inswing, outswing, offspin, legspin, googly). The sport requires strategic masterminds that can select the most efficient fielding positions for piling pressure on the batsmen. Based on above description, cricket cannot be described anything, but as a game of skill.”

The debate on the issue of betting in sports has since resurfaced and gained the attention of sportspersons, media, sports bodies, policymakers, and the general public. In April 2017, the Supreme Court bench comprising of Justices Dipak Misra and AM Khanwilkar agreed to hear a public interest litigation (PIL) seeking an order directing the government to come up with an appropriate framework for regulating betting in sports. The arguments put forth in the PIL present various dimensions. One of these pertains to economic considerations, a submission that regulated betting would be able to generate annual revenue of Rs. 12,000 crores by bringing the earnings therefrom within the tax net. As for policy considerations, it was submitted that a proper regulation in this area would enable the government to distinguish harmless betting from activities that impair the integrity of the game such as match-fixing. Further, betting on cricket matches largely depends on the skill of the concerned players, thereby distinguishing it from pure chance-based activities.

The issue of sports betting witnesses a divided opinion till this day. This is understandable, for both sides to the issue have equally pressing arguments. Aside from its regulation being a daunting task for authorities, sports betting is susceptible to corruption and other unscrupulous activities. At the same time, it is argued that it would be better for both the game and the economy if the same is legalised. More...


International and European Sports Law – Monthly Report – December 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.

 

The Headlines 

The International Skating Union's eligibility rules declared incompatible with EU competition law

On 8 December 2017, the European Commission announced that it had rendered a decision in the case against the International Skating Union (ISU). The Commission upheld the complaint lodged in October 2015 by two Dutch professional speed skaters Mark Tuitert and Niels Kerstholt, represented in this case by Ben Van Rompuy and Antoine Duval (you can read their joint statement here), and ruled that the ISU's eligibility rules preventing athletes from participating in speed skating competitions not approved by the ISU under the threat of severe penalties are in violation of EU competition law. In particular, the Commission held that these rules restrict the commercial freedom of (i) athletes who may be deprived of additional source of income as they are not allowed to participate in speed skating competitions other than those authorised by the ISU; and (ii) independent organisers who are unable to attract top athletes. And while the Commission recognised that sporting rules with restrictive effects might be compatible with EU law if they pursue a legitimate objective such as the protection of athletes' health and safety or the protection of the integrity and proper conduct of sport, it found that the ISU's eligibility rules pursue only its own commercial interests to the detriment of athletes and independent organisers of speed skating competitions. The ISU eventually escaped financial sanctions, but it must modify or abolish its eligibility rules within 90 days; otherwise it would be liable for non-compliance payments of up to 5% of its average daily turnover. For more information on this topic, we invite you to read our recent blog written by Professor Stefano Bastianon.

 

The International Olympic Committee bans Russia from the upcoming Winter Olympic Games

The world has been waiting impatiently for the International Olympic Committee's (IOC) decision on the participation of Russian athletes in the upcoming 2018 Winter Olympic Games in Pyeongchang. This was finally communicated on 5 December 2017. Having deliberated on the findings of the Schmid Commission, the IOC Executive Board decided to suspend the Russian Olympic Committee with immediate effect, meaning that only those Russian athletes who demonstrate that they had not benefited from the state-sponsored doping programme will be able to participate in the Games. Such clean athletes will be allowed to compete under the Olympic Flag, bearing the name 'Olympic Athlete from Russia (OAR)' on their uniforms. Further to this, the IOC Executive Board sanctioned several officials implicated in the manipulation of the anti-doping system in Russia, including Mr Vitaly Mutko, currently the Deputy Prime Minister of Russia and formerly the Minister of Sport. Mounting public pressure subsequently forced Mr Mutko to step down as head of the Local Organising Committee for the 2018 FIFA World Cup.

Meanwhile, 21 individual Russian athletes were sanctioned (see here, here, here, and here) in December (in addition to 22 athletes in November) by the IOC Oswald Commission that is tasked with investigating the alleged doping violations by Russian athletes at the 2014 Winter Olympic Games in Sochi. The Oswald Commission also published two full decisions in the cases against Evgeny Belov and Aleksandr Tretiakov who were both banned from all future editions of the Games. It is now clear that the Court of Arbitration for Sport will have quite some work in the coming weeks as the banned athletes are turning to this Swiss-based arbitral tribunal to have their sanctions reviewed (see here and here).

 

Universal Declaration of Player Rights

14 December 2017 was a great day for athletes all over the globe. On this day, representatives of the world's leading player associations met in Washington D.C. to unveil the Universal Declaration of Player Rights, a landmark document developed under the aegis of the World Players Association that strives to protect athletes from ongoing and systemic human rights violations in global sport. The World Players Association's Executive Director Brendan Schwab emphasised that the current system of sports governance ''lacks legitimacy and fails to protect the very people who sit at the heart of sport'' and stated that ''athlete rights can no longer be ignored''. Among other rights, the Declaration recognises the right of athletes to equality of opportunity, fair and just working conditions, privacy and the protection of personal data, due process, or effective remedy.

 

Chris Froome failed a doping test during the last year's Vuelta a España

The world of cycling suffered yet another blow when it transpired that one of its superstars Chris Froome had failed a doping test during the last year's Vuelta a España, a race he had eventually emerged victorious from for the first time in his career. His urine sample collected on 7 September 2017 contained twice the amount of salbutamol, a medication used to treat asthma, than permissible under the World Anti-Doping Agency's 2017 Prohibited List. Kenyan-born Froome has now hired a team of medical and legal experts to put forward a convincing explanation for the abnormal levels of salbutamol in his urine and thus to avoid sanctions being imposed on him. More...

The ISU Commission's Decision and the Slippery Side of Eligibility Rules - By Stefano Bastianon (University of Bergamo)

Editor’s note: Stefano Bastianon is Associate Professor in European 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. From the very beginning, the outcome of the ISU case was highly predictable, at least for those who are familiar with the basics of antitrust law. Nevertheless, more than twenty years after the Bosman judgment, the sports sector has shown the same shortsightedness and inability to see the forest for the trees. Even this attitude was highly predictable, at least for those who know the basics of sports governance. The final result is a clear-cut decision capable of influencing the entire sports movement. More...



Human Rights as Selection Criteria in Bidding Regulations for Mega-Sporting Events – Part II: FIFA and Comparative Overview – By Tomáš Grell

The first part of this two-part blog examined the new bidding regulations adopted by the IOC and UEFA, and concluded that it is the latter who gives more weight to human rights in its host selection process. This second part completes the picture by looking at FIFA's bidding regulations for the 2026 World Cup. It goes on to discuss whether human rights now constitute a material factor in evaluating bids to host the mega-sporting events organised by these three sports governing bodies. More...

Human Rights as Selection Criteria in Bidding Regulations for Mega-Sporting Events – Part I: IOC and UEFA – By Tomáš Grell

Editor’s note: Tomáš Grell holds an LL.M. in Public International Law from Leiden University. He contributes to the work of the ASSER International Sports Law Centre as a research intern.


It has been more than seven years since the FIFA Executive Committee awarded the 2022 World Cup to Qatar. And yet only in November 2017 did the Qatari government finally agree to dismantle the controversial kafala system, described by many as modern-day slavery. Meanwhile, hundreds of World Cup-related migrant workers have reportedly been exposed to a wide range of abusive practices such as false promises about the pay, passport confiscation, or appalling working and living conditions.[1] On top of that, some workers have paid the highest price – their life. To a certain extent, all this could have been avoided if human rights had been taken into account when evaluating the Qatari bid to host the tournament. In such a case, Qatar would not have won the bidding contest without providing a convincing explanation of how it intends to ensure that the country's poor human rights record will not affect individuals, including migrant workers, contributing to the delivery of the World Cup. An explicit commitment to abolish the kafala system could have formed an integral part of the bid.

Urged by Professor John Ruggie and his authoritative recommendations,[2] in October 2017 FIFA decided to include human rights within the criteria for evaluating bids to host the 2026 World Cup, following similar steps taken earlier this year by the International Olympic Committee (IOC) and UEFA in the context of the Olympic Winter Games 2026 and the Euro 2024 respectively. This two-part blog critically examines the role human rights play in the new bidding regulations adopted by the IOC, UEFA, and FIFA. The first part sheds light on the IOC and UEFA. The second part then takes a closer look at FIFA and aims to use a comparative analysis to determine whether the new bidding regulations are robust enough to ensure that selected candidates abide by international human rights standards.More...


International and European Sports Law – Monthly Report – November 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.

 

The Headlines

FIFA and FIFPro sign landmark agreement

A six-year cooperation agreement concluded between FIFA and FIFPro on 6 November 2017 puts an end to protracted negotiations which began after the latter had filed in September 2015 a complaint with the European Commission, challenging the validity of the FIFA transfer system under EU competition law. This agreement, together with an accord reached between FIFA, FIFPro, the European Club Association, and the World Leagues Forum under the umbrella of the FIFA Football Stakeholders Committee, should help streamline dispute resolution between players and clubs, avoid abusive practices in the world of football, or contribute to the growth of professional women's football. In addition, the FIFA Football Stakeholders Committee is now expected to establish a task force to study and conduct a broader review of the transfer system. As part of the deal, FIFPro agreed to withdraw its EU competition law complaint.

FIFA strengthens its human rights commitment amid reports of journalists getting arrested in Russia

It is fair to say that human rights have been at the forefront of FIFA's agenda in 2017. Following the establishment of the Human Rights Advisory Board in March and the adoption of the Human Rights Policy in June this year, in November FIFA published the bidding regulations for the 2026 World Cup. Under these new regulations, member associations bidding to host the final tournament shall, inter alia, commit themselves to respecting all internationally recognised human rights in line with the United Nations Guiding Principles on Business and Human Rights or present a human rights strategy on how they intend to honour this commitment. Importantly, the human rights strategy must include a comprehensive report that is to be complemented and informed by a study elaborated by an independent expert organisation. Moreover, on 9 November 2017, the Human Rights Advisory Board published its first report in which it outlined several recommendations for FIFA on how to further strengthen its efforts to ensure respect for human rights.

While all these attempts to enhance human rights protection are no doubt praiseworthy, they have not yet produced the desired effect as reports of gross human rights abuses linked to FIFA's activities continue to emerge. Most recently, Human Rights Watch documented how Russian police arrested a newspaper editor and a human rights defender whose work focused on exposing World Cup-related corruption and exploitation of migrant construction workers. On a more positive note, a bit of hope comes with the announcement by a diverse coalition, including FIFA, UEFA, and the International Olympic Committee, of its intention to launch a new independent Centre for Sport and Human Rights in 2018.

More than 20 Russian athletes sanctioned by the Oswald Commission for anti-doping rule violations at the Sochi Games   

November has been a busy month for the International Olympic Committee, especially for its Oswald Commission. Established in July 2016 after the first part of the McLaren Independent Investigation Report had been published, the Oswald Commission is tasked with investigating the alleged doping violations by Russian athletes at the 2014 Winter Olympic Games in Sochi. Its first sanctions were handed down last month. As of 30 November 2017, the Commission chaired by the IOC Member Denis Oswald sanctioned 22 athletes (see here, here, here, here, here, and here) who competed at the Sochi Olympics in the following sports: biathlon, bobsleigh, cross country skiing, skeleton, and speed skating. The Commission published its first full decision on 27 November 2017 in the case against the cross country skier Alexander Legkov, a gold and silver medallist from the Sochi Olympics, who was ultimately banned for life from attending another Olympics.More...

Statement on the European Commission's ISU Decision by Ben Van Rompuy and Antoine Duval

Editor's note: We (Ben Van Rompuy and Antoine Duval) are at the origin of today's decision by the European Commission finding that the International Skating Union's eligibility rules are contrary to EU competition law. In 2014, we were both struck by the news that ISU threatened lifetime ban against speed skaters wishing to participate in the then projected Icederby competitions and convinced that it was running against the most fundamental principles of EU competition law. We got in touch with Mark and Niels and lodged on their behalf a complaint with the European Commission. Three years after we are pleased to see that the European Commission, and Commissioner Vestager in particular, fully embraced our arguments and we believe this decision will shift the tectonic structure of sports governance in favour of athletes for years to come.


Here is our official statement:

Today is a great day for Mark Tuitert and Niels Kerstholt, but more importantly for all European athletes. The European Commission did not only consider the International Skating Union's eligibility rules contrary to European law, it sent out a strong message to all international sports federations that the interests of those who are at the centre of sports, the athletes, should not be disregarded. This case was always about giving those that dedicate their lives to excelling in a sport a chance to compete and to earn a decent living. The majority of athletes are no superstars and struggle to make ends meet and it is for them that this decision can be a game-changer.

However, we want to stress that this case was never about threatening the International Skating Union’s role in regulating its sport. And we very much welcome the exceptional decision taken by the European Commission to refrain from imposing a fine which could have threatened the financial stability of the International Skating Union. The International Skating Union, and other sports federations, are reminded however that they cannot abuse their legitimate regulatory power to protect their economic interests to the detriment of the athletes.

We urge the International Skating Union to enter into negotiations with representatives of the skaters to devise eligibility rules which are respectful of the interests of both the athletes and their sport.

Since the summer of 2014, it has been our honour to stand alongside Mark and Niels in a 'David versus Goliath' like challenge to what we always perceived as an extreme injustice. In this fight, we were also decisively supported by the team of EU Athletes and its Chance to Compete campaign.

Finally, we wish to extend a special thank you to Commissioner Vestager. This case is a small one for the European Commission, but Commissioner Vestager understood from the beginning that small cases do matter to European citizens and that European competition law is there to provide a level playing for all, and we are extremely grateful for her vision.


Dr. Ben Van Rompuy (Leiden University) and Dr. Antoine Duval (T.M.C. Asser Instituut)

A Good Governance Approach to Stadium Subsidies in North America - By Ryan Gauthier

Editor's Note: Ryan Gauthier is Assistant Professor at Thompson Rivers University in Canada. Ryan’s research addresses the governance of sports organisations, with a particular focus on international sports organisations. His PhD research examined the accountability of the International Olympic Committee for human rights violations caused by the organisation of the Olympic Games.


Publicly Financing a Stadium – Back in the Saddle(dome)

Calgary, Canada, held their municipal elections on October 16, 2017, re-electing Naheed Nenshi for a third term as mayor. What makes this local election an interesting issue for sports, and sports law, is the domination of the early days of the campaign by one issue – public funding for a new arena for the Calgary Flames. The Flames are Calgary’s National Hockey League (NHL) team, and they play in the Scotiabank Saddledome. More...




Illegally obtained evidence in match-fixing cases: The Turkish perspective - By Oytun Azkanar

Editor’s Note: Oytun Azkanar holds an LLB degree from Anadolu University in Turkey and an LLM degree from the University of Melbourne. He is currently studying Sports Management at the Anadolu University.

 

Introduction

On 19 October 2017, the Turkish Professional Football Disciplinary Committee (Disciplinary Committee) rendered an extraordinary decision regarding the fixing of the game between Manisaspor and Şanlıurfaspor played on 14 May 2017. The case concerned an alleged match-fixing agreement between Elyasa Süme (former Gaziantepspor player), İsmail Haktan Odabaşı and Gökhan Sazdağı (Manisaspor players). The Disciplinary Committee acknowledged that the evidence relevant for proving the match-fixing allegations was obtained illegally and therefore inadmissible, and the remaining evidence was not sufficient to establish that the game was fixed. Before discussing the allegations, it is important to note that the decision is not only significant for Turkish football but is also crucial to the distinction between disciplinary and criminal proceedings in sports. More...

Asser International Sports Law Blog | Luxembourg calls…is the answer from Nyon the way forward? Assessing UEFA’s response to the ECJ’s ISU judgment - By Saverio Spera

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

Luxembourg calls…is the answer from Nyon the way forward? Assessing UEFA’s response to the ECJ’s ISU judgment - By Saverio Spera

 

Editor's note: Saverio P. Spera is an Italian qualified attorney-at-law. He has practiced civil and employment law in Italy and briefly worked at the Asser International Sports Law Centre before joining FIFA in 2017. Until May 2024, he has worked within the FIFA legal division - Litigation Department, and lectured in several FIFA sports law programmes. In the spring of 2024 he has co-founded SP.IN Law, a Zurich based international sports law firm.

 

 

On 21 December 2023 a judicial hat-trick stormed the scene of EU sports law. That day, the European Court of Justice (the “ECJ”) issued three decisions: (i) European Superleague Company, SL v FIFA and UEFA (Case C-333/21); (ii) UL and SA Royal Antwerp Football Club v Union royale belge des sociétés de football association ASBL (Case C-680/21)and (iii) International Skating Union (ISU) v. European Commission – Case C-124/21.

These judgments were much scrutinised (see herehere and here) in the past 6 months. For the reader’s relief, this paper will not venture into adding another opinion on whether this was a fatal blow to the foundation of EU sports law or if, after all, the substantive change is minimal (as persuasively argued here). It will analyse, instead, UEFA’s recent amendments of its Statutes and Authorisation Rules governing International Club Competitions (the “Authorisation Rules”) and whether these amendments, clearly responding to the concerns raised in the ISU judgment with respect to the sports arbitration system,[1] might pave the way for other Sports Governing Bodies (SGBs) to follow suit and what the implications for CAS arbitration might be.

 

The ISU judgement in a nutshell

On 23 June 2014, two professional speed skaters belonging to the Royal Netherlands Skating Federation (KNSB), Mr Tuitert and Mr Kerstholt, filed a complaint to the European Commission (the “Commission”) against the ISU (of which, the KNSB is a member) for an alleged violation of Article 101 and 102 TFEU by the ISU Prior Authorisation and Eligibility Rules. Three years later, on 8 December 2017, the Commission issued its decision, considering the compatibility with EU competition law of (i) the ISU Eligibility Rules (i.e., the provisions determining the conditions in which athletes could take part in skating competitions); (ii) the ISU Prior Authorisation Rules (i.e., the provisions setting out the procedure to follow in order to obtain from the ISU the authorisation to organise international skating competitions) and (iii) the ISU Arbitration Rules (i.e., the provisions establishing that, in case of disputes, the relevant ISU decision would have had to be appealed at the CAS).[2] In essence, the Commission found that the Eligibility and Prior Authorisation Rules did not satisfy the conditions required by Article 101(3) TFEU in order to benefit from an exemption and, importantly, that the Arbitration Rules had to be revised because they were reinforcing the restriction of commercial freedom already determined by the substantive rules under scrutiny. 

The ISU appealed the EC’s Decision to the General Court (the “GC”), seeking its annulment. On 16 December 2020, the GC issued its decision (the “Appealed Decision”) rejecting most of the appeal. However, the judges annulled the part of the EC’s Decision dedicated to the ISU Arbitration Rules. In essence, the GC considered that conferring exclusive jurisdiction to the CAS, a specialised arbitral tribunal capable of quickly resolving these disputes, was justified by legitimate interests linked to the specific nature of the sport.[3]

On 26 February 2021, the ISU filed an appeal to the ECJ against the ruling of the GC, while the speed skaters (supported by the Commission) filed a cross-appeal requesting to set aside the Appealed Ruling in so far as it annulled the part of the EC Decision that concerned the Arbitration Rules.  

Regarding these, the ECJ was not convinced by the GC’s conclusion that legitimate interests linked to the specific nature of sport can justify arbitration rules when they confer exclusive jurisdiction to the CAS to review decisions capable of touching upon public policy provisions of the EU (such as matters of EU competition law). Instead, it stressed that the contested Arbitration Rules concerned disputes that could arise in the context of economic activities linked to the organisation and marketing of international speed skating events. Hence, any disputes subjected to these Arbitration Rules come under EU competition law, and the relevant decision must comply with it.[4] The ECJ demanded that the court having jurisdiction to review the award perform an effective judicial review to guarantee that substantive rights – part of EU public policy – are safeguarded.[5] In this context, the ECJ also underlined that it is not sufficient to provide ex postremedies allowing parties to seek damages for violations of competition law condoned through the arbitration process.[6]


A standstill between two systems which inevitably cross paths

According to the ECJ, any provision or decision of an association of undertakings crossing the boundaries of “questions of interest solely to sport […] extraneous to any economic activity”[7] and potentially restrictive of competition must be scrutinised through the lens of EU competition law.

A problem of coexistence between two legal regimes that inevitably interact seems to be evident. On the one hand, the international sports arbitration system, with the CAS as specialised dispute resolution method and the SFT as judicial apex, and on the other EU law and the EU institutions.  

i.               The problem does not lie with the CAS in itself…

Notoriously, CAS panels do apply EU law when required.[8] The legislative basis upon which they do so is Article R58 CAS Code,[9] Article 19 of the Swiss Federal Act on Private International Law (PILA)[10]  and – depending on the circumstances – Article 187(1) PILA.[11] Over the years, CAS panels have regularly assessed the compatibility of regulations of UEFA and FIFA with EU Competition law. 

In CAS 2007/A/1287 Danubio FC v. FIFA & FC Internazionale Milano S.p.A., the panel analysed the compatibility of the FIFA solidarity mechanism with EU competition law. On that occasion, it recognised that “it is not only allowed, but also obliged to deal with the issues involving the application of EC law in the present matter”. The same conclusion was reached by other panels on several occasions over the years (see, inter aliaCAS 2009/A/1788 UMMC Ekaterinburg v. FIBA Europe e. V., In CAS 2012/A/2852 S.C.S Fotbal Club CFR 1907 Cluj S.A. & Manuel Ferreira de Sousa Ricardo & Mario Jorge Quintas Felgueiras v. FRFCAS 2014/A/3561 & 3614 IAAF & WADA).

A recent CAS award entirely revolved around the compatibility of the newly adopted FIFA Football Agents Regulations (FFAR) with EU law.[12]

The ECJ’s demands for an effective scrutiny through the lens of EU Competition law of certain types of regulations of associations of undertakings is thus met by the arbitral body having (almost invariably) exclusive jurisdiction to review them.

ii.              …but with the court which reviews its awards

However, while a CAS award can be challenged before the Swiss Federal Tribunal (SFT) on the ground of – inter alia – incompatibility with public policy,[13] Swiss public policy and EU public policy (which covers EU competition law[14]) are two very distinct concepts and the SFT (i) only takes the former into account and (ii) certainly does not refer questions to the ECJ for preliminary rulings. 

Hence, the failure to apply (or the wrong application of) EU law does not necessarily result in the setting aside of the relevant CAS award since it does not violate Swiss public policy.[15]

On a few occasions, the SFT has considered whether EU competition law is part and parcel of Swiss public policy.[16] In a judgment of 8 March 2006, the SFT rejected a request to set aside an arbitral award on the basis of a claimed incompatibility with substantive public policy due to an alleged violation of EU (and Italian) competition law. On that occasion, the SFT – once having formulated a definition of Swiss public policy[17] – determined that EU competition law does not meet the test.[18]

Thus, even if EU law is considered to be a mandatory foreign substantive law by the relevant arbitral panel, this does not make it part of the Swiss public order. The SFT seems to be content with the conclusion that the public policy weighing on the Court is different from the one weighing upon the arbitrator.[19]

Ultimately, the problem is not really the CAS per se, but the fact that it is seated in Switzerland.


Is UEFA paving a way forward to diffuse the potential conflict between CAS arbitration and EU competition law?

It is not the first time that the EU judges draw the SGBs’ attention to the fact that their rules and decisions are not adopted in a social and economic vacuum and that their (a priori legitimate) governing authority needs to account for its effects on the EU’s internal market. As illustrated in the ISU case, this extends to dispute resolution processes that are provided for in the SGBs’ rulebooks. 

UEFA has recently attempted to address these concerns by amending its Authorisation Rules and its Statutes. Article 16 of the Authorisation Rules, concerning ‘Dispute resolution’, was amended through the addition of paragraph 3 and 4 reading as follows:

3. CAS shall primarily apply the UEFA Statutes, rules and regulations and subsidiarily Swiss law. The party filing the statement of appeal and/or a request for provisional measures, whichever is filed first with CAS, shall indicate in its first written submission to CAS whether the party accepts Lausanne, Switzerland, as seat of the arbitration or if the seat of the arbitration shall be in Dublin, Ireland, in derogation of Article R28 of the CAS CodeIn the latter case, UEFA is bound by the choice of Dublin, Ireland, as seat of the arbitration and UEFA shall confirm its agreement to such seat in its first written reply to CAS. In case no seat is indicated in the first written submission to CAS, Article R28 of the CAS Code shall apply. 

4. The decision of CAS shall be deemed to be made at the seat of the arbitration determined as per paragraph (3) above. The CAS award shall mention the seat of the arbitration. The decision of CAS shall be final and binding to the exclusion of jurisdiction of any ordinary court or any other court of arbitration. This is without prejudice to the right of appeal of any party in accordance with the applicable law of the seat of the arbitration as well as the right to challenge the enforcement or recognition of a CAS award on grounds of public policy (which may include European Union public policy laws) in accordance with any applicable national or European Union procedural laws

Article 63 of Statutes, in turn, was modified in its paragraph 2 (now reading “CAS shall primarily apply the UEFA Statutes, rules and regulations and, subsidiarily, Swiss law. In addition, any party before CAS shall be entitled to raise mandatory provisions of foreign law in accordance with Article 19 of the Swiss Private International Law Act, which may include European Union public policy laws”) and an entirely new third paragraph was added to it:

3. CAS awards shall be final and binding to the exclusion of jurisdiction of any ordinary court or any other court of arbitration. This is without prejudice to the right to file an appeal against a CAS award before the Swiss Federal Tribunal in accordance with Swiss law and the right to challenge the enforcement or recognition of a CAS award on grounds of public policy (which may include European Union public policy laws) in accordance with any applicable national or European Union procedural laws or the right to file a case before a competent competition authority.

While laudable, the clarification in the Statutes does not add much to the picture. As seen, CAS panels were already applying foreign mandatory law. The new paragraph 3 does not seem to change the general balance of the UEFA arbitration rules either, since the possibility to challenge the enforcement or recognition of a CAS award existed already.

The changes to the Authorisation Rules are much more significant with regard to the CAS arbitration procedure. They concern disputes related to UEFA’s decisions not to authorise the organisation of International Club Competitions.[20]According to the Authorisation Rules, a potential organiser needs to meet administrative and financial criteria,[21]sporting and technical criteria,[22] ethical criteria,[23] sporting merit criteria,[24] and submit to UEFA a request for authorisation containing all the relevant information and supporting documents concerning the mentioned prerequisites in order to obtain authorisation to organise an International Club Competition.[25] Any dispute related to these rules has to be brought to the CAS. Yet, the appellant can derogate to Article R28 of the CAS Code and choose to have the CAS seated in Dublin rather than in Lausanne and if it does so: (A) UEFA is bound by that choice; (B) the relevant award will be subjected to setting aside proceedings before the Irish High Court (on the limited grounds of Article 34(2) of the Model Law, which include public policy, as explained here).

The amendment is significant. Is it revolutionary? Probably not, but it certainly shows UEFA’s willingness to appease Luxembourg and Brussels’ concerns. The Authorisation Rules are a textbook example of the type of rules whose compatibility with EU competition law might be challenged and for which access to the preliminary reference procedure ought to be available. 

Does the reform address the ECJ’s concerns as expressed in the ISU ruling? In part, undoubtedly. In the future, in cases involving the Authorisation Rules, the appellants will be able to choose to bind UEFA to an arbitral process subjected to the review of the national court of a Member State which can refer to the ECJ a preliminary reference. However, there are many more UEFA rules that can potentially infringe EU competition law which are currently outside of the scope of this new procedure.[26]

Is this a model for other SGBs to follow? Possibly. It preserves the CAS as a specialised international arbitral tribunal sitting in Switzerland (which is dear to many stakeholders for a variety of reasons) yet guaranteeing that – when it comes to some rules typically touching upon issues of EU competition law – potentially affected parties can opt to have an effective EU law review by choosing a seat of the arbitration within the EU, while at the same time being reassured about the enforceability of the award (as Ireland is signatory of the New York Convention).

This compromise appears to offer a feasible and potentially fruitful path to appease the concerns of the ECJ, while preserving the specific relationship between sports governance and the CAS. In the end, the CAS might have to be ‘EUropeanised’, but it seems high time to ensure a greater embeddedness of sports arbitration in the EU legal order in order to protect the lex sportiva from a head-on conflict with EU law and the EU institutions.


[1] As argued by Antoine Duval: “one of the least visible and yet potentially most consequential findings in the trio of decisions”.

[2] In parallel, Article 25 of the ISU Statutes provided for the possibility for athletes who wished to challenge a decision imposing a penalty of ‘loss of eligibility’ or ‘ineligibility’ on them to lodge an appeal against that decision before the CAS.

[3] Appealed Decision, para. 156.

[4] ISU judgment, para. 189.

[5] Ibid, paras. 198 – 199.

[6] Ibid, paras. 200 – 204. 

[7] It is interesting to note that the revival of the concept of ‘purely sporting rule’ by the Court has been authoritatively criticised (see here and here).

[8] For a complete overview of the interaction between EU law and the CAS, see Duval A (2015) The Court of Arbitration for Sport and EU law: chronicle of an encounter. Maastricht Journal of European and Comparative law, 22(2) 224-255.

[9] Article R58 CAS Code (law applicable to the merits): “The Panel shall decide the dispute according to the applicable regulations and, subsidiarily, to the rules of law chosen by the parties or, in the absence of such a choice, according to the law of the country in which the federation, association or sports-related body which has issued the challenged decision is domiciled or according to the rules of law the Panel deems appropriate. In the latter case, the Panel shall give reasons for its decision” (emphasis added)

[10] Article 19 PILA: “1. If interests that are legitimate and clearly preponderant according to the Swiss conception of law so require, a mandatory provision of a law other than the one referred to by this Act may be taken into consideration, provided the situation dealt with has a close connection with that other law. 2. In deciding whether such a provision is to be taken into consideration, consideration shall be given to its purpose and the consequences of its application, in order to reach a decision that is appropriate having regard to the Swiss conception of law”.

[11] Article 187(1) PILA: “The arbitral tribunal shall decide the dispute according to the rules of law chosen by the parties or, in the absence of such a choice, according to the rules of law with which the case has the closest connection”.

[12] The panel indeed assessed whether Article 15(2) FFAR: (i) pursued legitimate objectives recognised by the EU legal order (paras. 283 – 288); (ii) was appropriate to pursue those objectives (paras. 289 - 297) and (iii) was proportionate (paras. 298 – 310) and concluded in the affirmative with respect to each of them.

[13] See Article 190(2) lit. e) PILA.

[14] See, for instance, Case C-126/97 – Eco Swiss China Time Ltd. v Benetton International NV, [1999] ECR I-3055.

[15] See Sandra de Vito Bieri – the application of EU law by arbitral tribunal seated in Switzerland in ASA Bulletin 1/2017 (Volume 35, pages 55 – 66), who points out that the only chance for such an action to be successful would be in the improbable case in which the CAS were to find EU law applicable to the dispute but were to deny jurisdiction to decide on matter of EU law.

[16] ATF 128 III 234, consid. 4c at 242; Judgment 4P.119/1998 of 13 November 1998, consid. 1b/bb, published in ASA Bulletin 1999 at pp 529 et seq.

[17] Judgment of 8 March 2006, 4P.278/2005, consid. 2.2.3: “[…] an award is incompatible with public policy if it disregards essential and widely recognised values which, in accordance with conceptions prevalent in Switzerland, must constitute the foundation of any legal order”.

[18] In essence, the SFT did not consider competition law to be a fundamental principle of law applicable in any legal order given the different extents to which this is accepted in the various legal systems. In particular, with respect to EU competition law, the SFT observed that the values that it protects are confined to the EU because drafted in the attempt to guarantee the functioning of the European internal market, and – as such – they cannot be considered part of a more universal principle that can be shared by all countries, including Switzerland

[19] Ibid, consid. 3.3. See Landolt P. “Judgment of the Swiss Supreme Court of 8 March 2006 – A Commentary”.

[20] See Article 2 of the Rules for more details on their scope of application.

[21] Article 4 of the Rules.

[22] Article 5 of the Rules.

[23] Article 6 of the Rules.

[24] Article 7 of the Rules.

[25] Articles 8 to 12 of the Rules.

[26] There are rules admittedly escaping EU law scrutiny, however – as poignantly argued by Prof. Weatherill here – those entirely extraneous to economic activity are not many and possibly the focus should not be on their purely sporting nature but rather on the effect of their practice.

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