Judgment on sports justice: “Significant day”: EU’s highest court restricts Cas
In legal disputes in the world of sports, the Court of Arbitration for Sport (CAS) in Lausanne normally has the final say. But now there's an important and momentous ruling
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Athletes no longer have to accept decisions of the Court of Arbitration for Sport (CAS) as binding. With a landmark ruling in sports history, the European Court of Justice (ECJ) has paved the way for them to appeal to ordinary EU courts. There, it can be reviewed whether CAS arbitration awards are compatible with public policy, i.e., with the fundamental legal principles of the European Union. This could have major implications for the CAS, which has so far largely had the final say in international sports justice.
"This is a significant day for sports arbitration," sports law expert Jan F. Orth of the University of Cologne told the German Press Agency. "Today, the ECJ has strengthened the rights of the structurally weaker, especially athletes and clubs. They can now increasingly obtain a national court's review of the compatibility of CAS arbitration awards with European public policy."
Antitrust law likely to be in focus in the future
The ruling in Luxembourg significantly limits the CAS – how much it will weaken it in the long run remains to be seen: Until now, the rulings of the Court of Arbitration for Sport have been largely final. Only the Swiss Federal Supreme Court has been able to overturn the decisions of the Lausanne-based arbitration tribunal – and then only in cases of procedural errors.
But that's now changing. "The courts of the Member States must be able to thoroughly review the compatibility of these arbitration awards with the fundamental rules of Union law," said the European Court of Justice in Luxembourg. Antitrust law is likely to be a key issue in this regard. Athletes and clubs repeatedly sue against rules often imposed on them by large federations.
In its initial reaction, the CAS expressed a decidedly calm attitude, pointing out that sports judges would already apply EU law "when necessary." CAS Director General Matthieu Reeb affirmed: "In the service of the international sports community, the CAS will continue to resolve disputes worldwide in a timely and expert manner."
Belgian club wins legal case against FIFA
In this specific case, the Belgian football club RFC Seraing has been in dispute with FIFA for more than ten years over the ban on so-called third-party ownership. This prohibition stipulates that players' economic rights may not be sold to investors. The ban is enshrined in the regulations of FIFA, the European Football Union (UEFA), and the national football associations.
FIFA therefore prohibited the club from allowing external investors to acquire player rights—and imposed a transfer ban and fine in 2015. The case ended up before CAS, which ruled in FIFA's favor. The Swiss Federal Supreme Court also found no objection.
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The Court of Arbitration for Sport (CAS) has been weakened by a ruling from the European Court of Justice.
© Laurent Gillieron/KEYSTONE/dpa
Judgment on sports justice: “Significant day”: EU’s highest court restricts Cas
In legal disputes in the world of sports, the Court of Arbitration for Sport (CAS) in Lausanne normally has the final say. But now there's an important and momentous ruling.
Status:today, 2:12 pm
Athletes no longer have to accept decisions of the Court of Arbitration for Sport (CAS) as binding. With a landmark ruling in sports history, the European Court of Justice (ECJ) has paved the way for them to appeal to ordinary EU courts. There, it can be reviewed whether CAS arbitration awards are compatible with public policy, i.e., with the fundamental legal principles of the European Union. This could have major implications for the CAS, which has so far largely had the final say in international sports justice.
"This is a significant day for sports arbitration," sports law expert Jan F. Orth of the University of Cologne told the German Press Agency. "Today, the ECJ has strengthened the rights of the structurally weaker, especially athletes and clubs. They can now increasingly obtain a national court's review of the compatibility of CAS arbitration awards with European public policy."
Antitrust law likely to be in focus in the future
The ruling in Luxembourg significantly limits the CAS – how much it will weaken it in the long run remains to be seen: Until now, the rulings of the Court of Arbitration for Sport have been largely final. Only the Swiss Federal Supreme Court has been able to overturn the decisions of the Lausanne-based arbitration tribunal – and then only in cases of procedural errors.
But that's now changing. "The courts of the Member States must be able to thoroughly review the compatibility of these arbitration awards with the fundamental rules of Union law," said the European Court of Justice in Luxembourg. Antitrust law is likely to be a key issue in this regard. Athletes and clubs repeatedly sue against rules often imposed on them by large federations.
In its initial reaction, the CAS expressed a decidedly calm attitude, pointing out that sports judges would already apply EU law "when necessary." CAS Director General Matthieu Reeb affirmed: "In the service of the international sports community, the CAS will continue to resolve disputes worldwide in a timely and expert manner."
Belgian club wins legal case against FIFA
In this specific case, the Belgian football club RFC Seraing has been in dispute with FIFA for more than ten years over the ban on so-called third-party ownership. This prohibition stipulates that players' economic rights may not be sold to investors. The ban is enshrined in the regulations of FIFA, the European Football Union (UEFA), and the national football associations.
FIFA therefore prohibited the club from allowing external investors to acquire player rights—and imposed a transfer ban and fine in 2015. The case ended up before CAS, which ruled in FIFA's favor. The Swiss Federal Supreme Court also found no objection.
Seraing then questioned the independence of the CAS, as it is funded by international associations. The club took the case to the Belgian courts. The ECJ ruling means the dispute can now continue there, giving RFC Seraing a new chance of a favorable outcome.
The club's lawyers welcomed the ruling: "In summary, the ECJ has put an end to the procedural fraud with which international sports federations attempted to circumvent the effective application of EU law by introducing mandatory arbitration outside the EU." The International Olympic Committee stated that it would read the ruling carefully.
Sports lawyer Orth: “Not the end of the Cas”
The ECJ ruling comes as no surprise – the Advocate General at the ECJ had already argued that national courts in the EU must be able to review arbitration awards made by sports arbitration tribunals based outside the EU. In her view, the jurisdiction of the CAS in football is being imposed on sports stakeholders.
But it doesn't mean the end of CAS," sports lawyer Orth clarified. "International sports arbitration remains important and useful, so that we have uniform standards worldwide when it comes to assessing sports court issues."
The CAS has been deciding on disciplinary sanctions, transfer permits, and doping bans since 1984. Only if fundamental EU rights are violated will parties be able to appeal to ordinary EU courts in the future, according to the ECJ's intention.
© dpa-infocom, dpa:250801-930-865320/2