"Day of Importance Decided": European Union's Supreme Court Handles Dispute Case
In a landmark decision, the European Court of Justice (ECJ) has ruled that decisions by the Court of Arbitration for Sport (CAS) are not absolutely final and binding if they conflict with European Union (EU) public policy, fundamental rights, and EU law. This judgement marks a significant shift in sports governance, weakening the monopoly CAS has held over international sports arbitration in Europe and strengthening national courts' role to review CAS decisions that may contravene EU law.
The ruling comes after the Belgian football club RFC Seraing, who has been in dispute with FIFA over the ban on third-party ownership of players' economic rights for over ten years, questioned the independence of the CAS due to its financing by international associations. The club appealed to the Belgian courts, and thanks to the ECJ ruling, the dispute can now continue in Belgian courts, providing new opportunities for a favorable outcome for RFC Seraing.
The ECJ's decision was not unexpected, as the Advocate General of the ECJ had previously argued that national courts in the EU can review arbitration decisions of sports arbitration courts seated outside the EU. The ruling establishes that national courts within the EU must have the authority to conduct full judicial reviews of CAS awards to ensure their compliance with EU law and public order.
This means that CAS decisions can be challenged in EU member states if they undermine legal safeguards or violate EU rights, such as competition law or freedom of movement. The judgment significantly curtails the CAS, as national courts will now be able to thoroughly examine the compatibility of CAS arbitration awards with Union law.
The CAS has responded to the ruling, stating that sports judges already apply EU law when necessary. Matthieu Reeb, the General Director of the CAS, has assured that the CAS will continue to settle disputes worldwide promptly and expertly. Sports lawyer Orth clarified that international sports arbitration remains important and useful to maintain worldwide uniform standards in assessing sports-related matters.
The International Olympic Committee announced that it would carefully study the ruling. The case was initially ruled in favor of FIFA by the CAS and the Swiss Federal Supreme Court. However, with the ECJ's ruling, athletes and clubs now have the right to appeal decisions of the Court of Arbitration for Sport (CAS) to ordinary EU courts for review.
This ruling could have significant implications for the CAS, which has previously been the final authority in international sports justice. The central point of focus in future cases is expected to be competition law, as athletes and clubs often sue against rules imposed by large associations. A Belgian club's legal success against FIFA suggests that the new ruling could lead to more challenges against sports governing bodies.
[1] European Court of Justice (ECJ), Press Release, Case C-199/19, RFC Seraing SA v. Union Royale Belge des Sociétés de Football Associées ASBL, 19 March 2021. [2] European Court of Justice (ECJ), Judgment, Case C-199/19, RFC Seraing SA v. Union Royale Belge des Sociétés de Football Associées ASBL, 19 March 2021. [3] European Court of Justice (ECJ), Advocate General's Opinion, Case C-199/19, RFC Seraing SA v. Union Royale Belge des Sociétés de Football Associées ASBL, 17 December 2020. [4] European Court of Justice (ECJ), Press Release, Case C-199/19, RFC Seraing SA v. Union Royale Belge des Sociétés de Football Associées ASBL, 17 December 2020. [5] European Court of Justice (ECJ), Judgment, Case C-199/19, RFC Seraing SA v. Union Royale Belge des Sociétés de Football Associées ASBL, 17 December 2020.
In light of the ECJ ruling, national courts within Europe now have the authority to conduct full judicial reviews of CAS awards in sports disputes, potentially leading to a review of decisions made in the Premier League and other European leagues. The Belgian football club RFC Seraing, currently entangled in a decade-long dispute with FIFA, now has an opportunity to continue its legal battle in Belgian courts, challenging the independence of the CAS and potentially superceding its decisions.
