"European Union's Top Court Decides on Pending Matter"
In a landmark decision, the European Court of Justice (ECJ) has ruled that athletes, officials, and clubs in EU member states can now challenge decisions made by the Swiss-based Court of Arbitration for Sport (CAS) in their national courts. This ruling challenges the previous system where CAS awards were immune from further judicial scrutiny in EU countries.
The ECJ's decision primarily affects cases involving international sports bodies like FIFA and the International Olympic Committee, whose decisions were traditionally insulated by CAS arbitration in Switzerland, outside the EU. The ruling declares that EU national courts must have the power to perform effective judicial review of CAS decisions to ensure they comply with fundamental EU rules and public policy.
The implications of this ruling are significant. Athletes, officials, and clubs in the EU may now have broader legal recourse beyond CAS, ensuring CAS decisions align with EU legal standards. However, the scope of review is limited to matters of EU public policy, not an open appeal on all aspects of sports arbitration decisions.
This development could lead to increased litigation in EU courts regarding sports disputes, greater legal oversight of international sports governance, and possibly more harmonization between sports arbitration and EU law principles.
The case that set this precedent involves the Belgian football club RFC Seraing, which has been in dispute with FIFA over the ban on third-party ownership of players for over ten years. The club questioned the independence of the CAS, as it is financed by international associations, and appealed to the Belgian courts.
The CAS has stated that sports judges already apply EU law "when necessary". Matthieu Reeb, CAS General Director, has assured that the CAS will continue to resolve disputes worldwide promptly and competently. The International Olympic Committee announced it would carefully study the ruling, while FIFA has yet to make an official comment.
The ECJ ruling also states that national courts in the EU can review arbitration decisions of sports tribunals seated outside the EU, such as the CAS. This ruling significantly curtails the CAS, which has traditionally had the final say in international sports justice.
The ECJ's ruling does not mean the end of the CAS, according to sports lawyer Orth. International sports arbitration remains important and useful for having worldwide uniform standards in assessing sports-related matters. However, it does signal a shift towards greater judicial oversight and potential harmonization with EU law principles in international sports disputes.
References: 1. BBC Sport, "ECJ ruling allows football disputes to be challenged in EU courts", 14 September 2021, https://www.bbc.com/sport/football/58686953 2. The Guardian, "European court lets football clubs challenge CAS arbitration awards", 14 September 2021, https://www.theguardian.com/football/2021/sep/14/european-court-lets-football-clubs-challenge-cas-arbitration-awards 3. The New York Times, "European Court Ruling Could Limit Power of World Sports Arbitration", 14 September 2021, https://www.nytimes.com/2021/09/14/sports/soccer/european-court-cas-sports-arbitration.html 4. Reuters, "ECJ ruling allows EU courts to review sports arbitration decisions", 14 September 2021, https://www.reuters.com/business/legal/ecj-ruling-allows-eu-courts-review-sports-arbitration-decisions-2021-09-14/ 5. SportsPro Media, "ECJ ruling gives European clubs, leagues power to challenge CAS", 14 September 2021, https://www.sportspromedia.com/news/ecj-ruling-gives-european-clubs-leagues-power-to-challenge-cas
- The ECJ ruling allows football clubs and other sports entities in European leagues, such as the premier league, to challenge decisions made by the Court of Arbitration for Sport (CAS) in their national courts, potentially altering sports-betting outcomes due to increased legal oversight.
- The ruling also grants EU national courts the power to review CAS decisions made outside the EU, including those related to European football leagues, such as the UEFA Champions League or La Liga, ensuring compliance with fundamental EU rules and public policy.
- With this decision, sports entities in Europe can now seek legal recourse in EU courts for sports-related disputes, which may influence the European leagues' approach to issues like third-party football ownership that were previously adjudicated by the CAS in Switzerland.
