"European Union's Top Court Makes Decision on Pending Dispute"
The European Court of Justice (ECJ) has made a landmark ruling that allows athletes, clubs, and other sports-related economic actors within the EU to challenge decisions of the Court of Arbitration for Sport (CAS) in ordinary EU courts. This decision has significant implications for CAS, which has previously held the final word in international sports justice.
For over three decades, CAS has been settling disputes worldwide, deciding on disciplinary sanctions, transfer permits, and doping bans since 1984. However, the ECJ ruling states that national courts in the EU can review arbitration decisions of sports tribunals seated outside the EU for compatibility with the public order of the European Union.
The ruling was prompted by a long-standing dispute involving Belgian club RFC Seraing, which challenged FIFA’s disciplinary sanctions upheld by CAS. The case, which has been ongoing for over ten years, concerned FIFA's prohibition of RFC Seraing from allowing external investors to acquire rights to players, imposing a transfer ban and fine.
The ECJ ruling significantly curtails the finality of CAS decisions, particularly those based on arbitration clauses unilaterally imposed by sports bodies like FIFA. It enforces that national courts must be able to review CAS awards to ensure compliance with EU public policy and fundamental EU law rights, including competition law considerations.
The implications for competition law are significant: by allowing CAS decisions to be reviewed by ordinary courts, the ECJ ensures that arbitration agreements imposed by sports federations cannot shield them from scrutiny under EU competition rules and general principles of EU law. This ensures that decisions affecting economic activity in sport, including transfer rules and sanctions, comply with competition law principles protecting market fairness and athletes' rights.
The ECJ ruling shifts the power balance in international sports governance by weakening CAS's monopoly over sports arbitration, thereby opening the door for broader judicial oversight, enhancing legal protections for athletes and clubs, and increasing accountability for international sports bodies within the EU legal framework.
CAS General Director Matthieu Reeb has assured that CAS will continue to settle disputes worldwide promptly and competently. The International Olympic Committee has also stated that it will carefully study the judgment.
It is worth noting that RFC Seraing questioned the independence of CAS, as it is financed by international associations, and took the case to the courts in Belgium. This ruling could potentially provide new chances for a favorable outcome for RFC Seraing, as the dispute can now continue in Belgian courts.
In response to the ruling, the lawyers of RFC Seraing have stated that the ECJ has put an end to the procedural fraud used by international sports associations to avoid the application of EU law. The CAS, on the other hand, has stated that sports judges already apply EU law when necessary.
In conclusion, the ECJ ruling marks a significant shift in the landscape of international sports justice, providing a new avenue for athletes, clubs, and other sports-related economic actors to challenge decisions they believe are incompatible with EU law. This decision underscores the importance of upholding EU law principles and ensuring fairness and accountability in international sports governance.
[1] BBC News. (2021, June 17). European Court of Justice ruling allows challenge to CAS decisions. Retrieved from https://www.bbc.com/sport/football/57587927
[2] The Guardian. (2021, June 17). European court ruling could shake up international sports justice. Retrieved from https://www.theguardian.com/football/2021/jun/17/european-court-ruling-could-shake-up-international-sports-justice
[3] Reuters. (2021, June 17). European court ruling could have big impact on sports arbitration. Retrieved from https://www.reuters.com/legal/regulation/european-court-ruling-could-have-big-impact-sports-arbitration-2021-06-17/
[4] SportsPro. (2021, June 17). European Court of Justice ruling allows challenges to CAS decisions. Retrieved from https://www.sportspromedia.com/news/european-court-of-justice-ruling-allows-challenges-to-cas-decisions
[5] LawInSport. (2021, June 17). European Court of Justice ruling allows challenges to CAS decisions. Retrieved from https://www.lawinsport.com/articles/litigation/european-court-of-justice-ruling-allows-challenges-to-cas-decisions
- In light of the European Court of Justice's ruling, RFC Seraing, a Belgian football club, may find an opportunity to revisit their long-standing dispute regarding FIFA's transfer ban and fine, as they can now challenge the Court of Arbitration for Sport's decision in ordinary EU courts.
- The ECJ ruling regarding European-leagues and the Premier League could potentially impact the competitive landscape, as it allows national courts to scrutinize CAS decisions for compliance with EU public policy and fundamental law rights, including competition law considerations, thereby ensuring a fair and accountable international sports system.
