Judgments passed by national courts can be subjected to review by other national courts.
The European Court of Justice (ECJ) has issued a landmark ruling that significantly increases judicial oversight over arbitral awards by the Court of Arbitration for Sport (CAS), particularly in cases where arbitration procedures are unilaterally imposed by international sports associations such as FIFA.
The ruling, announced by the judges in Luxembourg on Friday, mandates that CAS decisions must be subject to full judicial review by national courts within the EU to ensure alignment with EU law and public policy. This decision comes in response to a dispute between Royal Football Club Seraing (RFC Seraing) and FIFA.
The ruling is based on the case RFC Seraing, in which the Belgian club approached the courts after FIFA imposed sanctions on them. These sanctions were upheld by the CAS and the Swiss Federal Supreme Court. However, the Belgian courts did not review the matter due to the finality of the arbitral award.
The ECJ's decision emphasizes the importance of judicial protection even in the context of international sports arbitration. According to the court, arbitration imposed unilaterally by governing bodies like FIFA does not meet the voluntary-consent criterion for arbitration under EU law and thus cannot exclude individuals’ right to judicial protection.
As a result, national courts in EU member states must be able to conduct an effective and full review of CAS arbitral awards, especially where fundamental EU principles such as competition law and free movement rights are involved. The review must go beyond light scrutiny and offer remedies including damages and interim injunctive relief if necessary.
This ruling changes the previous assumption that CAS awards, often recognized internationally and by Swiss courts, were largely final and immune from comprehensive judicial review within the EU. Consequently, CAS decisions related to sports disputes involving EU actors are now subject to increased judicial control, aligning arbitration practice with the wider EU legal framework and protecting fundamental rights.
It is important to note that this ruling does not directly apply to jurisdictions outside the EU, such as England post-Brexit, where English law still governs judicial oversight, and this remains more limited compared to the enhanced review under the ECJ ruling.
In summary, the ECJ’s recent decision asserts that arbitration awards by the CAS, especially those imposed unilaterally by international sports associations like FIFA, are not exempt from full judicial review by national courts in the EU. This decision strengthens the protection of athletes' and clubs' rights under EU law, potentially impacting multiple sports associations and their arbitration procedures.
The ECJ's decision affects the Premier League, as CAS decisions now require full judicial review by national courts within the EU, potentially altering how European-leagues handle sports disputes, particularly football cases. clubs and athletes in the Premier League may now have increased judicial protection, as the ruling emphasizes the importance of aligning arbitration practice with the wider EU legal framework.
