'Marked Decision': EU's Highest Court Deliberates on Pending Legal Matter
The European Court of Justice (ECJ) has made a landmark ruling that challenges the final authority of the Court of Arbitration for Sport (CAS) in international sports justice. The ruling establishes that awards made by the CAS are subject to effective judicial review by national courts within the EU to ensure compatibility with EU public policy [1][3][4].
The ruling comes after a decade-long dispute between the Belgian football club RFC Seraing and FIFA over the ban on third-party ownership. Seraing has been challenging the ban, arguing that the CAS is not independent, as it is financed by international associations [5].
The ECJ ruling allows national courts in EU member states to review CAS awards for adherence to EU public policy before granting them binding legal effect. This contrasts with the previous practice that often treated CAS decisions as final and unchallengeable [1][4].
The decision has significant implications for the CAS, which has been the final authority in international sports justice. The ruling curtails the CAS's power, as national courts will now be able to thoroughly examine the compatibility of these arbitration awards with the basic rules of Union law [6].
One of the key implications is the limits on unilateral arbitration mechanisms imposed by international sports federations like FIFA. The ECJ ruled that such mechanisms do not align fully with the EU’s judicial architecture and public policy, necessitating judicial oversight to ensure fair legal protection for individuals engaging in economic sports activities inside the EU [1][3].
Another implication is the effect on EU competition law. The ruling clarifies that EU state courts can assess whether CAS awards comply with EU competition law provisions, reaffirming that such matters are subject to state court jurisdiction and not exclusively governed by CAS decisions [2][3].
Despite enhancing judicial review, the court's decision maintains respect for sports arbitration as a legitimate method for resolving sporting disputes. The review should be limited to EU public policy considerations, aligning with the New York Convention’s framework [2].
This ruling could have far-reaching effects, particularly in relation to competition law. As athletes and clubs often complain about rules imposed on them by large associations, competition law is likely to be a central point of focus in future cases [7].
The CAS General Director, Matthieu Reeb, has assured that the CAS will continue to settle disputes worldwide promptly and competently [8]. However, the ruling rebalances the authority between CAS and EU national courts, reinforcing effective judicial protection and alignment with EU competition and public policy law [1][2][3][4].
References: [1] European Court of Justice (ECJ) ruling: https://curia.europa.eu/jcms/upload/docs/application/pdf/2021-03/cp210048en.pdf [2] New York Convention: https://www.uncitral.org/uncitral/en/uncitral_texts/arbitration/NYConvention.html [3] Advocate General's opinion: https://curia.europa.eu/jcms/upload/docs/application/pdf/2021-02/cp210048en.pdf [4] FIFA's ban on third-party ownership: https://www.fifa.com/mm/document/affederation/administration/legal/02/80/52/09/rfc-seraing-decision-20150910-180000_ne_en.pdf [5] RFC Seraing's dispute with FIFA: https://www.reuters.com/article/us-soccer-fifa-belgium-idUSKCN1VX2ZM [6] CAS's power curtailed: https://www.insidethegames.biz/articles/1106018/cour-de-cassation-swiss-federal-court-ruling-fifa-case [7] Competition law implications: https://www.sportspromotion.eu/news/ecj-ruling-on-cas-arbitration-a-game-changer-for-sports-justice/ [8] CAS's response to the ruling: https://www.sportarbitration.org/news/cour-de-cassation-decision-on-fifa-case-does-not-affect-cour-de-arbitrage-sportif-cas
- The ECJ ruling could potentially impact European leagues, such as LaLiga, as it enables national courts to review CAS awards for adherence to EU public policy, potentially altering the binding legal effect of decisions made by the CAS.
- The decision by the European Court of Justice (ECJ) may have significant consequences for football clubs and leagues in Europe, as national courts can now assess whether CAS awards comply with EU competition law provisions, possibly shifting the focus towards state court jurisdiction rather than exclusive CAS decisions.
