CAS 2019 A 6027
CAS · Football (FIFA / CAS) · Switzerland · 27 Feb 2020
Why it matters
This case clarifies that Article 18bis applies to agreements between clubs, not just with third parties, and that a club can be sanctioned even if the counterparty is another club. It also confirms that CAS will only overturn a disciplinary sanction if it is 'evidently and grossly disproportionate', reinforcing the wide discretion of FIFA's disciplinary bodies.
Summary
Palmeiras, a Brazilian football club, transferred player Hernan Barcos from LDU (Ecuador) under a Transfer Agreement that included clauses giving LDU influence over future transfers and employment matters. FIFA's Disciplinary Committee found that these clauses violated Article 18bis of the FIFA Regulations (2010 edition), which prohibits agreements enabling a third party to influence a club's independence. Palmeiras was fined CHF 50,000 and warned. On appeal, the FIFA Appeal Committee reduced the fine to CHF 25,000. Palmeiras appealed to CAS, arguing that Article 18bis did not apply to agreements between clubs (only with third parties), that the decision contradicted a prior FIFA PSC ruling, and that the fine was disproportionate. The CAS Panel rejected these arguments, holding that the 2010 version of Article 18bis covered any counterparty, including another club. It also found no contradiction with the PSC decision, as contractual validity and disciplinary compliance are separate issues. On proportionality, the Panel applied the 'evidently and grossly disproportionate' test and found the fine appropriate given FIFA's practice. The appeal was partially upheld only to the extent of the reduced fine already imposed by the Appeal Committee.
The detail
Parties: Sociedade Esportiva Palmeiras v. FIFA
Case number: CAS 2019 A 6027
Outcome: Palmeiras' appeal partially upheld; fine reduced from CHF 50,000 to CHF 25,000.
Quantum: CHF 25,000
Applicable law: FIFA Regulations on the Status and Transfer of Players (2010 edition), Article 18bis; FIFA Disciplinary Code (2011 edition), Articles 10, 13, 15.
Issues in play: Article 18bis of the FIFA RSTP prohibits agreements enabling a third party to influence a club's independence in employment and transfer matters. The case examined whether a transfer agreement between two clubs (Palmeiras and LDU) violated this provision, and whether the fine imposed was proportionate.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
Locus Standi links to the source decision and publishes its own plain-language summary. It does not reproduce the text of the award.