CAS 2020 A 6757
CAS · Football (FIFA / CAS) · Switzerland · 20 Oct 2021
Why it matters
This case reinforces FIFA's successor club doctrine, which prioritizes sporting continuity over corporate form to prevent clubs from evading debts by creating new legal entities. It confirms that a club's identity transcends its legal structure, and that disciplinary sanctions can be imposed on the successor entity. The decision also clarifies that players are not required to exhaust local remedies (e.g., insolvency proceedings) before seeking FIFA enforcement.
Summary
The case involves a debt owed by Romanian football club Craiova I to player Michael Baird. After Craiova I went bankrupt, a new club, Craiova II, emerged. The FIFA Disciplinary Committee found Craiova II to be the successor club and ordered it to pay the debt plus a fine. Craiova II appealed to CAS, arguing that CAS lacked jurisdiction, that the dispute should be referred to the CJEU, and that the decision was illegitimate. The CAS Panel dismissed all arguments. It held that CAS had jurisdiction because the appeal was against a FIFA decision, and that the club had accepted FIFA's rules. The Panel rejected the request to refer to the CJEU, noting that CAS is not a court of an EU member state and that the dispute primarily concerned FIFA regulations. On the merits, the Panel found that Craiova II did not dispute being the legal successor, and that under FIFA's successor club doctrine, it inherited the debt. The Panel also upheld the sanctions as proportionate. The appeal was dismissed, and Craiova II was ordered to pay the player and contribute to his legal costs.
The detail
Parties: U Craiova 1948 S.A. vs Michael Baird & FIFA
Case number: CAS 2020 A 6757
Outcome: Appeal dismissed; FIFA Disciplinary Committee decision confirmed; Craiova II ordered to pay player USD 57,000 plus interest, USD 54,000 plus interest, a fine of CHF 10,000, and a contribution of CHF 3,000 to the player's legal costs.
Quantum: USD 57,000 + USD 54,000 + interest; CHF 10,000 fine; CHF 3,000 costs
Applicable law: FIFA Disciplinary Code (2017 edition substantive, 2019 edition procedural); CAS Code of Sports-related Arbitration
Issues in play: The key issue was whether Craiova II was the successor club to Craiova I, thus inheriting its debt. The tribunal applied FIFA's successor club doctrine, considering factors like name, colours, fans, history, and stadium, rather than strict legal succession under Romanian law.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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