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CAS 2020 A 6758 (CAS)

Why it matters

This case reinforces FIFA's successor club doctrine, which prevents clubs from escaping debts by changing legal entities. It confirms that a sporting entity's identity transcends its legal form, and that disciplinary proceedings can target the successor club even if the original club is bankrupt. The award also clarifies that players are not required to exhaust local insolvency remedies before seeking FIFA enforcement.

Summary

The case concerns a debt owed by Romanian football club Craiova I to player Joshua Liam Rose for unpaid salaries. After Craiova I went bankrupt and was replaced by Craiova II, the player sought enforcement through FIFA. 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, holding that CAS had jurisdiction because the appeal was against a FIFA decision, that there was no need to refer to the CJEU as the dispute was governed by FIFA regulations, and that Craiova II had admitted to being the legal successor. The Panel confirmed the successor club doctrine, noting that a club's identity includes its name, colours, fans, and history, and that Craiova II inherited the debt. The appeal was dismissed, and the original decision was upheld.

The detail

Parties: U Craiova 1948 S.A. vs Joshua Liam Rose & FIFA

Case number: CAS 2020 A 6758

Outcome: Appeal dismissed; FIFA Disciplinary Committee decision confirmed; Craiova II ordered to pay player USD 63,700, EUR 1,855 plus 5% interest, CHF 7,500 fine, and CHF 3,000 contribution to legal fees.

Quantum: USD 63,700, EUR 1,855, CHF 7,500 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 name, colours, fans, history, etc., 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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