CAS 2020 A 6831
CAS · Football (FIFA / CAS) · Switzerland · 23 Apr 2021
Why it matters
This case is a landmark because it addresses the conflict between FIFA's sporting succession doctrine and national bankruptcy laws. The majority held that while sporting succession entails economic succession, the extent of liability may be limited by national bankruptcy proceedings. It sets a precedent that the sporting successor's liability can be capped by the amount paid in a lawful bankruptcy auction, protecting buyers of distressed clubs from unlimited inherited debts.
Summary
The case concerns an appeal by PFC CSKA-Sofia EAD (CSKA) against a FIFA Disciplinary Committee decision that CSKA was the sporting successor of the old CSKA (which went bankrupt) and therefore liable for debts owed to player Civard Sprockel. The player had a contract with the old CSKA, terminated it for non-payment, and obtained a FIFA DRC award for EUR 40,000 in outstanding salary, EUR 127,000 in compensation, and BGN 4,693.99 in expenses. The old CSKA entered insolvency, and CSKA purchased its assets (including symbols) in a public auction for EUR 4 million. The player participated in the Bulgarian bankruptcy proceedings and received a reduced amount (EUR 157,000 less than the FIFA award). He then asked FIFA to enforce the original award against CSKA. The FIFA DC held CSKA liable as sporting successor. CSKA appealed to CAS. The CAS panel (majority) confirmed that CSKA is the sporting successor of the old CSKA, but limited its liability to the amount the player actually received in the bankruptcy proceedings. The majority reasoned that while FIFA's rules impose full liability, national bankruptcy law must be respected; the player had already been compensated through the bankruptcy process, and requiring CSKA to pay the full original award would undermine the bankruptcy distribution. The appeal was dismissed, but the liability was effectively reduced. The case highlights the tension between FIFA's regulatory framework and national insolvency laws.
The detail
Parties: PFC CSKA-Sofia EAD v. FIFA & Civard Sprockel
Case number: CAS 2020 A 6831
Outcome: The appeal was dismissed. CSKA was held to be the sporting successor of the old CSKA and liable for the debts, but the majority of the panel limited liability to the amount the player received in the Bulgarian bankruptcy proceedings, reducing the original award.
Quantum: EUR 40,000 plus 5% interest as outstanding remuneration, EUR 127,000 plus 5% interest as compensation for breach of contract, and BGN 4,693.99 as reimbursement for accommodation-related expenses (original award); reduced to the amount adjudicated in Bulgarian bankruptcy proceedings (EUR 157,000 less than original).
Applicable law: FIFA Disciplinary Code (2011 and 2019 editions), Bulgarian bankruptcy law, Swiss law (subsidiary), CAS jurisprudence on sporting succession.
Issues in play: The collision was between FIFA's sporting succession rules (Article 15 FDC) and Bulgarian bankruptcy law. FIFA's rules impose full liability on the sporting successor, but Bulgarian bankruptcy law limits liability to the amount paid in the auction and distributes proceeds among creditors.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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