CAS 2020 A 6878
CAS · Football (FIFA / CAS) · Switzerland · 7 Sept 2021
Why it matters
This case reaffirms the CAS jurisprudence that a creditor who fails to participate in the bankruptcy proceedings of an insolvent club cannot later seek disciplinary sanctions against the sporting successor. It clarifies that the due diligence requirement is not a blanket rule but assessed case-by-case, and that the creditor's inaction contributes to the non-compliance, barring sanctions under Article 64 FDC.
Summary
Iván Bolado Palacios, a Spanish footballer, had obtained a CAS award (CAS 2016/A/4450) ordering PFC CSKA Sofia (Original CSKA) to pay him EUR 272,000 plus interest. The club entered insolvency in 2015. A new entity, PFC CSKA-Sofia (New CSKA), continued the club's activities, using the same colours, logo, stadium, and history. The Player did not file his claim in the Bulgarian insolvency proceedings. He later requested FIFA's Disciplinary Committee to sanction the New CSKA as sporting successor for non-payment. The FIFA DC dismissed the charges, finding that the Player's failure to participate in the bankruptcy proceedings meant he contributed to the non-compliance. The Player appealed to CAS. The Sole Arbitrator held that, under CAS jurisprudence (e.g., Talca case), a creditor must act diligently in bankruptcy proceedings before seeking sanctions against a successor. Since the Player knew of the insolvency by 2015 at the latest (from FIFA's letter) but did not file his claim, he failed to meet the due diligence requirement. The appeal was dismissed, and the FIFA DC decision upheld.
The detail
Parties: Iván Bolado Palacios v. PFC CSKA-Sofia EAD & FIFA
Case number: CAS 2020 A 6878
Outcome: Appeal dismissed. The decision of the FIFA Disciplinary Committee not to sanction the New CSKA was upheld because the Player failed to diligently pursue his claim in the bankruptcy proceedings of the Original CSKA.
Applicable law: FIFA Disciplinary Code (2011 edition), CAS jurisprudence on sporting succession and due diligence in bankruptcy proceedings
Issues in play: The principle of sporting succession (whether a new club inherits debts of an insolvent predecessor) collided with the requirement that a creditor must act diligently in bankruptcy proceedings to later seek disciplinary sanctions against the successor.
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