CAS 2020 A 6884
CAS · Football (FIFA / CAS) · Switzerland · 1 Jun 2021
Why it matters
This award clarifies the duty of diligence required of creditors in insolvency proceedings when seeking FIFA disciplinary sanctions against a sporting successor club. It establishes that a creditor who fails to register a claim in bankruptcy proceedings, despite being informed, cannot later rely on FIFA's enforcement mechanism to bypass national insolvency law. The decision reinforces the primacy of national bankruptcy proceedings and limits the scope of FIFA's disciplinary powers in cases involving insolvent clubs.
Summary
The case concerns an appeal by Soukeyna Ba Bengelloun, a former players' agent, against a FIFA Disciplinary Committee decision that dismissed charges against PFC CSKA-Sofia for failing to pay a debt owed by its sporting predecessor, PFC CSKA Sofia. The debt of EUR 50,000 arose from a 2013 FIFA Players' Status Committee decision. The original debtor club went bankrupt in 2015, and the Appellant was informed of the bankruptcy proceedings but did not register her claim. The Second Respondent, PFC CSKA-Sofia, was found to be the sporting successor of the original debtor. The FIFA DC dismissed the charges because the Appellant lacked diligence in recovering her credit in the Bulgarian insolvency proceedings. On appeal to CAS, the Sole Arbitrator upheld the FIFA DC decision. The key legal issues were: (1) whether the Appellant had standing to invoke Article 64 of the FIFA Disciplinary Code (yes, as a creditor with a vested interest); (2) whether the appeal was time-barred (no); (3) whether the FIFA DC correctly applied res judicata (yes); (4) whether the Second Respondent was the sporting successor (yes); and (5) whether the Appellant acted with due diligence in the insolvency proceedings (no). The Sole Arbitrator found that the Appellant's failure to register her claim in the Bulgarian bankruptcy proceedings, despite being informed, constituted a lack of diligence that precluded disciplinary sanctions against the successor club. The appeal was dismissed, and the Appellant was ordered to pay arbitration costs and a contribution to the Second Respondent's legal fees.
The detail
Parties: Soukeyna Ba Bengelloun v. FIFA & PFC CSKA-Sofia
Case number: CAS 2020 A 6884
Outcome: Appeal dismissed; FIFA Disciplinary Committee decision confirmed; Appellant bears arbitration costs and pays CHF 3,000 to Second Respondent for legal costs.
Quantum: CHF 3,000 (contribution to legal costs)
Applicable law: FIFA Statutes, FIFA Disciplinary Code (2019 edition), CAS Code of Sports-related Arbitration (2019 edition)
Issues in play: The case involved the collision between FIFA's disciplinary enforcement mechanism and national insolvency law, specifically whether a creditor's failure to register a claim in bankruptcy proceedings precludes later disciplinary sanctions against a sporting successor club.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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