CAS 2020 A 6923
CAS · Football (FIFA / CAS) · Switzerland · 1 Jun 2022
Why it matters
This award clarifies that a creditor's failure to diligently pursue a claim in bankruptcy proceedings (e.g., not submitting bank details to receive payment) precludes disciplinary sanctions against a sporting successor club. It reinforces the principle that bankruptcy proceedings offer a theoretical possibility of recovery, and creditors must explore that avenue before resorting to FIFA disciplinary mechanisms. The decision balances the need to enforce player contracts with the practical realities of club insolvency.
Summary
The case concerns a dispute between PFC CSKA-Sofia (the new club) and FIFA and player Guido Di Vanni. The original club, PFC CSKA Sofia, was declared bankrupt in 2015. The player had obtained a FIFA DRC decision in 2015 ordering the original club to pay EUR 21,200 plus interest. When the original club failed to pay, FIFA's Disciplinary Committee (DC) initiated proceedings against the new club, CSKA-Sofia, finding it to be the sporting successor of the bankrupt club. The DC imposed a CHF 2,000 fine and a transfer ban unless the debt was paid. CSKA-Sofia appealed to CAS, arguing it was not the sporting successor and that the player had not been diligent in pursuing his claim in the bankruptcy proceedings. The CAS panel (majority) found that even if CSKA-Sofia were the sporting successor, the player had failed to show the required diligence: he knew of the bankruptcy, his claim was registered ex officio for a lower amount (EUR 5,763.12), he did not contest that amount, and crucially, he never submitted his bank details to receive payment from the bankruptcy estate, which had sufficient funds (approx. EUR 4 million). Therefore, the player could not seek disciplinary sanctions against the new club. The appeal was upheld, the DC decision set aside, and the disciplinary proceedings closed. The costs were split between FIFA and the player, and each was ordered to pay CHF 2,000 towards CSKA-Sofia's legal fees.
The detail
Parties: PFC CSKA-Sofia EAD v. FIFA & Guido di Vanni
Case number: CAS 2020 A 6923
Outcome: Appeal upheld; FIFA Disciplinary Committee decision set aside; disciplinary proceedings against CSKA-Sofia closed.
Applicable law: FIFA Disciplinary Code (2017 edition), Article 64; CAS Code of Sports-related Arbitration
Issues in play: The case involved the principle of sporting succession (whether a new club inherits debts of a bankrupt predecessor) and the requirement that a creditor must diligently pursue claims in bankruptcy proceedings before seeking disciplinary sanctions against the successor club.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
Locus Standi links to the source decision and publishes its own plain-language summary. It does not reproduce the text of the award.