CAS 2020 A 7314
CAS · Football (FIFA / CAS) · Switzerland · 12 Apr 2023
Why it matters
This award clarifies that even if a new club is found to be the sporting successor of a bankrupt club, the creditor's lack of diligence in claiming the debt in the bankruptcy proceedings can bar recovery from the successor. It reinforces the principle that disciplinary proceedings under FIFA rules are a last resort and creditors must first exhaust local remedies. The decision also applies the sporting succession criteria under Article 15(4) of the 2019 FDC, giving precedence to the category of competition as a decisive factor.
Summary
Horacio Luis Rolla, a licensed player's agent, had a claim for €1,000,000 against US Città di Palermo (Old Palermo) arising from a settlement agreement incorporated into a CAS consent award. Old Palermo was declared bankrupt and disaffiliated from FIGC. Rolla then sought to hold New Palermo (a new club formed after the bankruptcy) liable as sporting successor, requesting FIFA disciplinary proceedings. FIFA's Disciplinary Committee found no sporting succession, and Rolla appealed to CAS. The CAS Panel, by majority, held that New Palermo was indeed the sporting successor based on objective elements (similar name, colours, logo, stadium, history, etc.) and the criteria in Article 15(4) FDC. However, the Panel also found that Rolla had failed to claim his credit in the bankruptcy proceedings of Old Palermo, showing lack of diligence. Relying on CAS 2011/A/2646 and CAS 2019/A/6461, the Panel ruled that a creditor who does not pursue recovery in bankruptcy cannot later impose liability on the successor club. Therefore, the appeal was dismissed, and New Palermo was not ordered to pay. The Panel also noted that Rolla did not seek sporting sanctions. The costs were split equally between Rolla and New Palermo, and each party bore its own legal fees.
The detail
Parties: Horacio Luis Rolla v. Palermo Football Club S.p.A. & FIFA
Case number: CAS 2020 A 7314
Outcome: Appeal dismissed. New Palermo is the sporting successor of Old Palermo but is not liable for the debt because the agent failed to claim his credit in the bankruptcy proceedings of Old Palermo.
Applicable law: FIFA Disciplinary Code (2017 and 2019 editions), CAS jurisprudence on sporting succession, Swiss law
Issues in play: The concept of sporting succession (whether a new club inherits the debts of an old club) versus the creditor's duty of diligence in bankruptcy proceedings. The Panel balanced the objective elements of sporting identity against the creditor's failure to pursue recovery in the bankruptcy of the original debtor.
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