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CAS 2020 A 7346 (CAS)

Why it matters

This award confirms that financial hardship and the COVID-19 pandemic do not excuse non-compliance with FIFA decisions. It reinforces the FIFA Disciplinary Committee's discretion to impose fines and transfer bans as proportionate sanctions, and clarifies that the burden of proof lies on the club to show disproportionality. The decision also highlights that transfer bans can have a positive financial effect by preventing new spending.

Summary

Neimenggu Zhongyou Football Club, a Chinese club, failed to pay three coaches (Raul Agne Montull, Pere Ballary Sargatal, and Arnau Sala Descals) outstanding remuneration as ordered by the FIFA Players' Status Committee in February 2020. The club did not pay the procedural costs to receive the reasoned decisions, so the decisions became final. FIFA's Disciplinary Committee then opened proceedings for non-compliance and imposed fines (CHF 20,000, CHF 7,500, and CHF 15,000) and a transfer ban until the debts were paid. The club appealed to CAS, arguing the sanctions were disproportionate given its financial struggles, ownership changes, and the COVID-19 pandemic. The Sole Arbitrator dismissed the appeals, holding that the club failed to prove disproportionality. The fines were within the range of previous FIFA DC decisions for similar debt amounts, and the transfer ban was a standard measure that could actually help the club financially by preventing new player registrations. The pandemic did not justify non-payment because the debts predated it. The award upholds FIFA's disciplinary framework and the principle that clubs must honour their financial obligations.

The detail

Parties: & 7347 & 7348 Neimenggu Zhongyou Football Club v. FIFA

Case number: CAS 2020 A 7346

Outcome: The appeals were dismissed. The FIFA Disciplinary Committee decisions were upheld, including fines of CHF 20,000, CHF 7,500, and CHF 15,000, and a transfer ban until debts are paid.

Quantum: CHF 42,500 in fines (total)

Applicable law: FIFA Disciplinary Code (2019 edition), FIFA Statutes, CAS Code of Sports-related Arbitration

Issues in play: The case involved the proportionality of disciplinary sanctions (fines and transfer bans) imposed by FIFA for non-compliance with prior decisions, balanced against the club's financial difficulties and the impact of the COVID-19 pandemic.

Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗

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