CAS 2020 A 7361
CAS · Football (FIFA / CAS) · Switzerland · 20 Oct 2021
Why it matters
This case is significant for its reaffirmation of CAS's jurisdiction over FIFA disciplinary decisions, even when the appellant challenges the compulsory nature of CAS arbitration. The Panel followed the Swiss Federal Tribunal's precedent (4A_600/2020) that CAS can adjudicate disputes as long as fair hearing requirements are met. It also clarifies the application of Article 64 FDC regarding successor clubs' liability for debts of predecessor clubs, and the automatic nature of transfer bans for non-payment.
Summary
The case concerns an appeal by U Craiova 1948 S.A. (Craiova II) against a FIFA Disciplinary Committee decision of 10 July 2020. The background: player Michael Baird had a valid employment contract with SC Fotbal Club U Craiova (Craiova I), which failed to pay his salaries. In 2013 and 2015, FIFA DRC decisions ordered Craiova I to pay Baird various amounts. Craiova I went bankrupt, and a liquidator was appointed. Baird did not participate in the bankruptcy proceedings. In 2018, RFF informed FIFA that Craiova I was reorganized as FC U Craiova 1948 (Craiova II). FIFA reopened disciplinary proceedings against Craiova II as successor club. The FIFA Disciplinary Committee found Craiova II guilty under Article 64 FDC for non-payment and imposed a fine and a transfer ban if not paid within 30 days. Craiova II appealed to CAS, arguing that CAS lacked jurisdiction (should refer to CJEU under Article 267 TFEU) and that Romanian/EU law should apply instead of FIFA regulations. The CAS Panel rejected these arguments, confirming its jurisdiction based on FIFA Statutes and Swiss Federal Tribunal precedent. The Panel applied Article 64 FDC and Swiss law, finding that Craiova II was the undisputed successor and had not paid the debt. The appeal was dismissed, and the FIFA decision upheld. The Panel also noted that the appellant did not argue that Article 64 FDC contravened public order.
The detail
Parties: U Craiova 1948 S.A. vs. Michael Baird, FIFA & Romanian Football Federation (RFF)
Case number: CAS 2020 A 7361
Outcome: The appeal was dismissed. The CAS Panel upheld the FIFA Disciplinary Committee's decision of 10 July 2020, finding U Craiova 1948 S.A. guilty of failing to comply with the DRC decision of 21 May 2015 and ordering it to pay EUR 22,500 plus interest and EUR 27,011 plus interest to the player, plus a fine of CHF 7,500, with a transfer ban if not paid within 30 days.
Quantum: EUR 49,511 plus interest and CHF 7,500 fine
Applicable law: FIFA Disciplinary Code (2017 edition), Article 64; Swiss law subsidiarily; CAS Code of Sports-related Arbitration
Issues in play: The dispute involved the application of FIFA disciplinary rules (Article 64 FDC) versus Romanian and EU law, which the appellant argued should apply. The Panel applied FIFA regulations and Swiss law, rejecting the appellant's claim that CAS lacked jurisdiction and that EU law should govern.
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