CAS 2020 A 7423
CAS · Football (FIFA / CAS) · Switzerland · 27 Jan 2022
Why it matters
This case reinforces FIFA's doctrine that a football club transcends its legal entity, and a new club can be held liable as sporting successor for debts of an insolvent predecessor if it adopts the same identity elements (name, colours, logo, history). It confirms that bankruptcy proceedings do not automatically extinguish FIFA disciplinary liability, and that creditors' diligence is assessed by FIFA standards, not national law.
Summary
The case concerns a debt owed by the original CSKA Sofia (Old CSKA) to player Nilson Barros, arising from a 2014 FIFA DRC decision and a 2015 CAS award. Old CSKA went bankrupt in 2015. In 2016, investors acquired the legal entity of Litex Lovech, renamed it PFC CSKA-Sofia (New CSKA), and bought the IP rights of Old CSKA in bankruptcy. New CSKA used the same name, colours, logo, stadium, and claimed the same history. The player sought enforcement via FIFA's disciplinary process. FIFA's Disciplinary Committee found New CSKA to be the sporting successor of Old CSKA and ordered it to pay the debt plus a fine. New CSKA appealed to CAS, arguing it was a separate legal entity and that the player should have pursued his claim in Bulgarian bankruptcy proceedings. The CAS Panel dismissed the appeal, holding that sporting succession is determined by factual elements (name, colours, logo, history, stadium, fan base) rather than legal entity. The Panel applied the principle 'cuius commoda, eius et incommoda' (he who enjoys the benefits must bear the burdens). It found that New CSKA deliberately sought to be identified with Old CSKA to attract fans and sponsors, and therefore must accept the liabilities. The Panel also held that the player's participation in bankruptcy proceedings did not preclude FIFA disciplinary action, and that New CSKA's argument about lack of diligence was unfounded. The decision confirms that clubs cannot escape debts by changing legal entities while retaining the club's identity.
The detail
Parties: PFC CSKA Sofia v. FIFA & Nilson A. Da Veiga Barros
Case number: CAS 2020 A 7423
Outcome: Appeal dismissed; FIFA Disciplinary Committee decision upheld. New CSKA found to be sporting successor of Old CSKA and liable for debts.
Quantum: EUR 24,999 outstanding remuneration + EUR 261,002 compensation + CHF 2,000 costs + CHF 20,000 fine
Applicable law: FIFA Disciplinary Code (2017 edition), CAS jurisprudence on sporting succession
Issues in play: The principle of sporting succession (cuius commoda, eius et incommoda) vs. Bulgarian bankruptcy law and the separate legal entity doctrine.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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