CAS 2020 A 7424
CAS · Football (FIFA / CAS) · Switzerland · 27 Jan 2022
Why it matters
This case reinforces FIFA's doctrine of sporting succession, holding a new club liable for debts of a bankrupt predecessor when it adopts its identity (name, colours, history, stadium). It confirms that clubs are sporting entities that transcend legal forms, and that bankruptcy proceedings do not shield a successor from FIFA disciplinary sanctions. The decision also clarifies that a creditor's participation in bankruptcy does not waive rights under FIFA rules.
Summary
The case concerns PFC CSKA-Sofia (New CSKA) appealing a FIFA Disciplinary Committee decision that found it to be the sporting successor of the bankrupt Old CSKA and liable for debts owed to player David Bernardo Tengarrinha. The Old CSKA had been ordered by FIFA DRC and CAS to pay the player EUR 15,600 in outstanding salaries and EUR 236,859 for breach of contract, but never paid. After Old CSKA's insolvency, a group of investors acquired the legal entity of Litex Lovech, renamed it PFC CSKA-Sofia, and purchased the IP rights of Old CSKA in bankruptcy. The new club used the same name, colours, logo, stadium, and claimed the same history. The FIFA DC found sporting succession based on these identity elements and ordered payment plus a fine. The CAS Panel dismissed the appeal, applying the principle that a club is a sporting entity that transcends its legal operator, and that the one who benefits from the club's identity must also bear its debts. The Panel rejected arguments that the player failed to diligently pursue his claim in bankruptcy, noting his claim was registered. The decision upholds FIFA's power to enforce decisions against sporting successors regardless of corporate restructuring.
The detail
Parties: PFC CSKA Sofia v. FIFA & David Bernardo Tengarrinha
Case number: CAS 2020 A 7424
Outcome: The appeal is dismissed and the FIFA Disciplinary Committee decision is confirmed. PFC CSKA-Sofia is found guilty of failing to comply with a CAS award and ordered to pay EUR 15,600 plus interest, EUR 236,859 plus interest, and CHF 2,000 to the player, plus a CHF 20,000 fine, with a transfer ban if not paid within 30 days.
Quantum: EUR 252,459 plus interest and CHF 2,000
Applicable law: FIFA Disciplinary Code (2017 edition), CAS jurisprudence on sporting succession
Issues in play: The concept of sporting succession versus separate legal entities under civil law; the principle that a club transcends its legal entity and that benefits (cuius commoda, eius et incommoda) carry burdens.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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