Award

CAS 2020 A 7450

CAS · Football (FIFA / CAS) · Switzerland · 3 Oct 2022

Why it matters

This award clarifies the distinction between disciplinary sanctions and administrative governance decisions in sports arbitration. It confirms that a sports federation's compensation committee may withdraw pension benefits based on ethical violations without constituting a double jeopardy, as long as the decision is not arbitrary or grossly disproportionate. The ruling reinforces the broad discretion of sports bodies in managing compensation, subject only to limited review for abuse of discretion.

Summary

Worawi Makudi, a former FIFA Executive Committee member, appealed a decision by the FIFA Compensation Sub-Committee (FIFA CSC) to withdraw his pension benefits. Makudi had served on the FIFA Executive Committee from 1997 to 2015 and was entitled to a retirement pension under FIFA's Retirement Plan. However, in 2016, the FIFA Ethics Committee sanctioned him for forgery and failing to cooperate, imposing a ban and fine. On appeal, the Court of Arbitration for Sport (CAS) in 2019 reduced the sanction to a reprimand and a CHF 5,000 fine for the cooperation violation only. In 2020, Makudi requested his pension, but the FIFA CSC, citing its discretion under section 6.1.2 of the FIFA Compensation Policy, withdrew his pension benefits due to his ethical violation. Makudi challenged this decision at CAS, arguing it was arbitrary, disproportionate, and a disguised disciplinary sanction. The Sole Arbitrator held that the FIFA CSC's decision was an administrative act, not a disciplinary sanction, and therefore did not violate the prohibition of double jeopardy. The Arbitrator reviewed the decision for abuse of discretion, applying Swiss law standards. He found that the FIFA CSC had properly exercised its discretion, considering Makudi's ethical violation and procedural conduct. The decision was not arbitrary or grossly disproportionate, as Makudi had been found to have violated the FIFA Code of Ethics, and the CSC's policy allowed withdrawal in such cases. The appeal was dismissed, and the FIFA CSC's decision was upheld.

The detail

Parties: Worawi Makudi v. FIFA_

Case number: CAS 2020 A 7450

Outcome: The appeal is dismissed. The decision of the FIFA Compensation Sub-Committee to withdraw Mr Makudi's pension benefits is upheld.

Applicable law: FIFA Compensation Policy (2014 edition), FIFA Code of Ethics (2012 edition), Swiss Civil Code (articles 27/28), CAS Code of Sports-related Arbitration

Issues in play: The case involved the tension between FIFA's discretionary power to withdraw pension benefits under its Compensation Policy and the principles of proportionality, non-arbitrariness, and protection of personality rights under Swiss law. The key question was whether the FIFA Compensation Sub-Committee's decision was a lawful exercise of discretion or an arbitrary, disproportionate measure.

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

Locus Standi links to the source decision and publishes its own plain-language summary. It does not reproduce the text of the award.

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