CAS 2020 A 7505
CAS · Football (FIFA / CAS) · Switzerland · 18 Jan 2022
Why it matters
This case reinforces FIFA's doctrine of sporting succession, holding that a club's identity transcends its legal entity. It prevents clubs from escaping debts by declaring bankruptcy and re-emerging under a new entity while retaining the same name, colours, fans, and history. The decision protects creditors and maintains the integrity of football competitions.
Summary
The case concerns PFC CSKA-Sofia (New CSKA) appealing a FIFA Disciplinary Committee decision that found it liable as the sporting successor of the old CSKA Sofia (Old CSKA) for unpaid agent fees. Old CSKA had been declared bankrupt in 2015 and ceased operations. In 2016, investors acquired the legal entity of Litex Lovech, changed its name to PFC CSKA-Sofia, and purchased the IP rights and assets of Old CSKA from bankruptcy. The new club used the same name, colours, logo, stadium, and claimed the same history. The agent, Francisco Moreno Ruano, had obtained a FIFA decision in 2015 ordering Old CSKA to pay EUR 80,000 plus interest and EUR 14,893. He participated in the Bulgarian bankruptcy proceedings but his claim was not fully accepted. He then requested FIFA to impose sanctions on New CSKA. FIFA's Disciplinary Committee found New CSKA to be the sporting successor of Old CSKA based on factors such as name, colours, logo, address, stadium, and public perception. It ordered New CSKA to pay the debt or face a transfer ban and a fine. New CSKA appealed to CAS, arguing it was a different legal entity and not liable. The CAS Panel dismissed the appeal, applying FIFA's consistent jurisprudence that a club is a sporting entity that transcends its legal operators. The Panel noted that New CSKA had intentionally adopted the identity of Old CSKA to benefit from its fan base and history, and therefore must also assume its liabilities. The decision upholds the principle that clubs cannot use bankruptcy to evade debts while continuing operations under a new legal shell.
The detail
Parties: PFC CSKA Sofia v. FIFA & Francisco Moreno Ruano
Case number: CAS 2020 A 7505
Outcome: The appeal was dismissed; the FIFA Disciplinary Committee decision was confirmed, holding PFC CSKA-Sofia liable as sporting successor of the old CSKA Sofia for debts to the agent, with a fine of CHF 15,000 and a transfer ban if not paid.
Quantum: EUR 80,000 plus interest and EUR 14,893
Applicable law: FIFA Disciplinary Code (2017 ed.), FIFA Statutes, CAS Code of Sports-related Arbitration
Issues in play: The concept of 'sporting succession' under FIFA regulations versus Bulgarian insolvency law and the principle of separate legal personality. The tribunal had to decide whether the new club, which acquired assets and identity of the old bankrupt club, could be held liable for the old club's debts.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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