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CAS 2021 A 8256 (CAS)

Why it matters

This case clarifies the standard for holding a sports official personally liable for a breach of the duty of loyalty under the FIFA Code of Ethics. The CAS panel emphasized that mere association with a decision that later proves problematic is insufficient; there must be specific personal misconduct. The decision also highlights the importance of de novo review by CAS, which can cure procedural deficiencies in the federation's internal proceedings.

Summary

Issa Hayatou, former President of the Confederation of African Football (CAF) and former FIFA Council member, appealed a decision by the FIFA Ethics Committee that banned him from football-related activities for one year and fined him CHF 30,000. The Ethics Committee found that Hayatou breached his duty of loyalty under Article 15 of the FIFA Code of Ethics by signing a 12-year, USD 1 billion commercial agreement with Lagardère Sports (formerly Sportfive) in 2015-2016, without proper tender and despite a higher offer from Presentation Sports. The agreement later led to sanctions by Egyptian competition authorities for monopolistic practices. Hayatou argued that he followed CAF's internal procedures, the CAF Executive Committee approved the deal, and he had no personal gain. The CAS panel conducted a de novo review and found no evidence that Hayatou personally violated the duty of loyalty. The panel noted that the CAF Executive Committee was informed and approved the agreement, and the alternative offer from Presentation Sports was not considered serious due to lack of guarantees. The panel also found that the Egyptian competition law violations were attributed to CAF as an entity, not to Hayatou personally. Consequently, the CAS panel upheld the appeal, set aside the Ethics Committee's decision, and ordered FIFA to pay CHF 5,000 towards Hayatou's legal costs.

The detail

Parties: Issa Hayatou v. FIFA

Case number: CAS 2021 A 8256

Outcome: Appeal upheld; FIFA Ethics Committee decision set aside; no sanction imposed on Hayatou.

Applicable law: FIFA Code of Ethics (FCE), specifically Article 15 (duty of loyalty); CAS Code of Sports-related Arbitration.

Issues in play: The duty of loyalty under Article 15 FCE versus the appellant's argument that he acted in CAF's best interests and followed proper procedures. The panel considered whether the appellant personally breached his duty by signing a commercial agreement with Lagardère Sports that allegedly violated Egyptian competition law.

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

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