CAS 2021 A 8329
CAS · Football (FIFA / CAS) · Switzerland · 2 Dec 2022
Why it matters
This case is significant for clarifying the interplay between international sports federations' regulations and national insolvency laws. CAS affirmed that FIFA must consider national court decisions and insolvency proceedings when enforcing disciplinary measures like transfer bans. It established that a player's standing to appeal the lifting of such a ban can cease if their financial interest is adequately protected by an approved restructuring plan, especially if the player voted in favor of it. The decision underscores the importance of balancing enforcement mechanisms with the realities of national legal frameworks, particularly in financial distress situations for clubs.
Summary
Ismael Lopez Blanco, a Spanish professional football player, appealed a decision by FIFA to the Court of Arbitration for Sport (CAS). The dispute originated when Lopez Blanco's former club, SC Dinamo 1948 (Romania), failed to pay him outstanding salaries and compensation totaling EUR 396,000, as ordered by a FIFA Dispute Resolution Chamber (DRC) decision on 25 March 2021. The DRC decision included a transfer ban on Dinamo 1948 for non-payment, as per Article 24bis of the FIFA Regulations on the Status and Transfer of Players (RSTP). Subsequently, Dinamo 1948 entered insolvency proceedings in Romania, and a restructuring plan was approved by the Bucharest Court on 22 November 2021. Lopez Blanco, as a creditor, voted in favor of this plan. Following the club's insolvency, FIFA lifted the transfer ban on 31 August 2021, citing the club's inability to pay due to insolvency and referring to CAS jurisprudence and Article 55 of the FIFA Disciplinary Code. Lopez Blanco appealed this decision to CAS, arguing that FIFA had erroneously lifted the ban and violated the principle of res judicata, as the ban was a consequence of the original DRC decision and not a separate disciplinary measure. He contended that the club was misusing insolvency proceedings in bad faith. The CAS Panel, composed of Dr Anna Bordiugova (President), Mr Hendrik Willem Kesler, and Mr Patrick Lafranchi, dismissed Lopez Blanco's appeal. The Panel found that Lopez Blanco lacked standing to appeal because his financial interest was no longer directly affected by the transfer ban. By voting in favor of the club's restructuring plan, which provided for the full refund of his claim over a three-year term, he had effectively waived his right to pursue the claim through FIFA's execution procedures. The Panel reasoned that reinstating the transfer ban would hinder the club's efforts to regain financial stability, potentially jeopardizing the player's chances of receiving his claim under the restructuring plan. It clarified that the lifting of the ban was an execution procedure, not a disciplinary one, and that FIFA was obliged to consider the effects of national insolvency law. The Panel ordered Lopez Blanco to bear the arbitration costs and pay CHF 3,500 to SC Dinamo 1948 as a contribution towards its legal fees.
The detail
Parties: Ismael Lopez Blanco v. FIFA & SC Dinamo 1948
Case number: CAS 2021 A 8329
Outcome: The appeal filed by Ismael Lopez Blanco was dismissed, and he was ordered to bear the arbitration costs and pay CHF 3,500 to SC Dinamo 1948.
Quantum: CHF 3,500
Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), FIFA Disciplinary Code (DisCo), Swiss law, and Romanian Insolvency Law.
Issues in play: The case involved the interplay between FIFA's regulations on transfer bans for non-payment and national insolvency law, specifically whether a transfer ban should be lifted when a club enters insolvency proceedings. The principle of res judicata was also a key point of contention.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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