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CAS 2021 A 8446 (CAS)

Why it matters

This case reinforces the CAS doctrine of sporting succession, which prioritises the continuity of a club's identity over its legal form. It confirms that a club acquiring the name, colours, logo, history, and fan base of a predecessor can be held responsible for the predecessor's debts, even if legally distinct. The decision protects players' rights by preventing clubs from escaping financial obligations through insolvency and reincorporation.

Summary

The case concerns a dispute between Fotbal Club Rapid 1923 SA (the New Club) and Serbian player Nemanja Milisavljevic, along with FIFA. The Old Club (FC Rapid Bucuresti) had entered insolvency in 2012 and terminated the player's contract, owing him EUR 62,150. The FIFA DRC ordered payment in 2014, but the Old Club did not pay. The player later sought enforcement against the New Club, which had acquired the Old Club's intellectual property, name, colours, logo, and history. The FIFA Disciplinary Committee found the New Club to be the sporting successor and ordered it to pay the debt plus interest and a fine. The New Club appealed to CAS, arguing it was a separate legal entity and not liable. The CAS Sole Arbitrator applied Article 15(4) of the FIFA Disciplinary Code and extensive CAS jurisprudence on sporting succession. He found that the New Club had deliberately presented itself as the continuation of the Old Club, using the same name, colours, logo, stadium, and website history. The Arbitrator held that sporting succession is determined by the perception of the general public, not legal form. The appeal was dismissed, and the New Club was ordered to pay the full amount.

The detail

Parties: Fotbal Club Rapid 1923 SA v. N. Milisavljevic & FIFA

Case number: CAS 2021 A 8446

Outcome: Appeal dismissed; Appellant confirmed as sporting successor of Old Club and ordered to pay EUR 62,150 plus 5% interest p.a. from 4 May 2013, plus CHF 7,500 fine.

Quantum: EUR 62,150 plus interest; CHF 7,500 fine

Applicable law: FIFA Disciplinary Code (FDC), FIFA Regulations on the Status and Transfer of Players (RSTP), Swiss Civil Code

Issues in play: Sporting succession vs. legal succession; whether a new legal entity can be held liable for debts of an insolvent predecessor club based on sporting continuity.

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

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