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CAS 2023 A 10091 (CAS)

Why it matters

This award clarifies the criteria for determining sporting succession in football, emphasizing that public perception and the timing of a new club's establishment relative to the old club's financial decline are key factors. It also confirms that the FIFA administration can determine sporting succession without referring the matter to the Disciplinary Committee, and that a transfer ban applies to the sporting successor.

Summary

The case concerns a dispute over training compensation owed by CPF Karpaty LTD to HNK Cibalia Vinkovci. FIFA's Dispute Resolution Chamber ordered CPF to pay EUR 48,986 plus interest, and imposed a transfer ban if unpaid. CPF failed to pay, and HNK requested FIFA to enforce the ban against Karpaty FC LLC, claiming it was CPF's sporting successor. FIFA's administration agreed, imposing a transfer ban on Karpaty. Karpaty appealed to CAS, arguing that FIFA's administration lacked competence to decide sporting succession, that FC Karpaty Halych should have been joined as a party, and that Karpaty was not the sporting successor. The CAS Sole Arbitrator dismissed the appeal, finding that Karpaty had adopted CPF's name, logo, colours, stadium, and history, and was established as CPF faced financial difficulties, making it the sporting successor. The decision confirms that the FIFA administration can determine sporting succession under Article 25(1) RSTP and that the transfer ban applies to the successor club.

The detail

Parties: Karpaty FC LLC v. FIFA & HNK Cibalia Vinkovci & FC Karpaty Halych

Case number: CAS 2023 A 10091

Outcome: Appeal dismissed; FIFA's decision that Karpaty FC LLC is the sporting successor of CPF Karpaty LTD and subject to a transfer ban is confirmed.

Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), FIFA Disciplinary Code (FDC), CAS Code of Sports-related Arbitration

Issues in play: The case involved the doctrine of sporting succession under FIFA regulations, specifically whether a new club (Karpaty FC LLC) assumed the sporting identity of a former club (CPF Karpaty LTD) and thus inherited its debts and sanctions.

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

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