CAS 2023 A 9357
CAS · Football (FIFA / CAS) · Switzerland · 26 Sept 2024
Why it matters
This case clarifies the interplay between FIFA disciplinary proceedings and national insolvency laws. It confirms that a pre-insolvency agreement approved by a national court can bar a club from complying with a FIFA DRC decision, allowing disciplinary proceedings to be closed under Article 55(b) FDC. The award also highlights that the FIFA Disciplinary Committee has discretion to close proceedings when a club is under insolvency proceedings, and that such closure is not automatic but depends on whether the club can freely manage its assets.
Summary
The case involves a professional football player (Mr A.) who had a contract with RNK Split (the Club). The player terminated the contract in 2017 due to the Club's failure to pay salaries. The FIFA Dispute Resolution Chamber (DRC) ordered the Club to pay EUR 18,000 in outstanding remuneration and EUR 68,220 as compensation for breach of contract. The Club did not pay, and the player initiated disciplinary proceedings before the FIFA Disciplinary Committee. Meanwhile, the Club entered pre-insolvency proceedings in Croatia, and a pre-insolvency agreement was approved by the Commercial Court of Split in February 2021. This agreement rejected part of the player's claim and reduced the remaining debt to 30%, payable in instalments over six years. The player voted against the plan but it was approved by a majority of creditors. The FIFA Disciplinary Committee closed the disciplinary proceedings against the Club under Article 55(b) of the FIFA Disciplinary Code, which allows closure when a party is under insolvency or bankruptcy proceedings. The player appealed to CAS. The Sole Arbitrator upheld the FIFA Disciplinary Committee's decision, finding that the pre-insolvency agreement prevented the Club from freely managing its assets and complying with the FIFA DRC decision. The arbitrator noted that the Club could not be sanctioned for non-compliance because it was bound by the court-approved restructuring plan. The appeal was dismissed, and the player was ordered to bear the arbitration costs. The case underscores the tension between FIFA's disciplinary powers and national insolvency regimes, and confirms that clubs in financial distress may be shielded from FIFA sanctions if they are subject to a binding insolvency process.
The detail
Parties: A. v. RNK Split & FIFA
Case number: CAS 2023 A 9357
Outcome: Appeal dismissed; FIFA Disciplinary Committee's decision to close proceedings against the club confirmed.
Applicable law: FIFA Disciplinary Code (FDC), specifically Article 55(b); CAS Code of Sports-related Arbitration
Issues in play: The collision was between the FIFA disciplinary framework requiring compliance with DRC decisions and Croatian pre-insolvency law, which restricted the club's ability to pay debts. The key issue was whether the pre-insolvency agreement prevented the club from complying with the FIFA DRC decision, thus justifying closure of disciplinary proceedings under Article 55(b) FDC.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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