CAS 2023 A 9386
CAS · Football (FIFA / CAS) · Switzerland · 3 Oct 2023
Why it matters
This case clarifies the criteria for sporting succession under FIFA regulations, emphasizing that a club can be held liable for another's debts even without legal succession. It reinforces that factors like name, colours, players, and public perception are key, and that each case is assessed individually. The decision also highlights that sporting merit promotion does not preclude a finding of succession.
Summary
Liaoning Shenyang Urban FC (the Appellant) appealed a FIFA Disciplinary Committee decision that found it to be the sporting successor of Liaoning Hongyun FC (Liaoning FC) and liable for Liaoning FC's debt to Gremio Osasco Audax EC. Liaoning FC had been ordered to pay EUR 18,844.50 plus interest to Gremio, but failed to comply and was disaffiliated from the Chinese Football Association (CFA) in May 2020 due to unpaid debts. The Appellant, a separate club founded in 2015, changed its name from Shenyang Urban FC to Liaoning Shenyang Urban FC in early 2020, before Liaoning FC's disaffiliation. After Liaoning FC's disaffiliation, three professional players and 25 amateur players from Liaoning FC joined the Appellant. The Appellant also participated in flag ceremonies organized by the Liaoning Football Association, which the public perceived as a continuation of Liaoning FC. The FIFA Disciplinary Committee considered 16 factors and concluded that the Appellant was the sporting successor. The CAS Panel reviewed the case de novo, applying Article 15 of the FIFA Disciplinary Code and CAS jurisprudence. The Panel examined criteria such as history, name, colours, players, division, and public perception. It found that while the clubs had different histories and sporting achievements, the name change, transfer of players, and public perception (including media articles and flag ceremonies) indicated sporting succession. The Panel emphasized that sporting succession is assessed from the perspective of the general public and that each case is fact-specific. The appeal was dismissed, and the Appellant was ordered to pay the debt and a fine.
The detail
Parties: Liaoning Shenyang Urban FC v. FIFA
Case number: CAS 2023 A 9386
Outcome: The appeal is dismissed. The FIFA Disciplinary Committee decision is confirmed: Liaoning Shenyang Urban FC is considered the sporting successor of Liaoning FC and ordered to pay EUR 18,844.50 plus interest to Gremio Osasco Audax EC, and a fine of CHF 5,000.
Quantum: EUR 18,844.50 plus interest; CHF 5,000 fine
Applicable law: FIFA Disciplinary Code (2019 edition), Article 15; CAS Code of Sports-related Arbitration
Issues in play: The concept of sporting succession in football, where a club may be held liable for debts of another club if it is perceived as its successor, versus the principle of separate legal personality. The Panel applied a multi-factor test to determine whether the Appellant was the sporting successor of Liaoning FC.
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