CAS 2023 A 9667
CAS · Football (FIFA / CAS) · Switzerland · 15 Dec 2023
Why it matters
This award highlights the procedural aspects of appealing FIFA decisions to the Court of Arbitration for Sport (CAS) and the impact of settlement agreements on arbitration proceedings. It demonstrates how CAS handles cost allocation when an appeal is withdrawn due to a private settlement, emphasizing the principle that parties' agreements on costs are respected. The case also briefly touches upon the complex 'sporting successor' concept in football, a recurring issue in player transfer disputes, though the merits were not decided by CAS due to the settlement.
Summary
This case originated from a FIFA Dispute Resolution Chamber (DRC) decision on 29 April 2022, which ordered FC Kavala to pay FC Hegelmann EUR 25,972.60 in training compensation for player Vilius Armalas, plus interest. When FC Kavala failed to comply, FIFA imposed a transfer ban. Subsequently, FC Kavala was relegated to an amateur division and, according to Greek law, was automatically dissolved and replaced by its founding amateur association, AO Kavala. FC Hegelmann then sought to hold AO Kavala responsible as the 'sporting successor' of FC Kavala. On 25 April 2023, FIFA issued a decision (FDD-13637) confirming AO Kavala as the sporting successor and thus subject to the original DRC decision. AO Kavala appealed this FIFA decision to the Court of Arbitration for Sport (CAS) on 16 May 2023, seeking to set aside FIFA's decision, confirm it was not the sporting successor, and have FIFA and FC Hegelmann bear the arbitration costs. During the CAS proceedings, FC Hegelmann initially challenged the admissibility of the appeal, arguing the FIFA decision was not an appealable act. However, before a decision on the merits or admissibility, AO Kavala and FC Hegelmann entered into a settlement agreement on 14 September 2023. This agreement stipulated that AO Kavala would bear all related arbitration costs and that both parties would bear their own legal costs. Following this settlement, AO Kavala withdrew its appeal on 21 September 2023. The CAS Panel, constituted under President Mr. Patrick Stewart and arbitrators Mr. Efraim Barak and Dr. Anna Bordiugova, then issued this Award on Costs on 15 December 2023. Applying Articles R64.4 and R64.5 of the CAS Code of Sports-related Arbitration, the Panel confirmed the termination of the appeal proceedings and ordered AO Kavala to bear the arbitration costs in their entirety, as per the settlement agreement. It also ruled that each party would bear its own legal fees and expenses, noting that FIFA was represented by in-house counsel. The specific amount of arbitration costs was to be determined and communicated separately by the CAS Court Office.
The detail
Parties: AO Kavala v. FIFA & FC Hegelmann
Case number: CAS 2023 A 9667
Outcome: The Court of Arbitration for Sport terminated the appeal proceedings and ordered AO Kavala to bear the arbitration costs in their entirety, with each party bearing its own legal fees, following a settlement agreement between AO Kavala and FC Hegelmann.
Applicable law: CAS Code of Sports-related Arbitration (Articles R47, R48, R50, R64.4, R64.5), FIFA Statutes (Article 57(1)), and a Settlement Agreement between AO Kavala and FC Hegelmann. The underlying dispute involved FIFA Regulations on the Status and Transfer of Players (Article 24bis) and Greek Law 2725/1999 (Article 111).
Issues in play: The primary legal principles in play for the CAS appeal concerned the admissibility of the appeal against a FIFA administrative decision and the interpretation of 'sporting successor' under FIFA regulations. However, the case was settled, leading the CAS Panel to apply its Code of Sports-related Arbitration, specifically Articles R64.4 and R64.5, to determine the allocation of arbitration costs based on the parties' settlement agreement and the withdrawal of the appeal.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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