TAS 2020 A 7418 Club Cerro Porteño c. FIFA
CAS · Football (FIFA / CAS) · Switzerland · 22 Sept 2021
Why it matters
This case reaffirms the CAS jurisprudence that FIFA has no standing to be sued when it merely adjudicates a dispute between two clubs, as it is not a party to the underlying contract. It also clarifies that a failure to join the real opposing party (SL Benfica) renders the appeal inadmissible, as the tribunal cannot decide on the merits without violating due process. The case underscores the importance of proper party joinder in CAS appeals.
Summary
Club Cerro Porteño appealed a FIFA decision ordering it to pay EUR 750,000 plus 18% annual interest to SL Benfica for the transfer of player Jorge Luis Rojas. Cerro Porteño argued that the interest rate was usurious under Swiss law and that FIFA should have applied a 5% rate. However, Cerro Porteño failed to include SL Benfica as a respondent in its appeal to CAS, only naming FIFA. FIFA argued it had no standing to be sued because it acted only as a first-instance adjudicator, not as a party to the contract. The CAS sole arbitrator agreed, citing consistent CAS jurisprudence that FIFA cannot be sued in such horizontal disputes. The arbitrator also found that the failure to join SL Benfica meant the appeal could not proceed on the merits, as deciding the contractual issues without SL Benfica would violate due process. Consequently, the appeal was dismissed in its entirety, and Cerro Porteño was ordered to bear the costs of the arbitration. The decision did not address the substantive arguments about interest rates or penalties.
The detail
Parties: TAS 2020 A 7418 Club Cerro Porteño c. FIFA
Outcome: Appeal dismissed. CAS upheld FIFA's decision that Cerro Porteño must pay EUR 750,000 plus 18% annual interest to SL Benfica, but found FIFA lacked standing to be sued and could not rule on the contractual dispute without SL Benfica as a party.
Quantum: EUR 750,000 plus 18% annual interest from 16 July 2016
Applicable law: FIFA Regulations, Swiss Civil Code (Art. 75), Swiss Code of Obligations (Art. 102, 104), CAS Code of Sports-related Arbitration
Issues in play: The case involved the standing of FIFA to be sued when it acts as a first-instance adjudicator in a horizontal dispute between two clubs, and the application of Swiss law on interest rates and penalties in a transfer contract.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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