The 14th Update
[Edition 1 – March 2024]
Welcome to the inaugural edition of the 14th Update, a Newsletter curated by 14 Sports Law, where the world of sports law comes alive in vibrant colour and clarity. As we kick off this exciting project to demystify and simplify the complexities of sports law, we invite you to join us in exploring the beautiful intersection of sports and law with a fresh perspective.
With the 14th Update, our goal is simple: to dissect the most pressing legal issues shaping the sports world globally, presenting them in a digestible format that caters to seasoned professionals and curious newcomers alike. For this inaugural edition, we’ve curated a short compendium of the most significant updates spanning the tail end of 2023 and the dawn of 2024, presented in a concise and engaging format.
So whether you’re a seasoned legal eagle, a die-hard sports fan, or simply someone with a curious mind and a thirst for knowledge, we extend a warm welcome to you. We also invite you to share your thoughts, feedback, and questions with us at [info@14sportslaw.com]. Your input is invaluable as we strive to craft a newsletter that resonates with the passion and curiosity of our readership.
Happy reading!
Best,
Luis Cassiano Neves
Founding Partner, 14 Sports Law
On 17 November 2023, our Junior Partner Matilde Costa Dias was in Paraguay to speak on ‘Women’s Football’ at CONMEBOL’s symposium on law in South American Football.
On 22 December 2023, we concluded the Applications phase for the 2nd Edition of our flagship internship programme, “The Knock-Out: 14 Sports Law Award for Women.”
On 17 January 2024, our Associate Gabriel Eguinoa spoke on ‘Athletes’ Rights’ in the ‘Direito Em Campo’ webinar organised by GDM Football.
On 1 & 2 February 2024, our Partner Luis Cassiano Neves was in Tokyo to attend the 6th Edition of FIFA Football Annual Review.
On 1 March 2024, Luis Cassiano Neves and Matilde Costa Dias were in Madrid to attend the Iberian Law Awards Ceremony, where 14 Sports Law won the Award for ‘Best Practice in Sports Arbitration’.
In March 2024, Matilde Costa Dias acted as a Sole Arbitrator in the General Rounds for the 3rd Edition of the Sports Arbitration Moot. She also coached the team from Nova University, Lisbon for SAM 3.0.
On 7 March 2024, Matilde Costa Dias was a part of ‘Women on Board’ panel organised by Nova University to celebrate International Women’s Day.
2023 was definitely a year which had considerable attention on Football Agents worldwide, courtesy of the FIFA Football Agent Regulations (FFAR), which came under the radar of competition law watchdogs and courts globally. With the legal challenges faced for the implementation and (in)applicability of FFAR in a plethora of jurisdictions, including but not limited to – Germany, Netherlands, Belgium, England, France, Italy, Spain, Switzerland, Denmark, Brazil, Portugal etc., the latter part of the year marked major regulatory developments, which are summarised hereunder.
CAS Award in Professional Football Agents Association (PROFAA) v. FIFA
This case marked the first milestone in the ongoing battle between Agents and FIFA, with the CAS giving a clean chit to the latter in the standoff. The core issue at the heart of the dispute was essentially whether FIFA’s regulatory action pursues legitimate public objectives recognised by the EU Courts and is adequate, necessary and proportionate to achieve the intended objectives. In essence – (i) FIFA’s legitimacy to regulate football agent services a priori was established; and (ii) FFAR’s compliance with EU Competition Law, EU Free Movement Rules, Swiss Law, and GDPR was established in affirmative as well, thereby resulting in a lead to FIFA in the ongoing battle. Read the full CAS Award here!
EC’s Endorsement of FFAR before the CJEU in The Football Forum & RRC Sports Ltd. v. FIFA
In this case, while we keenly await the ultimate resolution of the matter by the CJEU (reportedly to be finalised in 2025), the EC’s submissions made to the judges made it seem tilting towards FIFA’s side, essentially siding with the above-mentioned CAS Award. In essence, the EC assessed that the constraints on competition imposed by the Regulations can be warranted, citing FIFA’s pursuit of legitimate objectives; particular emphasis was shed upon safeguarding contractual stability, mitigating conflicts of interest, and ensuring the protection of less-experienced players unfamiliar with the intricacies of the transfer system. All in all, only with certain disclaimers on its analysis especially on Commission Caps [Article 15(2), FFAR] the EC categorically gave its seal of approval to the disputed provisions, essentially under the umbrella of proportionality review. All eyes are now on the CJEU to clear the air for once and for all.
A Major Setback for FIFA in The FA Rule K Arbitration Award
By virtue of the Rule K Arbitration Award by the FA in the UK rendered on 30 November 2023, FIFA encountered a substantial setback in its endeavours to impose limitations on the fees charged by agents for their services. The FA delivered a decisive blow by asserting that key components of FFAR, if enforced, would constitute an illegal agreement and an abuse of a dominant position, contravening UK Competition Law. In a more overarching sense, this case underscores the susceptibility of sports governing bodies to legal challenges rooted in competition law. Following this development, the NFAR in the UK has been recently amended and such amended version came into force as of 1 January 2024. The full Award can be accessed here!
FIFA Circular No. 1873 on FFAR Suspension: So Close, Yet so FFAR
On 30 December 2023, FIFA published Circular No. 1873 addressed to all its member associations, which can definitively be classified as a classic U-Turn moment, insofar as an update on suspension of implementation of FFAR has been provided. The listed provisions affected by the German Court’s injunction have been suspended globally until the final decision of the CJEU, implying that any other provision, not inconsistent with the decision of the German Court continues to be in operation. The suspended provisions include – the service fee cap; the rules concerning service fee payments; the client pays rule; the rules regarding the timing of service fee payments; the prohibition of double representation; the reporting obligations; the rules regarding disclosure and publication; the submission rule; and the rule that service fee payments must be made via the FIFA Clearing House.
FIFA Circular No. 1874: The Agent Exam Stands
On 10 January 2024, FIFA released Circular No. 1874, pursuant to which it was clarified that the licensing obligations and the FIFA Football Agent Exam shall remain in place. The next edition of the exam is scheduled to take place on 22 May 2024, with an exam fee of maximum 600 US Dollars, and the annual renewal fee of 300 US Dollars.
FIFA’s Appeal Against the Decision of Dortmund Court Rejected in Germany
The Higher Regional Court of Düsseldorf (Oberlandesgericht Düsseldorf) has upheld the erstwhile decision made by the District Court of Dortmund, rejecting FIFA’s appeal against the suspension of specific provisions of the FFAR. This ruling is conclusive, meaning that the suspended provisions of the FFAR will persist within the German market. Consequently, these regulations do not govern transactions involving German individuals and entities such as clubs, agents, and players/coaches. As a result, FIFA will retain its Circular dated 30 December 2023, which suspended particular provisions of the FFAR globally.
We have recently witnessed several noteworthy cases in the past few months, which especially are of great relevance in European Sports Law. We think that it is important to throw some light upon these selected cases which either created new jurisprudence or further strengthened existing one.
The European Super League Case – CJEU’s Ruling on FIFA & UEFA
In the aftermath of CJEU’s ruling rendered on 21 December 2023, initial headlines declared a triumph for the ESL while casting FIFA & UEFA into the shadows of defeat. Yet, as is customary in legal discourse, the reality of the judgment reveals a tapestry woven with intricate nuances. Indeed, FIFA & UEFA were found to be in violation of EU Competition Law, and their prohibition of the ESL project was determined as an abuse of dominant position and an unjustified restriction on the freedom to provide services. However, as clarified in the judgment as well, this does not mean that the ruling confers automatic endorsement for ventures like the ESL. The CJEU refrains from explicitly adjudicating on the substance of such initiatives. Accordingly, this decision is not essentially a ruling on the compatibility of the proposed ESL Project with EU law, but is rather a ruling on the aspects of the rules of FIFA and UEFA as they stood at the time. The full judgment can be found here!
International Skating Union (ISU) v. Commission - Landmark Ruling for Sports Arbitration
This case was an appeal lodged against the General Court’s ruling in Case T-93/18, in which there was a decision regarding the ISU’s regulations which imposing significant penalties on athletes for taking part in unauthorized ISU competitions, thereby holding these regulations to be in violation of EU Competition Law. This appeal filed by the ISU was dismissed and it was categorically confirmed that the rules of the ISU regarding prohibiting athletes to participate in competitions falling outside the umbrella of the ISU are deemed unlawful. However, in contrast to the first-instance decision, the CJEU upheld the cross-appeal and set-aside the previous judgement to the extent that concerned the arbitration rules. It was considered that subjecting disputes regarding sport association rules, such as the likes of ISU’s disputed rules at hand, to solely CAS arbitration may perpetuate violations of EU Competition Law. We would like to underscore that to some extent, this may in our opinion create a dilemma for CAS proceedings – since the seat of CAS is Lausanne, Switzerland, CAS decisions can only be reviewed by the Swiss Federal Tribunal – clearly not the instance as suggested in this ruling, for preliminary references to the CJEU. Read the full judgment here!
Royal Antwerp Football Club’s Case – The Home-Grown Player Requirement
This was the third landmark pronouncement of 21 December 2023, involving the Royal Antwerp Football Club, addressing UEFA regulations stipulating that clubs participating in UEFA’s interclub competitions must have a maximum of 25 listed players, with at least eight players being home-grown – trained either by their club or another club in the same national association – for a minimum of three years between ages 15 and 21, regardless of nationality. The Brussels Court of First Instance sought clarification from the CJEU on whether these rules violate the freedom of movement for workers as per Article 45 of the TFEU and constitute anti-competitive behaviour under Article 101 of the TFEU. It was determined that the requirement for home-grown players could potentially breach EU internal market and competition regulations by risking discrimination. However, it was further held that it is the responsibility of the domestic court referring the case to assess the evidence concerning potential exemptions or justifications. The full judgment is accessible here!
FIFA Circular No. 1867: Failure to Respect Settlement Agreements – Competence of FIFA DisCom
In light of the increasing number of settlement agreements in FIFA and CAS disciplinary proceedings under Article 21 of the FIFA Disciplinary Code, FIFA has issued Circular no. 1867 to clarify regulations. This circular grants direct authority to the FIFA Disciplinary Committee to enforce private settlement agreements connected to financial decisions by FIFA or CAS. Effective from February 1, 2023, these provisions aim to streamline the resolution process, eliminating the need for additional proceedings before the Football Tribunal.
FIFA’s Revamped Framework for NDRCs: Necessary Standards for Dispute Resolution
FIFA has recently modernized the regulatory framework for National Dispute Resolution Chambers (NDRCs). In December 2023, the FIFA Council approved the National Dispute Resolution Chamber Recognition Principles, which incorporate the new National Dispute Resolution Chamber Standard Regulations. These revisions aim to offer clarity and legal certainty regarding jurisdiction, structure, requirements, and potential formal recognition by FIFA of existing NDRCs. The updated framework comprises the National Dispute Resolution Chamber Recognition Principles, outlining the standards necessary for FIFA recognition of a national dispute resolution system. Additionally, the revised National Dispute Resolution Chamber Standard Regulations provide guidance to member associations on establishing procedural rules governing NDRC organization, composition, and functions.
Shyshko’s Life-time Ban for Match-Fixing Activities: Preserving Fair Competition in Esports
Alexey Shyshko, proprietor of several professional esports teams including Akuma, Majesty, and Project X, has been banned from the industry for life following an investigation by the Esports Integrity Commission (ESIC). The investigation revealed that Shyshko abused his position to manipulate match outcomes for financial gain and to provide unfair advantages to his teams. Several individuals associated with Shyshko’s teams were also found to have breached ESIC’s Anti-Corruption Code, resulting in two-year bans. ESIC emphasized the severity of Shyshko’s actions, stating that they tarnished the reputation of esports and threatened fair competition. The lifetime ban underscores the importance of preserving integrity in esports for its continued development as an industry.
FIBA Teams Up with Genius Sports for AI-Powered Technology Advancement
FIBA, the global governing body of basketball, has extended its partnership with Genius Sports Limited to introduce innovative computer vision technology and AI capabilities to leagues and national federations worldwide from 2025 to 2035. This ground-breaking technology aims to revolutionize the data and video ecosystem of international basketball, offering a streamlined solution for live game statistics collection and video production synchronization with advanced player tracking. This collaboration marks the debut of an AI-driven automated player tracking system for leagues and national federations, accompanied by state-of-the-art coaching tools, analytics, automated officiating, and broadcast enhancement features.
The Story of Sha’Carri Richardson: The Fastest Woman in the World
To conclude the Newsletter, we have a very interesting sports story for you all. Know about Sha’Carri Richardson, the lightning bolt on the track, whose journey is as riveting as her speed. In June 2021, Richardson blazed into the spotlight, clinching her spot in the delayed 2020 Tokyo Olympics by dominating the women’s 100-meter race at the U.S. trials. Clocking in at a breath-taking 10.86 seconds, the nation watched in awe as she secured her place on Team USA at just 21 years old.
Yet, a cloud loomed over her Olympic dream when she tested positive for THC, a marijuana compound, leading to a one-month suspension and her absence from the Olympics. But setbacks didn’t define Richardson. In August 2023, she etched her name in history by shattering records at the world track and field championships in Budapest. With a jaw-dropping performance, she claimed the title of the world’s fastest woman, surpassing the late Tori Bowie’s 2017 record and becoming the second non-Jamaican world champion since 2011. Richardson’s journey is one of resilience and triumph. Despite a tumultuous past marked by abandonment and mental health struggles, she’s soared to unprecedented heights. Her victories, including numerous college titles and this remarkable world championship win, speak volumes about her indomitable spirit.
In the world of sports, where every athlete has a story, Richardson’s shines brightly as a testament to overcoming adversity and achieving greatness against all odds. Here are a few words from Richardson speaking after breaking the record: “It’s about knowing that no matter what happens, you never lose sight of yourself. You’re going to have good days, you’re going to have bad days, you are going to have better days. You’re going to have worse days. But you live to see tomorrow. Every day the sun doesn’t shine but that’s why I love tomorrow.”
Disclaimer: This Newsletter is the intellectual property of 14 Sports Law. Readers are strictly advised not to take any action based solely upon the information and analysis provided herein without seeking professional advice. The authors as well as 14 Sports Law explicitly disclaim any and all liability to anyone who has read this Newsletter, or otherwise, in respect of anything, and of consequences of anything done, or omitted to be done by any such person in reliance upon the contents herein. It is imperative that readers exercise caution and seek legal counsel before relying on the information presented in the Newsletter.