The 14th Update
[Edition 6 – September 2024]
Welcome back to the 14th Update, a Newsletter curated by 14 Sports Law, where the world of sports law unfolds with the rhythm of a well-struck penalty kick. After a thrilling and equally hectic summer transfer window, we are thrilled to bring to you the 6th edition of the 14th Update, which continues to be a monthly fixture on your calendar. We’ll look at the transfers that we have had the privilege of working on during the last couple of months, as well as the latest in the sports industry.
Our mission remains unwavering: to decode the complexities of sports law and present them to you in an engaging format. 14th Update is your passport to the latest developments in the arena of sports law, business, and technology.
As always, we invite you to share your thoughts, feedback, and questions with us at [info@14sportslaw.com].
Happy reading!
Best,
Luis Cassiano Neves
Founding Partner, 14 Sports Law
Warm welcome to Pauline Mbanza from Uganda, beginning her 3-month internship with the team after having won the 14 Sports Law Knock-Out Award for Women. We also welcome Thibault Verschuere from Belgium, beginning his 3-month internship with us as part of his Masters in International Sports Law by ISDE.
Junior Associate Aakash Batra delivered 2 lectures on FIFA Agents Regulations on a 2-day certificate course organised on 31 August and 1 September via the Platform “The Legal Voice”.
The team has been hard at work over the past few months, tackling transfers, dispute resolutions, and diving into exciting new projects. The summer transfer window was undoubtedly the highlight of this busy period, packed with high-stakes deals and endless behind-the-scenes negotiations. In the following section, we’ve dedicated an exclusive column to cover all the action from this whirlwind transfer season. Check it out!
Here’s a breakdown of the key stats from our recent transfer activity, showcasing the scale and excitement of the deals we’ve been part of:
93 transfers in total: A mix of 66 permanent deals and 19 loan moves, along with 6 contract renewals!
89 clubs involved from across 32 countries on 5 continents – talk about global influence!
€55 million+ in fees, including both fixed amounts and contingent payments – quite the hefty sum, wouldn’t you agree?
Let us also have a look at some global stats which have been highlighted in FIFA’s latest published ‘International Transfer Snapshot’ (September 2024 Edition). Here is a brief overview of the said FIFA Report:
Staggering figures have been witnessed in men’s professional football, with international transfer fees totalling a whopping USD 6.46 billion, making it the second highest ever, just behind 2023’s record breaking USD 7.36 billion.
Over 11,000 international transfers have been completed over the aforementioned period, representing a 4.9% rise from last year and definitely setting in a new benchmark;
Women’s professional football too saw an unprecedented growth, with transfer fees doubling to USD 6.8 million, not to mention a 31.9% surge in international transfers, hitting a total of 1,125 moves;
Last but definitely not the least, let’s also take a look at the specific trends as observed in Portugal [acknowledgement: the analysis hereunder of the numbers specifically for the Portuguese Market has been done with reference to KPMG Football Benchmark’s latest Report titled ‘Following the Money in 2024/2025 Summer Transfer Window’ posted on 5 September 2024]:
In the previous summer window, 6 of the 8 top leagues reviewed finished with a positive transfer balance. However, the 2024/25 transfer window saw that number dwindle to just 2. This year, only the Dutch and Portuguese leagues managed to retain a surplus, standing out as the exceptions in an otherwise challenging financial landscape.
In Liga Portugal, here are a few key stats which are significant to note:
The total income generated was EUR 368.9 million, with the average income per club being EUR 20.5 million and per player being EUR 1.3 million;
The total expenditure stood at EUR 183.2 million, with the average expenditure per club being EUR 10.2 million and per player being EUR 0.6 million;
Accordingly, the balance stood in positive, with + EUR 185.7 million, with the balance per club being + EUR 10.3 million;
14 clubs maintained a positive balance in toto, tied for the highest only with La Liga, whereas only 4 clubs reported a negative balance in Portugal, while the number stood at 6 in Spain;
The club with the highest transfer fee balance was Benfica + EUR 89.4 million, and the club with the lowest transfer fee balance was Sporting CP with – (EUR 12.4 million).
Update Regarding the November 2024 Edition of the FIFA Agent Exam!
Applications for the 4th Edition of the FIFA Agent Exam, to be conducted worldwide on 20 November 2024, are now OPEN!
Visit the FIFA Agents Platform [https://agents.fifa.com/home] as of 19 August 2024 until 4 October 2024. After having conducted two successful editions of our flagship Preparatory Course for the April 2023 and the May 2024 editions of the FIFA Agent Exam, we are glad to announce the launch of an even more detailed edition of our latest Prep Course.
Want to know more details about the course and the application procedure to register on the Agents Platform? We have a 14th Update on the FIFA Agent Exam (November 2024 Edition) in the coming days.
Anti-Doping Decision in ITIA v. Jannik Sinner
Jannik Sinner, the world’s No. 1 tennis player, narrowly avoided a doping ban after two positive tests in March for trace of clostebol. An independent tribunal ruled that Sinner bore “no fault or negligence,” finding the contamination likely stemmed from his physiotherapist’s use of Trofodermin, a topical spray commonly available in Italy. The spray was applied to his physiotherapist’s cut without gloves during Sinner’s massages, which led to contamination. Despite criticism from players like John McEnroe and Nick Kyrgios, the tribunal concluded that Sinner had no reason to suspect a doping risk.
It was essentially confirmed with certain evidence on record that Sinner suffers from psoriasiform dermatitis, and the treatments his physiotherapist provided for the condition, which included massaging and bandaging, resulted in accidental exposure to clostebol. Crucially, Sinner argued he was unaware of the substance’s presence. Scientific experts supported this explanation, and the tribunal accepted Sinner’s arguments on the balance of probability, dismissing any accusations of doping misconduct. It is pertinent to note that WADA is contemplating whether or not to appeal the decision to the CAS, and they have until the end of September to do so if they wish to – this leaves the much-debated Sinner victory in this case subject (also some of his recently won titles) to potential jeopardy.
Not just WADA, the relevant anti-doping rules also allow the National anti-doping agency of Italy, i.e., NADO Italia the right to challenge the decision. While the 21-day deadline for NADO Italia to file an appeal to the CAS in this regard has already prima facieexpired – there still remains uncertainty insofar as the deadline has to be counted from the date when the appealing party receives the verdict and all supporting documents, which is something that can take a few days. For WADA though, it gets another 21 days on top of the initial deadline for NADO Italia, leaving it with more time to prefer an appeal.
New Doping Controversy Concerning Chinese Swimmers?
Recently, reports worldwide, and especially those by the U.S Media, discussed about a so-called New Doping Controversy in China – WADA clarified on its website that the new cases are in fact related to a wide array of cases involving athletes from different sports (2 swimmers, 1 shooter, and 1 BMX Rider) with all of them being tested positive for trace amounts of a prohibited substance, metandienone, in late 2022 and early 2023. Initially suspended, the athletes later proved that contaminated meat was the source of the positive tests. CHINADA’s investigation, which tested hundreds of meat samples, found multiple instances of contamination. The latest release by WADA clarifies that after thorough reviews by WADA and various international federations, no appeals were filed, and the athletes were cleared.
Via this release, WADA also condemned the reports alleging misconduct on its part. Mind you, these cases are different from the other ongoing dispute regarding the 23 Chinese swimmers who tested positive for banned substance before the Tokyo Olympics but faced no penalties. The reason why this news took no time to light the fire and become a point of controversy is because of the recurring nature of doping cases involving Chinese swimmers. While WADA stands strong in condemnation of allegations towards it, the other side, precisely the media, maintains that the facts and violations were not adequately addressed and an appeal should have been preferred.
Latest Update on Clubs’ Monitoring by the UEFA CFCB
On 6 September 2024, UEFA’s Club Financial Control Body (CFCB) concluded its evaluation of clubs that participated in the 2023-2024 UEFA competitions. The CFCB evaluated all clubs based on the new Squad Cost Rule, which is being phased in over three years. This UEFA ‘Squad Cost Ratio’ means that basically, clubs are limited in the percentage of their turnover they can spend on wages and transfer fees. In 2023, clubs had to maintain a Squad Cost Ratio of 90% or lower, in accordance with Article 92 et. seq. of the UEFA Club Licensing and Financial Sustainability Regulations. This limit will decrease to 80% in 2024 and 70% in 2025. For the 2023-2024 season, all clubs successfully reported squad cost ratios within the required 90% threshold.
All clubs met the new squad cost ratio requirement of under 90%, though Aston Villa and Olympique de Marseille faced fines for delayed financial submissions. AC Milan, PSG, and others met financial targets, while AS Roma and Istanbul Başakşehir FK received penalties for minor breaches. Başakşehir faces further sanctions, including a one-year ban from UEFA competitions unless it complies with financial rules for 2024-2025.
‘Membership for All’ Reform by the ECA
The European Club Association (ECA) Board has approved updates to the organizational regulations, merging the Partner/Network category into the Associated Member category across all Subdivisions. This change allows former Network/Partner clubs to elect members to the Board and grants them the same rights as Associated Members, with no impact on Ordinary Members. ECA Chairman Nasser Al-Khelaifi highlighted this as a significant milestone, praising the organization’s 160% membership growth since the 2023/24 season. Additionally, the Board recognized reduced ticket price caps for visiting fans in UEFA men’s club competitions for the next two seasons.
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