The 14th Update
[Edition 2 – May 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 your great feedback on our inaugural, we are thrilled to announce that the 14th Update is now a monthly fixture on your calendar, hitting your inboxes on the 14th day of every month.
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!
Luis Cassiano Neves
Founding Partner, 14 Sports Law
Partner Luis Cassiano Neves was in China to meet clients playing in the Chinese Super League;
Junior Partner Matilde Costa Dias participated as a Guest Speaker in an executive Learning Course on Female Leadership in Sport run by the Portuguese Football Federation;
Matilde, once again. This in Madrid to deliver a lecture on how to act before the Court of Arbitration for Sport, at the prestigious Escuela Universitaria Real Madrid;
Junior Associate Aakash Batra was awarded the Bank of Baroda Scholarship by his alma mater, Symbiosis Law School (Symbiosis International University, India) for ‘Best Sportsperson’;
The final phase of the 2nd Edition of our internship programme, “The Knock-Out: 14 Sports Law Award for Women” was concluded, and we’ll be announcing a winner very soon.
Hot off the Press: 2nd Edition of 14 Sports Law’s Prep Course for the FIFA Agent Exam
14 Sports Law is conducting the 2nd Edition of its Preparation Course for the FIFA Agent Exam. The first worldwide exam of 2024 is scheduled for 22 May.
What’s on the agenda, you ask? Brace yourselves for 17 power-packed online live lectures, over 500 mock questions to sharpen your skills, mock exams for topic-wise mastery, a star-studded faculty line-up, a WhatsApp Hotline for doubt-busting sessions, and handy summary notes for last-minute revision blitzes.
And that’s not all! Mark your calendars for the second exam of 2024 in November, where we’ll be rolling out another round of our signature preparation course to set you up for success. Got burning questions or need guidance on the FIFA Agent Exam journey? Drop us a line – we’re here to support you every step of the way.
CJEU Case C-650/22, Lassana Diarra and FIFPRO v. FIFA and URBSFA: AG Szpunar’s Opinion
AG Szpunar has delivered his opinion in the above cited case to the CJEU, as provided in Press Release No. 78/24, which essentially points that some commonly applied provisions of the RSTP may prove to be contrary to EU Competition Law. Here’s the scoop: as per the opinion, the RSTP provisions cast a shadow over freedom of movement, potentially deterring clubs from hiring players due to financial risks and sporting sanctions. This, in turn, hampers players’ ability to switch clubs and limits competition in the player acquisition market. AG Szpunar finds that, by their very nature, the RSTP limit the possibility for players to switch clubs and, conversely, for (new) clubs to hire players, in a situation where a player has terminated his or her contract without just cause (due to the automatic joint liability). The Advocate General has concluded that such a provision might contradict competition law and regulations on the free movement of individuals within the internal market; in cases where there’s a dispute between a player and his original club, it becomes exceedingly challenging for the player to secure a new opportunity. He further mentions that these restrictions may be justified only if proven necessary to pursue legitimate objectives. For instance, rules on joint liability could be bypassed if the new club wasn’t involved in contract termination, and international transfer certificate regulations might be warranted with efficient provisional measures in place. The AG’s opinion is not binding on the CJEU, and now it is the latter’s turn to rule on whether these long-standing rules are indeed contrary to EU Competition Law.
Simona Halep’s Anti-Doping Case – She is BACK!
Simona Halep, the two-time Grand Slam champion, faced a doping scandal following the presence of Roxadustat, a WADA-prohibited substance, in her testing sample at the US Open in August 2022. Irregularities in her Athlete Biological Passport (ABP) led to further charges. Consequently, an Independent Tribunal suspended her from professional tennis starting October 7, 2022, initially banning her until October 2026.
However, after an appeal to the CAS, her ban has been significantly reduced to nine months, allowing her immediate return to the WTA Tour. Following the CAS hearing, Halep has filed a lawsuit against Quantum Nutrition, alleging that their supplement led to her doping ban. She is seeking over $10 million in damages, claiming the supplement contained Roxadustat, not disclosed on its label.
The Football Governance Bill – New Regulatory Framework for English Football
The Football Governance Bill is poised to revolutionize English football by establishing an Independent Football Regulator (IFR), to enhance financial sustainability, increase transparency, and boost fan involvement, setting a global precedent for sports governance. The IFR is a pivotal authority to oversee and implement regulations to ensure financial sustainability and ethical governance of football clubs. Distinct from existing football authorities and independent of government influence, the IFR’s mandate extends across several critical areas, placing fans at the forefront of decision-making processes. Additionally, the Fan Engagement and Licensing Regime section of the Bill introduces transformative measures to solidify the role of fans in club governance and establish a robust framework for club operations.
Momentum for Salary Capping in Premier League
On 29 April 2024, a significant meeting took place among Premier League football clubs to address escalating player salaries. In a unanimous decision, 16 clubs agreed to initiate discussions on implementing a cap on player salaries, marking a potential shift in the financial landscape of English football.
The decision comes amidst mounting concerns over spiralling wage and transfer costs, which have often surpassed the income of many clubs, resulting in years of financial losses across European football. To combat this trend, clubs are considering a new system, known as “anchoring”, which would cap spending as a multiple of the poorest club’s income. A comprehensive economic and legal analysis of the proposed system will be presented to clubs in June, with a formal vote to approve the plans anticipated to follow.
This move reflects a concerted effort by football competition organizers to address the challenges posed by increasing financial pressures, particularly with the involvement of professional investors and evolving dynamics in broadcasting rights.
Enhanced Games – Dope or Not?
In a ground-breaking and controversial development, the Enhanced Games have been unveiled – a pioneering event set to challenge traditional norms in sports. Unlike any other competition, the Enhanced Games boldly embrace performance-enhancing drugs, while prosthetic limbs and advanced shoe technology are also permitted.
Scheduled to encompass track and field, swimming, weightlifting, gymnastics, and combat sports on an annual basis, this initiative has ignited intense debate, not to mention significant controversy.
Critics decry it as a violation of sports ethics, while proponents, including prominent investors and venture capitalists, argue that it heralds the future of sports. As the inaugural event seems like a reality now with many athletes already having volunteered, stay tuned for comprehensive coverage and analysis of this unprecedented venture, poised to reshape the sporting landscape.
The 2024 Paris Olympics: Racing Against the Climate Clock
As Paris gears up for the 2024 Olympic and Paralympic Games, organizers are setting their sights on a monumental goal: to host the greenest Olympics in history. With plans to power the Athletes Village using geothermal and solar energy, and a commitment to doubling the amount of plant-based food served at the event, Paris 2024 is poised to set new standards in sustainability.
According to the World Economic Forum’s Global Risks Report, collective action on food and other green choices can make a significant impact – an ethos embraced by the organizers. Paris 2024 aims to halve the event’s carbon footprint compared to previous Summer Games. This entails limiting emissions to around 1.75 million tonnes of CO2, a remarkable feat considering the average emissions of past Games. Tokyo 2020 emitted an average of 3.5 million tonnes of CO2, despite COVID-19 restrictions limiting spectator attendance. In addition to emission reduction efforts, the Paris 2024 sustainability strategy includes investing in environmental and social projects worldwide to offset the remaining impact. As the clock ticks down to the opening ceremony, all eyes are on Paris as it races to prove that green is indeed the new gold standard for Olympic sustainability.
Porsche Revs Up: Da Costa’s Appeal filed following Misano ePrix Disqualification Drama
The Story is about one of our prestigious Clients - Antonio Felix Da Costa. In the electrifying world of Formula E, the recent Misano ePrix witnessed a dramatic twist for Porsche’s ace Portuguese driver. The race concluded with Da Costa’s exhilarating performance landing him at P1, only to face a contentious disqualification by the FIA – an outcome currently under appeal.
Here is the scoop: At the heart of the controversy lies a nuanced issue surrounding throttle spring components. With Spark Racing Technologies (SRT) as the official car and spares supplier for Formula E, the situation arose when Gen3 commenced in January 2023. Amidst supply shortages, an older-spec throttle damper spring, distinct for its coating, was utilized during development testing. Porsche admitted that the spring had been used on the car since the start of the Gen3 era as only the addition of new parts was highlighted in the catalogue, not if they had been removed. While this spring variant wasn’t catalogued by SRT, it raised questions regarding compliance with regulations. Although its use was deemed non-performance enhancing by stewards, rival teams suggest potential advantages linked to driving styles, alleged lift and coast techniques crucial in Formula E.
The crux of the matter lies in whether Da Costa’s penalty – an alleged team oversight with no performance gain – warrants outright disqualification or a milder reprimand/fine. Da Costa advocates for fairer penalties, emphasizing the sport’s integrity and the need for nuanced judgment. With Porsche’s appeal pending adjudication, the motorsport world eagerly awaits the resolution of this gripping saga, poised to shape Formula E’s regulatory landscape and the future conduct of teams and drivers. Stay tuned for updates as the saga unfolds, only in our exclusive newsletter coverage.
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.