ECJ Challenges CAS Arbitration Finality in EU Sports Disputes
The European Court of Justice (ECJ) has delivered a significant ruling that impacts how international sports disputes are regulated within the EU. The decision challenges the legal finality of arbitration decisions made by the Court of Arbitration for Sport (CAS), marking a shift in the balance of power in international sports governance.
The ECJ ruled that compulsory arbitration, when it prevents access to judicial review within the EU, is incompatible with the bloc's legal order. This means that CAS rulings that raise questions under EU public policy, such as competition law and the protection of economic freedoms, can be subject to in-depth review by national courts.
The decision follows a case brought by Belgian football club RFC Seraing against FIFA. The club was sanctioned with a two-year transfer ban and a fine for breaching FIFA regulations on third-party ownership of player economic rights. RFC Seraing challenged the CAS ruling before the European Economic Area Court, arguing that it was no longer binding.
This ruling is not an isolated incident. The ECJ has previously curtailed the autonomy of international sports bodies, with notable cases including the European Super League and the International Skating Union's ineligibility rules.
The ECJ has clarified that while arbitration remains a legitimate dispute resolution mechanism, it must not override the legal protections guaranteed under EU law. National laws or internal association rules that treat CAS awards as immune from challenge are now deemed incompatible with EU legal standards. This ruling signals a significant change in how international sport is regulated within the EU, potentially strengthening the role of national courts in reviewing CAS decisions that impact EU public policy.
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