EU Court Ruling Challenges the Finality of Sports Arbitration

The European Court of Justice (ECJ) ruled Friday that national courts should be permitted to conduct reviews of arbitral awards by the Court of Arbitration for Sport (CAS) to ensure alignment with EU law. This decision stems from the case of Belgian soccer club RFC Seraing, which faced FIFA sanctions in 2015. The Belgian club had signed agreements transferring part of player economic rights to a third-party company, leading to penalties from FIFA, upheld by CAS and the Swiss Federal Supreme Court.

Seraing challenged the compatibility of FIFA's rules with EU law, bringing the case to Belgian courts. In response, the ECJ highlighted that arbitration should not undermine the rights guaranteed by EU law and mandated that national courts must have the authority to review CAS awards to ensure they do not conflict with EU public policy. This ruling challenges the absolute finality of CAS decisions, emphasizing the need for effective judicial protection in sports-related economic activities within the EU.

This ruling could significantly impact how sports arbitration is perceived and implemented, especially concerning arbitration clauses imposed by sports bodies. Lawyers for Seraing noted that FIFA's sanctions resulted from procedures that infringe on EU law, calling for compensation for the club. As it stands, CAS awards are reviewable by the Swiss Federal Tribunal, but the ECJ's ruling extends the review scope to include EU public policy considerations.

(With inputs from agencies.)