Asser International Sports Law Blog

Our International Sports Law Diary
The Asser International Sports Law Centre is part of the T.M.C. Asser Instituut

Goodbye 2015! The Highlights of our International Sports Law Year

2015 was a good year for international sports law. It started early in January with the Pechstein ruling, THE defining sports law case of the year (and probably in years to come) and ended in an apotheosis with the decisions rendered by the FIFA Ethics Committee against Blatter and Platini. This blog will walk you through the important sports law developments of the year and make sure that you did not miss any.


The Court of Arbitration for Sport challenged by German Courts 

The more discrete SV Wilhelmshaven ruling came first. It was not even decided in 2015, as the ruling was handed out on 30 December 2014. Yet, unless you are a sports law freak, you will not have taken notice of this case before 2015 (and our blog). It is not as well known as the Pechstein ruling, but it is challenging the whole private enforcement system put in place by FIFA (and similar systems existing in other SGBs). Indeed, the ruling foresees that before enforcing a sanction rendered by FIFA, the national (or in that case regional) federation must verify that the award underlying the sanction is compatible with EU law. The decision has been appealed to the Bundesgerichtshof (BGH) and a final ruling is expected in 2016.

Later on, in January, the Oberlandesgericht München dropped its legal bomb in the Pechstein case. The court refused to recognize the CAS award sanctioning Claudia Pechstein with a doping ban, as it was deemed contrary to German antitrust rules. The reasoning used in the ruling was indirectly challenging the independence of the CAS and, if confirmed by the BGH, will trigger a necessary reform of the functioning and institutional structure of the CAS. Paradoxically, this is a giant step forward for international sports law and the CAS. The court acknowledges the need for CAS arbitration in global sport. However, justice must be delivered in a fair fashion and the legitimacy of the CAS (which relies on its independence from the Sports Governing Bodies) must be ensured (see our long article on the case here).

We will see how the BGH will deal with these cases in 2016. In any event, they constitute an important warning shot for the CAS. In short, the CAS needs to take EU law and itself seriously. If it truly addresses these challenges, it will come out way stronger.

 

The new World Anti-Doping Code and the Russian Doping Scandal

On the doping front, 2015 is the year in which the new World Anti-Doping Code (WADC) came into force (see our Blog Symposium). The Code introduces substantial changes in the way the anti-doping fight is led and modifies the sanction regime applicable in case of an adverse analytical finding. It is too early to predict with certainty its effects on doping prevalence in international sports. For international sports lawyers, however, it is in any event a fundamental change to the rules applicable to anti-doping disputes, which they need to get closely acquainted with.

The new World Anti-Doping Code was largely overshadowed by the massive doping scandal involving Russian sports, which was unleashed by an ARD documentary (first released in 2014) and revived by the crushing report of the Independent Commission mandated by the World Anti-Doping Agency to investigate the matter. This scandal has shaken the legitimacy of both the anti-doping system and the International Association of Athletics Federations (IAAF). It has highlighted the systematic shortcomings of the anti-doping institutions in Russia, and, the weakness of the control exercised on these institutions at a transnational level, be it by IAAF or WADA.

In 2015 again, doping proved to be a scourge intimately linked with international sports. The confidence and the trust of the public, and of clean athletes, in fair sports competitions is anew put to the test. WADA, which was created in the wake of another massive doping scandal in the nineties, has shown its limits. In practice, the decentralization of the enforcement of the WADC empowers local actors, who are very difficult to control for WADA. Some decide to crackdown on Doping with criminal sanctions (see the new German law adopted in December 2015), others prefer to collaborate with their national athletes to improve their performances. The recent proposals at the IOC level aiming at shifting the testing to WADA can be perceived as a preliminary response to this problem. Yet, doing so would entail huge practical difficulties and financial costs.

 

EU law and sport: 20 years of Bosman and beyond

2015 was also the year in which the twentieth anniversary of Bosman was commemorated through multiple conferences and other sports law events. The ASSER International Sports Law Centre edited a special edition of the Maastricht Journal of European and Comparative Law and a book celebrating the legacy of the ruling is forthcoming with the publisher Springer. The ruling did not have the dramatic effects predicted at the time of the decision, since football is still alive and kicking. Surely, it has given way to new challenges and sharply accelerated the transnationalization of football (and sport in general). A key legacy of Bosman is that this transnationalization, which goes hand in hand with the commercialization of sport, cannot side-line an essential category of stakeholders: the athletes.

It is with this spirit in mind, and a little push of the ASSER International Sports Law Centre, that the European Commission decided to open an investigation into the rules of the International Skating Union (ISU) barring, under the threat of a life ban, speed skaters (and any other affiliate) from joining speed skating competitions which are not condoned by the ISU. Though the case is rather low profile outside of the Netherlands, this is an important step forward for the EU Commission, as it had not opened an EU competition law investigation in sporting matters in almost 15 years. Many other competition law complaints (e.g. TPO or Formula 1) involving sport are currently pending in front of the EU Commission, but it is still to decide whether it will open a formal investigation. 2015 is also the year in which we have desperately expected the release of the EU State aid decisions regarding football clubs, and amongst them Real Madrid, but in the end this will be a matter for 2016.

 

FIFA and the chaotic end of the Blatter reign

FIFA is not the only SGB to have put an abrupt end to the (very) long reign of its great leader (think of the messy downfall of Diack at the IAAF). Yet, when talking about FIFA and football, the resonance of a governance crisis goes well beyond any other. It is truly a global problem, discussed in nearly all news outlets. This illustrates very much how a Swiss association became a global public good, for which an Indian, Brazilian, American or European cares as much as a Swiss, who is in traditional legal terms the only one able to influence FIFA’s structure through legislation. The global outrage triggered by the progressive release by the US authorities of information documenting the corrupt behaviour of FIFA executives has led to two immediate consequences: a change of the guard and a first reform of the institution.

There are now very few FIFA Executive Committee members left who were present in 2010 for the election of Qatar as host city for the 2022 World Cup. The long-time key figures of FIFA, Blatter, Platini and Valcke, are unlikely to make a comeback any time soon. And, the upcoming February election of the new FIFA president is more uncertain than ever with five candidates remaining. Simultaneously, FIFA has announced some governance reforms, which aim at enhancing the transparency of its operation and the legitimacy of its decision-making. We are living through a marvellous time of glasnost and perestroika at FIFA. The final destination of this transformative process remains unknown. There are still some major hurdles to overcome (starting with the one association/one vote system at the FIFA congress) before FIFA is truly able to fulfil its mission in a transparent, accountable and legitimate manner. We hope it will be for 2016!

 

The ASSER International Sports Law Blog in 2015

Finally, a few words on our blog in 2015. In one year we have published 60 posts, our most-read-blog concerned the Pechstein ruling that was read 3054 times.

Our peak day was reached on 4 September with 621 page views (thanks to a great post on the Essendon case by @jrvkfootball).

Our readers are based all around the world, but the majority is based in the EU and the US.


 

  

We hope to be able to keep you interested and busy in 2016 and we wish you a great year!

The ASSER International Sports Law Blog Team


Comments (1) -

  • Paul David QC

    1/8/2016 8:34:31 PM |


    Thanks for your interesting blogs.

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Asser International Sports Law Blog | Final Report on the FIFA Governance Reform Project: The Past and Future of FIFA’s Good Governance Gap

Asser International Sports Law Blog

Our International Sports Law Diary
The Asser International Sports Law Centre is part of the T.M.C. Asser Instituut

Final Report on the FIFA Governance Reform Project: The Past and Future of FIFA’s Good Governance Gap

Qatar’s successful bid to host the 2022 World Cup left many people thunderstruck: How can a country with a population of 2 million people and with absolutely no football tradition host the biggest football event in the world? Furthermore, how on earth can players and fans alike survive when the temperature is expected to exceed 50 °C during the month (June) the tournament is supposed to take place?

Other people were less surprised when FIFA’s President, Sepp Blatter, pulled the piece of paper with the word “Qatar” out of the envelope on 2 December 2010. This was just the latest move by a sporting body that was reinforcing a reputation of being over-conservative, corrupt, prone to conflict-of-interest and convinced of being above any Law, be it national or international.

Interestingly enough, by 2011, FIFA itself was increasingly becoming aware of its loss of popularity. After his (third) re-election, President Blatter began to promote the idea of a “Solutions Committee to help promote reforms within FIFA”. In August of that same year Prof. Dr. Mark Pieth, Chairman of the OECD Working Group on Bribery, was asked to analyse the existing governance structure and to make recommendations for its improvement. His review, published on 19 September 2011, recommended FIFA to e.g. introduce a conflict-of-interest regulation foreseeing the removal of FIFA officials in case of breach and to set term limits for FIFA officials such as the President. As a result of the review, President Blatter decided to appoint an Independent Governance Committee (IGC), to be led by Prof. Pieth.

The project called the ‘FIFA Governance Reform Project’ was to “oversee the creation and implementation of a framework of good governance and controls for FIFA to ensure the organization’s integrity with the ultimate goal of restoring confidence amongst FIFA stakeholders, including fans and the wider public”[1]. The IGC’s first report, published on 20 March 2012, contained a set of recommendations that were very similar to what Prof. Pieth had recommended in his previous review: FIFA had to become more transparent and independent judicial and financial/compliance oversight bodies had to be established.

Initially, FIFA followed the IGC’s proposals by establishing an Ethics Committee and an Audit & Compliance Committee. However, The IGC stated that the reform process was far from completed, highlighting that there is still an urgent need to update internal regulations on compliance, conflict-of-interest and the internal organization in general. To the IGC’s growing disappointment, it soon became clear that FIFA was proving very reluctant to modernize in accordance with good governance requirements.

On numerous occasion the IGC stressed the need to introduce further transparency and accountability throughout FIFA[2]. To achieve this, FIFA officials would have to undergo an integrity check performed by an independent body prior to their (re-) election, the President and the Members of the FIFA Executive Committee would have to be be subjected to limited terms in office and two independent Members would have to attend the meetings of the FIFA Executive Committee. A major setback for the IGC was the unanimous declaration  of all 53 Member Associations of UEFA of 24 January 2013. UEFA was of the opinion that no term limits for members of the FIFA Executive Committee and that integrity checks on candidates shall not be performed by FIFA but by the Confederations, such as UEFA. Quoting IGC’s own report, this was a signal that the reform agenda was likely to be high-jacked by rivalling interest groups within FIFA, supported by those fearing to lose their long-time privileges and networks[3]. The fact that on the eve of the FIFA Congress of 2013 UEFA demanded a decision to be taken on the limited terms proposal, knowing that the motion would fail to meet the ¾ majority vote, meant that it would do everything in its power to prevent the IGC’s recommendations of being implemented. Feeling frustrated, several members of the IGC decided to leave the Independent Governance Committee after it became clear to them that FIFA was not serious about the proposed changes[4].  

The remaining Members of the IGC, whose mandate terminated at the end of 2013, published their final report on 22 April 2014. The 15 page report specifies a detailed chronological summary of the IGC’s work, including why FIFA gave it the task to provide recommendations and what recommendations had been implemented. More importantly, however, the report also mentioned all the difficulties the IGC encountered while performing its mandate and it highlighted once again the recommendations, which had not been implemented by FIFA: term limits for FIFA officials, integrity checks for all members of FIFA standing committees performed by FIFA itself and improved reviews of key processes, such as the World Cups bidding process[5]. Not surprisingly, the IGC strongly advocates that these recommendations are implemented nonetheless. Furthermore, the IGC insisted that the new Ethics Committee should be able to investigate events that occurred before the Governance Reform Project was started, especially Qatar’s successful bid to host the 2022 World Cup.  

The next FIFA Congress will take place in Sao Paulo on 11 June 2014, one day before the World Cup kicks off. As the supreme and legislative body, the Congress has the right to vote on proposals for amendments to FIFA Statutes and Regulations and is therefore competent for implementing scores of the IGC’s recommendations. Taking into account UEFA’s position at last year’s Congress and FIFA’s overall reluctance to reform itself in accordance with good governance standards, chances of a significant change are very slim. But, with the whole world looking at FIFA due to the World Cup, this could well be a golden opportunity to push FIFA to endorse the IGC’s remaining recommendations and finally become the transparent and accountable sporting governing body that the football family deserves.


[1] Final Report by the Independent Governance Committee to the Executive Committee of FIFA, 22 April 2014

[2] See for example: Media releases of 8 February 2013  and 21 March 2013

[3] Final Report by the Independent Governance Committee to the Executive Committee of FIFA, page 10

[4] See for example: Media release of 24 April 2013

[5] Final Report by the Independent Governance Committee to the Executive Committee of FIFA, page 12-13

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