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ECJ Challenges CAS Finality, EU Courts Must Scrutinise Decisions

A game-changer for international sports regulation in the EU. The ECJ's ruling opens the door for EU courts to scrutinise CAS decisions, challenging the finality of arbitration awards.

This is the picture of a stadium. In this image there are group of people standing in the court....
This is the picture of a stadium. In this image there are group of people standing in the court. There are group of people sitting on the chairs. At the top there are lights and there are banners and there are screens and on the screens there is a person standing and holding the ball. At the bottom there are staircases.

ECJ Challenges CAS Finality, EU Courts Must Scrutinise Decisions

The European Court of Justice (ECJ) has ruled that EU national courts must now scrutinise decisions made by the Court of Arbitration for Sport (CAS) if they raise questions under EU public policy, including competition law. This significant decision, which affects matters governed by EU law, challenges the finality of CAS awards and alters the balance of power in international sports governance.

The ECJ's ruling comes after a case involving Belgian football club RFC Seraing and its commercial partner, Doyen Sports, who contested FIFA sanctions for breaching player transfer rules. The court clarified that arbitration decisions by CAS may be reviewed by EU national courts if they impact EU public policy. This marks a shift in how international sport is regulated within the EU, with compulsory arbitration not overriding core legal principles applicable to economic actors operating in the Union.

The ECJ stated that arbitration must not override legal protections guaranteed under EU law, including athletes' rights and economic freedoms. It held that forced arbitration imposed by international sports federations, like FIFA, is incompatible with EU law if it forecloses access to EU judicial review. The court noted that the ruling concerns only matters governed by EU public policy and does not affect most cases it handles, which involve purely sporting or contractual issues. However, sports clubs, athletes, and investors within the EU who had previously rejected claims at national courts could be encouraged by this ruling to file lawsuits, questioning the binding nature of arbitration rulings from the International Court of Arbitration for Sport under European public law.

The ECJ's decision is not an isolated incident, as it previously ruled on the European Super League and skating union's ineligibility rules, curtailing the autonomy of international sports bodies. With this latest ruling, the ECJ has made it clear that the final word on legal compliance within the EU rests with the EU's own judiciary, not international tribunals. This decision is set to have significant implications for international sports governance and arbitration within the EU.

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