Practical Cases in Football Law

DIPLOMA IN CLUB MANAGEMENT

PRACTICAL CASES IN FOOTBALL LAW

Dr. Miguel María García Caba Deputy General Secretary Royal Spanish Football Federation

1 DIPLOMA IN CLUB MANAGEMENT 01

Introduction

2 DIPLOMA IN CLUB MANAGEMENT Professional experience in football

2005-16: 2018-act: Legal Counsel and Head of Internal Legal Legal Director, Spanish Counsel, Spanish Football Association Professional Football (RFEF). League (LaLiga).

2016-18: 2019-act: Deputy General Head of Legal Services, Secretary, Spanish Real Madrid CF. Football Association (RFEF).

3 DIPLOMA IN CLUB MANAGEMENT 02 Laliga’s perspective: CASE GRANADA 74

4 DIPLOMA IN CLUB MANAGEMENT A little introduction to Spanish Sports Law… The organization of professional sport in Spain

01 A classical topic

02 Sports Act (parliament regulation):

03 Royal Decrees (government regulations):

04 Public intervention in professional sport (since 1941)…

5 DIPLOMA IN CLUB MANAGEMENT The coordination between Leagues and Associations

Coordination Agreement LaLiga- Compulsory coordination RFEF:

• Spanish Sports Law and Royal • Professional license – First Decree 1835/1991 professional license • Compulsory agreement (duration • Transfer and registration rules 4 years)… (clubs, players) … • Calendar …

6 DIPLOMA IN CLUB MANAGEMENT The background of the case (1/3) Previous

• In the summer 200, juridical debate in the CAS, between FIFA, UEFA, RFEF and LaLiga. • The cause of the conflict was the analysis made by CAS. • The conflict ended with a decision by CAS (2007/O/1361), which gave justice, from a sportive and legal point of view, to LaLiga.

7 DIPLOMA IN CLUB MANAGEMENT The background of the case (2/3) The facts

30.06.07. C.F. Ciudad de Murcia, SAD finished 4th in Spanish 2nd Div.

06.07.07. Agreement to sell its 100% of its social capital.

24.07.07. New owner decided to change the denomination: Granada 74, SAD

01.08.07. LaLiga admitted the club to participate in season 2007/08

09.08.07. LaLiga received a letter from FIFA’s and UEFA’s presidents

20.08.07. FIFA and UEFA invited LaLiga on a workshop. No agreement

8 DIPLOMA IN CLUB MANAGEMENT The background of the case (3/3) The way to CAS, the applicable law and the CAS hearing

21.08.07. RFEF referred the dispute to CAS. 22.08.07. LaLiga accepted under the following conditions: - Applicable law: shall be the Spanish law - The choice of Spanish law as applicable law, was unquestionable and had a fundamental importance in this case 24.08.07. The hearing took place. 25.08.07. Cádiz CF vs Granada 74, SAD (20.00h)…

9 DIPLOMA IN CLUB MANAGEMENT The main sources of law and key articles used to deal Previous: The question

IT IS ILLEGAL OR CONTRARY TO SPORTING PRINCIPLES TO BUY A CLUB AND CHANGE ITS NAME AND DOMICILE?

10 DIPLOMA IN CLUB MANAGEMENT The main sources of law and key articles used to deal …

FIFA, UEFA and RFEF LaLiga

• Art. 19.1 Sports Act • Art. 2.e), FIFA Statutes • Art. 4 RFEF Statutes • Art. 2.1 e), UEFA Statutes • Art. 41.4 a) Sports Act: The • FIFA Statutes: Since LaLiga is coordination between Leagues subordinate to the RFEF and NA • Art. 18.2, FIFA Statutes • Coordination Agreement LaLiga- RFEF 2006

11 DIPLOMA IN CLUB MANAGEMENT The key arguments presented by the parties involved …

FIFA, UEFA, RFEF LaLiga

• “Hidden” promotion • There is no current legislature, which limits the change in the denomination • Violates a basic and fundamental and in the registered office principle in football • Neither in the regulations of FIFA and • Through sportive results in the field UEFA and not through operations of commercial or financial nature. • The English Case (FC Wimbledon) • international sport law • AUS, CHI, MEX, USA rules • European Model of Sport • C.P. Granada 74 is still participating in the 3rd Div.

12 DIPLOMA IN CLUB MANAGEMENT The outcome of the case: the CAS decision

Jurisdiction

Violation of arts. 2 of FIFA and UEFA Statutes

The Spanish Law

The International Sports Law

13 DIPLOMA IN CLUB MANAGEMENT Conclusions From a strictly juridical point of view:

The CAS resolution plainly ratified the conformity to the Law of the acts carried out by LaLiga

14 DIPLOMA IN CLUB MANAGEMENT Conclusions. from a strictly FOOTBALL point of view:

Graphic 1: years of seniority of clubs Graphic 2: no. of federative licenses

Gráfico 1: Años de antigüedad de los clubes Gráfico 2: Nº de licencias federativas 40 700

35 600 625 34 30 500 25 400 20 300 15 10 200 9 5 100 125

0 0 CP. Granada 74 C.F. Ciudad de Murcia, SAD 1 CP. Granada 74 C.F. Ciudad de Murcia, SAD

Graphic 3: no. of federative clubs, federative or dependent

Gráfico 3: Nª de clubes federativos filiares o dependientes 6

5 4 Granada 74 is a historical club set up in 3

2 1974 by comparison to 1999, with

0 social and sportive roots and Senior Juveniles Cadetes Infantiles Alevines Benjamines CP. Granada 74 C.F. Ciudad de Murcia, SAD absolutely dedicated to the game. Senior Junior Cadet Children Young Small

15 DIPLOMA IN CLUB MANAGEMENT Conclusions. from a strictly FOOTBALL point of view:

Comparative table of the clubs

C.F. Ciudad de Murcia, CP. Granada 74 SAD Year of foundation 1974 1999 No. of federative clubs branches or dependent 25 5 senior 1(3rd division) 2 junior 4 2 cadets 5 1 children 5 - young 5 - small 5 - No. of federative licenses 625 125 Sportive schools 1 the greatest in the province - Granada 74 is a historical club set up in Sportive history More than 1000 trophies ( 28 T. 06/07) 1974 by comparison to 1999, with The entity in Andalusia that has the greatest number of trophies in inferior social and sportive roots and categories Award for the best sportive entity in Andalusia, 1988 (Council of Andalucía) - absolutely dedicated to the game.

16 DIPLOMA IN CLUB MANAGEMENT

17 DIPLOMA IN CLUB MANAGEMENT My own interpretation. Conclusions

CONCLUSIONS

• Granada is a region that “breathes” football • CAS understood that the operation was for the good of social and sportive value • National law is still above sports law and especially above international sports law • Granada totally ignored the national regulations and laws passed by the State and the agreement signed in 2006.

18 DIPLOMA IN CLUB MANAGEMENT 03 The club’s perspective: REGISTRATION OF MINORS

19 DIPLOMA IN CLUB MANAGEMENT Introduction

• 2016 conflict that caused an interesting juridical debate in the CAS, between FIFA, RFEF and Rel Madrid CF • Spain is composed of 17 regions (CCAA) • The Spanish Constitution competences to regulate on different fields. • Each “CCAA” has its own regional FA • Each RA organizes its own championship • each club has to mandatorily affiliate to the RA

20 DIPLOMA IN CLUB MANAGEMENT Legal framework Public regulation

• SPANISH SPORTS LAW ACT (10/1990)… Article 32.4 (regulation of sports licenses)

• RD SPANISH FEDERATIONS (1835/1991) Article 7 (regulation of professional sport licenses) Additional disposition (conflicts)

21 DIPLOMA IN CLUB MANAGEMENT Legal framework Public regulation

• SPANISH ACT AGAINST VIOLENCE, RACISM, XENOPHOBIA AND INTOLERANCE IN SPORT) Second additional provision

22 DIPLOMA IN CLUB MANAGEMENT Legal framework FIFA regulation

10 FIFAIII. RegistrationREGULATIONS of players & SPANISH LAW

5 Registration 1. A player must be registered at an association to play for a club as either a professional or an amateur in accordance with the provisions of article 2. Only registered players are eligible to participate in organised football. By the act of registering, a player agrees to abide by the statutes and regulations of FIFA, the confederations and the associations.

2. A player may only be registered with one club at a time.

3. Players may be registered with a maximum of three clubs during one season. 23 During this period, the player is only eligible to play offcial matches for two clubs. As an exception to this rule, a player moving between two clubs belonging to associations with overlapping seasons (i.e. start of the season in summer/autumn as opposed to winter/spring) may be eligible to play in offcial matches for a third club during the relevant season, provided he has fully complied with his contractual obligations towards his previous clubs. Equally, the provisions relating to the registration periods (article 6) as well as to the minimum length of a contract (article 18 paragraph 2) must be respected.

4. Under all circumstances, due consideration must be given to the sporting integrity of the competition. In particular, a player may not play offcial matches for more than two clubs competing in the same national championship or cup during the same season, subject to stricter individual competition regulations of member associations. DIPLOMA IN CLUB MANAGEMENT Legal framework FIFA regulation

ARTICLE 5 RSTP VS. SPORT COMPETENCE DISTRIBUTION

• Players must be registered at a FIFA member • FIFA does not recognise a registration at a regional association • Regions in Spain have absolute competence in sport • Only Regional FA are entitled to register players at regional competitions. • No intervention of Spanish public power nor of the RFEF in regional competitions

24 DIPLOMA IN CLUB MANAGEMENT Legal framework FIFA regulation

FIFA REGULATIONS & SPANISH LAW 10 III. Registration of players

2. A player may only be registered with one club at a time.

3. 25 Players may be registered with a maximum of three clubs during one season. During this period, the player is only eligible to play offcial matches for two clubs. As an exception to this rule, a player moving between two clubs belonging to associations with overlapping seasons (i.e. start of the season in summer/autumn as opposed to winter/spring) may be eligible to play in offcial matches for a third club during the relevant season, provided he has fully complied with his contractual obligations towards his previous clubs. Equally, the provisions relating to the registration periods (article 6) as well as to the minimum length of a contract (article 18 paragraph 2) must be respected.

CAS 2014/A/3793 FC Barcelona vs FIFA

CAS 2016/A/4785 Real Madrid Club de Fútbol vs FIFA

CAS 2016/A/4805 Club Atlético de Madrid vs FIFAPNISH CASE

26 DIPLOMA IN CLUB MANAGEMENT The key arguments presented by the parties involved Main controversial issues

DIPLOMA IN CLUB MANAGEMENT

Violation of Art.5 Art.19 and the alleged Violation of Art.19bis RSTP and the issue of exception of under 12 RSTP and the the Spanish Licensing years old players (U - concept of system 12) “academy”

27 DIPLOMA IN CLUB MANAGEMENT The key arguments presented by the parties involved Registration of minors in Spain

Article 5 RSTP

“A player must be registered at an association to play for a club as either Professional or an amateur in accordance with the provisions of article. Only registered players are eligible to participate in organized Football” 01 The Spanish territorial system

02 The concept of “association” in the RSTP

28 DIPLOMA IN CLUB MANAGEMENT The outcome of the case: the CAS decision Registration of minors in Spain

ALLEGED VIOLATION OF ARTICLE 5 RSTP

• In all three cases the CAS Panels agreed that the term “Association” contained in article 5 RSTP refers to NA that are members of FIFA. In Spain, the RFEF. • Therefore, the RA cannot be considered as an “association” in the sense of the aforesaid article. • Elements idiosyncratic to Spanish Law regarding the registration process. • The clubs cannot be held responsible for that breach. • In RM case the Sole Arbitrator considered that there was no breach of article 5 RSTP • The Sole Arbitrator made clear that “this applies, at least, for the FFM and […] not all Spanish cases

29 DIPLOMA IN CLUB MANAGEMENT The outcome of the case: the CAS decision Alleged violation of article 19 RSTP

2 out of 8 cases were found to constitute a 6 out of 8 cases were found not to constitute a violation of Art. 19 RSTP violation of Art. 19 RSTP by the CAS by the CAS:

• 1 Player (+16 and from EU) was • 4 players aged under 12 TBA “provisionally registered” prior to • obtaining the Sub-Committee’s approval 2 players that only trained with the and the ITC. club (trial period) and never participated in organized football. • 1 Player (non-Spanish national that had always lived in Spain) was registered within the FFM prior to obtaining of the Sub-Committee’s approval.

30 DIPLOMA IN CLUB MANAGEMENT The outcome of the case: the CAS decision Under 12 years old players

Different approach by the CAS Panels with respect to this issue

• In the RM case the SA analyzed in depth the issue and concluded that RM did not commit any RSTP violation under Art. 19 RSTP • Distinction with FCB/ATM

31 DIPLOMA IN CLUB MANAGEMENT Conclusions And the present and the future Different approach by the CAS Panels with respect to this issue

• The resource is estimated and the RFEF is ordered to proceed, immediately, to issue a sports license in favor of the minor

• "(...) Now, the application of the aforementioned FIFA rules must respect, in any case, the legal system in force in our country. In relation to this, it should be noted that there could be no possible conflict between the regulations of FIFA and the Spanish legal system.

• This determines that the FIFA rules must be fulfilled only by their associates, although they would become inapplicable in the event that they contradict the state legal order … Given the above, the requirements demanded by FIFA in the Regulations on the Status and Transfer of Players of FIFA would not be adjusted to our legal system, being sufficient to obtain the license requested from the RFEF ... being legally in Spain … " .

• And this is because we are not before an international organization of public law of which Spain is part, but rather we are before a private organization subject to Swiss law. In this case, a conflict can not be raised because the rules of FIFA may or may not coincide with those of the Spanish legal system, but because the aforesaid entity can not be linked to a legal order of a sovereign State.

32 DIPLOMA IN CLUB MANAGEMENT Conclusions

• FIFA’s TEST POSITIVE RESULT? … FIFA’s Regulations vs National Law.

• Players under the age of 12 (nowadays 10)

• Urgent need of revising/updating the regulations for protection of minors • The CAS awards • What happens after the CAS’ decisions? Regularization process, sanction, etc…

• The most important question: ARE THE MINORS PROTECTED?

33 DIPLOMA IN CLUB MANAGEMENT 04 The na’s perspective: FRIDAY&MONDAY

34 DIPLOMA IN CLUB MANAGEMENT The organization of professional football in Spain

From 2019: Conflict between LaLiga and the RFEF

National Association in football: the RFEF

• National football association • Sole and exclusive governor of non- professional football competitions • Regulations • Members

35 DIPLOMA IN CLUB MANAGEMENT The organization of professional football in Spain Leagues

•MainPrivate competences • Established within the relevant Spanish sport association • üNotOrganization fully independent of its own from competitions, their sports associations in coordination but withhave legalthe personality corresponding and autonomynational sports in their association internal organization and in andaccordance functioning with the criteria that may be established by the National Sports Council to guarantee the fulfilment of • Statutesnational and or Regulations, international to commitments. be approved by the “Consejo Superior de Deportes” ü Guidance, control and supervision of its members ü Exercise of disciplinary authority.

36 DIPLOMA IN CLUB MANAGEMENT The organization of professional football in Spain NA&Leagues

NA/Leagues can also play a public role, by exercising some public functions of an administrative nature that have been delegated to them by the governmental authorities (i.a. the exercise the disciplinary authority)

When the NA/Leagues exercise a public competence, they are acting as Administrative Public Authorities, and its decisions are subjected to the Administrative Law and to the Administrative Courts.

37 DIPLOMA IN CLUB MANAGEMENT The organization of professional football in Spain League in football: LaLiga

Main competences • Private association organizing the Spanish professional üfootballOrganizing competitions the professional in coordinationfootball competitions with the RFEF. • üMembers:Exercising disciplinaryclubs and authoritySAD’s of according the 1st theand relevant 2nd Division. regulations • Legal framework: Statutes and internal regulations. ü Exploiting of the competition’s commercial rights (direct or indirect channels) ü Monitoring the internal financial control procedures (break- even rule) ü Monitoring the stadiums control and security systems

38 DIPLOMA IN CLUB MANAGEMENT The coordination between leagues and associations Interaction between Associations and Leagues: the Coordination Agreements

One of the main problems

The act 10/1990 of 15 October on Sport and the RD on Federations are lacking in so far a scheme to distribute functions dealing with professional competition is concerned regarding each sports association.

• Art. 41(4)(a), “Organise their own competitions in coordination with the relevant Spanish sports federation in accordance with any criteria the High Council of Sport may set to exclusively guarantee national or international commitments”.

39 DIPLOMA IN CLUB MANAGEMENT The coordination between leagues and associations

Coordination Agreement

The economic relations between the RFEF and LaLiga. Agreement signed by both parties in order to regulate those areas in which both LaLiga and the Spanish FA can interfere.

It sets out the items for which LaLiga has to pay a sum of money each year: • Contribution for federation services and for the development of grassroots football

Agreement signed by both parties in order to regulate those areas in which both LaLiga and the Spanish FA can interfere.

40 DIPLOMA IN CLUB MANAGEMENT The coordination between leagues and associations

Coordination Agreement

This agreement is signed every four or five This agreement is signed every four or five years (3 years (3 July 2019): July 2019): • The annual sports calendar • The annual sports calendar • The promotions and relegations between professional and amateur competitions • The promotions and relegations between professional and amateur competitions • Conditions to recruit, register, and field foreign players. • Conditions to recruit, register, and field foreign • Refereeing and disciplinary matters players. • Refereeing and disciplinary matters

41 DIPLOMA IN CLUB MANAGEMENT The coordination between leagues and associations Calendar and match schedule

• Proposed by the LFP, in accordance with the colective bargaining agreement of players, and must be ratified by the RFEF.

• Coordination agreement 2010 and 2014: Matches on Friday and Monday… authorised by the RFEF

• Coordination agreement 2019: No regulation … ?????

42 DIPLOMA IN CLUB MANAGEMENT The RFEF and LaLiga must settle in good faith

• Judgement Commercial Court 2 Madrid, 27th May 2020

• This conflict crystallized in court the 12th of July 2019

• Several actions under Law 3/1991, of January 10, on Unfair Competition (LCD) and Law 15/2007, of July 3, on Competition Law (LDC)

43 DIPLOMA IN CLUB MANAGEMENT The RFEF and LaLiga must settle in good faith The Judgement

1. LNFP must be understood and coordinated with the RFEF for the organization of matches outside the official calendar

2. The parties had been negotiating agreements on the Championship calendar for years

3. Lack of evidence

44 DIPLOMA IN CLUB MANAGEMENT Conclusions

45 DIPLOMA IN CLUB MANAGEMENT 05

Conclusions

46 DIPLOMA IN CLUB MANAGEMENT Conclusions

• Interaction is not precisely peaceful

• International vs national law conflicts are not always evitable

• To be resolved on a case by case basis

• Trend: international regulations tend to prevail over national

• The stakeholders can do more sometimes

• Frequent tendency to pragmatism

47 DIPLOMA IN CLUB MANAGEMENT

Thank you !