ECJ Allows EU Courts to Review CAS Decisions for Compliance with EU Law

In a landmark ruling, the European Court of Justice (ECJ) held that national courts within the European Union (EU) may review decisions of the Court of Arbitration for Sport (CAS) to ensure they align with fundamental principles of EU law. This ruling effectively challenges the finality of CAS awards and strengthens judicial oversight in matters involving EU legal standards.

The case arose from a prolonged legal dispute involving Belgian football club RFC Seraing and Maltese investment fund Doyen Sports, who challenged FIFA’s ban on third-party ownership (TPO) of player registration and transfer rights. FIFA deemed the arrangement between the club and the investment fund a violation of its rules and imposed sanctions, which were upheld by CAS.

In 2015, RFC Seraing contested the legality of FIFA’s rules before a commercial court in Brussels, arguing they were incompatible with EU law. The Belgian court referred the matter to the ECJ, which ruled that compulsory arbitration clauses, like those requiring recourse to CAS, cannot override the application of EU law. The ECJ further clarified that while arbitration is permissible, it must not restrict the rights and freedoms guaranteed under EU law, particularly the right of athletes to pursue economic activity.

In response, the International Council of Arbitration for Sport (ICAS) acknowledged the ruling but emphasized that judicial review should be limited to questions of EU public policy. ICAS also noted that CAS already applies EU law when relevant and described the ECJ’s decision as consistent with existing jurisprudence and international standards, including the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.