X. S. A. D. v. Fédération Internationale de Football Association (FIFA) and the Court of Arbitration for Sport (CAS) [The Spanish Football Club] - Swiss International Arbitration Law Reports (SIALR) - 2007 Vol. 1 Nos. 1 & 2

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December, 2007

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Headnote

Fines imposed by the FIFA Disciplinary Committee do not amount to

the enforcement of a private debt. An award upholding such fines is not

contrary to the state’s exclusive power over law enforcement and is

therefore not contrary to public policy.

Summary of the Decision

Spanish football club X. S.A.D. was sanctioned by the FIFA

Disciplinary Committee and ordered to pay a fine to Brazilian football

club Z. The Spanish club appealed the decision to a Court of Arbitration

for Sport (CAS) panel, which confirmed the Disciplinary Committee’s

ruling. The Spanish club sought to have the CAS panel’s award set aside

on the ground that the ruling by the Disciplinary Committee amounted to

the enforcement of a debt by a private party, which runs contrary to the

state’s exclusive power over law enforcement, and the CAS panel’s

award is therefore inconsistent with public policy.

The Federal Supreme Court held: (1) the Disciplinary Committee’s ruling

did not represent the enforcement of a debt, but rather the imposition of a

sanction by a private association upon one of its members; (2) if a sanction

imposed by an association upon one of its members is properly based on the

articles of association, then it is unobjectionable even if the association’s

ability to impose sanctions may be akin to an enforcement measure; and (3)

there is no conflict between such sanction and the state’s exclusive power

over law enforcement.

Accordingly, the application to set aside was dismissed.

Statutory and Other Provisions Referred to in the Decision

Federal Judiciary Organisation Act arts. 37(3), 85(c), 90(1)(b), 156(1),

159(2) (FJOA/OG/OJ)

Federal Supreme Court Act art. 132(1) (FSCA/BGG/LTF)