Skip to main content
International Arbitration Forum

Shanghai Shenhua FC v. Fédération Internationale de Football Association (FIFA)

Case summary

At a glance

Parties
Shanghai Shenhua FC (China) v. Fédération Internationale de Football Association (FIFA)
Case no.
CAS 2022/A/8731
Forum and rules
Court of Arbitration for Sport, appeals procedure (CAS Code, Articles R47 et seq.); FIFA regulations, with Swiss law applying subsidiarily
Tribunal
Lars Hilliger (Sole Arbitrator)
Sector
Football; disciplinary enforcement of a solidarity contribution debt
Outcome
Appeal dismissed (28 March 2023). The FIFA Disciplinary Committee decision of 1 February 2022 was confirmed.
Amount
FIFA Disciplinary Committee fine: CHF 20,000 (not contested). Underlying FIFA DRC order: EUR 395,957.89 solidarity contribution plus 5% interest per annum. The settlement amount is redacted in the award.

The dispute

Genoa CFC claimed solidarity contribution from Shanghai Shenhua FC for the transfer of a player. The FIFA DRC Single Judge ordered the Club to pay EUR 395,957.89 plus interest. On the Club's appeal, the parties settled, and CAS ratified their settlement in a Consent Award of 1 November 2021 (CAS 2021/A/7990). The Club did not pay. Relying on Article 15 of the FIFA Disciplinary Code (2019), the FIFA Disciplinary Committee fined it CHF 20,000 and gave it a final 30-day deadline to pay. If it failed to pay, an automatic transfer ban would apply until the debt was paid. Before CAS, the Club argued that the unlimited transfer ban breached Swiss public policy and its personality and economic rights under Article 27(2) of the Swiss Civil Code, was disproportionate given COVID-19 (Omicron) disruption to its banking operations, and that the amount due had been miscalculated. FIFA defended the sanction regime and argued that the Disciplinary Committee could not review the substance of the Consent Award.

Key holdings

  1. The transfer ban does not violate Swiss public policy or the Club's personality or economic rights. The Club can avoid the ban by paying within the 30-day deadline. Even if the ban is enforced, the Club can keep competing and earn income from player sales, sponsorship and broadcasting rights. The Sole Arbitrator also noted that the debt dated from August 2019. ¶¶ 60–68
  2. CAS may amend a sanction imposed by a FIFA judicial body only if that body acted arbitrarily, meaning the sanction is evidently and grossly disproportionate to the offence. Mere disagreement with the sanction is not enough. ¶ 70
  3. The transfer ban is proportionate. Article 15(1)(c) of the FDC and FIFA Circular no. 1681 provide for it. The gravity of the failure to respect the Consent Award and the principle of pacta sunt servanda justify it. That the ban is unlimited, unlike the time-limited ban in Article 24 of the RSTP, does not by itself make it disproportionate. ¶¶ 73–76
  4. The fine of CHF 20,000 was not contested, so the Sole Arbitrator did not need to rule on it. ¶ 72
  5. In Article 15 enforcement proceedings, the FIFA Disciplinary Committee cannot review the substance of the decision it enforces (no révision au fond). The Disciplinary Committee did not intend to go into the merits when it stated the amount due. The Sole Arbitrator therefore held that he was not competent to decide the Club's alternative request to recalculate the amount. He left open whether the Club might later claim repayment from Genoa under clause 1.4 of the Settlement Agreement. ¶¶ 77–82

Procedural history

  1. 16 November 2020Genoa CFC filed a claim with FIFA for solidarity contribution.
  2. 25 January 2021The FIFA DRC Single Judge ordered the Club to pay EUR 395,957.89 plus 5% interest per annum from 19 August 2019.
  3. 1 November 2021CAS issued a Consent Award (CAS 2021/A/7990) ratifying the Settlement Agreement of 13 October 2021.
  4. 14 December 2021The FIFA Disciplinary Committee Secretariat opened disciplinary proceedings at Genoa's request.
  5. 1 February 2022The FIFA Disciplinary Committee decision: a CHF 20,000 fine, a final 30-day deadline to pay, and a transfer ban if the Club defaulted.
  6. 10 March 2022The Club filed its Statement of Appeal with CAS.
  7. 10 August 2022The Sole Arbitrator rejected Genoa's request to file an amicus curiae brief.
  8. 16 September 2022Hearing held by videoconference.
  9. 28 March 2023Award: appeal dismissed and the FIFA Disciplinary Committee decision confirmed.

Tribunal, counsel and experts

Decided by
For the claimant
Siddharth Gosain
For the respondent
FIFA

Run a conflict check on these names →

Keywords

Summary generated with AI from the published documents — refer to the award for the authoritative text.

Case ID
CAS 2022/A/8731
Claimant
Shanghai Shenhua FC
Respondent
Fédération Internationale de Football Association (FIFA)
Documents

Procedure: Appeal
Sport: Football
Matter: Disciplinary (except doping)
Outcome: Dismissed
Panel: Lars Hilliger
Source: Court of Arbitration for Sport case database.