The case involves an appeal by Piroozi Athletic & Cultural Club (Persepolis) against decisions made by FIFA's Players' Status Committee and Disciplinary Committee, ultimately adjudicated by the Court of Arbitration for Sport (CAS). The dispute originated from a transfer agreement between Persepolis and Finnish club Kuopion Palloseura Oy, where Persepolis failed to pay the agreed €130,000. The creditor filed a claim with FIFA's Players' Status Committee, which ruled in favor of the creditor on 17 October 2006, ordering payment of the debt plus interest. Persepolis did not participate in these proceedings and later attempted to appeal the decision to CAS but failed to submit the required documents, leading to the rejection of their appeal on procedural grounds.
FIFA's Disciplinary Committee then initiated proceedings against Persepolis for non-compliance with the Players' Status Committee's decision. Despite Persepolis claiming the agreement was forged and challenging the decision, FIFA upheld the disciplinary action, imposing a fine of CHF 15,000 and threatening further sanctions, including point deductions and potential relegation, if payment was not made. Persepolis appealed this disciplinary decision to CAS, arguing procedural issues and seeking a review of the original Players' Status Committee ruling.
The CAS panel clarified that its jurisdiction was limited to reviewing the legality and proportionality of the disciplinary sanctions imposed by FIFA, not the underlying dispute. The panel found that Persepolis had failed to comply with a binding FIFA decision and upheld the disciplinary measures, emphasizing that the original decision was final and could not be revisited. The panel also noted that while it had full authority to review the facts and legality of the disciplinary decision, it could not extend its review to the substance of the Players' Status Committee's decision. The applicable law for the dispute was determined to be FIFA's statutes and regulations, supplemented by Swiss law where necessary.
Ultimately, the CAS panel dismissed Persepolis's appeal, confirming the disciplinary sanctions imposed by FIFA. The ruling reinforced the principle that disciplinary decisions are binding once issued and that subsequent appeals must adhere to procedural requirements. The case underscores the limited scope of CAS review in disciplinary matters and the importance of timely and proper appeals in sports arbitration. The decision, issued on 18 December 2007, affirmed the fine, point deduction, and relegation threat, highlighting the finality of FIFA's internal rulings and the consequences of non-compliance for member clubs.