The case involves a dispute between Piroozi (Perspolis) Athletic & Cultural Club, an Iranian football club, and FIFA, stemming from the club's failure to comply with a FIFA Players’ Status Committee decision. The committee had ruled on October 17, 2006, that Piroozi must pay €130,000 plus interest to the Finnish club Kuopion Palloseura Oy for the transfer of player Raphael Edereho. When Piroozi failed to make the payment, it appealed to the Court of Arbitration for Sport (CAS), which rejected the appeal on procedural grounds, stating the conditions for initiating an appeals arbitration were not met.
FIFA’s Disciplinary Committee then opened proceedings against Piroozi for non-compliance, emphasizing its role was to ensure compliance, not re-examine the original decision. On April 13, 2007, the committee found Piroozi guilty under Article 71 of the FIFA Disciplinary Code, imposing a fine of CHF 15,000 and a 30-day deadline for payment. Failure to comply would result in a six-point deduction from the club’s domestic league standings, with further sanctions possible if the Iranian Football Federation (FFIRI) failed to enforce the ruling.
Despite the CAS upholding FIFA’s decision on December 18, 2007, Piroozi still did not pay by the deadline. Kuopion Palloseura Oy requested the point deduction on January 21, 2008, which FIFA instructed FFIRI to enforce. The deduction was carried out on February 16, 2008, even though Piroozi paid the debt on February 13, 2008. FIFA maintained the deduction was irreversible, citing its mandatory nature once requested. Piroozi and FFIRI sought reconsideration, arguing the payment had been made and the sanction was premature, but FIFA rejected this, referencing its clear policy in Circular No. 981.
On April 9, 2008, FFIRI forwarded a letter from Piroozi to FIFA, requesting the annulment of the point deduction. FIFA responded on April 18, 2008, reiterating its stance that the deduction could not be reversed. Piroozi then appealed to CAS on April 28, 2008, challenging FIFA’s decision and seeking the restoration of the deducted points. The club argued the penalty was unjust, citing force majeure for the delay and noting Kuopion Palloseura Oy had withdrawn its request for sanctions.
FIFA countered that the April 18 letter was not an appealable decision but a reference to prior communications, and that Piroozi had failed to challenge the deduction within the required 21-day timeframe. The CAS panel examined whether the letter constituted a formal decision, concluding it did not, as it merely reaffirmed FIFA’s earlier position without introducing new measures. The panel dismissed Piroozi’s appeal as inadmissible, upholding FIFA’s decisions as final and binding.
The case highlights FIFA’s strict enforcement of financial and disciplinary regulations, emphasizing that sanctions, once triggered, cannot be reversed even if subsequent compliance occurs. It also underscores the importance of timely appeals and the limited scope of CAS review in procedural matters. The dispute illustrates the challenges clubs face in navigating FIFA’s regulatory framework and the consequences of non-compliance with its decisions.