The case involves an appeal by Fotbal Club Timisoara SA (FC Timisoara) against a decision by the Union des Associations Européennes de Football (UEFA) regarding compliance with UEFA's Club Licensing and Financial Fair Play (CLFFP) Regulations, specifically the "three-year rule." This rule requires clubs to maintain consistent legal forms and membership for three consecutive years to ensure financial integrity and competition fairness. FC Timisoara, which finished second in the Romanian First League in the 2010/2011 season, sought participation in UEFA competitions but faced scrutiny due to a restructuring involving a new legal entity, BKP & Faber SA, created to handle liabilities and receivables. The Romanian Football Federation (RFF) deemed this an interruption of membership under the three-year rule but applied for an exemption, which UEFA conditionally granted on May 6, 2011. The conditions included financial reporting requirements and a compensation decision confirming the offsetting of VAT receivables against payables by March 31, 2011.
FC Timisoara appealed UEFA's decision to the Court of Arbitration for Sport (CAS) on June 14, 2011, arguing that Romanian law automatically extinguished its debts, making the compensation decision unnecessary. UEFA contested the appeal's admissibility, claiming it was filed outside the ten-day deadline stipulated in UEFA Statutes and the CAS Code. The CAS panel determined that Swiss procedural law governed the case, focusing on substantive receipt of the decision rather than formal notification. It found that FC Timisoara had received the decision by May 10, 2011, rendering the appeal late. The panel emphasized strict adherence to procedural timelines and dismissed the appeal as inadmissible, without addressing the merits.
The case highlights UEFA's efforts to enforce financial fair play by preventing clubs from manipulating legal structures to evade obligations. It also underscores the importance of procedural compliance in sports arbitration, as the CAS panel upheld the ten-day deadline without flexibility for extensions. Despite FC Timisoara's arguments, the panel concluded that the appeal was untimely and dismissed it, reinforcing the balance between regulatory enforcement and clubs' participation rights. The decision ultimately upheld UEFA's position, ensuring the integrity of the licensing system and financial stability in European football.